B.Panigrahi, J. - (1.) This writ petition has challenged the validity, legality and the propriety of the arrest effected by the Respondent No. 2, the Recovery Officer, in a proceeding initiated under section 8C of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (hereinafter be said as the said Act).
(2.) The petitioner has, inter alia, claimed to have been appointed as paid Director in M/s. Loomtex Engineering (P) Ltd., sometimes in the month of July, 1997 registered under the Companies Act, 1956 having its registered office at 16, Bonfield Lane, 3rd floor, Calcutta-1. The Loomtex Company had taken the Caladonia Jute Mills, on licence, of Chittragunj pursuant to the order of this Court dated 21st November, 1997. It has been claimed by the petitioner that he had never any control over the affairs of the Loomtex Company and was merely a name lender to act as a Director of the said Company. Undisputedly the M/s. Loomtex Engineering (P) Ltd. has committed default in payment of provident fund dues. But the petitioner having no ultimate control over the affairs of the said Company, therefore, the Provident Fund authorities could not/cannot proceed to recover the provident fund dues from the petitioner pursuant to a proceeding for recovery of the provident fund dues to the tune of Rs. 1,36,45,860/-. The Recovery Officer passed an order of attachment on movables lying in the godown of the said Company on 14.1.1999 and kept the attached movables under the jimma of the Chief Security Officer, Mr. Trivedi. A sale/proclamation notice was issued by the Recovery Officer to show cause as to why the finished goods lying inside the godown which was attached before should not be put to sale. In the meanwhile from the report of the said Recovery Officer it has appeared that at present only worth of Rs. 60,000/- finished products are lying inside the godown and the rest of the materials have been stolen from the campus.
(3.) In the meanwhile the Recovery Officer, the Respondent No. 2, directed the petitioner to be arrested for the recovery of the provident fund dues to the tune of Rs. 1,36,45,860/- under section 8B of the said Act. After the petitioner was taken into custody, this application has been filed for appropriate direction to the Respondent No. 2 for the release of the writ petitioner.;