- (1.) The case in hand is one in which serious infirmities in the procedure adopted by the Employees Provident Fund Appellate Tribunal (for short, the Tribunal') have been brought to the notice of this Court. Earlier also, the issue was considered in C.W.P. No. 17157 of 2010--M/s. Mahindra and Mahindra Ltd. v. The Employees Provident Fund Appellate Tribunal and another, decided on 24.7.2012. The petitioners herein have approached this Court challenging the order dated 14.12.2010, passed by the Tribunal in Appeal No. 86/11 of 2007. Briefly, the pleaded facts are that vide order dated 16.1.2007, assessment of damages under, section 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (for short, 'the Act') for the period from August, 1986 to March, 2001 was made. The order was impugned by the petitioners before the Tribunal by filing the appeal. The appeal having been rejected vide impugned order, the petitioners are before this Court.
(2.) Learned Counsel for the petitioners primarily submitted that the Tribunal has principal seat at New Delhi. No doubt, it can hold Court at camp office at different places in the country. The case of the petitioners was taken up at Camp Office, Amritsar on 14.12.2010, but qua the same no notice was served upon the petitioners or their Counsel, on account of which they were unable to put in appearance and the appeal was dismissed. In the absence of notice, decision of the appeal ex-parte, which was filed way back in the year 2007, while taking up the same at Camp Office at Amritsar in 2010, has prejudiced the petitioners. They came to know about the impugned order only when a notice dated 18.1.2011 to show cause as to why arrest warrants be not issued, was received from the Recovery Officer, Immediately steps were taken and the petitioners approached this Court. He further submitted that in case an opportunity is granted, the petitioners will present their case before the Tribunal. The damages in the present case have been levied for the period from August, 1986 to March, 2001, for which even notice was issued for the first time on 14.12.2006 after huge delay. Due to huge losses suffered, the petitioner-company had approached Board for Industrial and Financial Reconstruction (for short, ' the BIFR') under the Companies Act, 1956 for rehabilitation. While rejecting the plea, BIFR recommended for winding up of the company to this Court. Vide order dated 1.2.2001 passed in CP No. 17 of 2001, this Court directed winding up of the petitioner-company and the official liquidator was ordered to take over the management and the assets.
(3.) Thereafter, the management filed C. P. No. 47 of 2001, titled as Shri Piara Singh and another v. Auto Piston Mfg. Co. (P) Ltd., and others, before this Court for revival of the company. The dues of the secure creditors were settled. The banks were paid in terms of full and final settlement. On 27.4.2006, a sum of Rs. 94,33,759/- was even paid to the provident fund organisation. On 16.1.2007, the Assistant Provident Fund Commissioner (for short, 'the Commissioner') passed order against the petitioner raising a demand of Rs. 78,13,433/- on account of interest and damages. Simultaneously on the same date, another demand of Rs. 2,06,39,633/- was raised on account of interest and damages. The petitioner company preferred appeal against the aforesaid order before the Tribunal. Vide, order dated 27.6.2007, the Tribunal stayed the operation of the impugned order passed by the Commissioner subject to deposit of Rs. 50,00,000/-. The appeal thereafter came up for hearing on 31.8.2010. As both the parties did not have notice of hearing, none appeared on that date. As the building in which the office of the Tribunal was situated, caught fire on 31.8.2010, the case was adjourned to 18.11.2010. Even though the case was to be listed on 18.11.2010 but still on 12.11.2010, it was directed to be listed on 14.12.2010 at Camp office, Amritsar. The notice allegedly issued for the aforesaid date vas not served upon the petitioner-company. The appeal was decided ex-parte on 14.12.2010.;