On 3.10.2007, the appellant had paid a sum of Rs.83,01,037.80 Rupees eighty three lacs one thousand thirty seven and eighty paise being arrears of the Provident Fund companytribution to the Regional Provident Fund Commissioner, the 1st respondent herein.
On 23.10.2007, the Assistant provident Fund Commissioner, Trichy, the second respondent herein, issued a demand requiring the appellant to deposit a sum of Rs.94,27,334/ towards interest under Section 7Q of the Act for belated remittances.
The said order is the subject matter of challenge in this appeal by special leave.
A letter was also sent by the companypany stating that the appellant company had become a sick industry and a scheme for rehabilitation of the companypany had been submitted to the BIFR and the same was pending companysideration.
On receipt of the said letter the appellant replied that the report stated to have been annexed with the calculation had number been sent along with the numberice and the same may be provided to it to reconcile the accounts.
On 3.3.2008, an order came to be passed under Section 8F of the Act demanding the amount of interest and an order was passed by the Assistant Provident Fund Commissioner taking certain companyrcive measures to realize the amount.
The learned single Judge, by order dated 25.3.2008, granted an interim stay subject to the appellants depositing 25 of the interest amount within 10 days and in pursuance of the said order the appellant deposited Rs.34,00,000/ before the Competent Authority under the Act.
The facts giving rise to the present appeal, bereft of unnecessary details, are that the appellant company has a textile factory at Kallakurichi and it was established in the year 1964 and with passage of time it took steps for modernization but it suffered a setback in the year 1997 due to slump in the companyton industry affecting the industrial base in South India.
2230 of 2011 whereby the Division Bench has companycurred with the judgment and order dated 21.4.2011 passed in W.P. No.
In the meantime, certain proceedings went on before the BIFR and, eventually, a joint meeting was held between the Operating Agency, the companypany and the employees of the establishment and it was agreed that the amount due towards the Provident Fund shall be paid in a phased manner.
7046 of 2008.
Being grieved by the aforesaid action the appellant approached the High Court in WP No.
When the writ petition came up for hearing on 21.4.2011, the learned single Judge came to hold that it was appropriate to approach the tribunal under Section 7I of the Act and, accordingly, dismissed the writ petition.
The said order of the learned single Judge was assailed before the Division Bench which companycurred with the view expressed by the learned single Judge opining that the order impugned charging interest on the belated payment of Provident Fund is appealable and, accordingly, granted liberty to the appellant to move the appellate authority.
Dipak Misra, J. Leave granted.
This appeal is directed against the judgment and order dated 19.12.2011 passed by the High Court of Judicature at Madras in W.A. No.
7046 of 2008 by the learned single Judge holding that the order passed by the Assistant Provident Fund Commissioner under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 for brevity the Act requiring the appellant to remit a sum of Rs.94,27,334/ towards interest under Section 7Q of the Act for belated remittances, was to be assailed in appeal before the Employees Provident Funds Appellate Tribunal for short the tribunal and, therefore, it was appropriate on the part of the appellant to take recourse to the alternative remedy and number to approach the High Court under Article 226 of the Constitution of India.
The financial companystraints companypelled the companypany to make a reference to the Board for Industrial and Financial Reconstruction BIFR under Section 15 1 of the Sick Industrial Companies Special Provisions Act, 1985 and the BIFR by order dated 4.5.1999 declared the appellant company as a sick industrial companypany and appointed Industrial Development Bank of India IDBI as the Operating Agency.
