Patna High Court
M/s Moti Singh Jogeshwari Ayurved College and Hospital ChapraversusThe Union of India
- Decided
- Disposal
- DISPOSED
- Bench
- A ABHISHEK REDDY
Holding
The court set aside the ex parte orders dated 18.10.2024 under Sections 14B and 7Q of the EPF Act as illegal and arbitrary, and remanded the matter to the authority for a fresh hearing.
Summary
M/s Moti Singh Jogeshwari Ayurved College and Hospital filed a writ petition challenging ex parte orders of the Regional Provident Fund Commissioner that imposed damages of Rs.19,29,788 under Section 14B and interest of Rs.13,77,716 under Section 7Q of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The petitioner alleged that the orders were passed without any hearing, that the EPF code was not activated despite repeated requests, and that the authorities violated principles of natural justice and Articles 14 and 19 of the Constitution. The High Court examined whether the authority had complied with procedural fairness and had jurisdiction to levy the penalties. It held that the orders were illegal, arbitrary and violative of natural justice, and therefore set them aside. The matter was remanded to the EPF authority to give the petitioner an opportunity of hearing, and the court directed the petitioner to deposit half of the total assessed amount, taking into account the amount already paid. The petition was consequently disposed of.
Issues considered
- Whether the ex parte orders under Sections 14B and 7Q of the EPF Act were passed in violation of the principles of natural justice.
- Whether the EPF authority had jurisdiction to impose damages and interest without affording a hearing to the petitioner.
- Whether the orders are arbitrary and violative of Articles 14 and 19 of the Constitution of India.
- Whether the petitioner is entitled to have the impugned orders set aside and the matter remanded for fresh consideration.
Legislation cited
Subjects
- Employees' Provident Fund
- Section 14B
- Section 7Q
- natural justice
- ex parte order
- writ of certiorari
- Article 14
- Article 19
- penalty
- constitutional law
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.2625 of 2026
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M/s Moti Singh Jogeshwari Ayurved College and Hospital Chapra through its
Secretary namely Ramakant Singh Solanki, aged about 65 years, Son of Late
Jai Narayan Singh Solanki, having its office at Moti Nagar, Bara Telpa,
Chapra (Bihar)- 841301.
... ... Petitioner/s
Versus
1. The Union of India through Secretary, Ministry of Labor and Employment,
Shram Shakti Bhawan, Rafi Marg, New Delhi- 110001.
2. The Regional Provident Fund Commissioner, Employees Provident Fund
Organization, Regional Office, Muzaffarpur, BSNL Complex,
Companybagh, Muzaffarpur, Bihar - 842001.
3. The Enforcement Officer, Employees Provident Fund Organization,
Regional Office, Muzaffarpur, BSNL Complex, Company Bagh,
Muzaffarpur, Bihar- 842001.
4. The Recovery Officer, Employees Provident Fund Organisation, Regional
Office, Muzaffarpur, BSNL Complex, Companybagh, Muzaffarpur, Bihar-
842001.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr.Rananjay Kumar
For the Respondent/s : Mr.Additional Solicitor General
======================================================
CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL ORDER
4 24-04-2026 Heard the learned counsel for the parties.
2. The present writ petition has been filed for the
following relief (s) :-
(I) For issuance of appropriate writ or
writs in the nature of certiorari quashing ex parte
and illegal order U/s. 14B of the Employees
Provident Funds and Miscellaneous Provisions
Act. 1952, passed vide 148 Memo No. dated
BR/RO/MUZ/ENF/14B/BRMUZ0020390000/orde
r, dated 18.10.2024, by the Regional P.F.
Commissioner -II/OIC, Regional Office,
Muzaffarpur, whereby and whereunder the office
Patna High Court CWJC No.2625 of 2026(4) dt.24-04-2026
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of Employees Provident Fund Organization has
imposed the amount of damages on this petitioner
against provident fund contributions assessed as
Rs. 19,29,788/- (Rupees nineteen lakh twenty nine
thousand seven hundred eighty eight only),
without consideration of relevant facts and also
that the EPF Code so allotted to petitioner was
not activated by EPF office in spite of repeated
request made by petitioner institution.
(II) For issuance of appropriate writ or
writs in the nature of certiorari quashing the ex
parte Demand Notice U/s 7Q (interest) of the
Employees Provident Funds and Miscellaneous
Provisions 1952 issued vide Memo Act.
BR/RO/MUZ/ENF/7Q/BRMUZ0020390000/770,
No. dated 18.10.2024, under the signature of
Regional P.F. Commissioner-II/OIC, Regional
Office, Muzaffarpur whereby and whereunder it
was directed to deposit the quantified balance
interest payable under to the tune of Rs.
13,77,716/- (Rupees thirteen lakh seventy seven
thousand seven hundred sixteen only) which is
quite arbitrary, illegal and without compliance of
the principles of natural justice and the facts and
circumstances prevailing in the petitioner's case.
(III) For issuance of appropriate writ
or writs in the nature of certiorari to quash the
unilateral and ex parte notice vide Letter
BRMU20020340000/RRC No.1302/2025-26
dated 02.02.2025, whereby and whereunder the
above-said amount (under Section 14B and
Section 7Q of EPF Act) which is in total Rs. 33,
07,504/- (Thirty three lakh seven thousand five
hundred four only) have been demanded by the
Recovery Officer EPFO, Muzaffarpur on basis of
communication made by the Authorized Officer,
Regional Office, Muzaffarpur which has been
processed and initiated against the petitioner
institution without taking into consideration its
Patna High Court CWJC No.2625 of 2026(4) dt.24-04-2026
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objections and without complying principles of
natural justice.
(IV) For issuance of the consequential
appropriate writ or writs in the nature of
mandamus commanding and directing the
respondent Provident Fund Organization Office
to consider the Objection and to comply the
principles of fairness and of natural justice and to
waive the above-said fines/penalties with interest
u/s. 14B/7Q of EPF Act, imposed ex parte and
unilaterally, upon the petitioner institution,
without hearing the objections and the defense on
behalf of the petitioner and without consideration
of the material facts and that the order is not
legal and valid and rather it violates Article 14
and 19 of the Constitution of India and it is
arbitrary and the concerned authority has failed
to comply proper procedure.
(V) For issuance of further
writ/writs/orders/direction holding the entire
decision of the Respondents as illegal, arbitrary,
inoperative and without jurisdiction in the eyes of
law.
(VI) For any other relief/reliefs to
which the petitioner is found entitled to in the
facts and circumstances of the case.
3. Learned counsel appearing on behalf of the
petitioner submits that respondent authorities without providing
an opportunity to the petitioner and without petitioner being
present on the date of hearing has passed the impugned orders
dated 18.10.2024 under Sections 14B and 7Q of the Employees’
Provident Funds and Miscellaneous Provision Act 1952
(Annexures P/7 and P/8). Learned counsel has drawn the
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attention of this Court to the relevant portion of page 2 of the
order dated 18.10.2024, which reads as under:-
“I have considered the case of the
establishment in the light of the submissions
advanced on their behalf.”
4. Learned counsel also submits that the petitioner
has not appeared before the authority on the said date or prior
date of passing of the order, however, the authority has recorded
the presence of the petitioner, which clearly demonstrate the
non-application of mind. Further learned counsel has also drawn
drawn the attention of this Court to para 19 of the writ petition,
which reads as under :-
“19. That it is stated that the Respondent
Provident Fund Organization and
concerned officers have not considered
the facts and circumstances in proper
perspective and without following the
principles of natural justice and without
ensuring the presence and representation
of Petitioner Institution in the action so
taken for damages and penalty and
without having received any objections on
its behalf, they have proceeded with
imposition of heavy damages and penalty
and the whole process has become a
paper work as it is without giving effective
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hearing to the petitioner institution, and
the impugned orders are bad in law.”
5. Further it is stated that pursuant to the orders dated
18.10.2024 passed by the authority under Sections 14 B and 7 Q
Employees’ Provident Funds and Miscellaneous Provision Act
1952, the liability fixed by the authority is Rs.19,29,788/- and
Rs.13,77,716/- (Total Rs.33,07,504/-) on the petitioner. Learned
counsel submits that out of the said amount, the petitioner has
already paid approximately Rs.12,50,000/- and prayer for
setting aside the impugned orders dated 18.10.2024 and remand
the matter back to the authority concerned for giving the
petitioner an opportunity of hearing and thereafter pass a
reasoned order.
6. In the counter affidavit filed by the Respondent
Nos. 2 to 4, the above averment made at para 19 of the C.W.J.C.
has not been denied.
7. Having regard to the above-mentioned facts and
circumstances, both the impugned orders dated 18.10.2024
passed under Section 14B and 7Q are set aside. The matter is
remanded back to the authority concerned for passing orders
afresh. The authority shall put the petitioner on notice and give
him an opportunity of hearing and also file his objections if any.
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In order to balance the equities, this Court deems it fit to direct
the petitioner to deposit half of the total assessed amount under
Section 14B and 7Q, i.e., Rs.33,07,504/- within a period of two
weeks from the date of the receipt of the copy of this order. The
earlier amount of Rs.12,50,000/- deposited by the petitioner
shall be taken into consideration while depositing the amount
directed to be deposited.
8. With the above directions, this present writ petition
stands disposed of.
(A. Abhishek Reddy , J)
Sanjeev/-
U
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