THEIS PRECISION STEEL INDIA PVT. LTD.versusREGIONAL PROVIDENT FUND COMMISSIONER II

     C/SCA/15462/2022                             ORDER DATED: 30/01/2026




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

             R/SPECIAL CIVIL APPLICATION NO. 15462 of 2022

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                THEIS PRECISION STEEL INDIA PVT. LTD.
                               Versus
              REGIONAL PROVIDENT FUND COMMISSIONER II
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Appearance:
MR AK CLERK(235) for the Petitioner(s) No. 1
MS E.SHAILAJA(2671) for the Respondent(s) No. 1
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 CORAM:HONOURABLE MR. JUSTICE HEMANT M.
       PRACHCHHAK

                            Date : 30/01/2026

                             ORAL ORDER


1.     Present petition is filed by the petitioner – Company under
Articles 226 & 227 of the Constitution of India read with the provisions
of the Employees Provident fund & Misc. Provisions Act, 1952
(hereinafter be referred to as “the Act”) against the orders dated
08.07.2022 passed under Section 14B of the Act and under Section
7Q of the Act.


2.     Learned counsel Mr. Clerk has submitted that the Delhi High
Court rendered the decision in case of M/s. Rajiv Gandhi Cancer
Institute and Research Centre vs. Regional Provident Fund
Commissioner, Delhi (North) referring to the decision of the
Hon’ble Apex Court rendered in case of Arcot Textiles Mills Ltd. vs.
Regional Provident Fund Commissioner & Ors., reported in
[2014] AIR SC 295 that under the provisions of Section 7Q read with
Section 14B of the Act challenging the order of computing interest
under Section 7Q and levying damages under Section 14B, both can
be challenged by way of preferring an appeal before the Appellate


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     C/SCA/15462/2022                                     ORDER DATED: 30/01/2026




Authority and accordingly, the petitioner has already preferred an
appeal, which is pending adjudication but, since the Appellate
Authority is not available, therefore, the appeal is not yet heard on
merits. Learned counsel Mr. Clerk has therefore, urged that the
present petition be disposed of with a direction to the Authority that
the appeal be heard on merits after giving proper opportunity to all
the concerned parties and after considering their contentions
available in the eye of law to be raised before the Authority and the
interim relief granted by this Court be continued, till the application
for interim relief is decided by the Authority.


3.     I have heard the learned counsel appearing for the respective
parties and perused the material placed on record. I have also gone
through the decision of the Delhi High Court in case of M/s. Rajiv
Gandhi Cancer Institute and Research Centre (Supra) referred
and relied upon by the learned counsel Mr. Clerk. The relevant
observations made in paras-2, 28 and 29 read as under :


       “2. In this writ petition, the challenge is to the impugned order dated 5 th
       April, 2021 by which an order under Section 7Q of the Employees' Provident
       Funds & Miscellaneous Provisions Act, 1952 (hereinafter, 'EPF Act')
       computing interest amount of Rs. 27,39,507/- is under challenge.

       28. Considering the fact that the initial imposition of interest under Section
       7Q was contained in the order passed under Section 7A and thereafter, in a
       common order which was passed on 9th February, 2021 holding the
       Establishment liable even under Section 14B, the mere fact that the
       computation was made in two separate orders would not render the orders
       independent. The Tribunal is already seized of the appeal qua the damages
       imposed under Section 14B. A common notice having been issued, a
       common inquiry having been conducted, proceedings having been held in a
       common manner and a common order dated 9 th February, 2021 having
       been passed, this Court is of the opinion that the Petitioner ought to
       challenge the order under Section 7Q before the Tribunal rather than by
       way of a writ petition before this Court. The order dated 9th February 2021
       along with the computation orders dated 5 th April, 2021 and 8th April, 2021
       are ‘composite orders' in terms of the binding precedent in Arcot Textiles
       Mills (supra). Accordingly, the Petitioner is directed to either file a fresh


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        C/SCA/15462/2022                                                        ORDER DATED: 30/01/2026




          appeal or to amend the existing appeal to add a challenge to the interest
          imposed under Section 7Q, which shall be considered by the Tribunal in
          accordance with law.

          29. Parties to appear before the CGIT on 20th September, 2021. The CGIT
          shall consider any prayer for interim relief in respect of the Section 7Q
          demand, on the said date. Until then, no coercive steps shall be taken
          against the Petitioner in respect of the interest amount imposed under
          Section 7Q of the EPF Act.”


4.        In view of above, the Appellate Authority is hereby directed to
decide the appeal on merits, after affording ample opportunity to all
the concerned parties and after considering their contentions, in
accordance with law. The interim relief, granted by this Court, shall
continue to operate till the application for interim relief is decided by
the Authority.


5.        The present petition is disposed of, accordingly. There shall be
no order as to costs.


                                                                   (HEMANT M. PRACHCHHAK,J)

Dolly




 Original copy of this order has been signed by the Hon'ble Judge.
 Digitally signed by: DOLLYBEN CHETANBHAI VADUKAR(HC01392), PRIVATE SECRETARY, at High Court of Gujarat on 30/01/2026 17:37:46


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