SHINGAR LIMITEDversusEMPLOYEE PROVIDENT FUND ORGANIZATION
- Disposal
- 56-DISPOSED AT ADMISSION STAGE
- Bench
- HEMANT M PRACHCHHAK
Holding
The Court stayed the EPFO's coercive steps and granted interim relief until the CGIT hears the petitioner's application under Section 7(o).
Summary
Shingar Limited filed a petition under Article 226 of the Constitution seeking a stay of recovery proceedings initiated by the Employee Provident Fund Organization (EPFO) following a Section 7A order dated 16‑01‑2026. The petition argued that the appeal against that order is pending before the Central Government Industrial Tribunal (CGIT), but the presiding officer is unavailable, leaving the application under Section 7(o) for waiving the pre‑deposit undecided. The petitioner claimed that, without a stay, coercive steps would be taken within 15 days, causing hardship. The respondent contended that no relief could be granted without the required deposit and that the tribunal could not act in the absence of such deposit. Relying on a prior decision (SCA No. 6511 of 2022), the Court granted interim relief, directing the EPFO not to take any coercive steps until the tribunal hears the Section 7(o) application, and disposed of the petition accordingly.
Issues considered
- Whether the High Court can stay EPFO's recovery proceedings pending the decision of the CGIT when the tribunal's presiding officer is unavailable.
- Whether interim relief can be granted under Article 226 without the petitioner depositing the amount required under Section 7(o).
- Interpretation of Section 7A and Section 7(o) of the Employees' Provident Funds Act in the context of appeal and pre‑deposit requirements.
Legislation cited
- Constitution of Indias. Article 226
- Employees' Provident Funds Act, 1952s. 7A, s. 7(o)
Subjects
Judgment
C/SCA/2719/2026 ORDER DATED: 27/02/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 2719 of 2026
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SHINGAR LIMITED
Versus
EMPLOYEE PROVIDENT FUND ORGANIZATION
================================================================
Appearance:
MR HEM R DAVE(11961) for the Petitioner(s) No. 1
MR AV NAIR(5602) for the Respondent(s) No. 1
================================================================
CORAM:HONOURABLE MR. JUSTICE HEMANT M.
PRACHCHHAK
Date : 27/02/2026
ORAL ORDER
1. The present petition is led under Article 226 of the Constitution
of India by the petitioner praying to declare the action of the
respondent in initiating recovery proceedings against the petitioner in
pursuance to section 7A order dated 16.01.2026 though appeal
against said orders are pending before the learned C.G.I.T and
presiding o!cer of learned C.G.I.T is not available at present and in
absence of presiding o!cer of learned C.G.I.T, the application which is
preferred under section 7(o) for waiving the pre-deposit would remain
undecided.
2. Learned advocate Mr.H.R.Dave submits that if this order is not
stayed then on completion of 15 days from the date of issuance of the
order, recovery proceedings would be initiated and coercive steps
against the present petitioner would likely to be taken. Learned
advocate Mr.Dave submits that it may cause hardship to the present
petitioner.
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C/SCA/2719/2026 ORDER DATED: 27/02/2026
3. On the other hand, this petition is opposed by learned advocate
Mr. A.V. Nair, who appeared on advance copy being served, on behalf
of the respondent. Learned advocate Mr. Nair submits that as per his
instructions the presiding o!cer of Jaipur Branch has been given the
charge and he is visiting twice in a month and the next proposed date
of visit of presiding o!cer is between 9 – 12 March, 2026. Learned
advocate Mr. Nair submits that he is required to show some bona de
by depositing the amount which is required for ling the appeal before
the learned tribunal. Learned advocate Mr. Nair submits that in
absence of any deposit no relief can be granted to the present
petitioner as learned tribunal would also be not in possession in
absence of deposits except coming to the conclusion that application
under section 7(o) is required to be granted. In view of the above,
learned advocate prays to dismiss this petition.
4. Considering the submission made by learned advocate Mr.Dave
and the decision in SCA No.6511 of 2022, relied by the learned
advocate for the petitioner wherein, in the similar situation this Court
has disposed of the matter by protecting the petitioner from coercive
steps till the decision of the appeal. In view of the above, this petition
is allowed with following directions: (a) The petition is disposed of in
view of non availability of the Central Government Industrial Tribunal,
Ahmedabad, wherein the appeal is led by the petitioner. (b) It is
clari ed that till the application under section 7(o) of the petitioner is
heard on merits, the respondents are directed not to take coercive
steps against the petitioner. It is further clari ed that this court has
not examined the matter on merits and since the Appellate Tribunal is
not available on regular basis, the matter is disposed of in the
aforesaid terms. (c) It is clari ed that the interim relief restraining the
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C/SCA/2719/2026 ORDER DATED: 27/02/2026
respondents from taking coercive steps will operate till the Tribunal
hears the application under section 7(o). The petition is disposed of,
accordingly.
5. Direct service is permitted.
(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 27/02/2026 17:03:12
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