THE HON’BLE SRI JUSTICE P.NAVEEN RAO WRIT PETITION No.23065 of 2014 Dated : 22.08.2014 Between:
M/s.Popular Shoe Mart India Private Limited, Vijayawada, rep. by its Managing Director, Ch.Amar Kumar, S/o Pichaiah, 57 yrs., R/o Sanyasiraju street, Gandhi Nagar, Vijayawada, Krishna District.
.. Petitioner And The Employees Provident Fund Organisation, Rep. by its Regional Provident Fund- Commissioner-II (C&R) 3rd lane, Krishna Nagar, Guntur, Guntur District and another .. Respondents This Court made the following :
THE HON’BLE SRI JUSTICE P.NAVEEN RAO WRIT PETITION No.23065 of 2014 ORDER :
The petitioner is a private limited company. The petitioner has large work force to undertake the company operations in addition to the manufacturing activity. The petitioner claimed to have engaged franchisees to sell its products. The franchisees are regulated by separate agreements entered into by the petitioner. The franchisees engage their employees, who undertake the business in accordance with the franchisee agreement.
2. The 2nd respondent-Provident Fund Authority issued a notice dated 14.10.2013 setting in motion proceedings under Section 7A of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (for short ‘the Act’) demanding payment of arrears of contribution for the employees engaged by the franchisees treating the petitioner as a principal employer. There has been continuous correspondence between the 2nd respondent and the petitioner. The petitioner requested time for obtaining necessary information from the franchisees to substantiate its stand that each franchisee is an independent employer and responsible for payment of contributions under the Act. Since the petitioner could not get the information required by him to defend effectively before 2nd respondent, petitioner was seeking more time.
2. On 28.07.2014, a request was made to 2nd respondent to grant some more time to engage a lawyer as the liability assessed by the 2nd respondent would result in huge commitment of more than Rs.2.00 crores. Rejecting the said request, the 2nd respondent reserved the matter for passing orders to fix liability for payment of contribution under Section 7A of the Act. On 07.08.2014, the petitioner filed a petition requesting the 2nd respondent to re-open the enquiry and afford one more opportunity of hearing and then pass appropriate orders. As the request of the petitioner was not considered by 2nd respondent and on the contrary apprehending that 2nd respondent is about to pass orders fixing the liability, this writ petition is instituted.
3. Sri R.N.Reddy, learned Standing Counsel for the respondents submits that prior to 28.07.2014, as many as 23 adjournments were granted and since the 2nd respondent found that the petitioner was not co-operating in settlement of the issue regarding payment of contributions, it was compelled to reject request for further adjournment and reserved the matter for orders. He also fairly submits that if the petitioner comes forward with all the necessary material, the 2nd respondent is willing to provide opportunity of hearing to the petitioner and suggested that 1st September is convenient for the 2nd respondent to hold such an enquiry.
4. Learned counsel for the petitioner fairly accepts the suggestion given by the learned Standing Counsel.
5. Having regard to the submissions made by both the learned counsel, the Writ Petition is disposed of giving liberty to the petitioner to engage counsel to represent on its behalf before the 2nd respondent and to appear in the chambers of 2nd respondent at 11 am on 01.09.2014 with all the relevant material in support of its contentions. The 2nd respondent after affording reasonable opportunity of presenting all the relevant documents on behalf of the petitioner through a counsel, shall pass appropriate orders as warranted by law. If the petitioner fails to appear on that day, the respondent authority is at liberty to pass appropriate orders based on the material available before it. No costs.
Consequently, Miscellaneous Petitions, if any, pending in this writ petition shall stand closed.
P.NAVEEN RAO, J Date : 22.08.2014 Note : Issue C.C. in three days.
(B/o) ssp