The petitioner, a Co-operative Society registered under the Kerala Co-operative Societies Act, 1969 seeks a facility to pay the Provident Fund contribution payable in respect of the 5th respondent to the first respondent in instalments. The 5th respondent is an employee of the Bank. He has retired from service on 28.2.2006. The contribution in respect of the said employee to the first respondent for the purpose of paying his pensionary benefits is remaining in arrears.
2. The counsel for the petitioner seeks a facility to pay off the entire amount in instalments and also offers to pay interest at the rate of 24% per annum on the defaulted amount.
3. The plea for the grant of instalments is opposed by Advocate K.R.Sunil, who appears for the first W.P.(C) No.14015 of 2014 -: 2 :-
respondent. The counsel points out that the amount ought to have been paid at the appropriate time and therefore, the granting of any further time would cause serious prejudice to the first respondent and the Pension Fund.
4. Since the petitioner is willing to pay interest on the defaulted amount at the rate of 24% per annum, I am of the view that the petitioner can be granted permission to pay the outstanding amount in four equal monthly instalments. The above direction is granted only as a relief to the petitioner considering its stringent financial condition. Therefore, the same is not to be treated as a precedent for any purpose.
This Writ Petition is therefore, disposed of directing the petitioner to pay the entire outstanding amount of contribution payable to the first respondent with interest thereon at the rate of 24% per annum, in four equal monthly instalments. The first instalment shall be paid on or before 5.7.2014. The subsequent instalments shall be paid on or before the 5th working day of each succeeding month thereafter. The payments due to the 5th respondent W.P.(C) No.14015 of 2014 -: 3 :-
shall be made with interest thereon at the rate of 12% per annum considering the fact that the petitioner is paying interest at the rate of 24% per annum. In order to facilitate the petitioner to pay the amount in instalments, all coercive steps to recover the amount shall be kept in abeyance. It is made clear that in the event of default in payment of any of the instalments, the first respondent shall be at liberty to recover the entire amount in a lump, in accordance with law.
K. SURENDRA MOHAN, JUDGE.
Jvt