EPFO cannot claim damages for delayed payment' (08-Nov-10)
The Madras High Court bench here has ruled that the Employees Provident Fund Organisation (EPFO) cannot claim damages from employers for delayed payment of their contribution "if there is no intention to commit a prohibited act or actus reus" (action or conduct that is a constituent element of a crime) behind the delay.
The ruling was given by Justices R Banumathi and S Nagamuthu while dismissing a writ appeal filed by Regional Provident Fund Commissioner-II, EPFO, against a chit fund company, which paid its contribution belatedly owing to an interim stay granted by the court.
The damages sought by the EPFO under Section 14-B of EPF and Miscellaneous Provisions Act were to penalise the employer as well as compensate the loss sustained by employees on account of default in remittance of the money. "But, in this case, the employer could not pay the contribution because of the act of the employees approached the High Court and got the order of interim stay. Thus, the loss, if any, sustained by the employees, is attributable to their own act and they are not entitled to damages," the bench said
No comments:
Post a Comment