LexREGIONAL PROVIDENT FUND COMMISSIONER versus M/S K.T ROLLING MILLS PVT. LTD.
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REGIONAL PROVIDENT FUND COMMISSIONER v. MIS K. TROLLING MILLS PVT. LTD. NOVEMBER 22, 1994 (KULDIP SINGH AND B.L. HANSARIA, JJ.] Employees Provident Funds and Miscellaneous Provisions Act, 1952- Section 14-B- Default in depositing contribution-Delay of 12 years in initiating proceedings-Whether order levying damages merits to be struck down on ground of delay-Held, No. A B c The respondent has defaulted the contribution both of its own as well as of the employees in time. The default related to the period from July, 68 to 6ctober, 77, relating to which proceeding came to be initiated in 1985. The Commissioner after applying his mind to the period of delay as well as to the quantum, imposed damages. The High Court held that the delay in initiating proceedings was unreasonable D and set aside the order of the Commissioner. This appeal has been filed against the judgment of the High Court. Allowing the appeal, this Court HELD: 1.1 When a power is conferred by statute without E mentioning the period within which it could be invoked, the same has to be dorae within reasonable period, as all powers must be exercised reasonably, and exercise of the same within reasonable period would be a facet of reasonableness. (645 G) 1.2 In the instant case, though the general period of delay of 12 F years is quite long, unreasonably long, but if it is borne in mind that in view of large number of establishments in the State of Mahara.shtra, default at hand came to notice only in April, 1985, the killing effect of delay gets eroded. This Court does not, therefore, think if the order merits to be struck down on the ground of delay, when it is also kept in G mind that the delay in default related even to the contribution of the employees which money the respondent (after deducting the same from the wages of the employees) must have used for its own purpose and that too without paying any interest, at the cost of those for whose benefit it was meant. Any different stand would encourage the employers to thwart the object of the Act, which cannot be permitted. H 643 644 SUPREME COURT REPORTS [1994) SUPP. 5 S.C.R A However the respondent would not be called upon to pay any interest on the damages as fixed by the Commissioner, if it woul!i pay the entire amount within two months. On the failure of the respondent to so pay, it shall have to pay interest at the rate of 18% from the date of this judgment till full realisation. B Christian Medical College and Anr. v. Regional Provident Fund c Commissioner, (1989) Supp 2 SCC 95, distinguished. (646 C, D, G) Organo Chemical Industries v. Union Of India, (1980) 1 SCR 41, relied on. Regional Provident Fund Commissioner v. Sri Krishna Metal Manufacturing Company, (1962) Supp. 3 SCR 815 and Regional Provi- dent Fund Commissioner v. Shibu Metal Works, [1965) 2 SCR 72, referred to. CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1639of1994. D From the Judgment and Order dated 12.7.93 of the Bombay High E F G H Court A.No. 384/93 in W.P.No. 3271 of 1987. . J.D. Jain, S.A. Matto, C.V.S. Rao for Anil Katiyar for the Appellant. K.K Mohan and Pramod Dayal for the Respondents. The Judgment of the Court was delivered by HANSARIA, J. The Employees, Provident Funds and Miscellaneous Provisions Act, 1952, hereinafter the 'Act', was enacted to serve beneficent purpose and it does constitute a welfare measure, as it seeks to create a fund which could be drawn upon by certain categories of employees working in factories and some establishments to meet pressing demands so also to provide pension after the employees have ceased to be in service. So the Act has to be construed in such a way, ia1 case two views be possible, which advances the object. This has been the outlook of the court for over three decades by now, as the same was first focussed in Regional Provident Fund Commissioner v. Sri Krishna Metal Manufacturing Company, [1962] (Supp.) 3 SCR 815 and was reiterated in Regional Provident Fund Commissioner v. Shibu Metal Works, [1965] 2 SCR 72. 2. The purpose of the aforesaid prologue is to find out as to when power under Section 14-B of the Act should be allowed to be used and whether it would in consonance with the object sought to be achieved by P. F. COMMISSIONER v. ROLLING MILLS [HANSARIA, J.] 645 the Act if delay in invoking the power is allowed to stand in the way. As in A the present case we are concerned with the order of
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