Judgments on Employees' Provident Fund Supreme Court & High Court Rulings

 

Madras High Court
1.    Mens Rea Consideration: Mens rea is a relevant factor as a mitigating circumstance while determining the quantum of damages.
2.    Suo Motu Review by EPF Authority: The EPF authority can take suo motu review of its own orders separately from the review filed by management.
3.    Priority of PF Authorities over Banks: PF authorities hold priority over property over banks.
4.    Property Sale Despite Pending Interest Determination: Property can be sold even if interest and penal damages are not determined.
5.    Reduction of Damages for Sick Units: If an establishment is declared a sick unit and its assets are sold, the reduction of damages is justified.
6.    High Court’s Limitation on Inquiry: The High Court cannot interdict an inquiry pending under Section 7B of the EPF Act.

Gujarat High Court
7.    Documents Submission Before Tribunal: Documents not produced before the EPF Authority can still be presented before the Tribunal.

Chhattisgarh High Court
8.    Illegality of 7A Proceedings Without Documents: Initiating 7A proceedings solely based on the Enforcement Officer’s report, without supplying relevant documents, is illegal.
9.    Right to Hearing Before Filing Reports: The Enforcement Officer cannot file a subsequent report without giving an opportunity for a hearing.

Kerala High Court
10.    Salary Arrears and PF Deduction: Salary arrears will attract provident fund deduction.
11.    PF Payable on Allowances: PF contributions are payable on Conveyance and Special Allowances if they are uniformly and generally paid to all employees.

Bombay High Court
12.    Interest on Deposited Amounts: If the amount is deposited with CGIT, interest will continue to accrue against the employer.

Calcutta High Court
13.    Mandatory Hearing Before Imposing Interest: Providing an opportunity for a hearing is mandatory when belated contributions are due to a genuine mistake.
14.    No Additional Claims During Fund Winding Up: Employees cannot claim extra amounts if their share was distributed during the winding-up of the provident fund.

Punjab & Haryana High Court
15.    No Reopening of Decided Cases: PF authorities cannot initiate new proceedings for the same period on issues that have already been decided.

Telangana High Court
16.    Consultants as Employees Under EPF Act: Consultants appointed on a fixed monthly payment qualify as employees under the EPF Act.

Orissa High Court
17.    PF Number Not a Condition for Pension: An employee cannot be denied a pension merely because a PF number was not allotted to him.