update

Key Judgments on Employees' Provident Fund 

(EPF) – September 2024

1. Constitutionality of Section 14B

   • Calcutta High Court: Upheld the constitutionality of Section 14B of the EPF Act, affirming it does not breach Article 14 of the Constitution.

2. PF Code Allocation

   • Patna High Court: PF Code cannot be assigned based solely on inspection reports.

3. Start-Up Inspection Exemption

   • Bombay High Court: Start-ups are exempt from EPF Act inspections in their first year.

4. APFC Appeal Limitations

   • Himachal Pradesh High Court: APFC cannot challenge CGIT orders in the High Court.

5. Coercive Action Stays

   • Punjab & Haryana High Court: CGIT's orders to stay coercive actions during appeals are not challengeable in High Court.

6. Employer Prosecution

   • Bombay High Court: Employers cannot be prosecuted without evidence of their knowledge of PF misappropriation.

7. Retention of Section 7-O Deposits

   • Patna High Court: EPF authorities cannot unjustly retain or earn interest on Section 7-O amounts for ten years.

8. Exemption for Religious Institutions

   • Telangana High Court: Institutions run by religious or charitable trusts are exempt from the EPF Act.

9. Validity of EO's Report

   • Kerala High Court: EO’s report must align with the establishment’s employee register to be valid.

10. Bank Account Attachment

    • Telangana High Court: Employers can request a stay on bank account attachments before the CGIT during appeals.

11. Waiving Damages

    • Madras High Court: Ignorance of the law does not justify waiving damages for late EPF dues.

12. Interference with Arrest Warrants

    • Delhi High Court: The High Court cannot interfere with arrest warrants if the employer fails to respond to show cause notices.

13. Admissibility of Inspection Reports

    • Patna High Court: EO’s inspection reports are inadmissible without full employee details.

14. Coverage of Educational Institutions

    • Madras High Court: Educational institutions are covered under the EPF Act.

15. Disclosure of Documents

    • Delhi High Court: EPF authorities must provide employers with all relevant documents they rely on.

16. Pre-Deposit Hardship

    • Punjab & Haryana High Court: Hardship alone does not warrant a waiver of pre-deposit requirements.

17. Installment Payments

    • Madras High Court: Employers should seek installment payment arrangements from EPF authorities, not the High Court.

18. Labour Ministry Authority

    • Calcutta High Court: The Labour Ministry cannot void EPF Act proceedings.