2026 LLR 210
KERALA HIGH COURT
Hon'ble Mr. Gopinath P., J.
WP (C) No. 45483/2025, Dt/– 11-12-2025
M/s. Kerala Electrical & Allied Engineering Company Ltd.
v.
The Employees' Provident Fund Organisation and Ors.
EMPLOYEES PROVIDENT FUND – A show cause notice along with EO's report were issued to the petitioner for remittance of PF dues – Amounts were demanded from the petitioner on the basis of the computation submitted by the Enforcement Officer – Demand notice was issued against the petitioner without conducting any enquiry under section 7A of the EPF Act – However, statutory enquiry under section 7A has been fixed – Held, no recovery proceedings shall be taken pursuant to the demand notice – Further recovery proceedings shall only be taken after the enquiry under section 7A is completed by the competent authority – Writ petition is disposed of. Paras 2 and 3
For Petitioner: Mr. Abel Tom Benny, Mr. D. Prem Kamath, Mr. Tom Thomas (Kakkuzhiyil), Mr. Aaron Zacharias Benny, Mr. V.G. Sankaran, Mr. Mathew Angelo Davis, Mr. Clint Jude Lewis and Mrs. Ananditha Rajeev, Advocates.
For Respondents: Mr. Thomas Mathew Nellimoottil, SC.
IMPORTANT POINTS
Note: This judgment is still relevant as it enumerates general principles pertaining to provident fund related law.
JUDGMENT
Gopinath P., J.–1. The petitioner is a public sector undertaking. According to the petitioner, Ext.P4 demand notice has been issued to the petitioner under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as the ‘1952 Act'), without conducting any enquiry as contemplated by the provisions of section 7A of the 1952 Act.
2. A statement has been filed on behalf of the respondents where it is admitted that no 7A enquiry has been conducted. It is further stated that the amounts in Ext.P4 were demanded on the basis of computation submitted by the Enforcement Officer. It is submitted that based on the report of the Enforcement Officer, a show cause notice dated 14-11-2025 along with the report of the Enforcement Officer dated 14-10-2025 was issued to the petitioner for remittance of the dues. It is submitted that a statutory enquiry under section 7A of the 1952 Act has been fixed on 07-01-2026.
3. Having heard the learned counsel appearing for the petitioner and the learned Standing Counsel appearing for the respondents, and taking into consideration the fact that a section 7A enquiry has been initiated and the same is posted on 07-01-2026, this writ petition will stand disposed of, directing that no recovery proceedings shall be taken pursuant to Ext.P4 and that further recovery proceedings shall be taken only after the enquiry under section 7A of the 1952 Act is completed by the competent authority.
The writ petition is disposed of as above.