Karnataka

StateCommission

A/1123/2018

The Regional Provident Fund Commissioner - Complainant(s)

Versus

Joyappa.M.K. - Opp.Party(s)

Pradeep

03 Nov 2023

ORDER

                                                                     Date of Filing:24.07.2018

  Date of Disposal : 03.11.2023

 

BEFORE THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)

 

DATED:03.11.2023

 

PRESENT

 

HON’BLE Mr JUSTICE HULUVADI G RAMESH : PRESIDENT

 

Mr K B SANGANNANAVAR: JUDICIAL MEMBER

 

Mrs DIVYASHREE M:LADY MEMBER

 

 

APPEAL No.1123/2018

 

 

 

 

The Regional Provident Fund Commissioner

Sub-Regional Office

Bhavishya Nidhi Bhavan

2^nd Stage, Gayathri Puram

Mysuru - 570 019                                                                 Appellant

(By Mr M Pradeep, Advocate)

 

-Versus- 

 

1. Mr Joyappa M.K.

    Major

    S/o Late Kariyappa

    R/at No.497, 7^th B Cross

    Hebbal 1^st Stage

    Metagalli Post

    Mysuru - 570 016

 

2. The Managing Director

    M/s Falcon Tyres Ltd.,

    KRS Road, Metagalli

    Mysuru- 570 016                                                       Respondents                                                  

   : ORDER :

 

Mr JUSTICE HULUVADI G RAMESH : PRESIDENT

 

1.       This Appeal is filed under Section 15 of Consumer Protection Act 1986 by the OP2, aggrieved by the Order dated 25.05.2018 passed in Consumer Complaint No.113/2017 on the file of District Consumer Disputes Redressal Forum, Mysuru (hereinafter referred to as District Forum).

2.       Heard.  Inspite of due service of Notice for appearance from this Commission on R1 and the Notice on Respondent No.2 returned with Postal endorsement as “Company Closed”, service held deemed to have been served and their arguments are taken as heard.  Perused the Impugned Order, grounds of Appeal and the documents on record.

3.       The brief facts of the case, as stated before the District Forum is that the Complainant was a workmen with OP1- M/s Falcon Tyres Ltd.,; he was a member of EPF account and retired from the service on attaining the age of superannuation on 21.05.2016.   The allegation of the Complainant is that he received a part payment of amount as his retirement benefits and remaining amount of Rs.2,12,489/- is still due since February 2014 from OP2.  Further OP2 has not taken any steps for collection of dues from OP1. 

OP1- M/s Falcon Tyres Ltd., was placed ex-parte before the District Forum.

 OP2 contested the case on merits and taken a stand that, OP1 has not remitted the Employee’s & Employer’s matching contribution from February 2014 to January 2015 and enquiry against OP1 is under progress and denied the contention of the Complainant that action has not been taken against OP1. 

The District Forum after enquiring into the matter held that, OP1 was wilful defaulter in remittance of PF amount collected from the salary of the Complainant from February 2014 to January 2015.  Whereas, this Complaint is filed on 11.04.2017, inspite of completion of more than 2 years, OP1 has not settled the Claim and there is nothing on record to show that OP2 has taken stringent action against OP1 for non-remittance of the PF amount relating to the Complainant. If such being the case, definitely there is an obligation on the part of both parties to settle the PF claim of the Complainant and therefore, allowed the Complaint in part and directed that OPs 1 & 2 are jointly and severally held liable to pay the balance amount of Rs.2,12,489/- with interest @ 18% p.a from the Date of Complaint till payment.  Further directed that OPs are jointly and severally liable to pay Rs.5,000/- as Compensation and Rs.2,000/- towards Litigation Costs.  Aggrieved by this Order, OP2 - The Regional Provident Fund Commissioner is in Appeal.

4.       During the course of arguments, the learned Counsel for Appellant filed a Memo with True Copy of the Common Order passed in IA No.516/2022 & 404/2022 dated 02.06.2023 by the National Company Law Tribunal, Bengaluru Bench, Bengaluru.

5.       Thus in view of the order dated 02.06.2023 by the National Company Law Tribunal, Bengaluru Bench, Bengaluru on IA No.516/2022 and 404/2022 in case between Sri Shivadutt Bannanje, Bangalore and Employees Provident Fund Organisation, Mysore Vs M/s Falcon Tyres Ltd., Represented by its Liquidator Sri Shivadutt Bannanje wherein it was held that Mr Shivadutt Bannanje, the Liquidator of M/s. Falcon Tyres Ltd., is a competent Authority and to take control of the ‘Liquidation Assets’, only after liquidating the entire dues payable by the Corporate Debtor under the Provisions of the Act.  It is found from this Order that Rs.14,95,41,835/- was the sum due & payable towards the Provident Fund contribution.  It has already considered and admitted the amount of Rs.20,58,09,617/- of EPFO up to the liquidation commencement date viz., 30.09.1999 and additional demand raised by the EPFO is not admissible and allowable in view of the decisions referred in Para 5 of the Order.

          It is therefore, as admitted by the Liquidator of M/s Falcon Tyres Ltd., Mr Shivadutt Bannanje a sum of Rs.20,58,09,617/- is held by him and has control over the said amount towards contribution towards EPFO dues upto the Liquidation commencement date will be paid to Employees Provident Fund Organisation.

          In view of foregoing observation, it is for the Appellant to settle the amount in favour of Complainant/Respondent No.1 herein. Under the above circumstances, the Impugned Order passed by the District Forum is just and proper.  However, we are of the considered view that awarding of interest @ 18% p.a is on the higher side and reducing the same to 8.25% p.a would meet the ends of justice. Accordingly, Appeal No.1123/2018 is allowed in part.  Consequently, Impugned Order dated 25.05.2018 passed in Consumer Complaint No.113/2017 on the file of District Consumer Disputes Redressal Forum, Mysuru is hereby modified only to the extent of interest awarded by the District Forum is concerned.  The Compensation of Rs.5,000/- and Litigation Cost of Rs.2,000/- awarded by the District Forum shall remain un-disturbed and the Appellant is directed to comply with this Order within 60 days from the date of this Order.

 

          The statutory deposit in this Appeal is directed to be transferred to the District Commission for further needful.

 

 

          Send a copy of this Order to the District Commission as well as to the parties concerned, immediately.

 

 

                            

Lady Member                   Judicial Member                       President

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