W.P.No.31321 of 2015 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 20.03.2025 CORAM : THE HONOURABLE MR. JUSTICE M. DHANDAPANI W.P.No.31321 of 2015 and M.P.No.1 of 2015 Foundation for Vocational Training, Corporation Community College, Bhimanna Pettai, 15A/9, C.V. Raman Road, Chennai – 600 018, Rep. by its Trustee Mr.M.Mahadevan ... Petitioner Vs. The Assistant Provident Fund Commissioner, Employees Provident Fund Organisation, 37, Royapettah High Road, Chennai – 600 014. ... Respondent Prayer : Writ Petition filed under Article 226 of the Constitution of India praying for issuance of a Writ of Certiorari, to call for the records and quash the order bearing Reference No.TN/(86000)/D-19/MAS/PDC/2015 dated 22.07.2015 on the file of the Respondent, The Assistant Provident Fund Commissioner, Chennai – 14. For Petitioner : Mr.S.Ravi Senior Counsel for M/s.Gupta & Ravi For Respondent : Mr.V.Sundareswaran SPC ***** Page No.1 of 6 https://www.mhc.tn.gov.in/judis W.P.No.31321 of 2015 ORDER The petitioner seeks to quash the order dated 22.07.2015 passed by the respondent imposing damages on the petitioner for delayed remittance of EPF contribution. 2. The short facts are that the petitioner is a Public Charitable Trust avowed object of imparting vocational training to downtrodden people of the society and arrange financial assistance. The petitioner entered into a memorandum of understanding with the Rotary Club of Madras (East) for training the people in the lower strata of the society in the area of preparation of breads and related bakery products. It was allotted a piece of land in Alwarpet, Chennai. The superstructure with basic facilities like water, electricity and sewage lines plant were put up by Rotary Club. The petitioner was imparting vocational training to candidates referred by the Corporation of Chennai and it was also paying the monthly stipend of Rs.5,000/-. The petitioner being a charitable institution was not covered by the EPF Act. The petitioner was referred to notification dated 14.05.2010 issued by the Union of India and as per clause (b) of the said notification, charitable trusts are exempted from the Page No.2 of 6 https://www.mhc.tn.gov.in/judis W.P.No.31321 of 2015 provisions of EPF Act. The respondent by its order dated 04.03.2014 called upon the petitioner to remit the EPF dues. Even though the petitioner would not come within the ambit of EPF Act, still they made a huge payment of Rs.9,67,089/- and a further sum more 4 lakhs towards interest for the period between 01.04.2010 to 31.03.2013. Notwithstanding such contribution, the respondent sent a notice dated 16.04.2015 calling upon the petitioner to show cause as to why damages should not be levied for the delayed payment of contribution. The petitioner appeared for enquiry and accepted that there was a delay in making contribution. Being a non-profitable organisation, the respondent ought to have eschewed levy of damages. However, by way of impugned order, the respondent had levied a sum of Rs.8,90,786/- as damages and directed the petitioner to deposit the said amount within 15 days of the impugned order. Challenging the same, the present writ petition has been filed. 3. Heard the learned Senior Counsel appearing for the petitioner and the learned Senior Panel Counsel appearing for the respondent and also perused the materials available on record. Page No.3 of 6 https://www.mhc.tn.gov.in/judis W.P.No.31321 of 2015 4. Considering the issue involved in this writ petition, this Court is not discussing the arguments advanced by the learned Senior Counsel appearing for the petitioner. 5. As rightly stated in the affidavit filed in support of this writ petition, as per clause (b) of the notification dated 14.05.2010, public, religious or charitable trusts or endowments (including maths, temples, gurudwaras, wakfs, churches, synagogues, agiaries or other places of public religious worship) or societies and Trusts for religious or charitable or other public purposes and notified as such by the Central Government under the Income Tax Act, 1961 (43 of 1961), are exempted from the provisions of EPF Act. Despite the clear-cut exemption granted by the Government, the petitioner still chose to make contribution and even paid interest. While that being the case, the respondent ought not to have issued notice seeking damages for the delayed payment. That petitioner is a charitable trust is not disputed. The respondent ought to have exercised caution while seeking damages from the charitable trust; moreso, when charitable trust is exempted by the Government vide notification dated 14.05.2010. Therefore, this Court has no hesitation to quash the order passed by the respondent. Page No.4 of 6 https://www.mhc.tn.gov.in/judis W.P.No.31321 of 2015 6. Accordingly, this Writ Petition is allowed and the impugned order passed by the respondent dated 22.07.2015 is set aside. No costs. Consequently, the connected miscellaneous petition is dismissed. 20.03.2025 Index : Yes / No (2/2) Speaking order / Non-speaking order Neutral Citation Case : Yes / No sp To The Assistant Provident Fund Commissioner, Employees Provident Fund Organisation, 37, Royapettah High Road, Chennai – 600 014. Page No.5 of 6 https://www.mhc.tn.gov.in/judis W.P.No.31321 of 2015 M.DHANDAPANI, J. sp W.P.No.31321 of 2015 20.03.2025 (2/2) Page No.6 of 6 https://www.mhc.tn.gov.in/judis