Full Text
HIGH COURT OF DELHI
Date of Decision: 5th September, 2023
296/2019, OLR 3/2022, OLR 4/2022 M/S TATA IRON & STEEL CO. LTD. ..... Petitioner
Through: Mr. Amol Karande, Mr. Shivang Singh, Mr. Narender Rao & Mr. Aditya Yadav, Advs. (M:
9711331712)
Through: Mr. Rajesh Kumar, SC, EPFO, Ms. Ramneet Kaur & Mr. Shivam Singh
Advs. (M:9891235156)
Mr. Anil Nauriya, Ms. Sumita Hazarika & Mr. Lalgoulen Kipgen, Advs. for the workers (Kundli Unit).
(M: 9811979264)
Mr. Sangram Patnaik, Mrs. Swayamsidha Patnaik, Mr. Ruchir Batra & Mr. Manish Mathur, Advs. for IDBI. (M: 7558472528)
Mr. Aman Vachher, Mr. Ashutosh Dubey, Mr. Dhiraj, Mrs. Anshu Vachher, Mr. Akshat Vachher, Ms. Abhiti Vachher & Mr. Amit Kumar, Advs. for Ex-Management. (M:
9953587630)
Mr. Abhishek Gusain, Adv. for Signing Date:08.09.2023 12:59
Secured Creditors. (M:9711219404)
Mr. Tarun Singla, Adv. for Applicant.
(M:9810202014)
Mr. Ankit Jain & Mr. Aditya Chauhan, Advs. for Applicant. (M:
9810737362)
Ms Snigdha Agarwal, Adv. for IFCI (M: 8840552593)
Mr. Arjun Nanda, Adv. for Applicant.
(M: 9811558580)
Ms. Neeru Vaid, Adv. for Applicant.
(M:9582619834))
JUDGMENT
1. This hearing has been done through hybrid mode. CO.APPL. 1306/2019, 731/2020, 134/2021, 719/2022 (for exemption)
2. Allowed, subject to all just exceptions. Applications are disposed. CO.APPL. 732/2020 (for exemption from filing the consolidated court fees)
3. This is an application seeking exemption from filing the consolidated court fees along with accompanying applications, filed on behalf of the Plaintiff, during the COVID-19 pandemic. If the court fees has not been deposited after the pandemic lock downs have been lifted, let the same be now deposited within four weeks. Subject to the said deposit made, the application is allowed. Registry to put up a report after the court fees is deposited. Application is disposed of. CO. APPL. 291/2023
4. This is an application filed by three applicants seeking a direction to the OL for release of dues and settlement of claims. Ld. counsel of the Applicant submits that the ex-employees/Applicants have visited the Officials Liquidator’s (OL) office but they were not entertained.
5. Accordingly, it is directed that the workmen/employees may visit the OL’s office on 14th September, 2023 at 11:00 a.m. The OL’s office shall entertain the workmen and settle their claims. After settlement, if any disbursements are to be made, the same shall be made to the said workmen/employees. CO. APPL. 132/2021
6. Issue notice in this application. Both the EPFO and the OL to file the reply to this application within six weeks. CO.PET. 539/1998 & CO.APPL. 174/2018, 207/2018, 1506/2018, 1523/2018, 35/2019, 161/2019, 696/2019, 698/2019, 747/2019, 926/2019, 1031/2019, 1305/2019, 732/2020, 133/2021, 413/2021, 654/2021, 658/2021, 71/2022, 628/2022, 89/2023, 216/2023, 593/2023, OLR 269/2018, OLR 109/2019, OLR 296/2019, OLR 3/2022, OLR 4/2022
7. Firstly, it is highlighted by ld. Counsel for the workmen that the disbursements to the workmen which were to be made within four weeks from 1st August, 2023 have not been made by the Official Liquidator (OL) till date.
8. In response to the said submissions, ld. counsel for the OL submits that the said disbursements would be made by next week as there was some reconciliation of accounts which was being done. It is made clear that the concerned OL shall be personally responsible for making the disbursements by 15th September, 2023, failing which, stringent action would be liable to be taken against the concerned officials.
9. Mr. Rakesh Kumar, ld. Counsel appears for the EPFO and submits that the status report could not be filed, as proper instructions have not yet been received.
10. The matter is serious in nature, inasmuch as the EPFO has been released a sum of Rs. 21 crores by the OL and further release of amounts is being sought by the EPFO. Further, the amount received by the EPFO includes amounts towards provident fund, damages, interest and penalty. There are no details as to whether any of these amounts has been disbursed to the workmen or not. Accordingly, it is directly that the EPFO has to clarify its stand in a status report, as to which of the components of the amounts is actually disbursed to the workmen. The said status report to also specify whether damages and interest portion as also the penalty amount is disbursed to the workmen or not.
11. It is noticed repeatedly in a number of cases before this Court that the EPFO claims priority in obtaining money from the OL and there is no clarity as to whether the disbursements are made. In several cases, after the money is received from the EPFO, verification of the employees is also sought to be done and on the said ground, disbursement is not made or is delayed for years. In this view of the matter, let the EPFO file a status report giving the following details: i. The total amount received from the OL in this matter; ii. The breakup of the amount as to provident fund, damages, penalty and interest; iii. Whether any amount has been disbursed to the workmen and if so details, thereof with the list of employees to whom the disbursement is made; and iv. Whether any component of the damages, interest or penalty have been disbursed to the workmen/employees and if not, how does the EPFO use the funds which are collected in the form of damages, interest or penalty.
12. Let the status report be filed by the EPFO within eight weeks.
13. In addition, it is directed that considering the large number of applications being moved in respect of the EPFO claims, the EPFO shall nominate a specific Counsel to this Court. Upon this direction being passed, Mr. Rajesh Kumar, ld counsel submits that he is the Nominated Standing Counsel for the EPFO in the Delhi High Court. If so, the Registry shall ensure that whenever any directions are issued to the EPFO, Mr. Rajesh Kumar is duly served with the copy of the order on his email address, rajesh.laws@gmail.com and also to the Department on email address rpfc.legal@epfindia.gov.in & rc[1].hrm@epfindia.gov.in.
14. No time left for the other applications.
15. List on 5th December, 2023.
PRATHIBA M. SINGH JUDGE SEPTEMBER 5, 2023 dj/am