DEMAND OF PF ON SETTLEMENT AMOUNT – NOT PROPER

DEMANDING CONTRIBUTIONS ON AMOUNT ACCRUING OUT OF SETTLEMENT – NOT PROPER

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The appellant filed an appeal before the Employees’ Provident Fund Appellate Tribunal, against the order dated 14.2.2007, passed by the EPF Authority, putting forth its grievance that the order, treating the sum paid to the employees as per settlement approved by the High Court, as basic wages for the purpose of EPF contributions, is illegal.

The EPF Appellate Tribunal observed that the compromise arrived at between the parties, has approval of the Hon’ble High Court of Bombay. The calculation does not indicate how much sums paid denote the wages liable for EPF contributions. Therefore, there is no scope to reassess the validity of the agreed terms of settlement. Impugned order suffers from serious infirmity and is quashed. Appeal is allowed.

M/s. Tuli Hotel vs. APFC, Nagpur, 
ATA No.230(9)/2007 decided on 18.1.2012

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Posted on March 3, 2012, in News and views. Bookmark the permalink. Leave a comment.

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