On Tuesday, June 11, 2024, the Madras High Court allowed Anna University to remit ₹73.23 lakh to the Central Government Industrial Tribunal (CGIT) on three occasions so that it could hear a statutory appeal preferred by the university against an order of Commissioner of Coimbatore Regional Provident Fund(RPF) asking it to pay ₹2.44 crore as arrears to its contract workers.
First set is supposed to be paid on July 11th and last installment by September 11th this year according to the two-judge bench made up of Justices J. Nisha Banu and P. Dhanabal. Once the payment has been made, the tribunal was directed to hear the university’s statutory appeal, filed against the RPF Commissioner’s February 8, 2022 order, purely on merits and dispose it of within 12 weeks thereafter.
It passed these orders in disposing of a writ appeal filed by the institution against an order dated August 16th,2013 given by a single judge that allows it only depositing thirty percent or ₹73.23 lakh instead of forty-five percent which had been ordered for depositing ₹1.09 crore on May12th ,2016 and thereby suspends demand for ₹2.44 crores submitted by RPF commissioner.
The University approached high court citing strong chances of success in statutory appeals but weak finance position as reasons why they failed to deposit 45% that was demanded by CGIT; Counsel for the university when he appeared before justice Banu said that his institution can only afford paying in three monthly installments not more than five million rupees.
Nonetheless, such argument was not accepted by Justice Banu saying that there was enough indulgence already shown by reducing down to thirty percent from forty five at high court level while another one would be conversion into three parts at divisional hearing; Therefore with the consent of standing counsel for RPF Commissioner, the writ appeal was dismissed.
She clarified that her bench would not entertain any discussions on merits and that it was up to the tribunal to determine whether the Employees Provident Fund & Miscellaneous Provisions Act, 1952 is applicable to the institution or not and if so, should it pay towards provident fund liabilities in respect of contract employees employed by them.
