HC Upholds Reduction of EPF Damages to 25%

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  • Last Updated on 4 February, 2026

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Reduction of EPF damages

Case Details: Central Board of Trustees Employees Provident Fund vs. Holy Cross Girls Higher Secondary School - [2025] 181 taxmann.com 928 (HC - Chhattisgarh)

Judiciary and Counsel Details

  • Ramesh Sinha, CJ. & Ravindra Kumar Agrawal, J.
  • Sunil Pillai, Adv. for the Petitioner.

Facts of the Case

In the instant case, the respondent-employer was covered under the Employees’ Provident Fund & Miscellaneous Provisions Act, 1952. It was found that the respondent had failed to deposit the provident fund contributions for its employees within the stipulated time. Accordingly, the competent authority initiated proceedings under section 14B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, for default in furnishing information and levied damages under section 14B and interest under section 7Q of the Act.

The respondent admitted the delay in depositing the contribution, and the authority passed an order directing the respondent to pay damages under section 14B and interest under section 7Q of the Act.

On appeal, the Appellate Tribunal reduced the damages under section 14B to 25 per cent of the assessed amount, while affirming the liability under section 7Q. The Single Judge dismissed the writ petition and held that reducing the penalty/damages to 25 per cent of the assessed amount by the Appellate Tribunal was just and proper. Thereafter, an appeal was made before the High Court.

High Court Held

The High Court held that the order passed by a single judge was based on a proper appreciation of the facts of the case as well as provisions of law, and also the ratio laid down by the Kerala High Court in Central Board of Trustees v. Bake ‘N’ Joy Hot Bakery [2024] 1 taxmann.com 9413 (Kerala). Therefore, the writ appeal was to be dismissed.

List of Cases Reviewed

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied