Determination of money due from

employers, their recovery and employees

provident funds Appellate Tribunals
• The Amendment act of 1988 has made provision for setting up
an Independent machinery for the recovery of the o/s amount
of provident fund and other dues under the act

• Also setting up 1 or more single member Tribunals for hearing of

appeals filed against the order of PF authorities in the matter
of provisions of the act, assessment of dues and levy of
damages
 Determination of money due from
employers
• In a case where a dispute arises regarding the applicability of
this act to an establishment, decide such dispute ; and

• Determine the amount due from any employer under any

provision of this act, the Employees Provident Fund Scheme or
the Pension Scheme or the Employees’ Deposit-Linked Insurance
Scheme as the case may be

• Any of the above officers may, for any of the aforesaid purpose
conduct such inquiry as he may deem necessary [Sec.7-A (1) as
substituted by the Amendment Act of 1988]
 Powers of the Inquiry Officer

Have the same powers as are vested in a court under the Code of Civil
Procedure, 1908 for trying a suit in respect of the following
matters namely

• Enforcing the attendance of any person for examining him on oath;

• Requiring the discovery and production of documents
• Receiving evidence on affidavit
• Issuing commissions for the examination of witnesses

Employer to be given opportunity of representing his case. An order

under Sec.7-A(1) shall not be made unless the employer concerned
is given a reasonable opportunity of representing his case Sec,7-
A(3)
 Review of orders passed under Sec.7-A

A person may be aggrieved by an order made under Sec.7-A(1). If he

prefers no appeal against that order, he may apply for a review of
that order to the officer who made the order. He can however
obtain the review-

• If he discovers new and important matter or evidence which, after

the exercise of due diligence, was not within his knowledge or could
not be produced by him at the time when the order was made, or
• If there is some mistake or error apparent on the face of the
record, or
• For any other sufficient reason [Sec. 7-B (1)]

The officer who passed the order also on his own motion review his
order if he is satisfied that it is necessary so to do any such ground
 Determination of escaped amount
• Have reason to believe that by reason of the omission or failure on the part
of the employer to make any document or report available, or to disclose,
fully and truly all material facts necessary for determining the correct
amount due from the employer any amount so due from such employer for
any period has escaped his notice :

• Have, in consequence of information in his possession, reason to believe that

any amount to be determined under Sec. 7-A or B has escaped from his
determination for any period notwithstanding that there has been no
omission or failure as mentioned in Clause(a) on the part of the employer

Officer may within a period of 5years from the date of communication of the
order re-open the case and pass appropriate orders re-determining the
amount due from the employer in accordance with the provisions of this Act
[Sec. 7-C]

Opportunity to be given to employer to represent his case. No order re-

determining the amount due from the employer shall be passed under Sec.
7-C unless the employer is given a reasonable opportunity of representing
his case [Provision to Sec. 7-C]
 Employees’ Provident Funds Appellate Tribunal [Sec. 7-D to 7-P]

• Constitution of Appellate Tribunal [Sec. 7-D] The central govt may, by

notification in the official Gazette, constitute one or more Appellate
Tribunals to be known as the Employees’ Provident Funds Appellate Tribunal

• They shall exercise the powers and discharge the functions conferred on the
act

• Tribunal shall have jurisdiction in respect of establishments situated in such

area as may be specified in the notification constituting the tribunal

Membership. A tribunal shall consist of 1 person only to be appointed by the

central Govt [Sec. 7-D(2)]
Qualifications. A person shall not be qualified for appointment as the Presiding
Officer of a tribunal unless he is, or has been, or is qualified to be a judge of
a high court [Sec. 7-D(3)]

Term of office [Sec. 7-E]. The Presiding Officer of a tribunal shall hold office
for a term of 5 years from the date on which he enters upon his office or
until he attains the age of 62 years, whichever is earlier.
 Appeals to tribunal [Sec. 7-I]
• Any person aggrieved by a notification issued by the central govt or an order passed by the
central govt or any authority under the foll sections may prefer an appeal to a tribunal
against such notification or order. These sections are as follows :

• Provision to Sec. 1 (3) dealing with issue of notification by the Central Govt to apply the
provisions of this Act to any establishment

• Sec. 1 (4) dealing with issue of notification by the Central PF Commissioner to apply the
provisions of this act to any establishment

• Sec. 3 dealing with power of the Central Govt to apply this act to an establishment which
has a common PF with another establishment

• Sec. 7-A(1) dealing with determination of moneys due from employers

• Sec. 7-B dealing with review of orders passed under Sec.7-A except an order rejecting an
application for review referred to in Sec. 7-B(5)

• Sec. 7-C dealing with determination of escaped amount

• Sec. 14-B dealing with the power of the Central PF Commissioner to recover damages
 Orders of tribunal [Sec. 7-L]
• A tribunal may after giving the parties to the appeal, an opportunity of being heard,
pass such orders thereon as it thinks fit, confirming, modifying or annulling the order
appealed against

• The tribunal may also refer the case back to the may think fit, for a fresh adjudication
or order as the case may be after taking additional evidence, if necessary [Sec. 7-L(1)]

• Rectification of mistake- The tribunal may, at any time within 5 yrs from the date of its
order, with a view to rectifying any mistake apparent from the record, amend any order
passed by it under Sec. 7-L(1). Further it shall make such amendment in the order if the
mistake is brought to its notice by the parties to the appeal[Sec. 7-L(2)]

• Opportunity of hearing to employer- if the amendment of an order has the effect of

enhancing the amt due from, or otherwise increasing the liability of, the employer, it
shall not be made under Sec. 7-L(2), unless the tribunal has given notice to the employer
of its intention to do so and has allowed him a reasonable opportunity of being heard
[Sec. 7-L(2)]

• A copy of the order to be sent to parties. The tribunal shall send a copy of every order
passed under this Sec.7-L to the parties to the appeal

• Order of Tribunal not to be questioned- any order made by the tribunal finally disposing
of an appeal shall not be questioned in any Court of Law [Sec. 7-L(4)]
• Filling up of vacancies
If, for any reason, a vacancy occurs
in the office of the Presiding
Officer of a tribunal, the Central
Govt shall appoint another person
in accordance with the provisions
of this act to fill the vacancy and
the proceedings may be
continued before the tribunal
from the stage at which the
vacancy is filled
Finality of orders Constituting a
tribunal
No appeal of the Central Govt
appointing any person as the
Presiding Officer shall be called
in question in any manner, and no
act or proceeding before a
Tribunal shall be called in
question in any manner on the
ground merely of any defect in
the constitution of such tribunal
• Deposit of amount due, on filing
appeal
No appeal by the employer shall be
entertained by a tribunal unless
he has deposited with it 75% of
the amount due from him as
determined by an officer
referred to in Sec. 7-A. However,
the tribunal may, for reasons to
be recorded a writing, reduce the
amount to be deposited under this
section
Transfer of certain applications
to Tribunals
All applications which are pending
before the Central Govt under
Sec. 19-A before its repeal shall
stand transferred to a tribunal
exercising jurisdiction in respect
of establishments in relation to
which such applications has been
made as if such applications were
appeals preferred to the Tribunal
Thank you!!!!!!!!