#Employees Provident Fund

The court held that full deposit of Employees' Provident Fund dues before chargesheet filing erases the dishonest intention essential for criminal breach of trust under Sections 406 and 409 IPC. Continuing prosecution after complete restitution constitutes an abuse of process, particularly where the default arose from economic collapse of a single-screen cinema rather than fraudulent intent.

The Delhi High Court affirmed that payments made to outside agencies for dealing, dyeing and fabrication do not qualify as basic wages for provident fund purposes. Consequently, employers cannot be compelled to treat such contractor payments as PF wages, impacting firms that outsource these operations.

Madhya Pradesh High Court upholds employees' right to exercise the higher pension option under the 2014 EPF amendment, aligning with the Supreme Court's 2022 judgment. The ruling mandates EPFO to extend the exercise period for employees who missed the earlier deadline, ensuring compliance with the apex court's directions.

The Madhya Pradesh High Court has ruled that once the EPFO secures a lien on the auction proceeds of a defaulting company’s assets, attaching the personal bank account of a director is disproportionate and legally unsustainable. This clarifies that recovery under the EPF Act must respect the principle of proportionality, protecting individuals from dual enforcement when the debt is already secured.

The Karnataka High Court has ruled that employers cannot evade full statutory damages under Section 14B of the EPF Act by citing technical issues in online remittance uploads. The order quashes a 50% reduction of Rs. 2.42 lakh, reinforcing that compliance is non-negotiable and digital barriers do not override statutory obligations - a critical precedent for all EPF-covered establishments.

NCLAT reaffirms that Employees Provident Fund Organisation (EPFO) cannot press claims for damages and interest under Sections 7A, 14B, and 7Q of the EPF Act during the corporate insolvency resolution process. The ruling clarifies that moratorium under Section 14 of the IBC bars assessment proceedings, impacting creditor hierarchy and recovery priorities for statutory dues.

Bombay High Court sets aside an EPF Appellate Tribunal order that relied on a Delhi HC judgment later overturned by the Supreme Court. The ruling reinforces that judicial orders based on overruled precedents lack legal validity, impacting employers and EPF authorities under Section 14B of the EPF Act.

The Bombay High Court set aside a PF Appellate Tribunal order that depended on a Delhi HC judgment later overturned by the Supreme Court, reinforcing that tribunals cannot anchor decisions on precedent rendered legally void. This clarifies that binding authority in EPF adjudication requires current, unchallenged jurisprudence - protecting employers and employees from legally unsound liability determinations.

Bombay HC holds that EPFO cannot reject higher pension claims based on missing Form 6A or challans if EPF statements and Form 3A confirm contributions. Employees cannot be penalized for employer or administrative failures beyond their control, ensuring statutory pension rights under the Employees' Pension Scheme 1995.

Calcutta High Court holds that trainees paid stipends under model standing orders are excluded from EPF Act's definition of 'employee', even without certified standing orders.

Punjab and Haryana High Court holds that transfer of CPF balances to EPF constitutes a supervening event mandating reassessment of employer liability under the EPF Act.