Independent provident fund code defeats principal employer liability where final liberty extended only against contractor's legal heirs.

Damages proceedings under Section 14B could not be fastened on the principal employer where the contractor held an independent provident fund code number and was treated as an independent employer. The Court applied its earlier view that a registered contractor with a separate EPF code is not to be proceeded against on the same footing as the principal employer. It also noted that an earlier writ order had already set aside the prior demand and had granted liberty only to recover from the contractor's legal heirs; that order had attained finality and could not be reopened against the petitioner company. The demand proceedings were quashed.

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Issues: Whether damages under Section 14B could be fastened on the principal employer when the contractor had an independent provident fund code number and the earlier writ order had granted liberty only to proceed against the contractor's legal heirs.

Analysis: The contractor was a licensed contractor with a separate EPF code and was treated as an independent employer. The Court relied on its earlier decision holding that a contractor registered with the provident fund department and having an independent code number is to be treated as an independent employer, and that the principal employer cannot be proceeded against on the same footing. The Court also noted that the earlier writ proceedings had already set aside the previous order and had granted liberty only to initiate recovery against the legal heirs of the contractor. In the absence of any challenge to that order, it had attained finality, and the respondent could not reopen proceedings against the petitioner company under Section 14B.

Conclusion: The proceedings against the petitioner company were not maintainable and the impugned order was liable to be set aside.

Final Conclusion: The writ petition was allowed and the demand proceedings against the petitioner company were quashed.

Ratio Decidendi: A contractor holding an independent provident fund code number is to be treated as an independent employer, and where an earlier final order has confined liberty to proceed only against the contractor's legal heirs, subsequent damages proceedings under Section 14B cannot be initiated against the principal employer for the same liability.

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