Waiver of provident fund penal damages must be considered under the rehabilitation scheme; authority directed to decide expeditiously.

The sanctioned rehabilitation scheme expressly contemplated consideration of waiver of provident fund penal damages, and the petitioner had already discharged the provident fund dues and interest, leaving only the damages demand. As the High Court had directed the competent provident fund authority to consider the waiver request in accordance with law, the Tribunal did not itself grant relief but required the Central Provident Fund Commissioner to process the request expeditiously. If the application was pending, it was to be considered without delay; if necessary, the petitioner was to be told to submit a fresh application. The authority was directed to decide the matter under the sanctioned scheme and communicate its decision.

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Issues: Whether directions should be issued to the provident fund authorities to consider waiver of penal damages under the sanctioned rehabilitation scheme and to deal with the pending attachment and recovery measures.

Analysis: The scheme approved under the sick industrial companies regime contained a specific provision to consider waiver of provident fund penalties and damages. The petitioner had already cleared the provident fund dues and interest, and the remaining demand related only to penal damages. Since the High Court had already directed the competent provident fund authority to consider the waiver request in accordance with law, and the request was stated to be pending or otherwise required to be resubmitted, the Tribunal found that the appropriate course was to direct expeditious consideration by the Central Provident Fund Commissioner. The Tribunal did not itself grant waiver, but required the competent authority to process the application and communicate its decision.

Conclusion: Directions were issued to the Central Provident Fund Commissioner to consider the petitioner's waiver request expeditiously if pending, or to inform the petitioner to file a fresh application and decide it in accordance with the sanctioned scheme.

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