YET ANOTHER WHIP – FOR A REASONED ORDER

CASE

Central Board of Trustees vs Indore Composite Pvt. Ltd.  – {2018 (8) SCC 443}

RATIO

In case of the absence of any application of judicial mind to the factual and legal controversy involved and without there being any discussion, appreciation, reasoning and categorical findings on the issue, a writ petition does not deserve to be upheld or reversed.

BREIF FACTS OF THE CASE

Appellant issued summons u/s 7A of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 against the respondent for non-payment of PF contribution on wages lesser than the minimum wages prescribed for employees under semi-skilled category. The Respondents contended that the Appellant had not considered aspects such as ‘non-working days for employees’ and had mechanically categorized all workers as semi-skilled. Appellant passed order directing Respondent to pay Rs. 87,204/-.

Thereafter, u/s 14-B, the Respondent was asked to pay damages and allied dues of Rs. 91,585/- towards delayed payments. Respondent filed an Appeal before the Employees’ Provident Fund Appellate Tribunal who allowed the Appeal and set aside the order of the Authority. The Appellant approached the Hon’ble High Court of Madhya Pradesh wherein the Writ Petition was dismissed.

SUMMARY OF JUDGEMENT

The question before the Hon’ble Apex Court was whether the Hon’ble High Court was justified in dismissing the Writ Petition. It was observed in this regard that time and again, the need for passing reasoned orders has been emphasized upon. Every order must contain, the narration of bare facts, the issues arising therein, the submissions urged by parties, the legal principles applicable, the findings and reasons in support of each of them. Cursory orders not only cause prejudice to parties but also deprive them of the knowledge of the reasons as to why they may have won or lost.

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