The Supreme Court has ruled that when the provident fund commissioner demands interest on delayed contribution, the employer has a right to be represented on the computation of dues. In this case, Arcot Textile Mills vs RPFC, the company became sick and was unable to pay the provident fund contribution towards the employees. The authorities demanded interest on belated remittances. The firm wanted to know how the authorities calculated the interest and it alleged that the computation was not given. When it appealed to the Madras High court, it rejected the petition stating that the firm should approach the appellate authority under the Act. The firm approached the SupremeCourt, which set aside the high court judgment. The apex court stated when the authorities compute the interest and send a “ bald order” to the firm, the affected employer could ask for clarification and it should be given an opportunity to object to the calculation of interest, the Supreme Court said.
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