Understanding the 7A Inquiry Process Under the PF Act: Can Anyone Clarify?

Dear Seniors, I would like to know the procedure of a 7A inquiry under the PF Act. I have read the Act, but it is still not clear to me. Please help me understand this concept.

Regards, Vinayak

As per my knowledge, under PF Section 7A, the determination of moneys due from employers is ordered by the Central Provident Fund Commissioner, any Additional Central Provident Fund Commissioner, any Deputy Provident Fund Commissioner, any Regional Provident Fund Commissioner, or any Assistant Provident Fund Commissioner. They may, by order, impose damages or interest to be paid by the employer for not submitting returns or the payment of PF before the 15th of every month. No appeal by the employer shall be entertained by a Tribunal unless he has deposited a percentage of the amount due from him as determined by an officer referred to in Section 7A.

There are different percentages of interest charged from the employer based on the number of months' delay in the payment.

Regards,
B. Anand Kumar

Dear Vinayak ji, you want to know the procedure of a 7A inquiry. To understand the procedure, you should first know what a 7A inquiry is.

Understanding 7A Inquiry

The CPFC, ADCPFC, DYPFC, RPFC, or APFC may order and conduct such an inquiry as deemed necessary:

- (a) In cases where a dispute arises regarding the applicability of the Act to an establishment, to resolve such disputes.
- (b) To determine the amount due from an employer under any provision of the Act, scheme, pension scheme, and insurance scheme.

The officer conducting the inquiry has the same powers as those vested in a court under the CPC 1908 for trying a suit in respect of the following:

- (a) Enforcing the attendance of any person or examining him on oath.
- (b) Requiring the discovery and production of documents.
- (c) Receiving evidence on affidavit.
- (d) Issuing commissions for the examination of witnesses.

Any such inquiry is deemed to be a judicial proceeding within the meaning of Sections 193 & 228 and for the purpose of Section 196 of the IPC. It is a quasi-judicial proceeding.

No order is given unless the concerned employer is provided a reasonable opportunity to represent the case. If the employer fails to attend the inquiry without a valid reason or fails to produce any document or file any report/return when called upon, the officer conducting the inquiry may decide the applicability of the Act and determine the dues from the employer based on the evidence adduced during the inquiry and other documents available on record.

Judicial Guidelines

The Mumbai High Court in Savitri Pal Vs. State of Maharashtra provided procedural guidelines for quasi-judicial authority. Also, in Lokmanya Nagar Priyadarshini Vs. State of Maharashtra, some parameters were given.

If you wish to practice in such matters and become an expert, then read all those. The write-up I have provided here is sufficient for you to understand the 7A inquiry and its procedure. I have not discussed many aspects such as setting aside ex-parte orders, appeals, etc. It is a vast subject to study.

Regards