EPFO Cannot Retain Deposited Amount After Assessment is Set Aside: Patna High Court

The Patna High Court held that the EPFO cannot retain money deposited by an assessee once the underlying assessment order has been set aside, and must compensate the party by paying interest on delayed refunds.

The Court invoked the doctrine of unjust enrichment, observing that retaining and utilising the amount for over a decade without legal basis was contrary to equity and justice.

It noted that although the assessment was set aside in 2011, the deposited amount was refunded only in 2023.

Upholding the Single Judge’s order, the Court directed payment of 6% simple interest on the delayed refund amount.

[The C.B.T./Board of Trustees (Central Board), Employees Provident Fund Organisation & Anr v. M/s The Longia Bidi Company, Barahdari]