Subsequent Payment of EPF Dues Does Not Erase Criminal Liability: Orissa High Court

The Orissa High Court held that subsequent payment of Employees’ Provident Fund (EPF) dues does not extinguish criminal liability arising from prior defaults in depositing contributions.

Refusing to quash criminal proceedings against a former company director, the Court observed that delayed compliance cannot be treated as a defence once an offence under the EPF and Miscellaneous Provisions Act, 1952 is made out.

It emphasised that failure to timely deposit employees’ provident fund contributions adversely affects workers’ social security and pension rights.

Finding the allegations serious in nature, the Court ruled that criminal prosecution can continue despite later clearance of outstanding EPF dues.

[Anil Kumar Gilra v. State of Odisha & Anr.]