Section 7-O of EPFMA : Section 7-O: Deposit Of Amount Due, On Filing Appeal

Explanation using Example

Imagine a scenario where an employer, XYZ Textiles Pvt. Ltd., has been ordered by an EPF officer under Section 7A of the EPF Act to pay an amount of ₹2,00,000 as arrears of provident fund contributions. Disagreeing with the assessment, XYZ Textiles decides to appeal the decision before the Employees' Provident Fund Appellate Tribunal.

As per Section 7-O, before the Tribunal can entertain their appeal, XYZ Textiles is required to deposit 75% of the determined amount, which is ₹1,50,000. However, XYZ Textiles faces financial difficulties and cannot deposit the full amount. They request the Tribunal to reduce the deposit amount, providing valid reasons for their inability to pay.

The Tribunal, after considering their reasons, decides to record in writing why it believes a reduction is justified and allows XYZ Textiles to deposit only 50% of the amount, which is ₹1,00,000, to proceed with the appeal.