Section 8B of The Employees Provident Funds and Miscellaneous Provisions Act, 1952
1[8B. Issue of certificate to the Recovery Officer.-- (1) Where any amount is in arrear under section section 8, the authorised officer may issue, to the Recovery Officer, a certificate under his signature specifying the amount of arrears and the Recovery Officer, on receipt of such certificate, shall proceed to recover the amount specified therein from the establishment or, as the case may be, the employer by one or more of the modes mentioned below:--
- (a)attachment and sale of the movable or immovable property of the establishment or, as the case may be, the employer;
- (b)arrest of the employer and his detention in prison;
- (c)appointing a receiver for the management of the movable or immovable properties of the establishment or, as the case may be, the employer: Provided that the attachment and sale of any property under this section shall first be effected against the properties of the establishment and where such attachment and sale is insufficient for recovering the whole of the amount of arrears specified in the certificate, the Recovery Officer may take such proceedings against the property of the employer for recovery of the whole or any part of such arrears.
- (2)The authorised officer may issue a certificate under sub-section (1), notwithstanding that proceedings for recovery of the arrears by any other mode have been taken.]
Summary
- When an employer has unpaid arrears under Section 8, the authorised officer can issue a signed certificate specifying the outstanding amount to the Recovery Officer.
- Upon receiving this certificate, the Recovery Officer must proceed to recover the specified amount from the establishment or the employer.
- The Recovery Officer can use three legal modes of recovery: attaching and selling movable or immovable property, arresting and detaining the employer in prison, or appointing a receiver to manage the properties of the establishment or employer.
- The attachment and sale of property must first be carried out against the property of the establishment itself.
- If the sale of the establishment's property is insufficient to cover the arrears, the Recovery Officer can then proceed against the personal property of the employer to recover the remaining balance.
- The authorised officer can issue this recovery certificate even if other recovery proceedings by other modes are already active.
Practical examples
FAQ
1. Who issues the certificate of arrears to the Recovery Officer?
The authorised officer issues the certificate under their signature, specifying the exact amount of arrears due from the employer.
2. What are the three recovery modes available to the Recovery Officer under Section 8B?
The three modes are: (a) attachment and sale of movable or immovable property, (b) arrest and detention of the employer in prison, and (c) appointing a receiver to manage the properties.
3. Whose property must be attached and sold first under Section 8B?
The Recovery Officer must first attach and sell the property of the establishment itself. If that is insufficient, they can proceed against the personal property of the employer.
4. Can the authorised officer issue a certificate if other recovery actions are already active?
Yes. Subsection (2) of Section 8B states that the authorised officer can issue a certificate even if recovery proceedings by other modes have already been taken.
Test yourself
Q1.Under Section 8B of The Employees Provident Funds and Miscellaneous Provisions Act, 1952, what must the Recovery Officer do first when recovering arrears via attachment and sale of property?
Q2.Under Section 8B of The Employees Provident Funds and Miscellaneous Provisions Act, 1952, which of the following is NOT one of the legal modes of recovery listed for the Recovery Officer?
Q3.Under Section 8B of The Employees Provident Funds and Miscellaneous Provisions Act, 1952, what is required for the Recovery Officer to initiate recovery proceedings?
Q4.Under Section 8B of The Employees Provident Funds and Miscellaneous Provisions Act, 1952, which cross-references Section 8, when can the authorised officer issue a certificate to the Recovery Officer?