Firm Matters

Khaitan & Co successfully represented a leading global IT/ITeS and business process outsourcing company before the Central Government Industrial Tribunal-I (CGIT-I), Mumbai, in a statutory appeal under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act). The Firm secured an interim order dated 22 May 2025, staying the impugned order passed under Section 7A of the EPF Act, which had assessed a liability of INR 26.08 crores, subject to a deposit of only 10% of the assessed amount. While the statutory requirement for deposit in such appeals can be as high as 75% of the assessed amount, the prevailing trend typically ranges between 30% and 50%.
 
Due to the vacancy at CGIT-I at the time, we approached the Hon’ble Bombay High Court seeking leave to move the stay application before CGIT-II, which was granted by order dated 14 November 2024. Subsequently, CGIT-II, being prima facie satisfied with the merits of the case, granted an interim stay by order dated 2 December 2024. Upon final hearing and completion of pleadings, CGIT-I granted a continued stay on the impugned order by its order dated 22 May 2025, again subject to a 10% deposit.
 
Given the prevailing practice of requiring deposits in the range of 30%–50%, securing a significantly lower deposit of only 10% is a major win for our client. It substantially reduces their immediate financial burden, mitigates risk exposure, and preserves working capital.