Am i responsible ?
ksr prasad
(Querist) 20 June 2013
This query is : Resolved
One of my known persons is working as the principal of a private school. She was also appointed like other teachers of the school. The school is owned and managed by somebody else. The issue is regarding the provident fund. The school management is deducting PF from everyone's salary for more than a year including her. Of late she came to know that they have not deposited any amount with the PF office. Recently one PF official has visited the school and issued a notice u/s 460 & 469 for not depositing the PF installments.
While she manages only academics and doesnot deal with finance matters, will she be held responsible for the acts of the school owners ? Pl clarify.
Guest
(Expert) 20 June 2013
School management and the person, who draws the salary bills will be responsible for the offence of non-remittance of the pf money every month.
Sudhir Kumar, Advocate
(Expert) 20 June 2013
If the Principal is the authorisede signatory of the school then she alone will be interface with the PF authorities.
At this stage with given facts it cannot be stated whether she will be witness of accused.
It is not 490/409 it may be 406/409 of IPC. It is cognisazable and non-bailable office.
you can read:-
Section 406. Punishment for criminal breach of trust
Whoever commits criminal breach of trust shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.
CLASSIFICATION OF OFFENCE
Punishment—Imprisonment for 3 years and fine, or both—Cognizable—Non-bailable—Triable by Magistrate of the first class—Compoundable by the owner of the property in respect of which breach of trust has been committed, with the permission of the court.
Section 409. Criminal breach of trust by public servant, or by banker, merchant or agent
Whoever, being in any manner entrusted with property, or with any dominion over property in his capacity of a public servant or in the way of his business as a banker, merchant, factor, broker, attorney or agent, commits breach of trust in respect of that property, shall be punished with 1[imprisonment for life], or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
CLASSIFICATION OF OFFENCE
Punishment—Imprisonment for life, or imprisonment for 10 years and fine—Cognizable—Non-bailable—Triable by Magistrate of the first class—Non-compoundable.
Please spell what role did the Principal have.
V R SHROFF
(Expert) 20 June 2013
If her duty includes Administration, she is liable, along with owner.
Only Owner is Liable, if PF was not deposited under their instrn. ,
Otherwise she too is a servant, and not liable for lapses.
Rajendra K Goyal
(Expert) 20 June 2013
Agree with the views of expert, Practically She may not be having written instructions from management in the matter. If she is the administrative and / pay drawing disbursing authority she can be held responsible.
Sudhir Kumar, Advocate
(Expert) 20 June 2013
even if an employee had written instruction (even if Govt employee) he cannot commit crime under IPC and get away.
even if she is herself victim of BOT still it does not give her license to cooperate to commit similar crime against other teachers.
Her culpability depends upon the fact that who were exactly :-
(i) dealing with salary bills
(ii) supposed to sign PF challan/returns
(iii) whether the accounting and clerical staff was working under her.
(iv) signing the details of salary to be submitted to education deptt/Edn Board etc.
your simple statement that "he manages only academics and does not deal with finance matters" is hard to swallow unless proved.
Raj Kumar Makkad
(Expert) 23 June 2013
The management and the person shown authorized as employer in the record of the EPF department is only responsible.
