The provident fund office communicated to an educational institution to pay 10% of the wages of the employees and employer when the total number of employees were below 20 in the year 2003. The strength of the employees later became more than 20, but the school authorities continued to pay the 10% of salary instead of 12%, which is the statutory limit. Now the inspectors found the mistake after these years and to direct the school authorities to pay the arrears of extra 2%, which now come more than 2 lakhs.But the problem is that many number of employees are releaved from the school and joined in other institutions and hence cannot get money from them.
How can the school authorities be saved from paying the extra 2% ? Any case laws?, Any rulings from any courts or tribunals in favour of the institution.