Karnataka High Court in CH K.S. Prasad @ K S Prasad vs. State of Karnataka & Anr. CP No.195/2020, quashed the proceedings initiated against an employee appointed as asenior vice-president, human resources in the establishment under Section 409 (criminal breach of trust) and Section 420 (cheating) of the Indian Penal Code, 1860 (“IPC“), for not depositing the contribution deducted from the wages of employees under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“EPF Act“) on the ground that there was no wilful default on the part of the establishment and it was a circumstance (due to which it could not deposit the deducted contribution) as the income tax department authorities had attached the properties of the establishment which was beyond the control of the establishment. The Court further noted that the employee in question was made a party to the aforesaid proceedings without impleading establishment which cannot be permitted.
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