Himachal Pradesh High Court in Vinod Kumar vs. State of H.P & Others (Cr. MMO No. 211 of 2025) refused to quash an FIR under Section 406 of the IPC for alleged criminal breach of trust due to failure to deposit deducted EPF contributions. The petitioner, lessee of a tea factory, argued that he was not the employer under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“EPF Act”) and that the dispute was purely civil. The Court, however, held that by operating the factory under lease, the petitioner qualified as an “occupier” under the EPF Act, making him responsible for depositing employee contributions. Citing precedents, the Court clarified that the existence of a civil remedy does not preclude criminal liability where statutory obligations are breached. The FIR, disclosing a cognizable offence, could not be quashed.
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