Bombay HC: EPFO Cannot Issue Prohibitory Order Without Notice

The Bombay High Court held that the Employees’ Provident Fund Organisation violated statutory procedure by issuing a prohibitory order under Section 8F of the EPF Act without issuing notice or providing an opportunity to respond. The Court converted the order into a notice under Section 8F(3)(i), allowing the debtor time to file objections. The judgment reaffirms fundamental administrative law principles requiring authorities to follow due process before taking coercive recovery actions. It also clarifies procedural safeguards for third parties whose receivables or lease rentals may be diverted by EPFO orders. This ruling will influence future recovery proceedings and prevent arbitrary or premature actions by authorities.