Gujarat High Court
Regional Director,Employees State ... vs Signing Engineering & Founders on 9 October, 2025
NEUTRAL CITATION
C/FA/125/2006 JUDGMENT DATED: 09/10/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/FIRST APPEAL NO. 125 of 2006
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK
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Approved for Reporting Yes No
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REGIONAL DIRECTOR,EMPLOYEES STATE INSURANCE CORP
Versus
SIGNING ENGINEERING & FOUNDERS & ANR.
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Appearance:
MR HEMANT S SHAH(756) for the Appellant(s) No. 1
NOTICE SERVED for the Defendant(s) No. 1,2
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CORAM:HONOURABLE MR. JUSTICE HEMANT M.
PRACHCHHAK
Date : 09/10/2025
ORAL JUDGMENT
1. Present appeal is filed by the appellant - Employees State
Insurance Corporation against the interim order dated
02.04.2004 passed by the Employees State Insurance Court,
Rajkot (hereinafter referred to as 'the E.S.I. Court") in E.S.I.
Application No. 2 of 2004.
2. The short facts giving rise to present appeal are that, the
respondent organization were running a foundry works and were
engaged in the business of making engineering motor bodies.
That, the organization was a registered partnership firm and the
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C/FA/125/2006 JUDGMENT DATED: 09/10/2025
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Employees Insurance Act, 1948 was applicable to the
organization and the organization used to pay regular ESI
contributions. That, the appellant herein was the Regional
Director and the respondent No. 2 was the bank manager in
which the appellant had an account being No. 10092CC and
10093CC. That, the respondent Company was covered under the
provisions of the Act since April, 1996 and was given Code
No.37-3632-54 on 22.04.1997 by the appellant herein. That, the
respondent company was regularly paying wages since 1996.
That, on the amount of wages to the tune of Rs.9,38,605/- and
Rs.4,25,160/- from April 1996 to March, 1997, the respondent
Company had deposited Rs.54,071/- and Rs.24,587/-
respectively, total Rs.78,658 with the respondent No.2 - Bank of
India through cheque No.492121 dated 30.09.1997.
2.1 That, the appellant had issued a notice dated 15.01.2002
and demanded Rs.2,100/- toward contribution for the year 1996-
1997 and Rs.3125 towards interest, total Rs.25,225/-, despite the
respondent Company had already deposited the amount of
contribution for the year 1996-1997, which was already
inspected on 23.06.1998 by the appellant herein and the amount
of damages as well as interest was also collected by the
appellant. That, after collection of the aforesaid amount of
damages and interest, the appellant had again issued notice for
collection of an amount of Rs.1258-50ps. on 15.03.2002, against
which, the respondent Company had given reply alongwith the
documents on 16.04.2002. That, in spite of the fact that
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C/FA/125/2006 JUDGMENT DATED: 09/10/2025
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respondent Company had paid all the damages and interest for
the year 1996-1997, the appellant had demanded contribution as
aforesaid. That, after the letter dated 16.04.2002, no opportunity
to be heard or defend was given to the respondent No.1 nor they
were asked for any explanation, however, the respondent No.2
Bank had written a letter dated 31.03.2004 to seize the account
of the respondent No.1. Thus, the person in charge had made the
above order and seized the account of the respondent Company.
Being aggrieved with the letter dated 31.03.2004, the
respondent Company had filed the aforesaid interim application
being E.S.I. Application No. 2 of 2004, whereby, the interim order
dated 02.04.2004 came to be passed by the ESI Court, Rajkot
granting interim relief to the respondent Company.
2.2 Being aggrieved and dissatisfied with the aforesaid interim
order dated 02.04.2004, the appellant ESI Corporation has
preferred this Appeal under Section 82(2) of the Employees State
Insurance Act, 1948.
3. Heard Mr. Hemant Shah, learned counsel appearing for the
appellant.
Though served, respondents have chosen not to remain
present before the Court.
4. Learned counsel Mr. Shah, appearing for the appellant, has
submitted that the interim application at Exh.-2 filed before the
ESI Court, Rajkot, against which the present appeal is preferred,
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C/FA/125/2006 JUDGMENT DATED: 09/10/2025
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is already disposed of on 19.07.2017 and therefore, learned
counsel Mr. Shah has urged that the present appeal be disposed
of as having become fructuous.
5. Considering the submissions and statement made by
learned counsel Mr. Shah for the appellant, the present appeal is
disposed of as having become infructuous. No order as to costs.
Record and Proceedings, if received, be sent back to the
concerned Court forthwith.
(HEMANT M. PRACHCHHAK,J)
Dolly
