M/S. Cooperative College Of ... vs Deputy Director
2022 Latest Caselaw 11931 Ker

               IN THE HIGH COURT OF KERALA AT ERNAKULAM
                               PRESENT
                THE HONOURABLE MR. JUSTICE AMIT RAWAL
 WEDNESDAY, THE 21ST DAY OF DECEMBER 2022 / 30TH AGRAHAYANA, 1944
                       WP(C) NO. 41480 OF 2022
PETITIONER:

          M/S. COOPERATIVE COLLEGE OF NURSING,
          PB NO. 5, KARAKULAM P.O, THIRUVANANTHAPURAM,
          PIN - 695564
          REPRESENTED BY MEMBER SECRETARY, G .RAJAN,
          AGED 72 YEARS NOW RESIDING AT KOVIL VEEDU,
          SSK LANE KOWDIAR P.O, THIRUVANANTHAPURAM 695005

          BY ADV
          M.R.SARIN


RESPONDENTS:

    1     DEPUTY DIRECTOR,
          SUB REGIONAL OFFICE, TRIVANDRUM
          EMPLOYEES STATE INSURANCE CORPORATION,
          MINISTRY OF LABOUR, GOVERNMENT OF INDIA
          PANCHDEEP BHAVAN, THYCAUD,
          TRIVANDRUM, PIN - 695014

    2     RECOVERY OFFICER,
          EMPLOYEES STATE INSURANCE CORPORATION,
          SUB REGIONAL OFFICE, PRADEEP BHAVAN,
          THYCAUD TRIVANDRUM, PIN - 695014

    3     UNION BANK OF INDIA,
          PEROORKADA BRANCH, MADOLIL TOWERS TC 5 1089 2,
          OPPOSITE THANGAMMA STADIUM PEROORKADA P.O,
          THIRUVANTHAPURAM, PIN - 695005

          BY ADV.
          SRI.T.V.AJAYAKUAMAR, SC, ESI
          SRI.JIMMY GEORGE, GP
          SRI.A.S.P. KURUP, SC, UBI


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
21.12.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 41480 OF 2022       -2-



                            JUDGMENT

Petitioner is a Co-operative college of nursing

registered under the Societies of Registration Act and

the provisions of the Employees State Insurance Act is

applicable. There was some default in making the

payment of contribution in respect of the employees

giving cause to the Deputy Director, Sub Regional Office,

Thiruvananthapuram to issue a show cause notice dated

19.09.2019 alleging that there was a default of

Rs.11,56,694/- (Rupees Eleven lakh fifty six thousand six

hundred and ninety four only) and also an amount of

interest at the rate of 12% with effect from 01.06.2015.,

calculating the amount at the rate starting from

Rs.13,335/- per month till the date of recovery. The

aforementioned legal notice was replied but of no avail

and vide communication dated 10.11.2022, received an

order under Section 45-C to 45-I of the Employees State

Insurance Act, 1948 demanding the default of

Rs.21,08,683/- (Rupees Twenty one lakh eight thousand

six hundred and eighty three only) and further interest at

the rate of Rs.422.49 per day with effect from

10.11.2022.

2. Learned counsel appearing on behalf of the

petitioner submitted that on account of non-deposit of

the aforementioned amount a garnishee notice Ext.P3

dated 13.12.2022 has been issued. The order Ext.P2

though is appealable, but the petitioner expressed his

bonafides to pay off the dues by instalments if this Court

deem it appropriate.

3. Issue notice before admission. Learned

Government Pleader, Mr.Jimmy George accepts notice

for respondent Nos.1 and 2. Learned counsel for the

respondent No.3 Union Bank of India submits that the

bank had only acknowldged and honoured the request

submitted by respondent No.2 on account of the default

in the contribution under the provisions of the ESI Act.

4. Mr.Jimmy George raises the objection qua

maintainability of the writ petition as the order dated

10.11.2022 is appealable.

5. I have heard learned counsel for the parties

and appraised the paper book.

6. Without expressing any opinion, since the

petitioner has expressed bonafide to pay off the amount

in instalments subject to the deposit of Rs.4,00,000/-

(Rupees Four lakhs only) as upfront by tomorrow, I am of

the view that equity would be struck in case petitioner is

given an option for payment of the balance amount after

the deposit of Rs.4,00,000/- by tomorrow evening, in

twelve(12) equal monthly instalments. In case of default

of any two instalments the order under challenge shall

automatically become operative.

Writ petition stands disposed of with the

aforementioned directions.

Sd/-

AMIT RAWAL JUDGE vv

APPENDIX OF WP(C) 41480/2022

PETITIONER EXHIBITS

Exhibit P1 A TRUE COPY OF THE LETTER ISSUED BY 1ST RESPONDENT TO PETITIONER DATED ON 19.09.2019.

Exhibit P2 THE TRUE COPY OF THE ORDER PASSED BY THE 2ND RESPONDENT TO PETITIONER ON 10.11.2022

Exhibit P3 THE TRUE COPY OF THE ORDER ISSUED BY THE 2NDRESPONDENT DATED ON 13.12.2022 TO 3RD RESPONDENT