Madras High Court
Elite Industries vs Employees State Insurance ... on 4 March, 2021
C.M.A.No.3914 of 2019
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 04.03.2021
CORAM
THE HON'BLE MR.JUSTICE S.M.SUBRAMANIAM
C.M.A.No.3914 of 2019
and
C.M.P.No.22285 of 2019
Elite Industries
rep.by its Proprietor
N.Ramadoss,
Old No.165, Shed No.71,
Tiny Sector, Ambattur,
Chennai – 600 098. ..Appellant
Vs.
1.Employees State Insurance Corporation,
rep.by its Regional Director,
No.143, Sterling Road,
Chennai – 600 034.
2.The Recovery Officer,
Employees State Insurance Corporation,
No.143, Sterling Road, Chennai – 600 034. ..Respondents
Prayer : Civil Miscellaneous Appeal filed under Section 82 of the
Employees State Insurance Act, 1948 praying to set aside the order and
decree dated 27.05.2016 in E.I.O.P.No.257 of 2004 on the file of the
Employees Insurance Court, Principal Labour Court, Chennai.
1/6
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C.M.A.No.3914 of 2019
For Appellant : Mr.R.Ganesh Kumar
For Respondents : Mr.C.V.Ramachandramurthy
JUDGMENT
The judgment dated 27.05.2016 passed in E.I.O.P.No.257 of 2004
is under challenge in the present Civil Miscellaneous Appeal.
2. Admittedly no substantial question of law has been raised in the
appeal by the appellant. Section 82 of the ESI Act contemplates that an
appeal shall lie to the High Court from an order of an Employees
Insurance Court if it involves a substantial question of law. When there
is no involvement of substantial question of law if an, raises the appeal
before the High Court, is not entertainable at all.
3. The factual adjudication which was already done both under
Section 45-A and under Section 75 of the Act cannot be re-adjudicated,
unless, there is an error apparent or such consideration is required in the
interest of justice.
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C.M.A.No.3914 of 2019
4. The learned counsel appearing on behalf of the appellant
solicited the attention of this Court with reference to the document
marked as Ex.R4 dated 26.04.2002 is the Preliminary Inspection Report
prepared by the Inspector and relying on the said document he said that
10 employees were not working at the time of inspection. However, in
column No. 9, it is stated as under:
“Date/Dates on which 10/20 or more persons
(whose wages is less than or equal to Rs.6500/- p.m.) are /
were employed for wages in the factory / establishment
premises including the precincts thereof - 07/08/1998”
5. These factual aspects were adjudicated both before the Original
Authority as well as before the E.S.I.Court. The E.S.I.Court made a
substantial finding with reference to Ex.R4 as under:
“11.It is categorically proved from the own
admission of the petitioner in Ex.P5 letter that the
insurance inspector visited the petitioner's factory on
26.04.2002 and submitted his Ex.R4 report. It is seen
from Ex.R4 report that the petitioner employed 10
persons and more than 10 persons from July, 1998.
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C.M.A.No.3914 of 2019
Therefore, the Insurance Inspector recommended the
coverage of the petitioner under the scheme of ESI Act.”
6. The ESI Court has considered all the materials as well as the
evidence produced by the parties and made a categorical finding as
under:
“15.RW1 insurance inspector has categorically
stated that he found from the attendance register that the
petitioner employed 10 persons and more from
07.08.1998. He is an official witness. There is no need for
him to give a false report. It is submitted by the learned
counsel for the petitioner that the inspector has not
obtained the statements of employees, seized the
attendance registers and obtained the signature of the
employer in the inspection report and therefore Ex.R4
report cannot be accepted. As already stated, RW1 is a
public servant and there is no necessity for him to give a
false report. Though he has not got the signature of the
employer in his report, seized the attendance registers
and recorded the statement of employees, they cannot be
considered as a fatal to the case of the respondent. The
petitioner was given opportunity before passing order
u/S.45 A of the ESI Act to substantiate his case. The
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C.M.A.No.3914 of 2019
petitioner has not availed the opportunity to produce
documents in support of his case. Even before this Court,
the petitioner has not produced any acceptable documents
to show that it had employed only less than 10 persons.
Therefore, this Court accepts the case of the respondent
that the petitioner has employed 10 persons from
7.08.1998 and more than 10 persons thereafter and
therefore it is liable for coverage for the payment of
contribution under the ESI Act. It is clearly stated in
Ex.P4 that the petitioner had failed to submit his records
and therefore the order was passed on the basis of the
available records on adhoc basis. It cannot be faulted. In
this view of the matter, this Court finds that the prayer of
the petitioner that it is not coverable under ESI Act for the
period of 07.08.1998 to 31.03.2003 and Ex.P4 order has
to be set aside cannot be accepted and this petition is
dismissed.”
7. In view of the fact that the findings of the ESI Court are candid
and convincing. Based on the documents and evidences submitted by the
respective parties, this Court is of an opinion that no further adjudication
on merits is required. This apart, the appellant has not raised any
substantial question of law warranting further adjudication of important
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C.M.A.No.3914 of 2019
question of law.
S.M.SUBRAMANIAM, J.
Pns
8. This being the factum, the judgment dated 27.05.2016 passed
in E.I.O.P.No.257 of 2004 stands confirmed. Accordingly,
C.M.A.No.3914 of 2019 stands dismissed. No costs. Consequently,
connected miscellaneous petition is closed.
04.03.2021
Pns
Index: Yes/No
Internet:Yes/No
Speaking order/Non speaking order
To
1.The Regional Director,
Employees State Insurance Corporation,
No.143, Sterling Road,
Chennai – 600 034.
2.The Recovery Officer,
Employees State Insurance Corporation,
No.143, Sterling Road, Chennai – 600 034.
3.The Employees Insurance Court,
Principal Labour Court, Chennai.
C.M.A.No.3914 of 2019
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