Madras High Court
Shri Nehru Vidayala ... vs The Deputy Director on 19 April, 2022
C.M.A. No.436 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 19.04.2022
CORAM
THE HONOURABLE Ms. JUSTICE P.T. ASHA
C.M.A. No.436 of 2022
Shri Nehru Vidayala Matriculation Higher Secondary School,
Rep. by its President Ramesh C Bafana,
No.26, Bhagwan Mahaveer Building,
Tibrewal Nagar, Robertson Road,
R.S.Puram, Coimbatore. ... Appellant
Vs.
1.The Deputy Director,
Employees' State Insurance Corporation,
Sub-Regional Office,
No.1897, Trichy Road,
Ramanathapuram, Coimbatore.
2. The Additional Commissioner,
Employees' State Insurance Corporation,
Sub-Regional Office,
No.1897, Trichy Road,
Ramanathapuram, Coimbatore. ... Respondents
PRAYER: Civil Miscellaneous Appeal filed under Section 82(2) of the
Employees' State Insurance Act, 1948 to set aside the decree and judgment
passed in E.S.I.O.P.No.102 of 2019 by the Presiding Officer, Principal
Labour Court, Employees' State Insurance Court, Coimbatore dated
28.10.2021.
1/7
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C.M.A. No.436 of 2022
For Appellant : Mr.Aashish Jain Lunia
For Respondents : Mr.S.P.Srinivasan
Standing Counsel
JUDGMENT
The petitioner before the Employees' State Insurance Court,
Coimbatore is the Appellant before this Court challenging the order passed
by the Employees' State Insurance Court (herein after referred to as ESI
Court), Coimbatore in E.S.I.O.P.No.102 of 2019.
2. The facts in brief are as follows:
The first respondent had issued a show cause notice
dated 12.06.2018 to the Appellant, calling upon the Appellant to show cause
against the proposed determination and recovery of a sum of Rs.58,21,745/-
as the amount of contribution. The show cause notice had directed the
Appellant to submit their objections to the show cause and to appear before
him on 31.08.2018 with all the relevant records.
3. The Appellant in response to the show cause notice had attended
the personal hearing on 31.08.2018 and the authorized representatives of the
Appellant Company had requested time for producing further records and
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C.M.A. No.436 of 2022
for making their detailed submissions. The hearing was therefore adjourned
to 14.09.2018.
4. The first respondent by order dated 28.09.2018 under Section 45
(A) of the Employees' State Insurance Act, 1948 (herein after referred to as
ESI Act) directed the Appellant to pay a sum of Rs.54,64,632/-. The order
of the first respondent directed the Appellant to pay the aforesaid sum
covering the period from 01.09.2013 to 30.04.2018. This order was taken up
on challenge to the Appellate Authority, who by order dated 21.05.2019 had
reduced the contribution amount to a sum of Rs.48,08,176/- being the
admitted amount of contribution. The Appellant was directed to pay the said
sum which constituted the period from 01.09.2013 to 30.04.2018. The
Appellant had already paid a sum of Rs.13,66,158/- while preferring an
Appeal under Section 45 (AA) and what remains payable was the sum of
Rs.34,42,018/-.
5. Aggrieved by this order, the Appellant had challenged the said
order by filing E.S.I.O.P.No.102 of 2019 on the file of the Presiding Officer,
Principal Labour Court, Employees' State Insurance Court, Coimbatore. By
order dated 28.10.2021, the ESI Court had dismissed the petition filed by
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C.M.A. No.436 of 2022
the Appellant. The main fulcrum of the objection is that the demand is
barred by limitation. The impugned order has been issued for a period
beyond the prescribed five years as provided under Section 45 A (1) of the
Act.
6. The Appellant would submit that the contributions commence from
01.06.2013 and in order to bring it within the limitation period the Authority
has unilaterally shifted it to 01.09.2013. Therefore, he would submit that the
impugned order has to necessarily be set aside.
7. Mr.S.P.Srinivasan, learned Standing Counsel appearing on behalf
of the respondents would however contend that as per the 2nd proviso to
Section 45 (A) (1) of the ESI Act, the order shall not be passed beyond the
period of five years from the date on which the contribution become
payable. Therefore, the impugned order passed by the first respondent
would clearly come within the period prescribed under 2nd proviso to
Section 45 (A) (1) of the ESI Act.
8. Heard the learned counsels appearing on either side and perused
the materials available on record.
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C.M.A. No.436 of 2022
9. Originally the respondent authority had issued a show cause notice
dated 12.06.2018 seeking contributions of a sum of Rs.58,21,745/-. Show
cause notice had been issued in the month of June 2018 and therefore the
claim from June 2013 was very much within the period prescribed under the
above proviso. Thereafter, when the order under Section 45 (A) was passed,
once again the period of payment of the contribution was from 01.09.2013
to 30.04.2018. Once again the order was well within the period of time
prescribed under the ESI Act.
10. Considering the fact that only this point was canvassed and as the
Court finds that there is no merit in the said argument, the Civil
Miscellaneous Appeal is dismissed. No Costs.
19.04.2022
Index : Yes/No
Speaking Order : Yes / No
ab
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C.M.A. No.436 of 2022
To
1. The Principal Labour Court,
Employees' State Insurance Court,
Coimbatore
2.The Section Officer,
VR Section, Madras High Court,
Chennai.
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C.M.A. No.436 of 2022
P.T. ASHA, J,
ab
C.M.A. No.436 of 2022
19.04.2022
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