Dy. Regional Director, Esic vs Shri Bhopal Chand
2023 Latest Caselaw 3146 Raj

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR S.B. Civil Misc. Appeal No. 1921/2006

Dy. Regional Director, Zonal Office Employees State Insurance Corporation, Panchdeep Bhawan, Bhawani Singh marg, Jaipur.

----Appellant Versus Shri Bhopal Chand S/o Shri Lal Chand, Proprietor- Jinendra Cotton Mills, 26-27 Veer Durgadas Nasgar, Pali Marwar (Rajasthan).

                                                                    ----Respondent


For Appellant(s)              :     Mr. Raj Kamal Soni
For Respondent(s)             :     None

HON'BLE MR. JUSTICE YOGENDRA KUMAR PUROHIT

Judgment

Reserved on 13/04/2023

Pronounced on 18/04/2023

¼1½ vihykFkhZ dh vksj ls ;g vihy fo}ku v/khuLFk U;k;ky; deZpkjh jkT; chek

U;k;ky; ¼eq[; U;kf;d eftLVªsV½] ikyh ¼jkt-½ ds vk{ksfir vkns'k fnukad 04-05-2006

nhokuh fofo/k izdj.k la[;k [email protected] Hkksikypan cuke mi{kS=h; funs'kd] deZpkjh

jkT; chek fuxe ds fo:) izLrqr dh x;h gSA

¼2½ la{ksi esa izdj.k ds rF; bl izdkj gS fd izR;FkhZ&izkFkhZ dh vksj ls ,d izkFkZuk

i= vUrxZr vkns'k 75 lifBr /kkjk 77 deZpkjh jkT; chek vf/kfu;e] 1948 ds rgr

fnukad 31-05-2004 dks izLrqr djrs gq, ;g fuosnu fd;k x;k fd vizkFkhZ la[;k 1 }

kjk gLrk{kfjr i= fnukad 27-10-2003 izkFkhZ laLFkku dks izkIr gqvk ftlds }kjk [email protected]

ls [email protected] rd] [email protected] ls [email protected] rd dh vof/k ds fy, [email protected]& :i;s dh va'knku

dh jkf'k dk fu/kkZj.k djrs gq, izkFkhZ laLFkku dks mijksDr jkf'k vkns'k dh rkjh[k ls

15 fnu ds Hkhrj vnk djus dk vkns'k fd;k x;k vU;Fkk] mDr jkf'k deZpkjh jkT;

[2023/RJJD/010142] (2 of 8) [CMA-1921/2006]

chek vf/kfu;e dh /kkjk 45¼x½ ls 45¼>½ ds v/khu olwy dh tk;sxhA bl ekeys esa

izkFkhZ dh vksj ls ;g fuosnu fd;k x;k fd izkFkhZ laLFkku esa 12&13 o"kksaZ ls dksbZ

depkjh fu;ksftr ugha gS bl dkj.k ls va'knku dh jkf'k dk fu/kkZj.k ,oa va'knku

dh jkf'k dh ekax djus dk dksbZ vkSfpR; ugha gS vkSj /kkjk 77 deZpkjh jkT; chek

vf/kfu;e] 1948 ds vuqlkj va'knku dh ekax vof/k ckf/kr gS] bl dkj.k va'knku

fu/kkZj.k vkns'k fnukad 27-10-2003 dks fujLr fd;s tkus dh izkFkZuk dhA

¼3½ mDr izkFkZuk i= dk tokc vihykFkhZ&vizkFkhZ dh vksj ls izLrqr djrs gq, ;g

fuosnu fd;k x;k fd izkFkhZ dks lquokbZ ds fy, uksfVl fn;k x;k ijUrq izkFkhZ

tkucw>dj Li"Vhdj.k ds fy, dk;kZy; esa mifLFkr ugha gqvk] laLFkk cUn gq,

12&13 o"kZ ugha gq, gS] va'knku dh ekax fu;ekuqlkj dh x;h gSA vk{ksfir vkns'k

fof/klEer gksuk crkrs gq, va'knku dh ekax le;kof/k ds vUnj ugha fd;s tkus ds

rF; dks vlR; crk;k vkSj mDr cdk;k va'knku dh jkf'k vUnj e;kn gksuk crkrs

gq, izkFkZuk i= [kkfjt fd;s tkus dk fuosnu fd;kA

¼4½ i{kdkjku ds vfHkopuksa ds vk/kkj ij rhu fook|d dk;e fd;s x;s izkFkhZ

jsLiksaMsaV dh vksj ls ,d xokg o vizkFkhZ vihykFkhZ dh vksj ls ,d xokg is"k fd;k

x;k vkSj fo}ku vf/kuLFk U;k;ky; }kjk cgl lquh tkdj vk{ksfir vkns'k fnukad

04-05-2006 ds }kjk fo}ku v/khuLFk U;k;ky; us xq.kkoxq.k ij foospu djrs gq,

vkns'k fnukad 27-10-2003 le;kof/k ds ckgj gksus ds dkj.k fujLr dj izkFkhZ laLFkku

ls va'knku dh olwyh ugha djus dk vizkFkhZ fuxe dks vkns'k fn;k x;k vkSj va'knku

dh tek djok;h xbZ ipkl izfr'kr jkf'k ckn xqtjus e;kn vihy izkFkhZ izkIr djus

dk vf/kdkjh gksuk ?kksf"kr fd;k x;k] ftl vkns'k ls O;fFkr gksdj ;g vihy izLrqr

dh x;h gSA

¼5½ vihykFkhZ dh vksj ls /kkjk 82 deZpkjh jkT; chek vf/kfu;e] 1948 ds rgr

izLrqr dj vihy eas dkuwu dk egRoiw.kZ iz'u gksuk crk;k vkSj eq[; :i ls ;g

[2023/RJJD/010142] (3 of 8) [CMA-1921/2006]

egRoiw.kZ iz'u gksuk crk;k fd /kkjk 45, esa va'knku ds fu/kkZj.k dk izko/kku gS vkSj

/kkjk 45ch esa va'knku dh olwyh dk izko/kku gS] ftlesa dksbZ e;kn fu/kkZfjr ugha dh

x;h gSA /kkjk 77 deZpkjh jkT; chek vf/kfu;e] 1948 esa tks rhu lky o ikap lky

dh e;kn crk;h x;h gS og deZpkjh jkT; chek U;k;ky; esa /kkjk 75 dh dk;Zokgh

djus ds laca/k esa gSA bl vk/kkj ij ist la[;k 11 o 12 ij dkuwu ds egRoiw.kZ iz'u

vafdr fd;s gaS vkSj vUr esa vihy Lohdkj dj vk{ksfir vkns'k fnukad 04-05-2006

fujLr fd;s tkus dh izkFkZuk dh x;hA

¼6½ cgl vihy vihykFkhZ dh lquh x;hA izR;FkhZ dh vksj ls bl ekeys esa dksbZ

mifLFkr ugha vkus ij mudh vksj ls dksbZ cgl ugha gqbZA

¼7½ fo}ku vf/koDrk vihykFkhZ }kjk nkSjkus cgl deZpkjh chek vf/kfu;e] 1948

dh /kkjk 45 yxk;r 45vkbZ o /kkjk 75 ,oa /kkjk 77 ds izko/kkuksa ,oa ekuuh; mPpre

U;k;ky; ds U;kf;d n`"Vkar E.S.I.C. Vs. C.C. Santhakumar. 2006 AIR

SCW 6427 dh vksj U;k;ky; dk /;ku vkdf"kZr djrs gq, ;g rdZ izLrqr fd;k

x;k fd ekuuh; mPpre U;k;ky; }kjk ;g Li"V :i ls fu/kkZfjr fd;k x;k gS

fd /kkjk 45, o 45ch va'knku dk fu/kkZj.k o mldh Hkw jktLo dh rjg olwyh dk

izko/kku djrh gS vkSj /kkjk 77 ¼1,½¼ch½ ds izkfotks deZpkjh jkT; chek U;k;ky; esa

dh tkus okyh dk;Zokgh ds laca/k esa gS] ;g izko/kku /kkjk 45, o 45ch dh dk;Zokgh esa

ykxw ugha gksrkA /kkjk 45, ds rgr dksbZ e;kn dk izko/kku ugha gksus dk rdZ izLrqr

djrs gq, fo}ku v/khuLFk U;k;ky; dk vk{ksfir vkns'k fujLr fd;s tkus dh izkFkZuk

dhA

¼8½ eaSus mijksDr rdksaZ ij euu fd;k] i=koyh dk /;kuiwoZd voyksdu fd;kA

bl ekeys esa fo}ku v/khuLFk U;k;ky; ds le{k tks vkns'k fnukad 27-10-2003 dks

izkFkhZ&izfroknh dh vksj ls /kkjk 75 lifBr /kkjk 77 ds rgr pqukSfr nh x;h gS og

vkns'k izn'kZ ,u,&4 ds :i esa v/khuLFk U;k;ky; dh i=koyh esa layXu gS] ftl

[2023/RJJD/010142] (4 of 8) [CMA-1921/2006]

vkns'k esa Li"V :i ls loZizFke ;g vafdr fd;k x;k gS fd ^^deZpkjh jkT; chek

vf/kfu;e] 1948 dh /kkjk 45d ds v/khu vkns'k^^A ,slh lwjr esa bl vkns'k ls gh ;g

Li"V gS fd ftl vkns'k dks izR;FkhZ&izkFkhZ }kjk fo}ku v/khuLFk U;k;ky; ds le{k

pqukSfr nh x;h gS] og /kkjk 45d ds rgr va'knku dh jkf'k fu/kkZfjr djus dk vkns'k

gS vkSj bl vkns'k esa va'knku dh vnk;xh ds funsZ'k fn;s x;s vU;Fkk] ml jkf'k dh

olwyh /kkjk 45x ls 45> ds v/khu dh tkus dk mYys[k fd;k x;k gSA

¼9½ fo}ku vf/koDrk vihykFkhZ dh vksj ls izLrqr ekuuh; mPpre U;k;ky; ds

U;kf;d n`"Vkar E.S.I.C. Vs. C.C. Santhakumar. 2006 AIR SCW

6427 esa /kkjk 45,] 45ch o /kkjk 77¼1,½¼ch½ ds izksfotks ij foLr`r foospu fd;k

x;k gS tks iSjk la[;k 12 o 13 fuEukuqlkj mYys[k fd;k x;k gS %&

"12. Section 45A provides for determination of contributions in certain cases. When the records are not produced by the establishment before the Corporation and when there is no cooperation, the Corporation has got the power to make assessment and determine the amount under Section 45A and recover the said amount as arrears of land revenue under Section 45B of the Act. This is in the nature of a best judgment assessment as is known in taxing statutes. When the Corporation passes an order under Section 45A, the said order is final as far as the Corporation is concerned. Under Section 45A(1), the Corporation, by an order, can determine the amount of contributions payable in respect of the employees where the employer prevents the Corporation from exercising its functions or discharging its duties under Section 45, on the basis of the material available to it, after giving reasonable opportunity. But, where the records are produced, the assessment has to be made under Section 75(2)(a) of the Act. Section 45A(2) provides that the order under Section 45A(1) shall be used as sufficient proof of the claim of the Corporation under Section 75 or for recovery of the amount determined by such order as arrears of land revenue under Section 45B. In other words, when there is a failure in production of records and when there is no cooperation, the Corporation can determine the amount and recover the same as arrears of land revenue under Section 45B. But, on the other hand, if the records are produced and if there is cooperation, the assessment has to be

[2023/RJJD/010142] (5 of 8) [CMA-1921/2006]

made and it can be used as a sufficient proof of the claim of the Corporation under Section 75 before the E.S.I. Court. So, the limitation of three years for filing an application before the Court, introduced by Act 44 of 1966, can only relate to the application under Section 75 read with 77(1A). The order under Section 45A need not be executed by the Corporation before the E.S.I. Court under Section

77. As such, the amendment to Section 77(1A)(b) proviso by Act 29 of 1989 providing five year limitation has no relevance so far as orders passed by the Corporation under Section 45A are concerned.

13. Where an order is passed under Section 45A, it is the duty of the employer and not the Corporation to approach the E.S.I. Court. Since no application need be filed by the Corporation after an order is passed under Section 45A, the limitation prescribed under Section 77 does not get attracted. The non- payment of contribution is a continuing cause, which is clear from the fact that the employer is enjoined to pay the interest under Section 39(5)(A), which was introduced by Act 29 of 1989, until the date of its actual payment."

¼10½ ekuuh; mPpre U;k;ky; ds mDr U;kf;d n`"Vkar ij ekuuh; fnYyh mPp

U;k;ky; }kjk vius U;kf;d n`"Vkar Employee State Insurance

Corporation Vs. Hindustan Unilever Ltd. FAO 372/2013 fu.kZ;

fnukad 23.07.2014 MANU/DE/1876/2014 esa fopkj djrs gq, iSjk la[;k

4 yxk;r 9 esa fuEukuqlkj foospu fd;k x;k gS %&

4. Learned ESIC Court has held that no determination of contribution could have been done under Section 45A of the Act in respect of the period beyond five years. Accordingly, preliminary issue has been answered in favour of the respondent and against the appellant. For arriving at this view, ESIC Court has placed reliance on Sections 45A and 77 of the Act.

5. Section 45A before amendment reads as under:- "45A. Determination of contributions in certain cases :- (1) Where in respect of a factory or establishment no returns, particulars, registers or records are submitted, furnished or maintained in accordance with the provisions of section 44 or any Inspector or other official of the Corporation referred to in sub- section (2) of section 45 is prevented in any manner by the principal or immediate employer or any other person, in exercising his functions or discharging his duties

[2023/RJJD/010142] (6 of 8) [CMA-1921/2006]

under section 45, the Corporation may, on the basis of information available to it, by order, determine the amount of contributions payable in respect of the employees of that factory or establishment provided that no such order shall be passed by the Corporation unless the principal or immediate employer or the person in charge of the factory or establishment has been given a reasonable opportunity of being heard. (2) An order made by the Corporation under sub-section (1) shall be sufficient proof if the claim of the Corporation under section 75 or for recovery of the amount determined by such order as an arrear of land revenue under section 45B or the recovery under Sections 45C or 45I."

6. Section 45A of the Act was amended with effect from 1st June, 2002 and a proviso with regard to limitation was included. The proviso reads, thus, "provided further that no such order shall be passed by the Corporation in respect of the period beyond five years from the date on which the contribution shall become payable". In the old Act, no period of limitation has been prescribed for determining the contribution under Section 45A of the Act. It is trite law that a statute, which is legislated by the Parliament any amendment made therein, would have prospective effect unless it has been specifically made effective with retrospective effect.

7. The order involved in this case pertains to period prior to the amendment. Thus, old provision would be applicable, wherein no period of limitation has been prescribed.

8. Learned counsel for the respondent has vehemently contended that Section 77 of the Act prescribes the period of limitation of five years even in the old Act. Thus, no demand under Section 45A of the Act could have been assessed for a period prior to five years, even in respect of the period which is covered under the old Act. I do not find any force in this contention. In ESI Corpn. Vs. C.C. Santhakumar MANU/SC/8689/2006 : (2007) 1 Supreme Court Cases 584, Apex Court held that period of limitation as prescribed under Section 77(1-A) of the Act cannot be read into the provision of Section 45A of the Act. It has been held that prescription of limitation under Section 77(1-A)(b) of the Act has not been made applicable to the adjudication proceedings under Section 45A of the Act by the legislature, since such a restriction would restrict the right of the Corporation to determine the claims under Section 45A of the Act and the right of recovery under Section 45B of the Act and, further, it would give benefit to an unscrupulous employer.

[2023/RJJD/010142] (7 of 8) [CMA-1921/2006]

9 . Accordingly, I am of the view that ESIC Court has committed an patent error in holding that the order dated 1st December, 2008 is patently time barred as per Section 45A of the Act in respect of the determination of the dues pertaining to the period 1996-97.

¼11½ ekuuh; fnYyh mPp U;k;ky; ds fu.kZ; ds iSjk la[;k 6 esa /kkjk 45, esa

la'kks/ku dh rkjh[k Vad.k dh xyrh ls 1twu] 2002 vafdr gqbZ gS tcfd /kkjk 45, esa

tks ikap lky dh vof/k dk la'kks/ku fd;k x;k gS og deZpkjh jkT; chek ¼la'kksf/kr½

vf/kfu;e] 2010 ds }kjk /kkjk 9 ds vuqlkj fd;k x;k gS vkSj izksfotks tksM+ fn;k

x;k gS ftlds eqrkfcd ikap lky ls vf/kd vof/k iqjkus ekeyksa ds laca/k esa va'knku

dh jkf'k dk fu/kkZj.k ugha fd;k tk ldrkA ;g izko/kku Hkkjr ljdkj ds jkti=

vlk/kkj.k Hkkx&AA] [k.M&3 mi[k.M&AA Je o jkstxkj ea=ky; dh vf/klwpuk

fnukad 01-06-2010 ds }kjk /kkjk 18 ds vykok lHkh izko/kku ykxw fd;s x;s vkSj /kkjk

18 ds izko/kku la'kksf/kr vf/kfu;e ds vuqlkj gh fnukad 03-07-2008 ls ykxw fd;s

x;s gSaA ,slh voLFkk esa /kkjk 45, esa tks la'kks/ku tksM+k x;k gS] ftlds eqrkfcd ikap

lky ls iqjkus okys ekeyksa esa va'knku dk fu/kkZj.k ugha fd;k tk ldrk gSA ;g

izko/kku fnukad 01-06-2010 ls ykxw gS tcfd gLrxr ekeys esa tks vkns'k ikfjr

fd;k x;k gS og 27-10-2003 dk gSA ftl le; /kkjk 45, ds rgr va'knku fu/kkZj.k

ckcr dksbZ le; vof/k fu/kkZfjr ugha dh x;h FkhA ,slh lwjr esa fo}ku v/khuLFk

U;k;ky; dk vk{ksfir vkns'k /kkjk 45, o ekuuh; mPpre U;k;ky; rFkk ekuuh;

fnYyh mPp U;k;ky; ds U;kf;d n`"Vkarksa esa izfrikfnr fl}kUrksa ds ifjizs{; esa

fof/klEer ugha gSA /kkjk 77 ds izko/kku /kkjk 45, ds rgr ikfjr vkns'k fnukad

27-10-2003 ds ekeys esa ykxw ugha gksrs gSaA

¼12½ ,slh lwjr esa fo}ku v/khuLFk U;k;ky; }kjk tks fnukad 27-10-2003 dk vkns'k

le; vof/k ls ckgj gksus ds dkj.k fujLr fd;k x;k gS og fof/klEer ugha gS vkSj

tks /kkjk 82 deZpkjh jkT; chek vf/kfu;e] 1948 ds rgr vihy esa dkwuuh fcUnq la

[2023/RJJD/010142] (8 of 8) [CMA-1921/2006]

cuk;s x;s gaS mldk fu.kZ; bl izdkj fd;k tkrk gS fd & /kkjk 45, ds rgr

va'knku dk fu/kkZj.k djus ds ekeys esa /kkjk 77 ¼1,½¼ch½ esa tks e;kn vof/k nh x;h

gS] ds izko/kku ykxw ugha gksrs gSaA ,slh lwjr esa i= fnukad 13-06-03 o vkns"k fnukad

27-10-03 ds laca/k esa /kkjk 77 ¼1,½¼ch½ esa tks e;kn dk izko/kku fd;k x;k gS og

ykxw ugha gksrk A ,slh voLFkk esa fof/kd fcUnq vihykFkhZ ds i{k esa r; fd;s tkrs

gSaA vihy vihykFkhZ Lohdkj dh tkdj fo}ku v/khuLFk U;k;ky; dk vk{ksfir

vkns'k fujLr fd;s tkus ;ksX; gSA

vr% vihy vihykFkhZ vUrxZr /kkjk 82 jktLFkku deZpkjh jkT; chek

vf/kfu;e] 1948 Lohdkj dh tkdj fo}ku v/khuLFk U;k;ky; deZpkjh jkT; chek

U;k;ky; ¼eq[; U;kf;d eftLVªsV½] ikyh ¼jktLFkku½ nhokuh fofo/k izdj.k la[;k

[email protected] Hkksikypan cuke mi{kS=h; funs'kd] deZpkjh jkT; chek fuxe] t;iqj

vkns'k fnukad 04-05-2006 fujLr fd;k tkrk gSA

(YOGENDRA KUMAR PUROHIT),J 14-SN Lohra/-

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