Decided on March 09,1983

Tarakeswar Nath Ojha And Ors. Appellant
Employees State Insurance Corporation And Ors. Respondents


Manash Nath Roy, J. - (1.) By this application, which was moved with notice the petitioners Nos. 1 to 3, who were initially the partners of M/s. Elite Press, have sought to challenge Criminal Proceedings which have been initiated against them for recovery of E.S.I. contributions. It has been stated that much before the period for the demand for which proceedings were initiated, they informed by the record in Annexure C that they had no connection with the business Elite Press and the said business has under gone a change in management, with effect from 1st April, 1981. Such communication was made on 10th of May, 1982. It has been claimed now that although the communication of the transfer of interest as was intimated, was received by the authorities concerned duly, yet they took no steps on the basis thereof,but illegally and irregularly apart from being without jurisdiction, criminal proceedings were sought to be initiated. Mr. Ray appearing in support of the application, claimed that the disposal of the criminal proceeding where the petitioners, of course, took the plea regarding the cessassion of their interest and got necessary exemption would take a long time and till then they would be harrassed. That is the reason why this petition on behalf of the erstwhile partners of the said Elite Press, would be maintainable. Admittedly, the criminal proceedings as was initiated, are pending and summons have been served. When the criminal cases have been so initiated and the points as taken in this petition, in my view, would be available appropriately to decided by the learned Magistrate concerned, I think that it would not be fair and proper for this court to interfere with the initiation of proceedings at this stage, the more so when the learned Advocate stated that all facts are disputed.
(2.) Be that as it may, for the view I have expressed, regarding the maintainability at this stage, I refrain from issuing a Rule and thus, I reject this application with this observation, that nothing said in this order would preclude the petitioners from taking any plea that would have been or would be taken in the connected proceeding and all points as taken in that proceedings, are be kept open.;

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