JUDGEMENT
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(1.) Leave granted.
(2.) Applicability of the provisions of the Employees' State Insurance Act,
1948 (for short "the Act") to the rice mills situate in the State of Andhra
Pradesh arises for question in these matters. Appellants are owners of
various rice mills situate in the State of Andhra Pradesh. The operation in
these rice mills is said to be seasonal. The Act admittedly was made
applicable in relation to the rice mills with effect from 1.8.2000. Prior to
coming into force of the Act, inspections were carried out and allegedly it
was found that in the mills more than 10 employees were employed. They
were allegedly asked to comply with the provisions of the Act. Without,
however, giving an opportunity to explain as to why they have not made any
contribution towards insurance, by a notice dated 20th October, 2000, they
were asked to show cause stating:
"I therefore call upon to explain the reasons if any
as to why you should not be prosecuted, within a
week of receipt of this letter. If no reply is
received within stipulated time it will be presumed
that you have no valid reasons to explain and
further action will be taken accordingly without
any further notice."
(3.) Suits were filed before the Employees' Insurance Court under Section
75(1)(g) of the Act. The question which inter alia was raised therein was as
to whether the aforementioned notice was legal. By reason of a judgment
and order dated 30.6.2003, the learned Employees' Insurance Court
dismissed the applications. Aggrieved thereby and dissatisfied therewith,
appeals were preferred before the High Court purported to be in terms of
Section 82 of the Act. The said appeals, by reason of the impugned order,
have been dismissed.;
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