SRINIVASA RICE MILL Vs. EMPLOYEES STATE INSURANCE CORPORATION
LAWS(SC)-2006-11-31
SUPREME COURT OF INDIA (FROM: ANDHRA PRADESH)
Decided on November 10,2006

SRINIVASA RICE MILL Appellant
VERSUS
EMPLOYEES STATE INSURANCE CORPORATION Respondents

JUDGEMENT

- (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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