ANAND KUMAR BINDAL Vs. EMPLOYEES STATE INSURANCE CORPORATION
LAWS(ALL)-1956-10-13
HIGH COURT OF ALLAHABAD
Decided on October 05,1956

ANAND KUMAR BINDAL Appellant
VERSUS
EMPLOYEES' STATE INSURANCE CORPORATION Respondents

JUDGEMENT

Mootham, C.J. - (1.) This is a petition under Article 226 of the Constitution. The petitioner is the occupier of a factory in Saharanpur which is engaged in manufacture of cloth. He was called upon by the Regional Director of the Employees' State Insurance Corporation to pay a sum of Rs. 12,484 as a special contribution payable by an employer under Chap. VA of the Employees' State Insurance Act in respect of a period extending from 1st April 1953 to 31st March, 1955. The petitioner disputed his liability for payment of this sum or any part of it, and as a consequence of his refusal to pay steps are now being taken against him for recovery of the amount claimed as though it were an arrear of land revenue, and he is threatened with prosecution under Section 85 of the Act. The petitioner contends that the demand is illegal, and the principal relief which he seeks by this petition is the issue of a mandamus directing the respondents not to recover from him any contribution under the provisions oi the Employees' State Insurance Act.
(2.) The Employees' State Insurance Act became law on the 19th April, 1948. Its purpose as stated in the preamble is to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto. For the purpose of administration of the scheme of Employees' State Insurance the Act established a body corporate known as the Employees' State Insurance Corporation on which are to be representatives inter alia of the. Central Government and the States, of employers and employees and also two members of the medical profession. A standing Committee and a Medical Benefit Council were also established, the former to administer the affairs of the Corporation subject to its general supervision and the latter to advise the Corporation on matters relating to the administration of medical benefits.
(3.) The Act also established a Fund known as the Employees' State Insurance Fund which is to be administered by the Corporation for the purposes of the Act, and into which will be paid all contribution-recoverable under the Act and such other monies as are received on behalf of the Corporation. The scheme is to be financed by contributions from employers and employees for which provision is made in Chapter IV. The scale of contribution is dependent on the rate of wages paid to the employees, the employers' contribution being approximately double that of the employees.;


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