Yashwant Varma, J. - (1.) Heard Sri V.K. Upadhyay, learned Senior Counsel assisted by Sri Ritvik Upadhya in support of this petition. Although, respondents are duly represented, none has appeared on their behalf even when the matter is taken in the revised call.
(2.) The petition challenges proceedings initiated by the Employees State Insurance Corporation [hereinafter to be referred to as "the Corporation"] and seeks quashing of a demand dated 2 April 2004. The Corporation has in terms of the impugned demand called upon the petitioner to discharge liabilities towards dues payable under the Employees State Insurance Act, 1948 together with penalty and damages. Sri Upadhyay, learned Senior Counsel, has assailed the demand principally on the ground that the liability of the petitioner under the provisions of the aforementioned Act shall stand governed by the provisions made in a Scheme of Rehabilitation sanctioned by the BIFR in respect of the petitioner. Referring to the provisions made in that Scheme insofar as ESI dues are concerned, Sri Upadhyay has drawn the attention of the Court to the relevant clause of the Sanctioned Scheme which provided that the Corporation would accept liquidation of ESI dues over two years without demanding any interest or penalties thereon. In view of that stipulation in the Sanctioned Scheme, Sri Upadhyay contends that the demand insofar as it places a liability of interest and damages is unsustainable.
(3.) Insofar as the question of principal dues are concerned, there is no dispute before this Court. Sri Upadhyay has stated that the principal dues have already been paid. That only leaves the Court to consider whether the impugned demand insofar as it levies interest and damages is sustainable.;