EMPLOYEES STATE INSURANCE CORPORATION Vs. BIRLA CORPORATION LTD
LAWS(CAL)-2005-4-41
HIGH COURT OF CALCUTTA
Decided on April 11,2005

EMPLOYEES' STATE INSURANCE CORPORATION Appellant
VERSUS
BIRLA CORPORATION LTD Respondents

JUDGEMENT

Asit Kumar Bisi, J. - (1.) The instant application under Article 227 of the Constitution of India preferred by the petitioners arises out of order No. 3 dated 22nd September, 2003 and order No. 4 dated 28th October, 2003 passed by the learned Judge, Employees' Insurance Court, West Bengal in Tender Case No. 80 of 2003.
(2.) The Employees' State Insurance Corporation (hereinafter referred to as the Corporation) and its Recovery Officer being petitioner Nos. 1 and 2 respectively have filed the instant application under Article 227 of the Constitution of India alleging inter alia that the opposite party, Birla Corporation Ltd., is a company registered under the Companies Act, 1956 having inter alia its manufacturing unit, namely Birlapur Service Division situated at Birlapur, Dist. 24-Parganas (South) and is covered under the Employees' State Insurance Act (hereinafter referred to as the Act).The principal employers of the said company were/are liable to comply with the provisions of the Act and the regulations framed thereunder. It is the grievance of the petitioners that the principal employers of the opposite party had failed to pay the E.S.I, contributions towards overtime amount paid to their employees for the period from September, 1995 to December, 1996 and as such the Corporation by the notice dated 16th January, 2001 required the opposite party to show-cause as to why the arrear contributions for the said period should not be determined as per section 45A of the Act and recovered from it in accordance with law. After hearing the representative of the opposite party, the Deputy Director of the Corporation by an order dated 10th July, 2003 passed under section 45A of the Act duly determined arrear contributions totalling Rs. 45,247/- for the period from September, 1995 to December, 1996. The opposite party and/or its employers having failed and neglected to pay the said sum or any portion thereof the Revenue Officer of the Corporation being the petitioner No. 2 directed the opposite party and its General Manager by a notice of demand to defaulter dated 14th August, 2003 to pay a sum of Rs. 62,126/- towards arrear contributions of Rs. 45,247/- for the period from September, 1995 to December, 1996 and towards statutory interest of Rs. 16,828/- for the period upto 1st July, 2003 and towards costs of Rs. 51/- within 15 days from the receipt of the said notice.
(3.) Being aggrieved, the opposite party made an application under section 75 of the Act before the Employees' Insurance Court, West Bengal praying inter alia for declaration that the said notice of demand for defaulter dated 14th August, 2003 is misconceived, perverse, illegal and for permanent injunction restraining the Corporation from proceeding any further for realising the demanded sum on the strength of the said notice of demand to defaulter dated 14th August, 2003. On 8th September, 2003 the opposite party made an application under section 75(2B) of the Act in Tender Case No. 80 of 2003 before the Employees' Insurance Court, West Bengal, praying inter alia for admitting the said application under section 75 of the Act by waiving the requirement of deposit of 50% of the amount demanded by the Corporation. On the same date i.e., 8th September, 2003, the opposite party made another application for temporary injunction before the learned Judge, Employees' Insurance Court, West Bengal, praying for restraining the Corporation and its men and agents from proceeding any further in realising the demanded sum on the basis of the said notice of demand to defaulters. By the impugned order being order No.3 dated 22nd September, 2003 the learned Judge, Employees' Insurance Court, West Bengal directed the opposite party to deposit a sum of Rs. 7,000/- by 28th October, 2003 with the Corporation who should hold the same in trust and the ultimate appropriation thereof should abide by final decision of the case. By the said order the learned Judge also restrained the Corporation, its men and agents from realising the demanded sum on the strength of the Certificate Case No. C-7440/03-04 (1062A)/RRC till 28.10.2003. It appears from another impugned order being order No. 4 dated 28th October, 2003 that the present opposite party company filed a petition along v/ith xerox copy of the receipt showing that the amount had been deposited in cheque.;


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