Rajesh Bindal, J. - (1.) The petitioner has impugned before this court order dated 22.5.2009, passed by Employees State Insurance Court, Chandigarh, whereby in an application filed by the petitioner under Section 75 read with Sections 76 and 77 of the Employees' State Insurance Act, 1948 (for short, 'the Act') challenging an order passed under Section 45-A of the Act, the petitioner has been directed to deposit 50% of the demand raised.
(2.) Learned counsel for the petitioner submitted that an arbitrarily demand of Rs. 14,54,860/- was raised against the petitioner for the period the factory was closed. The order was impugned before the court below, wherein without appreciating the fact that the petitioner-company had been declared a sick industrial unit under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985, (for short, 'the 1985 Act') in terms of which no coercive steps for recovery of any dues from a company, which has been declared sick, could be taken. The petitioner-company in the present case was declared sick on 12.12.2005 and even a scheme for rehabilitation was also prepared on 12.3.2007.
(3.) On the other hand, learned counsel for the respondents submitted that the petitioner cannot be permitted to raise any contention on the merits of the controversy as the same is subject-matter of dispute before the court below. In terms of the provisions of Section 75(2-B) of the Act, the petitioner has rightly been directed to deposit 50% of the amount due before it is heard on merits of the controversy. The plea for waiver in terms of the provisions of the 1985 Act is not available considering the fact that the petitioner was declared sick way back on 12.12.2005 and even scheme for rehabilitation was also prepared on 12.3.2007. It is evident from the scheme that the petitioner-company had two plants - one at Mohali and another at Baroda. The plant at Baroda was functioning. The plant at Mohali was also proposed to be shifted to Baroda. Even the workers could also opt for shifting to Baroda. The land and building at Mohali was to be sold out to clear the debts in terms of the concessions recommended by Board for Industrial and Financial Reconstruction. In such circumstances, the condition of prior payment of 50% of the amount due from the petitioner cannot be waived off.;