H S BAPAN Vs. E S I CORPN
LAWS(RAJ)-2005-8-60
HIGH COURT OF RAJASTHAN (AT: JAIPUR)
Decided on August 26,2005

H.S.BAPAN Appellant
VERSUS
E.S.I. CORPN. Respondents

JUDGEMENT

- (1.) THIS petition under Section 482 Cr. P. C. is directed against the order dated 13. 1. 04 passed by the Special Judge, Sati Nivaran, Rajasthan and Addl. Sessions Judge, Jaipur whereby Cr. Revision Petition filed by the petitioners has been dismissed against the order dated 17. 7. 02 passed by the Addl. Chief Judicial Magistrate No. 1, Jaipur City, Jaipur whereby an application filed by petitioners under Section 204 Cr. P. C. to drop the proceedings was rejected.
(2.) THE complainant non-petitioner filed a criminal complaint against the petitioners in the Court of Chief Judicial Magistrate, Jaipur for the offence under Section 406 and 409 IPC alleging that accused No. 1 to 4 are Directors of accused No. 5 M/s. Perfect Thread Mills Ltd. , Udaipur. The accused persons deducted the amount of Employees State Insurance from the salary of the employees for the period from August, 1987 to February, 1988 but did not deposit the same with the Department. The learned trial Court took cognizance against the petitioners for the offences under Sections 406 and 409 IPC.
(3.) DURING the pendency of the trial of the case the petitioners filed an application under Section 204 Cr. P. C. to the effect that Hon'ble Supreme Court in Employees State Insurance Corporation v. S. K. Aggrawal and Ors. AIR 1988 SC 2676 has held that employees are appointed by the Company and not by the Directors, therefore, the Directors cannot be said to be the "employer" of the employees of the Company, therefore, they cannot be prosecuted in respect of offences relating to lapses on the part of the Company, therefore, they should be discharged and the proceedings against them be dropped.;


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