EMPLOYEES STATE INSURANCE CORPORATION Vs. NATIONAL PRINTING PRESS JAIPUR AND AYODHYA PRASAD
LAWS(RAJ)-1975-12-6
HIGH COURT OF RAJASTHAN
Decided on December 22,1975

EMPLOYEES STATE INSURANCE CORPORATION Appellant
VERSUS
NATIONAL PRINTING PRESS JAIPUR AND AYODHYA PRASAD Respondents

JUDGEMENT

KUDAL, J. - (1.) THE Employees' State Insurance Corporation applied before the Employees Insurance Court, Jaipur against the National Printing Press and its partner Ayodhya Prasad Sharma to enforce its claim and obtained a decree for Rs. 918/- and costs, on account of employee contribution which was due under the E. S. I. Act. THE decree was obtained on 29. 4. 1961. THE execution of the decree was sought on 12-7-1962. An objection was raised by Ayodhya Prasad that the decree is not executable as it is barred by time. Reliance was placed on Rule 42 of the Rajasthan State Employees Insurance Court Rules, 1959, whereby the period of one year has been laid down during which a decree could be executed. However, a rejoinder was submitted on behalf of the decree-holder that Rules 17 (1) and 42 of the Rajasthan State Employees Insurance Court Rules, 1959 were ultra vires. This decree was sent to the learned Munsiff for execution. THE learned Munsiff before whom these objections were raised, referred the following question of law for adjudication - "whether the State of Rajasthan had framedrule 42 (1) in the Rajasthan Employees Insurancecourt Rules, 1959 which is outside the strictterms of authority assigned to the State undersec. 96 (1) (b) of the E. S. I. Act, 1948 and as such it is excessive delegated legislation and must need be declared to be invalid and of question-able vires ?"
(2.) THE learned court counsel arguing on behalf of the Employees State Insurance Corporation contended that Rules 17 of the Bombay Employees Insurance Rule has been declared to be ultra vires in the case of Bharat Barrel & Drum Manufacturing Company Ltd. vs. Employees State Insurance Corporation (1), and as such, following the same analogy Rule 42 of the Rajasthan Employees Insurance Rules, 1959 is also invalid. While making the reference, the learned Munsiff relied on United India Timber Works vs. E. S. I. Corpn. (2), E. S. I. Corporation vs. M. P. Govt. (3), E. S. I. Corpn. vs. B. B. & Drum Mfg. Go. (4), Solor Works vs. Employees S. I. Corpn. (5) and M/s. A. K. Bros. vs. E. S. I. Corporation (6 ). The learned counsel for Insurance Corporation also drew the attention of this Court to decision by the learned Division Bench of this Court in the case of Employees State Insurance Corporation vs. Executive Engineer, PWD (B&r) Workshop, Jaipur decided on 10th November, 1971 (7 ). Attention was also drawn to the case of Em-ployees State Insurance Corporation, Jaipur v. Executive Engineer PWD, decided on 8th March, 1972 (B) and Regional Director E. S. I. Corp. vs. Assistant Engg. M. G. (3) decided on 14th March, 1973. In the latter case, it was held that Rule 17 of the Employees Insurance Court Rules was ultra vires and invalid. As a matter of fact, the controversy about the validity of Rule 17 of the Bombay Employees State Insurance Court Rules, 1969 was set at rest by the decision of the Supreme Court in Bharat Barrel & Drum Manufacturing Company Ltd. & Anr. v. Employees State Insurance Corporation (1), wherein it was held that Section 96 (1) (b) of the Employees State Insurance Act, 1948, which enables the State Government to make rules not inconsistent with the Act in regard to the procedure to be followed in proceedings before Employees Insurance Courts, deals with the procedure to be followed in relation to proceedings in the Court after it has seisin of the matter. The State Government does not have power to make a rule under this section laying down the period of limitation for applications to the Court. Rule 17 of the Bombay Employees' Insurance Court Rules, which lays down a limitation of twelve months within which an application to the Court should be made, is therefore, ultra vires of the powers of the State Government and invalid. Moreover, such a rule will have the effect of extinguishing the rights of parties if a claim is not made within the prescribed period and the legislature does not part with the power to prescribe limitation which it retains to itself unless it intends to do so in clear and unambiguous terms or by necessary intendment. The Employees Insurance Court Rules made by the State of Bombay and Rajasthan are pari materia. Therefore, the decision of the Supreme Court on Rule 17 of the Bombay Employees Insurance Court Rules shall apply with full force to the rules framed by the State of Rajasthan. The Rajasthan Employees Insurance Court Rules, 1959 in Part II deals with the procedure and execution of orders. Rules 17 and 48 both fall in Part II of these Rules. As has been held by the Supreme Court in Bharat Barrel & Drum Manufacturing Company Ltd & Anr v. Employees State Insurance Corporation (1), Rule 17 is invalid, and beyond the scope of the rule making authority of the State. If Rule 17 is held to be ultra vires, then the necessary corollary which follows is that Rule 42 is also ultra vires of the Rules making authority of the State. In view of these circumstances narrated above, it must be held that Rule 42 of the Rajasthan State Insurance Court Rules is invalid. The reference made by the learned Munsiff is answered accordingly. The case be sent back to him for proceeding further in the matter according to law. .;


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