SOLAR WORKS Vs. EMPLOYEES STATE INSURANCE CORPORATION

JUDGEMENT

(1.) THIS appeal arises out of an application filed under the Employees State insurance Act, 1948. The application was filed Under Section 75 (2) of the Act by the Employees' State Issurance Corporation, to recover contribution due from the employer, namely, the Solar Works, the appellant in this appeal (respondent in the application before the Employees Insurance Court, the Principal Judge, City Civil court, Madras ). The application was filed for the recovery of contribution relating to the period between March 1957 to November 1958. It was filed on 21-6-1959. The Act does not prescribe any period of limitation within which such an application could be filed; but R. 17 of the rules framed by the Madras State government prescribes a period of 12 months from the date, on which the cause of action arose or the claim became due. There is a proviso that the court may entertain an application after the said period of 12 months, if it is satisfied that the applicant had sufficient reason for not, making the application within the said period. The Corporation: invoked the benefit of this proviso in their application. They stated that they became aware of the liability of the employer only on 16-21959, when the Insurance Inspector inspected the records of the employer.

(2.) THE employer opposed the claim as barred by limitation and urged that no satisfactory reasons had been adduced under the proviso to R. 17 for excusing the delay.

(3.) AT the time of the argument on the application before the Employees' State insurance Court, it appears, to have been contended on behalf of the employer that R. 17 was valid but not the proviso thereto; and that under no circumstances could the delay be condoned. On the other hand, it appears to have been contended on behalf of the Corporation that R. 17 itself was ultra vires the State government, because the Act itself did not provide any period of limitation: for such an application for contribution and on a true construction of the Act it would follow that the intention of the Legislature was that there could be no period of limitation at all for such an application.