M/S. A.K. BROTHERS Vs. EMPLOYEES STATE INSURANCE CORPORATION

JUDGEMENT

(1.) THE question of law referred to us is : Whether R. 17 of the Uttar Pradesh Employees Insurance Court Rules, 1952 is ultra vires of the rule-making power of the State ?"

(2.) THIS reference arises out of a proceeding under the Employees State Insurance Act, 1948 (hereafter referred to as the Act). Employees State Insurance Corporation, Kanpur filed an application against a firm Messrs A.K. Brothers under S. 75(2) of the Act for the recovery of a certain sum as contribution under the Act. The firm raised various pleas in defence. One of the points raised by the firm was that, the application by the Corporation was barred by time. This plea was overruled by the Employees Insurance Court, Kanpur. That Court passed in favour of the Corporation-applicant a decree for a certain sum.

(3.) IN order to appreciate the various points raised by the learned counsel for the parties, it will be useful to refer to the relevant provisions of the Act. The Employees State Insurance Corporation is established under S. 3 of the Act. Chapter IV of the Act provides for contribution by the employer and employees. Section 40 lays down that the principal employer must pay contributions in the first instance. Under S. 44, an employer has to furnish returns and maintain registers. Chapter V describes various benefits to employees. Section 68 provides for the Corporations rights where a principal employer fails or neglects to pay any contribution. Chapter VI deals with adjudication of disputes and claims. Employees Insurance Courts (hereafter referred to as Insurance Courts) are established under S. 74 of the Act. Section 75 enumerates matters to be decided by Insurance Courts. One such matter is a claim for the recovery of contributions from the principal employer. Section 76 deals with institution of proceedings etc. Sub-Section (1) of S. 76 states :