High Court Punjab-Haryana High Court

M/S Clutch Auto Pvt. Ltd. … vs The Regional Director on 16 January, 2009

Punjab-Haryana High Court
M/S Clutch Auto Pvt. Ltd. … vs The Regional Director on 16 January, 2009
FAO No.930 of 1983            -1 -


IN THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH

                                          FAO No.930 of 1983

                                          Date of Decision: 16.1.2009


M/s Clutch Auto Pvt. Ltd. Faridabad
                                                       ..Appellant.

Vs.

The Regional Director, Employees State Insurance Corporation,
Chandigarh.

                                                       ..Respondent.

CORAM: HON’BLE MR.JUSTICE RAKESH KUMAR JAIN

Present: Mr.Nilesh Bhardwaj, Advocate for the appellant.

Mr.Vikas Suri, Advocate with
Mr.Rajiv Kumar Saini, Advocate for the respondent-ESIC.

RAKESH KUMAR JAIN, J.(Oral)

Mr.Vikas Suri, counsel for the respondent has very fairly

conceded that further delegation of powers under Section 85-B of the

Employees State Insurance, Act to the Regional Director by the Director

General has been declared to be illegal in view of decision of the Supreme

Court in Sahni Silk Mills (P) Ltd. and another Vs. Employees’ State

Insurance Corporation (1994) 5 SCC 346 and a decision of this Court in

FAO No.788 of 1984 titled as M/s Hada Steel Products Ltd. Vs.

Employees State Insurance Corporation.

After hearing the learned counsel for the parties and having

regard to the law laid down by the Supreme Court, the present appeal is

allowed. The impugned order dated 29.8.1983 is set aside. However, it shall
FAO No.930 of 1983 -2 –

be open to the Regional Director to issue fresh notices and recover damages

for the period in dispute if the same has not been recovered till date. In case,

the damages have already been recovered, then they will not be required to

be refunded.




                                               (Rakesh Kumar Jain)
16.1.2009                                             Judge
Meenu