IN THE HIGH COURT OF KERALA AT ERNAKULAM
OP.No. 38436 of 2001(A)
1. M/S.KERALA STATE DETERGENT & CHEMICALS L
... Petitioner
Vs
1. EMPLOYEES STATE INSURANCE CORPN.
... Respondent
For Petitioner :SRI.T.V.GEORGE
For Respondent :SRI.T.P.M.IBRAHIM KHAN, SC, E.S.I
The Hon'ble MR. Justice V.K.MOHANAN
Dated :29/05/2009
O R D E R
V.K.MOHANAN, J.
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O.P. No.38436 OF 2001
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Dated, 29th May 2009
JUDGMENT
The petitioner, the Kerala State Detergent and
Chemicals Ltd., Kuttippuram, is a government owned
company engaged in the business of manufacture and
sale of detergent cakes/powder, cleaning powder
cleaning liquid etc. The petitioner’s company is covered
by the Employees State Insurance Corporation, but failed
to pay the employees contribution for the period from
6/2000 to 8/2000. Therefore, the respondent
corporation issued Ext.P5 demand notice demanding to
pay arrears towards the contribution to the insurance
scheme. It is the above notice challenged in this writ
petition.
2. The main ground taken in this writ petition is to
the effect that the petitioner’s company was already
declared as a sick industrial company by the BIFR and
therefore no coercive step and recovery proceedings shall
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be taken without the prior sanction of BIFR.
3. Refuting all the averments and contentions in
the writ petition, a counter affidavit is filed by
respondents 1 and 2 wherein particulars are given
regarding the arrears due to the Corporation from the
petitioner and also given the details as to how they arrived
the amount shown as arrears. It is specifically contended
that the provision of the Sick Industrial Companies Act
does not prevent a principal employer from paying
statutory dues like ESI, PF, etc. The petitioner being the
Principal Employer is liable to pay the dues in view of
Section 40 of the E.S.I. Act. It is also contended that
Section 22(1) of the Sick Industrial Companies (Special
Provisions) Act, 1985 is applicable only to winding up
proceedings etc. under the companies Act, and the said
provision is not applicable to the statutory dues payable by
a sick company. It is also contended that as per para 3.3
(f) of Ext.P2 sanctioned scheme itself, it has been
provided that government of Kerala will meet all other
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financial liabilities including those towards statutory and/or
other dues connected with the operations of the company.
Thus it is contended that the reliefs sought in the writ
petition are not liable to be granted and the petitioner’s
establishment is liable to pay the amount demanded as per
Ext.P5 revenue recovery proceedings.
4. I have heard the learned counsel for the
petitioner as well as the respondent E.S.I. Corporation.
5. During the course of hearing, it is submitted by
the learned counsel for the respondents that the petitioner
has filed certain other writ petitions on identical grounds
i.e., O.P.Nos.8902/99 and 28807/2000 before this Court
and the same were dismissed. The above assertion is not
controverted. The ground taken in this writ petition that
because the petitioner’s establishment is declared as sick
industrial company, the petitioner is not liable to pay
contribution or no coercive or recovery steps can be
taken without the prior sanction of BIFR is not appealable,
in view of the provisions referred above.
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In the result, I find no merit in this writ petition. The
petitioner is not entitled to get any relief as prayed for.
Accordingly this writ petition is dismissed.
V.K.MOHANAN, JUDGE
kvm/-
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V.K.MOHANAN, J.
O.P.NO.38436 OF 2001
JUDGMENT
Dated: 29.5.2009