High Court Kerala High Court

M/S. Shafeeq Concrete Products vs The Asst.Director on 29 May, 2009

Kerala High Court
M/S. Shafeeq Concrete Products vs The Asst.Director on 29 May, 2009
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

Ins.APP.No. 58 of 2006()


1. M/S. SHAFEEQ CONCRETE PRODUCTS,
                      ...  Petitioner

                        Vs



1. THE ASST.DIRECTOR,
                       ...       Respondent

                For Petitioner  :SRI.ANTONY DOMINIC

                For Respondent  :SRI.T.V.AJAYAKUMAR, SC, ESI CORPN.

The Hon'ble MR. Justice K.M.JOSEPH
The Hon'ble MR. Justice M.L.JOSEPH FRANCIS

 Dated :29/05/2009

 O R D E R
        K.M. JOSEPH & M.L. JOSEPH FRANCIS, JJ.

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               Insurance Appeal No. 58 OF 2006 A
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               Dated this the 29th day of May, 2009

                           J U D G M E N T

Joseph, J.

Appellant is the applicant in an application filed under

section 75 of the Employees State Insurance Act, 1948(hereinafter

referred to as ‘the Act’). The appellant sought declaration that its

establishment is not liable to be covered under the Act. The

request is rejected and it is declared that it constitutes a factory as

per the first part of section 2(12) of the Act and liable to be

covered and bound to comply with the Act from 1.8.1997 onwards.

However, the assessment order is set aside and direction is

issued to initiate fresh proceedings.

2. We heard learned counsel for the appellant. According

to the appellant, the appellant is a firm and the strength of its

workers never exceeded 6. On an inspection conducted on

25.3.1998, it is stated that when the inspection team came, the

partners were not present and only the husband of a partner was

present and he made a statement and the report is essentially

Ins. Appeal.58/06
: 2 :

based on the same. The appellant examined PWs1 to 4 and

marked Exts.P1 to P8 while the respondent examined DW1 and

marked Exts.D1 to D6. The Insurance Court, after elaborate

consideration of the matter, took the view that the case of the

appellant does not inspire confidence and that it fulfill the criteria

of employment strength for its coverage under the Act. Appeal

under the Employees State Insurance Act before the High Court is

permissible only if substantive question of law arises. Of course, it

is contended that it is a perverse finding. Learned counsel for the

appellant also referred to us paragraph 16 of the judgment. It

reads as follows.

“16. It has been argued by counsel for

applicant that Ext.P1 is the muster roll for the

period from May 1997 to September 1997.

There is signature of Sri.P.K.Krishnankutty DW1

on 7.3.2002. Likewise, Ext.P2 is wage register

for the period May 1997 to September 1997 and

there is also signature of DW1 dated 7.3.2002 in

it. Relying on the above, it has been argued by

the counsel for the applicant that there were

only 5 persons employed for wages as on

August 1997. It is true that as per Exts.P1 and

P2 the persons employed are only 5 persons.

Ins. Appeal.58/06
: 3 :

These documents are manifestly written up at a

stretch and they are brand new documents and

it is manifest that they are not contemporaneous

documents relating to 1997. At the time of

examination of DW1, the applicant did not

confront him with Exts.P1 and P2 and elicit his

version in the matter. It has been specifically

stated in Ext.D2 report that the inspection team

has verified attendance register from 8/97 to

3/98 and wages register from 9/97 to 12/97 and

they have put their signature on the pages of

wage register for September 1997, October 97

and December 97 and attendance register at

August 1997, December 1997 and March 1998.

Apparently Exts.P1 and P2 cannot be the same

documents presented before the team of

insurance inspectors on 25.3.1998. Therefore

above line of the argument of the applicant’s

counsel is not accepted by me.”

He would, therefore, contend that once the signature in the

document and attendance register is admitted, it means that the

inspection as evidenced took place and number of employees is

as stated. However, we note that in the very same paragraph,

reasoning is assigned by the court to not rely on the attendance

register as canvassed by the appellant. When the Inspector was

Ins. Appeal.58/06
: 4 :

examined these documents were not put to him. Other material

available was also relied on to come to the conclusion that

reliance cannot be placed on Exts.P1 and P2. If that be so, we

find it difficult to hold that the finding impugned is perverse. If so,

the findings made by the court are immune to judicial scrutiny in

the appeal constituted under section 82 of the Act. The appellant

has not made a case for interference with the judgment. The

appeal fails and it is dismissed.

(K.M.JOSEPH, JUDGE)

(M.L. JOSEPH FRANCIS, JUDGE)
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