{"id":114556,"date":"2009-04-01T00:00:00","date_gmt":"2009-03-31T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-assistant-regional-director-vs-sri-roy-m-mathew-on-1-april-2009"},"modified":"2018-01-09T12:02:35","modified_gmt":"2018-01-09T06:32:35","slug":"the-assistant-regional-director-vs-sri-roy-m-mathew-on-1-april-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-assistant-regional-director-vs-sri-roy-m-mathew-on-1-april-2009","title":{"rendered":"The Assistant Regional Director vs Sri.Roy.M.Mathew on 1 April, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">The Assistant Regional Director vs Sri.Roy.M.Mathew on 1 April, 2009<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nIns.APP.No. 37 of 2008(A)\n\n\n1. THE ASSISTANT REGIONAL DIRECTOR,\n                      ...  Petitioner\n2. THE RECOVERY OFFICER, E.S.I.CORPORATION,\n\n                        Vs\n\n\n\n1. SRI.ROY.M.MATHEW, MOTHOOTTU HOUSE,\n                       ...       Respondent\n\n                For Petitioner  :SRI.T.V.AJAYAKUMAR\n\n                For Respondent  :SRI.P.RAMAKRISHNAN\n\nThe Hon'ble MR. Justice M.SASIDHARAN NAMBIAR\n\n Dated :01\/04\/2009\n\n O R D E R\n            M.SASIDHARAN NAMBIAR,J.\n          ===========================\n         INS.APPEAL NO. 37    OF 2008\n          ===========================\n\n     Dated this the 1st day of April,2009\n\n                   JUDGMENT\n<\/pre>\n<p>    Respondents  in   I.C.14\/1996  before   the<\/p>\n<p>Employees  Insurance  Court,  Kollam  are   the<\/p>\n<p>appellants.    The  applicant  therein is   the<\/p>\n<p>respondent. Respondent filed the application<\/p>\n<p>under Section 75 and 77 of Employees State<\/p>\n<p>Insurance Act challenging the demand made by<\/p>\n<p>the appellants.   When the Employees Insurance<\/p>\n<p>Court rejected his contentions and dismissed<\/p>\n<p>the application,respondent filed MFA 1208\/1999.<\/p>\n<p>As per judgment dated 12.7.2005, this court<\/p>\n<p>upheld the claim of the appellant Corporation<\/p>\n<p>that  first   respondent  is   liable  to   pay<\/p>\n<p>contribution for the omitted wages.    But the<\/p>\n<p>appeal was allowed to the limited extent of<\/p>\n<p>considering the question of bar of limitation<\/p>\n<p>on the demand made, as it was contended that<\/p>\n<p><span class=\"hidden_text\">INSA 37\/2008               2<\/span><\/p>\n<p>the claim raised by the appellant Corporation is<\/p>\n<p>barred under     proviso to Section 77(1A) (b) of the<\/p>\n<p>Employees State Insurance Act.      After remand the<\/p>\n<p>E.I. Court relying on the Full Bench decision of<\/p>\n<p>this Court in <a href=\"\/doc\/1918528\/\">E.S.I. Corporation     v. Excel Glasses<\/p>\n<p>Ltd<\/a> (2003(3) KLT 42 declared that the claim for<\/p>\n<p>contribution for the     omitted wages is sustainable<\/p>\n<p>only     with regard to five years prior to the date<\/p>\n<p>of demand      and the claim beyond that period is<\/p>\n<p>unsustainable.      The appeal is filed by the ESI<\/p>\n<p>Corporation challenging the judgment.<\/p>\n<p>     2.       Learned  counsel   appearing  for   the<\/p>\n<p>appellants and respondent were heard.<\/p>\n<p>     3.     The E.I. Court relying on the Full Bench<\/p>\n<p>decision in E.S.I. Corporation Case (supra) held<\/p>\n<p>that the Corporation is entitled to claim arrears<\/p>\n<p>only for a period of five years prior to the date<\/p>\n<p>of demand in view of Section 77(1A) (b) of E.S.I.<\/p>\n<p>Act.    As rightly pointed out by the learned counsel<\/p>\n<p>appearing     for the  appellant  that  decision  was<\/p>\n<p><span class=\"hidden_text\">INSA 37\/2008               3<\/span><\/p>\n<p>overruled by the Apex Court in Employees State<\/p>\n<p>Insurance Corporation v. Santhakumar (2007(1) KLT<\/p>\n<p>133.<\/p>\n<p>     4. The Full Bench of this court   had held that<\/p>\n<p>a   plain    reading  of   the  statutory  provision<\/p>\n<p>contained in Section 77 and the Regulation show<\/p>\n<p>that the Corporation can make a claim within five<\/p>\n<p>years from the date on which that had arisen and if<\/p>\n<p>the proviso to Section 77(1A)(b) was construed as<\/p>\n<p>the period for the Corporation to approach the E.I.<\/p>\n<p>Court, it would be open to the Corporation to make<\/p>\n<p>a claim at any time and if that is permitted the<\/p>\n<p>employer would be greatly handicapped as it would<\/p>\n<p>not have the records for a period beyond five<\/p>\n<p>years.      Their  Lordships of  the  Supreme  Court<\/p>\n<p>disagreed    with  the  view  and  construing    the<\/p>\n<p>provisions of Section 77(1A) held:-<\/p>\n<blockquote><p>          &#8220;29.  S.77 of the Act relates<\/p>\n<p>          to commencement of proceedings<\/p>\n<p>          before the E.S.I. Court.   The<\/p>\n<p><span class=\"hidden_text\">INSA 37\/2008               4<\/span><\/p>\n<p>          proviso to sub-section 77 of<\/p>\n<p>          the  Act  cannot  independently<\/p>\n<p>          give   any   meaning    without<\/p>\n<p>          reference    to    the     main<\/p>\n<p>          provision, namely S.77 of the<\/p>\n<p>          Act.  Therefore, he proviso to<\/p>\n<p>          Clause (b) of S.77 (1A) of the<\/p>\n<p>          Act, fixing the period of five<\/p>\n<p>          years for the claim made by the<\/p>\n<p>          Corporation, will apply only in<\/p>\n<p>          respect of claim made by the<\/p>\n<p>          Corporation before the E.S.I.<\/p>\n<\/blockquote>\n<pre>          Court   and    to   no    other\n\n          proceedings.\"\n\n<\/pre>\n<blockquote><p>It was also held that Section 75(2) empowers the<\/p>\n<p>Corporation to apply to E.S.I Court to determine a<\/p>\n<p>dispute against    an employer where it was satisfied<\/p>\n<p>that such a dispute exists and if there is no<\/p>\n<p>dispute in the determination either under Section<\/p>\n<p>45A(1) or under Section 68, the Corporation can<\/p>\n<p><span class=\"hidden_text\">INSA 37\/2008                5<\/span><\/p>\n<p>straightaway go for recovery of the arrears.     Their<\/p>\n<p>Lordships also      held that   proviso to Section 77<\/p>\n<p>(1A)(b) would apply only to a case where the<\/p>\n<p>Corporation     approaches  the  E.S.I.  Court   under<\/p>\n<p>section 75(2).     In the light of the    decision of<\/p>\n<p>the Supreme Court the finding of the E.I Court is<\/p>\n<p>not sustainable.<\/p><\/blockquote>\n<p>     5.     Learned counsel appearing for respondent<\/p>\n<p>then pointed out that even if proviso to Section 77<\/p>\n<p>(1A)(b)     is   not   applicable,   the   claim   for<\/p>\n<p>contribution     should  have  been   raised  by   the<\/p>\n<p>Corporation within a reasonable period and as the<\/p>\n<p>reasonable period depends on the facts of the case<\/p>\n<p>and the E.I. Court did not consider this aspect,<\/p>\n<p>E.I. Court may     be directed to consider whether the<\/p>\n<p>demand      made was within a reasonable period.<\/p>\n<p>     6. The Supreme Court in the said decision<\/p>\n<p>considered the question whether the concept of<\/p>\n<p>reasonable time can be read into the provision,<\/p>\n<p>eventhough it is not specifically provided.      After<\/p>\n<p><span class=\"hidden_text\">INSA 37\/2008              6<\/span><\/p>\n<p>elaborately considering the meaning of reasonable<\/p>\n<p>time, it was held that the factual aspect has to be<\/p>\n<p>examined to decide whether the claim is made within<\/p>\n<p>a reasonable period.      As in this    case, that<\/p>\n<p>question was not considered and focus was made only<\/p>\n<p>on Section 77(1A) (b) of E.S.I Act. Hence the<\/p>\n<p>employer was permitted to move the E.S.I. Court<\/p>\n<p>within a period of two months and the E.S.I. Court<\/p>\n<p>was directed to determine whether demand was raised<\/p>\n<p>within a reasonable period of time or   considering<\/p>\n<p>the question of prejudice, if any, for the delayed<\/p>\n<p>action taken by the Corporation.  As this question<\/p>\n<p>was not considered by the E.I.Court and the E.I.<\/p>\n<p>Court solely relied on the Full Bench decision of<\/p>\n<p>this court which was subsequently overruled by the<\/p>\n<p>Apex    Court, the question  is  to  be  considered<\/p>\n<p>afresh.\n<\/p>\n<p>     The appeal is allowed. The order passed by the<\/p>\n<p>E.I. Court in I.C.NO.14\/1996 dated 6.6.2006 is set<\/p>\n<p>aside.      E.I. Court,  Kollam   is  directed   to<\/p>\n<p><span class=\"hidden_text\">INSA 37\/2008             7<\/span><\/p>\n<p>determine    whether the   demand  raised  by   the<\/p>\n<p>Corporation is within a reasonable period of time<\/p>\n<p>and    whether the  delayed  action taken   by  the<\/p>\n<p>Corporation has resulted     any prejudice to the<\/p>\n<p>respondent.    It is made clear that respondent has<\/p>\n<p>to deposit the amount covered by the demand less<\/p>\n<p>the disputed amount     then only E.I. Court need<\/p>\n<p>consider the question.\n<\/p>\n<\/p>\n<p>                               M.SASIDHARAN NAMBIAR<br \/>\n                                        JUDGE<br \/>\ntpl\/-\n<\/p>\n<p>M.SASIDHARAN NAMBIAR, J.\n<\/p>\n<\/p>\n<p>     &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;\n<\/p>\n<p>      W.P.(C).NO. \/06\n<\/p>\n<p>     &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;\n<\/p>\n<\/p>\n<p>         JUDGMENT<\/p>\n<p>     SEPTEMBER,2006<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court The Assistant Regional Director vs Sri.Roy.M.Mathew on 1 April, 2009 IN THE HIGH COURT OF KERALA AT ERNAKULAM Ins.APP.No. 37 of 2008(A) 1. THE ASSISTANT REGIONAL DIRECTOR, &#8230; Petitioner 2. THE RECOVERY OFFICER, E.S.I.CORPORATION, Vs 1. SRI.ROY.M.MATHEW, MOTHOOTTU HOUSE, &#8230; Respondent For Petitioner :SRI.T.V.AJAYAKUMAR For Respondent :SRI.P.RAMAKRISHNAN The Hon&#8217;ble MR. Justice M.SASIDHARAN [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-114556","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Assistant Regional Director vs Sri.Roy.M.Mathew on 1 April, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/the-assistant-regional-director-vs-sri-roy-m-mathew-on-1-april-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Assistant Regional Director vs Sri.Roy.M.Mathew on 1 April, 2009 - Free Judgements of Supreme Court &amp; 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