{"id":122495,"date":"2008-12-18T00:00:00","date_gmt":"2008-12-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/modern-food-industries-india-vs-employees-state-insurance-on-18-december-2008"},"modified":"2019-03-24T13:16:33","modified_gmt":"2019-03-24T07:46:33","slug":"modern-food-industries-india-vs-employees-state-insurance-on-18-december-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/modern-food-industries-india-vs-employees-state-insurance-on-18-december-2008","title":{"rendered":"Modern Food Industries (India) … vs Employees State Insurance … on 18 December, 2008"},"content":{"rendered":"
Punjab-Haryana High Court<\/div>\n
Modern Food Industries (India) … vs Employees State Insurance … on 18 December, 2008<\/div>\n
IN THE HIGH COURT OF PUNJAB AND HARYANA\n              AT CHANDIGARH\n\n\n                                   F.AO. No. 329 of 1986\n                                   Date of Decision : December 18, 2008\n\n\n\nModern Food Industries (India) Limited\n                                                           .....Appellant\n                                Versus\n\nEmployees State Insurance Corporation and another\n                                                        .....Respondents\n\n\nCORAM : HON'BLE MR JUSTICE T.P.S. MANN\n\nPresent :   Mr. Ashim Aggarwal, Advocate\n            for the appellant.\n            Mr. Ajay Pal Singh, Advocate for\n            Mr. B.S.Bhalla, Advocate\n            for respondent No. 1.\n            None for respondent No. 2.\n\n\nT.P.S. MANN, J.\n<\/pre>\n
            Petition under Section 75 of the Employees State Insurance<\/p>\n
Act, 1948, filed by the appellant for challenging the assessment order<\/p>\n
passed by respondent No. 1 under Section 45A of the Act, was<\/p>\n
dismissed by E.S.I. Court, Chandigarh on 27.1.1986 which order stands<\/p>\n
challenged by way of appeal under Section 82 of the Act.<\/p>\n
            In its petition, the appellant had stated that it had entered<\/p>\n
into a railway booking and forwarding contract with Rajinder Kumar,
\n F.AO. No. 329 of 1986                                              -2-<\/span><\/p>\n
Proprietor, Him Soft Drinks-respondent No. 2, who used to book and<\/p>\n
forward the appellant’s goods, i.e. bread, from Kalka, besides supplying<\/p>\n
some packing material to the appellant. Said respondent did not carry<\/p>\n
out any function in the premises of the appellant. A letter dated<\/p>\n
28.9.1983 was received by the appellant from respondent No.1,<\/p>\n
i.e. Employees State Insurance Corporation (hereinafter referred to<\/p>\n
as ‘the Corporation’), which was replied by the appellant. On<\/p>\n
26.11.1984, the appellant received a letter from the Collector,<\/p>\n
Chandigarh from which it learnt that its plea stood rejected by the<\/p>\n
Corporation and the amount assessed under Section 45A of the Act had<\/p>\n
to be paid by the appellant.     The said assessment was illegal and<\/p>\n
unlawful.\n<\/p>\n<\/p>\n
            In its reply, the Corporation averred that the appellant had<\/p>\n
given a copy of the agreement at the time of inspection, which the<\/p>\n
appellant had entered into with respondent No. 2 and in view of the<\/p>\n
same, the appellant was liable to pay contribution because the packing<\/p>\n
was done in the factory and even if some process was carried out<\/p>\n
outside the factory, that was under the supervision of the appellant.<\/p>\n
Therefore, the appellant, being the principal employer, was liable to<\/p>\n
pay contribution.\n<\/p>\n<\/p>\n
            Respondent No. 2 also filed a written statement wherein it<\/p>\n
was stated that no part of the contractual obligations was carried out in
\n F.AO. No. 329 of 1986                                             -3-<\/span><\/p>\n
the premises of the appellant and the entire work done at Kalka over<\/p>\n
which the appellant had no control .\n<\/p>\n<\/p>\n
            Learned Insurance Court, on the basis of the evidence led<\/p>\n
by the parties, framed the following issues :-\n<\/p>\n<\/p>\n
            1.     Whether the respondent No. 1 is not
\n                   entitled to receive the amount in dispute
\n                   from the petitioner. OPP.\n<\/p><\/blockquote>\n
            2.     Whether Col. Sukhjit Singh is competent
\n                   to file the present petition. OPP.\n<\/p><\/blockquote>\n
            3.    Relief.<\/p><\/blockquote>\n
            After going through the evidence, Court below held that<\/p>\n
the Corporation was entitled to recover the amount of contribution<\/p>\n
from the appellant. The petition under Section 75 of the Act was,<\/p>\n
accordingly, dismissed.\n<\/p>\n<\/p>\n
            I have heard learned counsel for the parties and perused the<\/p>\n
evidence with their able assistance.\n<\/p>\n<\/p>\n
            The most relevant document on record is the terms and<\/p>\n
conditions of the tender floated by the appellant for engaging the<\/p>\n
booking and forwarding contract. Same is, Ex. R3, which is proved by<\/p>\n
Hardial Singh-RW1. Col. Sukhjit Singh, General Manager of the
\n F.AO. No. 329 of 1986                                               -4-<\/span><\/p>\n
Corporation, while appearing as PW1 admitted his signatures at point<\/p>\n
‘A’ on the same. Para 5 of Ex. R3 provided for depositing interest free<\/p>\n
cash security of Rs. 5,000\/- by the Contractor-respondent No. 2.<\/p>\n
Alongwith Ex. R3 was Schedule mark ‘A’. It was mentioned therein<\/p>\n
that respondent No. 2 would do the entire process of packing and<\/p>\n
loading in the factory premises of the appellant. In such a situation, the<\/p>\n
version of the appellant could not be accepted that it had no control<\/p>\n
over the working of respondent No. 2 and it was not its duty to know if<\/p>\n
respondent No. 2 had employed any member or not in carrying out his<\/p>\n
duties as booking and forwarding contract.\n<\/p>\n<\/p>\n
            In his testimony, Col. Sukhjit Singh PW1 only stated that<\/p>\n
respondent No. 2 used to come to his factory only for collecting the<\/p>\n
payment and not for any other purpose. According to the appellant, it<\/p>\n
used to transport its goods to respondent No. 2 for further transmission<\/p>\n
to different places after packing the same, therefore, the appellant had<\/p>\n
no connection with the labour employed by respondent No. 2-<\/p>\n
Contractor. However, PW1 admitted his signatures on Ex. R1, which<\/p>\n
was a report prepared by Hardial Singh-RW1 at the time of inspection<\/p>\n
of the record of the appellant, the said report having been prepared by<\/p>\n
him correctly from the record shown to him. Col. Sukhjit Singh also<\/p>\n
admitted his signatures on Ex. R2, which he handed over to Hardial<\/p>\n
Singh-RW1, as per which packing was to be done in the premises of<\/p>\n
the appellant by the Contractor and, thereafter, the packed material to
\n F.AO. No. 329 of 1986                                             -5-<\/span><\/p>\n
be despatched to Kalka. The contract included the packing of material,<\/p>\n
loading and unloading. Thus, it stands established from testimony of<\/p>\n
Col. Sukhjit Singh-PW1 that respondent No. 2 had been packing the<\/p>\n
material in the premises of the appellant.\n<\/p>\n<\/p>\n
            Once the aforementioned conclusions are drawn, the<\/p>\n
appellant was legally and validly required to pay the contribution in<\/p>\n
respect of the amount of wages and the amounts shown under the head<\/p>\n
‘packing and forwarding charges’. The same had been done in the<\/p>\n
present case by the Corporation by passing the assessment order under<\/p>\n
Section 45A of the Act.\n<\/p>\n<\/p>\n
            Resultantly, there is no merit in the appeal, which is,<\/p>\n
therefore, dismissed. No order as to costs.<\/p>\n
\n\n\n\n\n                                                ( T.P.S. MANN )\nDecember 18, 2008                                    JUDGE\nsatish\n\n\n\n\n                Whether referred to the Reporters : YES \/ NO\n <\/pre>\n","protected":false},"excerpt":{"rendered":"
Punjab-Haryana High Court Modern Food Industries (India) … vs Employees State Insurance … on 18 December, 2008 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH F.AO. No. 329 of 1986 Date of Decision : December 18, 2008 Modern Food Industries (India) Limited …..Appellant Versus Employees State Insurance Corporation and another …..Respondents CORAM : […]<\/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":[8,28],"tags":[],"class_list":["post-122495","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-high-court"],"yoast_head":"\nModern Food Industries (India) ... vs Employees State Insurance ... on 18 December, 2008 - Free Judgements of Supreme Court & 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\/modern-food-industries-india-vs-employees-state-insurance-on-18-december-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Modern Food Industries (India) ... vs Employees State Insurance ... on 18 December, 2008 - 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