{"id":14120,"date":"2007-01-10T00:00:00","date_gmt":"2007-01-09T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-regional-director-vs-sanjay-kumar-agarwal-on-10-january-2007"},"modified":"2014-05-01T08:21:57","modified_gmt":"2014-05-01T02:51:57","slug":"the-regional-director-vs-sanjay-kumar-agarwal-on-10-january-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-regional-director-vs-sanjay-kumar-agarwal-on-10-january-2007","title":{"rendered":"The Regional Director vs Sanjay Kumar Agarwal on 10 January, 2007"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">The Regional Director vs Sanjay Kumar Agarwal on 10 January, 2007<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nIns APP No. 35 of 2006()\n\n\n1. THE REGIONAL DIRECTOR,\n                      ...  Petitioner\n2. THE RECOVERY OFFICER, ESI CORPORATION,\n\n                        Vs\n\n\n\n1. SANJAY KUMAR AGARWAL, DIRECTOR,\n                       ...       Respondent\n\n                For Petitioner  :SMT.T.D.RAJALAKSHMY, SC, ESI CORPN.\n\n                For Respondent  :SRI.ASOK M.CHERIAN\n\nThe Hon'ble MR. Justice K.T.SANKARAN\n\n Dated :10\/01\/2007\n\n O R D E R\n\n\n                               K.T. SANKARAN, J.\n\n              ---------------------------------\n\n                INS. APPEAL NO. 35 OF 2006\n\n          ---------------------------------\n\n        Dated this the 10th day of January,2007\n\n\n\n                                   JUDGMENT\n<\/pre>\n<p>     The   respondent   herein   filed   I.C.No.41   of   2003<\/p>\n<p>before   the   Employees&#8217;   Insurance   Court,   Alappuzha   under<\/p>\n<p>Section   75   of   the   Employees&#8217;   State   Insurance   Act,<\/p>\n<p>challenging   Exts.P1   and   P2   orders   issued   by   the<\/p>\n<p>Corporation under Section 85B of the Act.  Ext.P1 order<\/p>\n<p>was issued by the Corporation demanding damages for the<\/p>\n<p>default   in  payment  of  contribution  for  the  period  from<\/p>\n<p>May   1988   to   August   2001.     Ext.P2   order   was   issued<\/p>\n<p>demanding   damages   for   the   omitted   contribution   amount.\n<\/p>\n<p>In   the   application   filed   by   the   respondent   before   the<\/p>\n<p>Insurance Court, it is stated thus:\n<\/p>\n<blockquote><p>           &#8220;The   applicant   is   the   Director   of   the  Periyar<\/p>\n<p>     Steel Pvt. Ltd., a small scale steel rolling mill.<\/p>\n<p>     Though   the   establishment   commenced   its   production<\/p>\n<p>     from   December   1996,   the   work   was   not   regular.<\/p><\/blockquote>\n<p>     From   June   1997   to   March   1998   the   establishment<\/p>\n<p>     remained   closed   due   to   power   cut.     In   fact   the<\/p>\n<p>     establishment   started   its   full   fledged   operation<\/p>\n<p>     from   January   2001   only.                   Hence   the   Applicant<\/p>\n<p>     submitted   the   registration   form   of   employees   only<\/p>\n<p>     in   December   2000.     Since   the   workers   were   not<\/p>\n<p>     fully   engaged   in   the   establishment   till   January<\/p>\n<p>     2001,         the         applicant         did         not         collect         the<\/p>\n<p>INS.APPEAL NO. 35 OF 2006<\/p>\n<p>                                ::  2  ::\n<\/p>\n<p>     contributions   from   the   employees   and   from   January<\/p>\n<p>     2001   onwards   the   Appellant   is   deducting   the<\/p>\n<p>     employees          contribution              and         depositing         the<\/p>\n<p>     contributions   to   the   Corporation   along   with<\/p>\n<p>     employer&#8217;s contribution without any default.&#8221;\n<\/p>\n<p>It is also stated that the respondent herein was under<\/p>\n<p>the   belief   that   the   Corporation   has   waived   damages.\n<\/p>\n<p>The facts leading to such a contention are also stated<\/p>\n<p>in the application filed by the respondent herein.\n<\/p>\n<p>     2.     No   evidence   was   adduced   before   the   Employees&#8217;<\/p>\n<p>Insurance Court by any of the parties.   The Employees&#8217;<\/p>\n<p>Insurance   Court   held   that   there   was   no  contumacious<\/p>\n<p>conduct   on   the   part   of   the   respondent   herein.     The<\/p>\n<p>application   filed   by   the   respondent   was   thus   allowed<\/p>\n<p>and   Exts.P1   and   P2   orders   imposing   damages   were   set<\/p>\n<p>aside.        The   learned   counsel   for   the   appellants<\/p>\n<p>submitted   that   the   contentions   put   forward   by   the<\/p>\n<p>applicant   before   the   Employees&#8217;   Insurance   Court   have<\/p>\n<p>not   been   established   by   any   acceptable   evidence   and,<\/p>\n<p>therefore,   the   Employees&#8217;   Insurance   Court   was   not<\/p>\n<p>justified   in  waiving  the  damages.    The  appellants  also<\/p>\n<p>submitted   that   financial   difficulty   is   not   a   valid<\/p>\n<p>INS.APPEAL NO. 35 OF 2006<\/p>\n<p>                                ::  3  ::\n<\/p>\n<p>justification   for   waiver   of   damages.     Learned   counsel<\/p>\n<p>for   the   respondent,   on   the   other   hand,   contended  that<\/p>\n<p>the   Employees&#8217;   Insurance   Court   has   considered   the<\/p>\n<p>contentions   put   forward   by   the   respondent   herein   and<\/p>\n<p>came   to   the   conclusion   that   there   was   no   contumacious<\/p>\n<p>conduct   on   the   part   of   the   respondent\/employer.     He<\/p>\n<p>submitted   that   there   are   no   grounds   to   interfere   with<\/p>\n<p>the well considered judgment passed by the court below.\n<\/p>\n<p>     3.     Since   the   respondent   having   approached   the<\/p>\n<p>Employees&#8217;   Insurance   Court   challenging   Exts.P1   and   P2<\/p>\n<p>orders,   it is for him to establish the grounds raised<\/p>\n<p>in   the   application.          The   facts   leading   to   the<\/p>\n<p>conclusion as to whether there was contumacious conduct<\/p>\n<p>on   the   part   of   the   employer,   shall   be   proved   by   the<\/p>\n<p>person who sets up the same.  Here there is no evidence<\/p>\n<p>to   indicate   as   to   whether   the   contentions   put   forward<\/p>\n<p>by   the   respondent   herein   are   justifiable   and   whether<\/p>\n<p>there   was   any   contumacious   conduct   or  willful   default<\/p>\n<p>on   his   part.     The   learned   counsel   for   the   respondent<\/p>\n<p>relied   on  the  decision  in  M\/s.Prestolite  of   India  Ltd.\n<\/p>\n<p>INS.APPEAL NO. 35 OF 2006<\/p>\n<p>                                  ::  4  ::\n<\/p>\n<p>v.  The Regional Director and another  (AIR 1994 SC 521)<\/p>\n<p>wherein it is held thus:\n<\/p>\n<blockquote><p>            &#8220;Even   if   the   Regulations   have   prescribed<\/p>\n<p>      general   guidelines   and   the   upper   limits   at   which<\/p>\n<p>      the   imposition   of   damages   can   be   made,   it   cannot<\/p>\n<p>      be   contended   that   in   no   case,   the   mitigating<\/p>\n<p>      circumstances   can   be   taken   into   consideration   by<\/p>\n<p>      the adjudicating authority in finally deciding the<\/p>\n<p>      matter   and   it   is   bound   to   act   mechanically   in<\/p>\n<p>      applying the upper most limit of the table.&#8221;<\/p>\n<\/blockquote>\n<p>The   learned   counsel   also   relied   on   the   decisions   in<\/p>\n<p><a href=\"\/doc\/1212547\/\">Regional   Director,   E.S.I.Corporation  v.  Sakthi   Tiles<\/a><\/p>\n<p>(1988(2)   KLT   280);  E.S.I.Corporation  v.  Meecos   Ltd.\n<\/p>\n<p>(1980   KLT   179);  <a href=\"\/doc\/1840024\/\">E.S.I.Corporation  v.  Hindustan   Tile<\/p>\n<p>Works<\/a>     (1999(2)   KLT   851)   and           E.S.I.   Corporation     v.\n<\/p>\n<p>Naduvattam   G.M.V.S.Sangham   Ltd.  (2000   (2)   KLT   254)   and<\/p>\n<p>contended   that   unlike   interest,   penalty   is   not   payable<\/p>\n<p>in   all   cases   where   there   is   default.     He   submits   that<\/p>\n<p>when   there  is  no  contumacious  conduct  or  deliberate  or<\/p>\n<p>willful   default   in   payment   of   the   contribution   and   if<\/p>\n<p>there   are     circumstances   which   would   indicate   that   a<\/p>\n<p>penalty   should   not   be   imposed,   it   cannot   be   said   that<\/p>\n<p>the   Employees&#8217;   Insurance   Court   has   no   jurisdiction   to<\/p>\n<p>waive   the   penalty.     It   is   also   pointed   out   that   it   is<\/p>\n<p>INS.APPEAL NO. 35 OF 2006<\/p>\n<p>                                  ::  5  ::\n<\/p>\n<p>not   only   the   financial   stringency   that   is   pointed   out<\/p>\n<p>by   the   respondent   herein,   but   there   are   other<\/p>\n<p>circumstances   warranting   an   inference                   that   the<\/p>\n<p>respondent   herein   was   not   guilty   of   any   contumacious<\/p>\n<p>conduct.\n<\/p>\n<p>      4.        Apart   from   producing   some   documents,   no<\/p>\n<p>evidence   was   adduced   by   the   respondent   herein   before<\/p>\n<p>the   Employees&#8217;   Insurance   Court.     All   the   facts   and<\/p>\n<p>circumstances   were   not   made   available   before   the<\/p>\n<p>Employees Insurance Court to arrive at a proper finding<\/p>\n<p>as   to   whether   the   respondent   herein   is   entitled   to<\/p>\n<p>waiver   of   penalty.     The   finding   that   there   was   no<\/p>\n<p>contumacious   conduct   on   the   part   of   the   respondent<\/p>\n<p>herein is based on no evidence.  Therefore, I am of the<\/p>\n<p>view   that   the   judgment   passed   by   the   court   below   is<\/p>\n<p>liable   to   be   set   aside   and   the   matter   is   liable   to   be<\/p>\n<p>remanded for fresh disposal.\n<\/p>\n<p>      In   the   result,   the   Insurance   Appeal   is   allowed,<\/p>\n<p>the judgment passed by the court below is set aside and<\/p>\n<p>INS.APPEAL NO. 35 OF 2006<\/p>\n<p>                             ::  6  ::\n<\/p>\n<p>the matter is remanded for fresh consideration.     Both<\/p>\n<p>parties   shall   have   reasonable   opportunity   to   adduce<\/p>\n<p>evidence   and   to   produce   documents.     The   Employees&#8217;<\/p>\n<p>Insurance   Court   shall   consider   all   the   facts   and<\/p>\n<p>circumstances of the case and dispose of the matter in<\/p>\n<p>accordance with law.\n<\/p>\n<p>                                             (K.T.SANKARAN)<\/p>\n<p>                                                   Judge<\/p>\n<p>ahz\/<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court The Regional Director vs Sanjay Kumar Agarwal on 10 January, 2007 IN THE HIGH COURT OF KERALA AT ERNAKULAM Ins APP No. 35 of 2006() 1. THE REGIONAL DIRECTOR, &#8230; Petitioner 2. THE RECOVERY OFFICER, ESI CORPORATION, Vs 1. SANJAY KUMAR AGARWAL, DIRECTOR, &#8230; Respondent For Petitioner :SMT.T.D.RAJALAKSHMY, SC, ESI CORPN. For [&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-14120","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 Regional Director vs Sanjay Kumar Agarwal on 10 January, 2007 - 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-regional-director-vs-sanjay-kumar-agarwal-on-10-january-2007\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Regional Director vs Sanjay Kumar Agarwal on 10 January, 2007 - Free Judgements of Supreme Court &amp; 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