{"id":15505,"date":"2006-12-07T00:00:00","date_gmt":"2006-12-06T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-regional-director-vs-k-v-rugmini-on-7-december-2006"},"modified":"2016-10-29T06:03:35","modified_gmt":"2016-10-29T00:33:35","slug":"the-regional-director-vs-k-v-rugmini-on-7-december-2006","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-regional-director-vs-k-v-rugmini-on-7-december-2006","title":{"rendered":"The Regional Director vs K.V.Rugmini on 7 December, 2006"},"content":{"rendered":"
Kerala High Court<\/div>\n
The Regional Director vs K.V.Rugmini on 7 December, 2006<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nIns APP No. 2 of 2003()\n\n\n1. THE REGIONAL DIRECTOR, EMPLOYEES STATE\n                      ...  Petitioner\n2. THE RECOVERY OFFICER, EMPLOYEES STATE\n\n                        Vs\n\n\n\n1. K.V.RUGMINI, DAUGHTER OF AMBU VYDIAR,\n                       ...       Respondent\n\n                For Petitioner  :SRI.TPM.IBRAHIM KHAN\n\n                For Respondent  :SRI.C.P.PEETHAMBARAN\n\nThe Hon'ble MRS. Justice K.HEMA\n\n Dated :07\/12\/2006\n\n O R D E R\n                           K. HEMA, J.\n            -------------------------------------------\n              INSURANCE APPEAL No.2 OF 2003\n            --------------------------------------------\n          Dated this the 7th day of December, 2006.\n\n                         J U D G M E N T\n<\/pre>\n
      The respondent filed an application under Sections 75 and<\/p>\n
76 of the Employees State Insurance Act (Act, for short) before<\/p>\n
the Employees Insurance Court (Court, for short).<\/p>\n
      2. According to the respondent, she is the proprietrix of<\/p>\n
M\/s. Latest Offset Press which was started functioning since<\/p>\n
December 1995. Ever since the establishment of M\/s. Latest<\/p>\n
Offset Press, the respondent had no occasion to employ more<\/p>\n
than eight employees on any day. It is a small scale industrial<\/p>\n
unit run with the financial assistance rendered by the Nedungadi<\/p>\n
Bank Limited.    The provisions contained in the Act and the<\/p>\n
scheme framed are not applicable to the said press. Therefore,<\/p>\n
the appellant-Corporation has no right to enforce the provisions<\/p>\n
of the Act against the respondent.      It is also averred in the<\/p>\n
petition that,    before establishing Latest Offset Press, the<\/p>\n
respondent was running a printing press under the name and<\/p>\n
style of “Latest Power Press” at a different premises in a rented<\/p>\n
building. It was closed down in November 1995. Both these<\/p>\n
INS. APP. No. 2\/03                2<\/span><\/p>\n
units have no connection with each other.        The printing and<\/p>\n
composing systems are totally different, employees are different.<\/p>\n
They have no right to enforce the provisions of the Act.<\/p>\n
       3.     In September 1998, the respondent received a letter<\/p>\n
dated 16.09.1998, that is Exhibit P9, directing her to pay<\/p>\n
Rs.14,925\/- for the period from 01.04.1996 to 31.07.1998 as<\/p>\n
contribution.      A reply was sent disputing the coverage of her<\/p>\n
establishment and liability to pay contribution.    Later without<\/p>\n
giving the respondent any opportunity of hearing, recovery officer<\/p>\n
was instructed to realize the amount resulting to revenue<\/p>\n
recovery proceedings. She received a notice dated 01.03.1997,<\/p>\n
Exhibit P10, from the recovery officer alleging that she is bound<\/p>\n
to pay Rs. 89,570\/- by way of contribution. No previous notice of<\/p>\n
information was sent to the respondent to pay the said amount of<\/p>\n
contribution in respect of M\/s. Latest Offset Press. The entire<\/p>\n
recovery proceedings initiated are irregular, illegal and against<\/p>\n
the principle of natural justice.\n<\/p>\n
       4. The appellants also not informed the respondent about<\/p>\n
the    reason      for insisting coverage   of  the  respondent’s<\/p>\n
establishment. In the above circumstances, the respondent filed<\/p>\n
INS. APP. No. 2\/03               3<\/span><\/p>\n
the application for a declaration that the Act and the scheme are<\/p>\n
not applicable to M\/s. Latest Offset Press and the respondent is<\/p>\n
not liable to pay any amount by way of contribution in respect of<\/p>\n
the said press. Declaration that coverage of Latest Offset Press<\/p>\n
under the Act and enforcing the provisions of the Act are illegal<\/p>\n
and unlawful. A declaration that Exhibit P10 notice is illegal was<\/p>\n
sought for. Permanent injunction restraining appellants from<\/p>\n
demanding, claiming or collecting any amount on the basis of<\/p>\n
impugned coverage was also sought for.\n<\/p>\n
       5. The respondent filed a written statement and denied all<\/p>\n
the allegations. It was contended that, the respondent’s<\/p>\n
establishment was a continuation of another press by name<\/p>\n
“Latest Power Press”, which was conducted in a rented building.<\/p>\n
The respondent, however, did not pay contribution nor produce<\/p>\n
any documents, records or registers at the time of inspection by<\/p>\n
the inspectors in the establishment and hence they were forced<\/p>\n
to initiate action on the ground that the Latest Offset Press is a<\/p>\n
continuation of Latest Power Press with a change in the name and<\/p>\n
change in the premises.\n<\/p>\n
INS. APP. No. 2\/03               4<\/span><\/p>\n
       6. Evidence was adduced by both sides. The evidence on<\/p>\n
the side of the respondent consists of oral testimony of PW1. On<\/p>\n
the side of the respondent Exhibits P1 to P11 were marked. The<\/p>\n
appellants examined DWs 1 and 2 and marked Exhibits D1 to D5.<\/p>\n
On consideration of the entire evidence on record, the court<\/p>\n
below found that the Latest Offset Press is not liable to be<\/p>\n
covered under the Act. It was held that M\/s. Latest Offset Press<\/p>\n
cannot be treated as a factory under Section 2(12) of the Act as<\/p>\n
the stipulations as to minimum employment of ten is not<\/p>\n
satisfied. It was also held that the technology, the premises and<\/p>\n
the employees of both the press are different and on totality of<\/p>\n
all materials on record, the conclusion inescapable is that<\/p>\n
M\/s. Latest Offset Press is not a continuation of Latest Power<\/p>\n
Press, but it is a new press.      Therefore, Latest Offset Press<\/p>\n
cannot be treated as a continuation of the Latest Power Press and<\/p>\n
hence E.S.I coverage cannot be extended as per Section 1(6) of<\/p>\n
the Act. Various reasons are also given in the order.<\/p>\n
       7. The court below declared that M\/s. Latest Offset Press is<\/p>\n
not liable to be covered under the Act independently or as a<\/p>\n
continuation of M\/s. Latest Power Press. It is also clarified that<\/p>\n
INS. APP. No. 2\/03                5<\/span><\/p>\n
the respondent is liable to pay E.S.I contributions in respect of<\/p>\n
Latest Power Press till the date of its closure.      It was also<\/p>\n
declared that the application is not hit by resjudicata as per the<\/p>\n
orders of the court below in E.I.C. 94\/1992 or E.I.C. 12\/1997.<\/p>\n
The said order is challenged in this appeal on various grounds by<\/p>\n
the Corporation.\n<\/p>\n
       The substantial question of law raised in this appeal is,<\/p>\n
whether the appellant-Corporation is empowered to cover an<\/p>\n
establishment under Section 1(6) of the Act even if it has shifted<\/p>\n
to a different premises by assigning a new name.           Another<\/p>\n
question raised is, whether the establishment can escape from<\/p>\n
the    statutory    liability of the continued   coverage    under<\/p>\n
Section 1(6) of the Act on the sole reason that it has shifted to a<\/p>\n
new place by giving new name. The third question is, what is the<\/p>\n
statutory value of the Manager of the Corporation in deciding the<\/p>\n
coverage of an establishment. At the time of hearing, the third<\/p>\n
question was not argued. With respect to the first and second<\/p>\n
question the learned counsel appearing for the appellants fairly<\/p>\n
conceded that, as per the decision reported in Abdul Azeez vs.<\/p>\n
Regional Director (2005 (2) KLT S.N. 66) the finding of the<\/p>\n
INS. APP. No. 2\/03               6<\/span><\/p>\n
Insurance Court is essentially a finding of fact with respect to the<\/p>\n
question whether the disputed establishment is a new one or<\/p>\n
continuation of old establishment and no substantial question of<\/p>\n
law arises from such findings.     In the said decision the only<\/p>\n
question arising for consideration was whether the establishment<\/p>\n
run by the respondent is a new one or the continuation of the old<\/p>\n
one and hence the appeal was held to be not maintainable. It<\/p>\n
was hence fairly conceded that the appeal may not be<\/p>\n
maintainable, since the only question to be decided is the<\/p>\n
question of fact and not any question of law. Hence, I do not find<\/p>\n
any reason to probe into further details. This appeal is only to be<\/p>\n
dismissed and I do so.\n<\/p>\n
       This appeal is dismissed.\n<\/p>\n<\/p>\n
                                             K. HEMA, JUDGE<\/p>\n
smp<\/p>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court The Regional Director vs K.V.Rugmini on 7 December, 2006 IN THE HIGH COURT OF KERALA AT ERNAKULAM Ins APP No. 2 of 2003() 1. THE REGIONAL DIRECTOR, EMPLOYEES STATE … Petitioner 2. THE RECOVERY OFFICER, EMPLOYEES STATE Vs 1. K.V.RUGMINI, DAUGHTER OF AMBU VYDIAR, … Respondent For Petitioner :SRI.TPM.IBRAHIM KHAN For Respondent […]<\/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-15505","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nThe Regional Director vs K.V.Rugmini on 7 December, 2006 - 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\/the-regional-director-vs-k-v-rugmini-on-7-december-2006\" \/>\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 K.V.Rugmini on 7 December, 2006 - 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