{"id":172795,"date":"2006-04-05T00:00:00","date_gmt":"2006-04-04T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-deputy-regional-director-vs-tirunelveli-co-op-milk-supply-on-5-april-2006"},"modified":"2017-08-13T20:52:49","modified_gmt":"2017-08-13T15:22:49","slug":"the-deputy-regional-director-vs-tirunelveli-co-op-milk-supply-on-5-april-2006","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-deputy-regional-director-vs-tirunelveli-co-op-milk-supply-on-5-april-2006","title":{"rendered":"The Deputy Regional Director vs Tirunelveli Co-Op. Milk Supply on 5 April, 2006"},"content":{"rendered":"<div class=\"docsource_main\">Madras High Court<\/div>\n<div class=\"doc_title\">The Deputy Regional Director vs Tirunelveli Co-Op. Milk Supply on 5 April, 2006<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT\n\n\nDATED : 05\/04\/2006\n\n\nCORAM:\nTHE HONOURABLE MR.JUSTICE A.C.ARUMUGAPERUMAL ADITYAN\n\n\nC.M.A.(MD)No.1439 of  1997\n\n\nThe Deputy Regional Director,\nESI Corporation\nTallakulam\nMadurai\t\t\t\t...\t\tAppellant\n\nVs\n\n1. Tirunelveli Co-op. Milk Supply\n    Society Limited,\n    rep. by  Special Officer\n    Tirunelveli Kattabomman District.\n\n2.  The District Collector of\n     Nellai Kattabomman district\n     Tirunelveli\n\nThe 2nd respondent is\nnot a necessary party. Hence the\nrespondent is given up.\t\t...\t\tRespondents\n\n\n\nPrayer\n\n\nAppeal filed under Section 82 of the Employees State Insurance Act\nagainst the Judgment and decree passed by the learned Principal District\nJudge(The Employees'  State Insurance  Judge) Tirunelveli made in E.S.I.O.P.NO.4\nof 1992 dated  13.9.1995.\n\n!For Appellant       \t....\tMr. P.Sermakani\n\n^For Respondents  \t....\tMr.V.Rajagopalan-R1\n\n\n\n:JUDGMENT\n<\/pre>\n<p>\tThis appeal has been preferred against the order of E.S.I.Court\/Principal<br \/>\nDistrict Judge, Tirunelveli in E.S.I.O.P.NO.4 of 1992 dated 13.9.1995.<br \/>\nE.S.I.Corporation is the appellant herein.\n<\/p>\n<p>\t2. The first respondent herein has preferred E.S.I.O.P.No.4 of 1992<br \/>\nchallenging Ex P4 notice issued under Form C-18 demanding the E.S.I.Contribution<br \/>\nto the tune of Rs.5,797\/-.  The abovesaid Form C-18 under Ex P4 notice is in<br \/>\nrespect of the E.S.I.Contribution for the arrears of pay to the employees for<br \/>\nthe period from 1.1.1991 to 31.3.1991, incentive bonus paid to the employees for<br \/>\nthe period from 1.4.1989 to 31.3.1991, and also 7.25% interest towards the<br \/>\nbalance of the E.S.I.Contribution and also for incentive paid to the employees<br \/>\nfor the sale of over and above 100 litres of milk per day.  The petitioner in<br \/>\nE.S.I.O.P.No.4 of 1992 ie., the  first respondent herein namely the Cooperative<br \/>\nMilk Supply Society, Tirunelveli has challenged the notice issued under Ex P4<br \/>\nbefore the E.S.I.Court in E.S.I.O.P.No.4 of 1992.\n<\/p>\n<p>\t3. The E.S.I. Corporation has resisted the contention of the petitioner in<br \/>\nthe O.P. by saying that the incentive paid to the employees who have sold over<br \/>\nand above 100 litres of milk were paid five paise per litre every day towards<br \/>\nbonus and that it will squarely come within the ambit of Section 2(22) of the<br \/>\nE.S.I.Act 1948.  It was also contended on behalf of the petitioner in<br \/>\nE.S.I.O.P.No.4 of 1992 that the mandatory provision under Section 45 A of the<br \/>\nE.S.I.Act was not followed, while demanding the E.S.I. Contribution by the<br \/>\nE.S.I.Corporation.\n<\/p>\n<p>\t4. Before the E.S.I.Court , Exs P1 to P5 were marked on the side of the<br \/>\npetitioner and Exs R.1 and R2 were marked on the side of the respondents. No<br \/>\noral evidence was let in by both parties.\n<\/p>\n<p>\t5.  The learned E.S.I.Judge(Principal District Judge) Tirunelveli, after<br \/>\ngoing through the available evidence, has held that the notice under Ex P4 is<br \/>\nnot maintainable and consequently allowed the petition as prayed for. Aggrieved<br \/>\nby the order of the learned E.S.I.Judge(Principal District Judge) Tirunelveli,<br \/>\nE.S.I.Corporation has preferred this appeal.\n<\/p>\n<p>\t6.  Now the substantial question of law that arises  for determination in<br \/>\nthis appeal is whether a demand by the E.S.I.Corporation for payment of<br \/>\nE.S.I.Contribution from the respondent without an order under Section 45 A of<br \/>\nthe E.S.I.Act is valid?\n<\/p>\n<p>\t7. The Point:\n<\/p>\n<p>The foremost substantial question of law is to be decided in this appeal is<br \/>\nwhether a demand by the E.S.I.Corporation for payment of E.S.I.Contribution from<br \/>\nthe respondent without an order under Section 45 A of the E.S.I.Act is valid.<br \/>\nIt is admitted by both the parties that there was no order passed under Section<br \/>\n45 A of the E.S.I.Act against the respondent for E.S.I.Contribution . Section 45<br \/>\nA of E.S.I.Act runs as follows:\n<\/p>\n<p>&#8220;Determination of contributions in certain cases:\n<\/p>\n<p>(1) Where in respect of a factory or establishment no returns, particulars,<br \/>\nregisters or records are submitted, furnished or maintained  in accordance with<br \/>\nthe provisions of Section 44 or any Inspector or other official of the<br \/>\nCorporation referred to in Sub Section(2) of Section 45 is prevented in any<br \/>\nmanner by the principal or immediate employer or any other person, in exercising<br \/>\nhis functions or discharging his duties under Section 45, the Corporation may,<br \/>\non the basis of information available to it, by order, determine the amount of<br \/>\ncontributions payable in respect of the employees of that factory or<br \/>\nestablishment:\n<\/p>\n<p>(Provided that no such order shall be passed by the Corporation unless the<br \/>\nprincipal or immediate employer or the person in charge of the factory or<br \/>\nestablishment has been given a reasonable opportunity of being heard)\n<\/p>\n<p>2. An order made by the Corporation under Sub-Section(1) shall be sufficient<br \/>\nproof of the claim of the Corporation under Section 75 or for recovery of the<br \/>\namount determined by such order as an arrear of land revenue under Section 45B (<br \/>\nor the recovery under Sections 45C to 45-I)<\/p>\n<p>So from the above said provision of law, it is seen that before making any<br \/>\ndemand by the E.S.I.Corporation, an order to be passed under Section 45A of the<br \/>\nE.S.I.Act that too after giving an opportunity to the other side for hearing.\n<\/p>\n<p>\t8. The learned counsel appearing for the appellant would fairly concede<br \/>\nthat in this case, only on the basis of Ex P2 letter written by the respondent<br \/>\ndated 5.6.1991, E.S.I.contribution was demanded after an inspection by the<br \/>\nInspector of E.S.I.Corporation under Ex.R1. But after Inspection by the<br \/>\nInspector, an order under Section 45 A ought to have been passed, after giving<br \/>\nan opportunity for hearing to the other side as contemplated under E.S.I. Act<br \/>\n1948.  But in this case, there is no order under Section 45A demanding<br \/>\nE.S.I.Contribution was passed against the respondent.  The learned counsel<br \/>\nappearing for the appellant relying on M\/s Sri Ganapathy Motor Service -v-<br \/>\nEmployees State Insurance Corporation(DB)(2004-3 L.W.706)  and contended that in<br \/>\nthe absence of a mandatory order under Section 45A of the ESI Act, the appeal to<br \/>\nbe dismissed in limine. In the said case, the State Insurance Corporation has<br \/>\ndemanded E.S.I.contribution from M\/s Ganapathy Motor Service,2-A, High Road,<br \/>\nTirunelveli without passing an order under Section 45A of the E.S.I.Act 1948.<br \/>\nSri Ganapathy Motor Service has preferred E.S.I.O.P. before the E.S.I.Court,<br \/>\ncontending that there was no mandatory order passed under Section 45 A of the<br \/>\nE.S.I.Act.  The claim made by the petitioner was dismissed  by the E.S.I.Court\/<br \/>\nDistrict Court, Tirunelveli. Against that oder, the appeal was preferred before<br \/>\nthis Court in C.M.A.No.117 of 1996. While disposing of the said appeal, a<br \/>\nDivision Bench of this Court has observed as follows:\n<\/p>\n<p>&#8221; The learned counsel for the appellant also relied on a Division Bench decision<br \/>\nof this Court reported in Fenner Garments -vs- Deputy Regional Director,<br \/>\nE.S.I.Corporation , Madras (1994 (11)LLN 171 = 1994-1 L.W.62).  There is no<br \/>\ndispute that before determining the contribution in terms of the provisions of<br \/>\nthe Employees&#8217; State Insurance Act, before passing any order, it is incumbent on<br \/>\nthe part of the Corporation to provide reasonable opportunity of being heard to<br \/>\nthe  Principal or immediate employer or the person in charge of the  factory or<br \/>\nestablishment.  This is clear from the proviso to Sub-Section 1 of section 45 A<br \/>\nof the Act. While considering the very same provision, a Division Bench of this<br \/>\nCourt in Fenner Garments-vs- Deputy Regional Director, ESI Corporation,<br \/>\nMadras(1994(11)LLN 171=1994-1 L.W.62) , has held that demand notice on the basis<br \/>\nof Inspector&#8217;s report without issuance of show cause notice and giving<br \/>\nreasonable opportunity of being  heard, cannot be sustained.  The said decision<br \/>\nis directly on the point with reference to the proviso referred to above and the<br \/>\nsame is applicable to the case on hand . As stated earlier, there is no dispute<br \/>\nthat the appellant herein and the petitioner therein was not given an<br \/>\nopportunity before issuance of the proceedings dated 9.7.1991.  On this ground,<br \/>\nwithout going into the merits of the claim made by both parties, the order<br \/>\npassed by the Employees&#8217; State Insurance Court(District Judge) Tirunelveli dated<br \/>\n7.3.1995 made in ESIOP No.9\/91 is set aside.  However, liberty is given to the<br \/>\nrespondent\/Employees&#8217; State Insurance Corporation to proceed further if they so<br \/>\ndesire, by compliance of the mandatory provision referred above.&#8221;<br \/>\nThe learned counsel appearing for the appellant would further contend that an<br \/>\nopportunity may be given to the E.S.I.Corporation to proceed with the matter,<br \/>\nafter complying with the mandatory provision under Section 45A of the E.S.I.Act<br \/>\n1948.  The request of the learned counsel for the appellant seems to be<br \/>\nreasonable. Hence I hold on the point  that the order passed in E.S.I.O.P.No.4<br \/>\nof 1992 by the E.S.I.Court (Principal District Judge) Tirunelveli dated<br \/>\n13.9.1995 is liable to be set aside for the reasons stated above. The point is<br \/>\nanswered accordingly.\n<\/p>\n<p>\t9. In the result, the order passed in E.S.I.O.P.No.4 of 1992 on the file<br \/>\nof the E.S.I.Court\/Principal District Judge, Tirunelveli is hereby set aside.<br \/>\nHowever, an opportunity is given to the Employees State Insurance<br \/>\nCorporation\/appellant to proceed further after complying the mandatory provision<br \/>\nunder Section 45-A of the E.S.I.Act. No costs.\n<\/p>\n<p>sg<\/p>\n<p>To<br \/>\nThe Employees State Insurance  Court\/Principal District Judge,<br \/>\nTirunelveli.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madras High Court The Deputy Regional Director vs Tirunelveli Co-Op. Milk Supply on 5 April, 2006 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 05\/04\/2006 CORAM: THE HONOURABLE MR.JUSTICE A.C.ARUMUGAPERUMAL ADITYAN C.M.A.(MD)No.1439 of 1997 The Deputy Regional Director, ESI Corporation Tallakulam Madurai &#8230; Appellant Vs 1. Tirunelveli Co-op. Milk Supply Society Limited, rep. [&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":[8,13],"tags":[],"class_list":["post-172795","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madras-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 Deputy Regional Director vs Tirunelveli Co-Op. 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