{"id":57658,"date":"1977-02-21T00:00:00","date_gmt":"1977-02-20T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/employees-state-insurance-vs-central-press-anr-on-21-february-1977"},"modified":"2016-03-21T08:00:14","modified_gmt":"2016-03-21T02:30:14","slug":"employees-state-insurance-vs-central-press-anr-on-21-february-1977","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/employees-state-insurance-vs-central-press-anr-on-21-february-1977","title":{"rendered":"Employees State Insurance &#8230; vs Central Press &amp; Anr on 21 February, 1977"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Employees State Insurance &#8230; vs Central Press &amp; Anr on 21 February, 1977<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1977 AIR 1351, \t\t  1977 SCR  (3)\t 35<\/div>\n<div class=\"doc_author\">Author: M H Beg<\/div>\n<div class=\"doc_bench\">Bench: Beg, M. Hameedullah (Cj)<\/div>\n<pre>           PETITIONER:\nEMPLOYEES STATE INSURANCE CORPORATION,BHOPAL\n\n\tVs.\n\nRESPONDENT:\nCENTRAL PRESS &amp; ANR.\n\nDATE OF JUDGMENT21\/02\/1977\n\nBENCH:\nBEG, M. HAMEEDULLAH (CJ)\nBENCH:\nBEG, M. HAMEEDULLAH (CJ)\nGUPTA, A.C.\nKAILASAM, P.S.\n\nCITATION:\n 1977 AIR 1351\t\t  1977 SCR  (3)\t 35\n 1977 SCC  (2) 581\n CITATOR INFO :\n R\t    1978 SC1478\t (22)\n\n\nACT:\n\t  Employees   State   Insurance\t Act  (Act  34\t of   1948),\n\t1948--Sections 45A, 75(1)(c), and 75(2) and 99A--Scope of\n\n\n\nHEADNOTE:\n\t     Section  75(1)(c) of the Employees State Insurance\t Act\n\t1948  makes it obligatory on the Insurance Court  to  decide\n\t\"the rate of contribution payable by a principal employer in\n\trespect\t of  any  employees\" if\t such  question\t or  dispute\n\tarises.\t Section 75(2) also provides that \"the claim for the\n\trecovery of contributions from the principal employer\" shall\n\tbe decided by it.\n\tThe  appellant-Corporation filed five applications under  s.\n\t75 of the Employees State Insurance Act before the Insurance\n\tCourt, Bhopal  (Civil  Judge First Class) for recovery\tfrom\n\tthe  respondent of employees' contributions  payable   under\n\ts.  39\tof  the Act  for different periods   from  27-9-1959\n\tonwards,   working  out\t the contribution  payable   on\t  an\n\t\"ad  hoc   basis\" by  taking   the  wages at  Rs.  100\/- per\n\temployee   per\tmonth  as indicated by\tthe Central  Govern-\n\tment   by   their  notification\t SRO   224  dated  25-1-1957\n\tissued\tin  exercise  of their powers under s.\t99A  of\t the\n\tAct.The Insurance Court disallowed the claims on the  ground\n\tthat  the claims have been made on an \"ad hoc  basis\".\t The\n\tfirst  appeals against that order were allowed by  a  single\n\tJudge  of  the Madhya Pradesh High  Court  (Jabalpur  Bench)\n\trelying\t on s. 99A of the Act and on a further\tnotification\n\tdated  16-1-1968 issued by the Central Government  under  s.\n\t99A.   The  Letters Patent Appeals filed by  the  respondent\n\twere allowed by the Division Bench which held: (1) The power\n\tof  the\t Central  Government of issuing\t directions  is\t not\n\tabsolute and The directions cannot be inconsistent with\t the\n\tAct  (22).   When  under section 45A of the  Act  a  special\n\tprocedure is prescribed regarding the method of\t calculation\n\tof the employees' contribution, no notification or order can\n\tbe  issued by the Central Government prescribing  any  other\n\tmethod on ad hoc basis which obviously becomes\tinconsistent\n\twith the other provisions of the Act, namely, section 45A.\n\t  Remanding the matter to the Insurance Court, the Court,\n\t  HELD:\n\t    (1)\t The nature of the proceedings under  the  Employees\n\tState, Insurance Act 1948 was not properly understood either\n\tby  the Employees Insurance Court or by the High Court\twhen\n\tthe matter was taken before these authorities. [37D]\n\t(2)  The scheme of the Act is that the.\t Corporation  itself\n\tshould, in a case where there is omission on the part of the\n\temployer to maintain records in accordance with s. 44 of the\n\tAct, determine the amount of contribution on the strength of\n\tsuch  information as it may collect, make a demand and\tupon\n\trefusal\t come up before the Insurance Court under s.  75  of\n\tthe Act.  The Court should give the Corporation a  direction\n\tto  perform its duty where it considers that this should  be\n\tperformed by the Corporation.  It cannot decline to  perform\n\tits  ,own  duty because the Corporation has failed  to\tdis-\n\tcharge\tits function.The Insurance Court is under a duty  to\n\tdetermine the basis of calculation itself.[36F-H]\n\t(3) The notification of the Central Government under s.\t 99A\n\tof  the Act was intended to overcome difficulties in  deter-\n\tmining\tthe wages of the employees.This provision cannot  be\n\tavailed of for the purpose of supplying a defect or overcom-\n\ting a difficulty in adjudication of a dispute for which\t the\n\tEmployees  Insurance  Court is given ample powers  under  s.\n\t75(1)(c) and 75(2). [37A-B]\n\t36\n\n\n\nJUDGMENT:\n<\/pre>\n<p>\t\tCIVIL  APPELLATE JURISDICTION\tCivil  Appeals\tNos.<br \/>\n\t325-329 1977.\n<\/p>\n<p>\t      (Appeals by special leave from the Judgment and  Order<br \/>\n\tdated\t1.12.1971  cf-the  Madhya  Pradesh  High  Court\t  in<br \/>\n\tL.P.ANos. 13&#8211;17 of 1969).\n<\/p>\n<p>\t\tL.N.  Sinha, Sol. Genl. and Girish Chandra  for\t the<br \/>\n\tappellant.\n<\/p>\n<p>\t J. P. Gopal and Shreepal Singh, for the respondent.<br \/>\n\tThe Judgment of the Court was delivered by<br \/>\n\t\tBEG,  C.J.&#8211;This appeal by special leave arises\t out<br \/>\n\tof  the proceedings initiated on 12.7.1961 by the  appellant<br \/>\n\tCorporation, under section 75 of the Employees&#8217; State Insur-<br \/>\n\tance Act  1948 (hereinafter referred to as the Act),claiming<br \/>\n\tcontribution  from  the\t respondents   for  various  periods<br \/>\n\tbetween.  27.9.1959 and 31.3.1965, which they are liable  to<br \/>\n\tpay under section 40 of the Act.\n<\/p>\n<p>\t\tIt appears that the respondents-employers failed to.<br \/>\n\tmaintain the  registers or records and to submit returns  of<br \/>\n\twages  paid  as\t required   under section  44  of  the\tAct.<br \/>\n\tHence, the Insurance Court, which was  called upon to  adju-<br \/>\n\tdicate under Section 75(1)(c) of the Act, on the  matter  in<br \/>\n\tdispute,  found\t itself\t under to decide,  the\tquestion  in<br \/>\n\tissue.\t It  dismissed the application on  the\t&#8220;round\tthat<br \/>\n\tthere  was no provision\t for deciding such a dispute  on  an<br \/>\n\t&#8220;ad  hoc basis.&#8221; We fail   to understand what  is  precisely<br \/>\n\tmeant  by &#8220;ad hoc basis&#8221; Section 75(2) of the  Act  provides<br \/>\n\tinter  alia, that a claim for the   respondent We find\tthat<br \/>\n\trecovery of contributions shall be decided by the Employees&#8217;<br \/>\n\tInsurance  Court.   Not only as the mandatory duty cast upon<br \/>\n\tit to decide such  disputes, but it is armed with the powers<br \/>\n\tof  a  Civil Court, including summoning\t and  enforcing\t the<br \/>\n\tattendance  of\twitnesses,  compelling\tthe   discovery\t and<br \/>\n\tproduction   of\t documents  and\t material   objects,   under<br \/>\n\tsection 78 of the Act.\n<\/p>\n<p>\t    The\t powers of the Corporation are given in Section\t 45A<br \/>\n\tof the Act, introduced by Act 44-of 1966, whereby the Corpo-<br \/>\n\tration\t may, on the basis of the information available\t to.<br \/>\n\tit,  determine the amount of contributions payable and\tmake<br \/>\n\tnecessary demands. Apparently, the scheme of the Act,  after<br \/>\n\tthe  amendment, is that the Corporation itself should, in  a<br \/>\n\tcase where there is omission on the part of the employer  to<br \/>\n\tmaintain  records in accordance with Section 44 of the\tAct,<br \/>\n\tdetermine  the\tamount of contributions on the\tstrength  of<br \/>\n\tsuch information as it may collect.   It can then make,\t the<br \/>\n\tdemand.\t  If the employer refuses to comply with the  demand<br \/>\n\tso made, the matter can come up before the Employees&#8217; Insur-<br \/>\n\tance Court under  Section 75 of the Act.   The Court  should<br \/>\n\tgive  the Corporation a direction to perform its duty  where<br \/>\n\tit  considers that this should be performed by the  Corpora-<br \/>\n\ttion.\t It cannot decline to perform its own  duty  because<br \/>\n\tthe Corporation has failed to discharge its functions.<br \/>\n\tThe  matter having Come up before that Court, the  claim  by<br \/>\n\tthe  Corporation  was  rejected erroneously  merely  on\t the<br \/>\n\tground that there<br \/>\n<span class=\"hidden_text\">\t37<\/span><br \/>\n\twas  difficulty in determining the basis of wages in a\tpar-<br \/>\n\tticular factory so as to enable a calculation of the  amount<br \/>\n\tof contributions to be made by the employer.   It seems that<br \/>\n\tthe notification of the Central Government under section 99A<br \/>\n\tof the Act, also, introduced by Act 44 of 1966, was intended<br \/>\n\tto  overcome such a difficulty in determining the  wages  of<br \/>\n\tthe  employees.\t  After having considered the provisions  of<br \/>\n\tsection 99A of the Act, we doubt whether this provision\t can<br \/>\n\tbe  availed  of\t for the purpose of supplying  a  defect  or<br \/>\n\tovercoming  a difficulty in adjudication of a  dispute.\t for<br \/>\n\twhich the Employees&#8217; Insurance\tCourt is given ample powers.<br \/>\n\tMoreover,   the\t Corporation   has itself   to\tcollect\t the<br \/>\n\tinformation  initially and make a provisional demand on\t the<br \/>\n\tbasis of that information under section 45A in such a case.<br \/>\n\t    The learned single Judge, before whom the matter went up<br \/>\n\tin  appeal,  thought that the notification  of\tthe  Central<br \/>\n\tGovernment fixing wages, presumably on the strength of\tsome<br \/>\n\tnotion as to what prevailing wages in such cases are,  could<br \/>\n\tbe.  used for this purpose.   The Corporation itself  should<br \/>\n\thave  gathered information under section 45A.\tThe  Employ-<br \/>\n\tees&#8217; Insurance Court should be apprised of this information.<br \/>\n\tand  is under a duty to determine the basis  of\t calculation<br \/>\n\titself.\t   It cannot expect the Central Government to  over-<br \/>\n\tcome  such a difficulty by an order or direction under\tsec-<br \/>\n\ttion  99A of the Act. We think that the nature of  the\tpro-<br \/>\n\tceedings  was not properly understood either by the  Employ-<br \/>\n\tees&#8217;  Insurance Court or by the High Court when\t the  matter<br \/>\n\twas  taken  before these authorities.  Hence,  the  Division<br \/>\n\tBench,\twhich accepted the appeal from the decision  of\t the<br \/>\n\tsingle judge had, while invalidating the notification  under<br \/>\n\tsection 99A of the Act, failed to give a direction that\t the<br \/>\n\tEmployees&#8217;  Insurance\t Court\tshould\titself\tperform\t its<br \/>\n\tduties.\n<\/p>\n<p>\t    In\tthe  light of the foregoing statement of  the  legal<br \/>\n\tposition, we allow this appeal, set aside the. judgments  of<br \/>\n\tthe Division Bench   as well as of the learned single  Judge<br \/>\n\tand orders of the Employees Insurance Court.  We remand\t the<br \/>\n\tmatter\tto the Employees&#8217; Insurance Court for  determination<br \/>\n\tin accordance with law as explained by us above.<br \/>\n\tParties will bear their own costs.\n<\/p>\n<pre>\tS.R.\t\t\t\t Appeal\t allowed  and\tcase\n\tremanded.\n<span class=\"hidden_text\">\t38<\/span>\n\n\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Employees State Insurance &#8230; vs Central Press &amp; Anr on 21 February, 1977 Equivalent citations: 1977 AIR 1351, 1977 SCR (3) 35 Author: M H Beg Bench: Beg, M. Hameedullah (Cj) PETITIONER: EMPLOYEES STATE INSURANCE CORPORATION,BHOPAL Vs. RESPONDENT: CENTRAL PRESS &amp; ANR. DATE OF JUDGMENT21\/02\/1977 BENCH: BEG, M. HAMEEDULLAH (CJ) BENCH: [&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":[30],"tags":[],"class_list":["post-57658","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Employees State Insurance ... vs Central Press &amp; Anr on 21 February, 1977 - 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\/employees-state-insurance-vs-central-press-anr-on-21-february-1977\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Employees State Insurance ... vs Central Press &amp; 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