{"id":69135,"date":"2010-12-08T00:00:00","date_gmt":"2010-12-07T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-employee-state-insurance-vs-ms-jos-brothers-on-8-december-2010"},"modified":"2015-03-26T07:31:35","modified_gmt":"2015-03-26T02:01:35","slug":"the-employee-state-insurance-vs-ms-jos-brothers-on-8-december-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-employee-state-insurance-vs-ms-jos-brothers-on-8-december-2010","title":{"rendered":"The Employee State Insurance vs M\/S. Jos Brothers on 8 December, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">The Employee State Insurance vs M\/S. Jos Brothers on 8 December, 2010<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nIns.APP.No. 20 of 2005(A)\n\n\n1. THE EMPLOYEE STATE INSURANCE\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. M\/S. JOS BROTHERS,\n                       ...       Respondent\n\n                For Petitioner  :SRI.T.V.AJAYAKUMAR\n\n                For Respondent  :SRI.A.V.XAVIER\n\nThe Hon'ble MR. Justice M.N.KRISHNAN\n\n Dated :08\/12\/2010\n\n O R D E R\n                      M.N. KRISHNAN, J.\n                   ...........................................\n                       Ins.A.No.20 OF 2005\n                  .............................................\n           Dated this the 8th day of December, 2010.\n\n                         J U D G M E N T\n<\/pre>\n<p>     This is an appeal preferred against the judgment of the<\/p>\n<p>E.I.Court, Idukki in I.C.No.12\/2001. The establishment moved<\/p>\n<p>an application for setting aside the order of the Corporation<\/p>\n<p>which was allowed by the court below and held that                 the<\/p>\n<p>establishment is not liable to be covered under the provisions<\/p>\n<p>of the E.S.I. Act.\n<\/p>\n<p>       2. Now the crux of the matter depends upon the<\/p>\n<p>clubbing of 5 units viz M\/s. Jos Brothers, M\/s. Cut Piece<\/p>\n<p>Centre, M\/s. Jos Fabrics, M\/s.Jos Garments and M\/s.Jos Saree<\/p>\n<p>Mandir.   The case of the establishment is that they are all<\/p>\n<p>independent units having separate existence and entity and<\/p>\n<p>therefore the question of clubbing does not arise. The result of<\/p>\n<p>the clubbing or non clubbing would directly affect the interest<\/p>\n<p>of the workers employed therein.\n<\/p>\n<p>     3. The Hon&#8217;ble Supreme Court in the decision reported<\/p>\n<p>in Fertilisers &amp; Chemicals Travancore Ltd.v. E.S.I<\/p>\n<p>Corporation (2009 (3) KLT 946 SC) held that &#8220;in all cases<\/p>\n<p>under labour statutes, the workmen or at least some of<\/p>\n<p><span class=\"hidden_text\">                              : 2 :<\/span><br \/>\nIns.A.No.20 OF 2005<\/p>\n<p>them in a representative capacity or trade union representing<\/p>\n<p>concerned workmen must be made a party.&#8221;<\/p>\n<blockquote><p>     4. In para 10, the Supreme Court held that:\n<\/p><\/blockquote>\n<blockquote><p>         &#8220;It may be seen that Section 75 of the Act<br \/>\n       does not mention     who will be   the parties<br \/>\n       before the Insurance        Court.  Since the<br \/>\n       determination by the Insurance Court is a<br \/>\n       quasi judicial determination, natural justice<br \/>\n       requires that     any party     which may be<br \/>\n       adversely   affected    or   may  suffer  civil<br \/>\n       consequences by such determination, must be<br \/>\n       heard before passing any order by the<br \/>\n       authority\/court&#8221;.\n<\/p><\/blockquote>\n<blockquote><p>       5. In Para 11, it was held that :\n<\/p><\/blockquote>\n<blockquote><p>             In our opinion, wherever any petition is<br \/>\n      filed by an employee under Section 75 of the<br \/>\n      Act, the   employer has not only to implead the<br \/>\n      E.S.I.C but has also to implead at least some of<br \/>\n      the workers concerned (in a representative<br \/>\n      capacity if there are a large number of workers)<br \/>\n      or the trade union representing the said workers.<br \/>\n      If that is not done, and a decision is given in<br \/>\n      favour of the employer, the same will be violation<br \/>\n      of the rules of natural justice&#8221;.<\/p><\/blockquote>\n<p>      6. Again the Hon&#8217;ble Supreme Court reiterated the<\/p>\n<p>same in Employees&#8217; State Insurance Corporation v.<\/p>\n<p><span class=\"hidden_text\">                                 : 3 :<\/span><br \/>\nIns.A.No.20 OF 2005<\/p>\n<p>Bhakra Beas Management Board (2009 (10) SCC 671).<\/p>\n<p>      7. In para 8, it is reiterated that:\n<\/p>\n<\/p>\n<p>             In our opinion, wherever any petition is filed<br \/>\n      by an employer under Section 75 of the Act, the<br \/>\n      employer has not only to implead ESIC but has<br \/>\n      also to implead       at least some of the workers<br \/>\n      concerned (in a representative capacity if there<br \/>\n      are a large number of workers) or the trade<br \/>\n      union representing the said workers. If that is<br \/>\n      not done, and a decision is given in favour of the<br \/>\n      employer, the same will be in violation of the rules<br \/>\n      of natural justice.       After all, the real parties<br \/>\n      concerned in labour matters are the employer and<br \/>\n      the workers.&#8221;\n<\/p>\n<p>         8.  Now      in   the   light of   these  authoritative<\/p>\n<p>pronouncements, as admittedly the application is filed under<\/p>\n<p>Section 75 of the ESI Act, decisions of the Supreme Court<\/p>\n<p>will squarely apply. If it is decided to be not clubbed, then<\/p>\n<p>this Court will be entering into a finding without hearing<\/p>\n<p>the workers, who will be adversely affected.<\/p>\n<p>       Therefore, I feel that the judgment passed by the trial<\/p>\n<p>court is to be set aside and the matter is to be decided afresh<\/p>\n<p>after   permitting      all  concerned    to  produce   further<\/p>\n<p>documentary as well as oral evidence in support of their<\/p>\n<p>respective contentions and the establishment is directed to<\/p>\n<p><span class=\"hidden_text\">                             : 4 :<\/span><br \/>\nIns.A.No.20 OF 2005<\/p>\n<p>implead the workers or representative of the workers and<\/p>\n<p>thereafter the matter be disposed of in accordance with law.<\/p>\n<p>I make it very clear that this is an open remand where all<\/p>\n<p>points can be considered which is raised by all the parties.<\/p>\n<p>The Employees Insurance Court is directed to issue notice to<\/p>\n<p>the parties fixing the date of appearance.   I make it very<\/p>\n<p>clear that I had not considered the matter on merits.<\/p>\n<p>                                  M.N. KRISHNAN, JUDGE.\n<\/p>\n<p>cl<\/p>\n<p><span class=\"hidden_text\">                       : 5 :<\/span><br \/>\nIns.A.No.20 OF 2005<\/p>\n<p>                          M.N. KRISHNAN, J.\n<\/p>\n<p>                          &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.<br \/>\n                          A.S.NO.389 OF 2001<br \/>\n                          &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;<br \/>\n                          11th day of November, 2010.\n<\/p>\n<p>                          J U D G M E N T<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court The Employee State Insurance vs M\/S. Jos Brothers on 8 December, 2010 IN THE HIGH COURT OF KERALA AT ERNAKULAM Ins.APP.No. 20 of 2005(A) 1. THE EMPLOYEE STATE INSURANCE &#8230; Petitioner Vs 1. M\/S. JOS BROTHERS, &#8230; Respondent For Petitioner :SRI.T.V.AJAYAKUMAR For Respondent :SRI.A.V.XAVIER The Hon&#8217;ble MR. Justice M.N.KRISHNAN Dated :08\/12\/2010 O [&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-69135","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 v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Employee State Insurance vs M\/S. 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