{"id":87961,"date":"2008-10-30T00:00:00","date_gmt":"2008-10-29T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-regional-director-vs-ms-uduppi-anantha-bhavan-on-30-october-2008"},"modified":"2014-11-23T12:18:13","modified_gmt":"2014-11-23T06:48:13","slug":"the-regional-director-vs-ms-uduppi-anantha-bhavan-on-30-october-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-regional-director-vs-ms-uduppi-anantha-bhavan-on-30-october-2008","title":{"rendered":"The Regional Director vs M\/S Uduppi Anantha Bhavan on 30 October, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">The Regional Director vs M\/S Uduppi Anantha Bhavan on 30 October, 2008<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nIns.APP.No. 45 of 2007()\n\n\n1. THE REGIONAL DIRECTOR,\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. M\/S UDUPPI ANANTHA BHAVAN,\n                       ...       Respondent\n\n                For Petitioner  :SRI.T.V.AJAYAKUMAR\n\n                For Respondent  :SRI.E.K.NANDAKUMAR\n\nThe Hon'ble MR. Justice M.N.KRISHNAN\n\n Dated :30\/10\/2008\n\n O R D E R\n                            M.N.KRISHNAN, J.\n                             --------------------------\n                       Ins. Appeal No. 45 OF 2007\n                               ---------------------\n                 Dated this the 30th day of October, 2008\n\n                                 JUDGMENT\n<\/pre>\n<p>      This appeal is preferred against the judgment of the Employees&#8217;<\/p>\n<p>Insurance Court, Alappuzha, in I.C.104\/04. It was an application filed by<\/p>\n<p>the establishment for a declaration that the demand of Rs.3,525\/- towards<\/p>\n<p>interest and imposition of damages of Rs.5,873\/- as damages is to be<\/p>\n<p>declared as invalid.     The EI court held that both the demands are<\/p>\n<p>unsustainable and therefore allowed the application.       It is against that<\/p>\n<p>decision, the Corporation has come up in appeal.\n<\/p>\n<p>      2. Heard the counsel for both sides. The EI court has taken a stand<\/p>\n<p>that the contribution on omitted wages is payable only when the omission is<\/p>\n<p>detected and a legal and proper demand is made. So it has held that there<\/p>\n<p>cannot be any demand for interest in this case. The said court also held<\/p>\n<p>that since the power to demand interest arises only on demand for<\/p>\n<p>payment, the question of damages cannot be allowed.            So far as the<\/p>\n<p>finding on the question of interest is concerned, I am afraid the view of the<\/p>\n<p>EI court is wrong. The applicability of the ESI Act and the liability to pay<\/p>\n<p>contribution are statutorily covered and once it is found that the<\/p>\n<p>establishment is liable to be covered under the ESI Act, then the amount<\/p>\n<p>will become due and there cannot be any postponement of that date. A<\/p>\n<p>Division Bench of this court in the decision reported in Cannanore Drug<\/p>\n<p>Ins. Appeal No.45\/07<br \/>\n<span class=\"hidden_text\">                                       2<\/span><\/p>\n<p>Lines v. E.S.I. Corporation [2007 (1) KLT 880] held that &#8220;the bonafide<\/p>\n<p>impression of the appellant that the establishment was not covered under<\/p>\n<p>the provisions of the ESI Act or the pendency of a dispute before the EI<\/p>\n<p>Court regarding the appellant&#8217;s liability to pay ESI contribution cannot be a<\/p>\n<p>valid ground for exempting the appellant from paying interest in terms of<\/p>\n<p>section 39(5) and Regulations 31A. When the statute does not provide for<\/p>\n<p>any such exemption, the respondent cannot exclude the amount of interest<\/p>\n<p>from the demand made against the appellant.          So in the light of this<\/p>\n<p>decision, it is a statutory obligation cast on the Corporation to impose<\/p>\n<p>interest which cannot be waived by it. Therefore the finding of the EI court<\/p>\n<p>that it becomes payable only on demand is wrong and is liable to be set<\/p>\n<p>aside. I find that the interest, as demanded, has to be paid.<\/p>\n<p>       3. The next question is regarding imposition of damages. Imposition<\/p>\n<p>of damages is a discretionary jurisdiction vested with the Corporation and<\/p>\n<p>there are decisions to the effect.      unless there is mens rea to evade<\/p>\n<p>payment or a contumacious conduct or deliberate intention to violate the<\/p>\n<p>provisions of the statute, the authorities should be slow in imposing<\/p>\n<p>damages. The materials available here would show that there was a bona<\/p>\n<p>fide belief that the establishment need not pay contribution. The matter got<\/p>\n<p>settled only at a later point of time and there was no deliberate or<\/p>\n<p>contumacious conduct for not paying the amount or interest in time. This<\/p>\n<p>Ins. Appeal No.45\/07<br \/>\n<span class=\"hidden_text\">                                       3<\/span><\/p>\n<p>position has been considered by a Division Bench of this court in Regional<\/p>\n<p>Director, ESI Corporation and another v. Managing Director, M\/s.<\/p>\n<p>Qetcos Ltd. [2008 (3) ILR 132] wherein the court has held that unless<\/p>\n<p>these ingredients are proved, damages need not be imposed. So, I feel<\/p>\n<p>the finding of the EI court declining to confirm the show cause notice on<\/p>\n<p>damages is correct and that shall not be interfered with.<\/p>\n<p>       The judgment of the EI court directing that the interest need not be<\/p>\n<p>paid is set aside. It is found that the establishment is bound to pay interest<\/p>\n<p>from the date when it has become due. The finding of the EI court that<\/p>\n<p>damages need not be levied is confirmed.\n<\/p>\n<p>       The appeal is disposed of accordingly.\n<\/p>\n<\/p>\n<p>                                                   M.N.KRISHNAN, JUDGE<br \/>\nvps<\/p>\n<p>Ins. Appeal No.45\/07<br \/>\n<span class=\"hidden_text\">                        4<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court The Regional Director vs M\/S Uduppi Anantha Bhavan on 30 October, 2008 IN THE HIGH COURT OF KERALA AT ERNAKULAM Ins.APP.No. 45 of 2007() 1. THE REGIONAL DIRECTOR, &#8230; Petitioner Vs 1. M\/S UDUPPI ANANTHA BHAVAN, &#8230; Respondent For Petitioner :SRI.T.V.AJAYAKUMAR For Respondent :SRI.E.K.NANDAKUMAR The Hon&#8217;ble MR. Justice M.N.KRISHNAN Dated :30\/10\/2008 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-87961","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 M\/S Uduppi Anantha Bhavan on 30 October, 2008 - 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-ms-uduppi-anantha-bhavan-on-30-october-2008\" \/>\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 M\/S Uduppi Anantha Bhavan on 30 October, 2008 - Free Judgements of Supreme Court &amp; 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