SAHNI SILK MILLS PRIVATE LIMITED REGIONAL DIRECTOR EMPLOYEES STATE INSURANCE CORPORATION Vs. EMPLOYEES STATE INSURANCE CORPORATION:SHOBA ENGINEERS

JUDGEMENT

(1.) These appeals arise out of a proceeding under Employees State Insurance Act. An order under Section 85-B of the Act was passed against the appellants by the Regional Director, Chandigarh imposing damages assessed at over Rs. 15,000. 00, on the ground that the appellants had defaulted in depositing in time the employer's contribution under Section 40 of the Act. The amount was reduced to Rs. 9,226. 00 on an application being moved under Section 75-G. The appellants challenged the order by filing a writ petition before the High court, which has been dismissed in limine by the order under appeal.

(2.) One of the grounds urged on behalf of the appellants is that the Regional Director was not empowered to pass the impugned order under Section 85-B as the jurisdiction in this regard vests in the Employees State Insurance Corporation and not in the Regional Director.

(3.) Section 94-A of the Act permits the Corporation to delegate the powers exercisable by it to any of its officers. Admittedly the Corporation had delegated the powers exercisable by it to the Director-General or any officer authorised by him. Purporting to act under this resolution the Regional Director, who has been authorised by the Director-General to exercise powers under the Act, has passed the order.