ST. JOHNS MEDICAL COLLEGE HOSPITAL Vs. DIRECTOR EMPLOYEES STATE INSURANCE CORPORATION SUB-REGIONAL OFFICE

JUDGEMENT

(1.) Petitioner an establishment covered under the Employees' State Insurance Corporation Act, 1948, aggrieved by the order dated 3.9.2012 Annexure-A of the Deputy Director, Employees' State Insurance Corporation, determining Rs.7,51,499/- as interest @ 12% per annum up to 31.8.1994, @ 15% per annum from 1.9.1994 upto 30.9.2005 and @ 12% per annum from 1.10.2005 onwards for the delay in payment of contribution, followed by the demand notice dated 4.12.2012 Annexure-B, has presented this petition.

(2.) Petition is opposed by filing statement of objections, interalia, contending that, in the light of the judgment of the Apex Court in M/s.Goetze (India) Ltd. -vs- Employees State Insurance Corporation, 2008 AIR(SC) 3122 the order and demand notice impugned are sustainable and that there is no necessity to issue a show cause notice to the petitioner before determining the amount due as interest. Such a due, it is stated, is contemplated under subsection (5) of Section 39 of the Employees' State Insurance Act, 1948 (for short 'Act'). In addition, it is stated that the petitioner has an alternative and efficacious remedy of filing an application under Section 75 of the Act, calling in question the order impugned before the Employees' State Insurance Court.

(3.) Sri.S.N.Murthy, learned Senior Counsel for the petitioner submits that the order Annexure-A suffers from violation of the principles of natural justice i.e., Audi Alterem Partem, in not extending an opportunity of hearing to the petitioner before determination and notice of demand. Learned Senior Counsel submits that if the statute is silent over extending an opportunity of hearing, principles of natural justice, must be deemed to be read into the statute and therefore, the authority determining the quantum of money to be paid towards interest under sub-section (5) of Section 39 of the Act, is bound by the principles of natural justice to issue notice to the petitioner.