DIRECTOR Vs. N. J. K. ENTERPRISES

JUDGEMENT

(1.) This appeal is filed by the Employees State Insurance Corporation (hereinafter referred to as 'the ESI Corporation') under Sec. 82(2) of the Employees State Insurance Act, 1948 (hereinafter referred to as 'the ESI Act') challenging the order dtd. 31/1/2017 passed by the Employees State Insurance Court at Bangalore (hereinafter referred to as 'the ESI Court') in E.S.I. Application No.29/2012, whereby the damages claimed by the Corporation of Rs.3,33,305.00 has been reduced to Rs.10,000.00.

(2.) For the sake of convenience, the parties are referred to as per their rankings before the E.S.I. Court.

(3.) The brief facts of the case are that the applicant- establishment is engaged in the manufacturing of readymade garments and it is covered under the ESI Act. The ESI Inspector inspected the records of the applicant- establishment for the periods from January 2003 to March 2007 between 28/2/2008 to 4/3/2008 and submitted a report claiming certain amounts from the applicant- establishment. Since the applicant-establishment did not agree the claim, a show-cause notice was issued to the applicant-establishment on 19/7/2008. The applicant- establishment appeared before the enquiring authority. After perusal of the records, the enquiring authority has passed an order on 13/4/2010 claiming an amount of Rs.8,52,082.00 as contribution as against an amount of Rs.1,24,12,647.00. Thereafter, the applicant-establishment has paid the said amount on 30/4/2010 and 12/5/2010, respectively. Since there is a delay in payment, ESI Corporation has issued a notice claiming interest and damages of Rs.3,67,615.00. In respect of the interest is concerned, the applicant-establishment has paid the same. But, in respect of damages of Rs.3,33,305.00 is concerned, the applicant has approached the ESI Court in A.No.29/2012. The ESI Court, by the impugned order reduced the damages of Rs.3,33,305.00 to Rs.10,000.00. Being aggrieved by the same, the corporation is before this Court.