ESIC Vs. INDUST AND ENGG PROJECTS P LTD

JUDGEMENT

(1.) The question which arises for consideration in this appeal is, whether the period of limitation provided in proviso to Explanation (b) of Section 77 (1A) of the Employees State Insurance Act, 1948 (hereinafter called the Act) is applicable to Section 45A of the Act. Before I refer to the relevant facts, I deem it proper to reproduce Section 77 of the Act. It runs as under:-

(2.) Explanation. For the purpose of this sub-section,

(3.) And now the facts:- The Employees State Insurance Corporation (hereinafter called the Corporation) had vide a communication dated March 15, 1994 informed the respondent that it proposed to determine and recover a sum of Rs.1,17,674.15P. as contribution payable in respect of the employees of its factory/establishment under Section 45A of the Act with effect from October 02, 1988 to September 30, 1983 and accordingly, called upon it to show-cause why assessment as proposed be not made. In response to the said notice, the respondent disputed its liability to pay on the ground that it was not a shop and hence was not covered by the Act. The plea so taken did not find favour with the Corporation and consequently, an order under Section 45A of the Act dated May 09, 1994 was passed, holding the respondent liable to pay Rs.1,17,674.15P. towards its own contribution and the employees contribution for the period October 02, 1988 to September 30, 1993 along with interest @ 12% per annum for each day of the default from the due date till the date of payment within a period of 15 days from the date of the award.