COOPERATIVE COLLEGE OF NURSING Vs. DEPUTY DIRECTOR

JUDGEMENT

(1.) Petitioner is a Co-operative college of nursing registered under the Societies of Registration Act and the provisions of the Employees State Insurance Act is applicable. There was some default in making the payment of contribution in respect of the employees giving cause to the Deputy Director, Sub Regional Office, Thiruvananthapuram to issue a show cause notice dtd. 19/9/2019 alleging that there was a default of Rs.11,56,694.00 (Rupees Eleven lakh fifty six thousand six hundred and ninety four only) and also an amount of interest at the rate of 12% with effect from 1/6/2015., calculating the amount at the rate starting from Rs.13,335.00 per month till the date of recovery. The aforementioned legal notice was replied but of no avail and vide communication dtd. 10/11/2022, received an order under Sec. 45-C to 45-I of the Employees State Insurance Act, 1948 demanding the default of Rs.21,08,683.00 (Rupees Twenty one lakh eight thousand six hundred and eighty three only) and further interest at the rate of Rs.422.49 per day with effect from 10/11/2022.

(2.) Learned counsel appearing on behalf of the petitioner submitted that on account of non-deposit of the aforementioned amount a garnishee notice Ext.P3 dtd. 13/12/2022 has been issued. The order Ext.P2 though is appealable, but the petitioner expressed his bonafides to pay off the dues by instalments if this Court deem it appropriate.

(3.) Issue notice before admission. Learned Government Pleader, Mr.Jimmy George accepts notice for respondent Nos.1 and 2. Learned counsel for the respondent No.3 Union Bank of India submits that the bank had only acknowldged and honoured the request submitted by respondent No.2 on account of the default in the contribution under the provisions of the ESI Act.