DEPUTY DIRECTOR EMPLOYEES STATE INSURANCE CORPORATION, KOCHI AND ANR. Vs. M/S. KOLUTHARA EXPORTS LIMITED., ALAPPUZHA

JUDGEMENT

(1.) This appeal is preferred against the judgment in I.C.No.139/2012 of Employees Insurance Court, Alappuzha by the ESI Corporation. The above application was preferred by the respondent for declaring Exts. P17, P18 and P19 notices issued by the appellant as unsustainable in law. He contended that there was no wilful omission or laches from his side and the order issued u/s.85B of the Employees State Insurance Act, 1948 for short 'ESI Act') has to be set aside.

(2.) The respondent company is a company registered under the Companies Act and is engaged in the processing, exporting of sea foods, which is covered under the ESI Act. The respondent had been paying ESI contribution promptly to the appellant and due to competition in the international market, the respondent suffered huge set back in their business, which resulted in heavy loss to the respondent. The respondent approached the Board for Industrial and Financial Reconstruction (for short 'BIFR') for declaring the respondent establishment as a sick unit. Accordingly, the BIFR considered the financial position and declared the unit as a sick unit and there was no laches from the side of the respondent to the payment of the ESI contribution to the ESI Corporation. The ESI Corporation in the lower Court contended that there was inordinate delay in the payment, hence for the delayed payment, they are entitled to get damages as claimed in the notice. Both parties did not adduce any oral evidence, but their documents were marked as Exts. P1 to P22 and Exts. D1 to D12. The learned ESI Court dismissed the application without imposing any costs.

(3.) Section 85B of the ESI Act, 1948 reads as follows: