ALLIED TEXTILE ENGINEERS Vs. REGIONAL DIRECTOR

JUDGEMENT

(1.) The present appeal has been preferred against the order dated 28-8-1990 passed by the Employees' Insurance Court, Ahmedabad, in Application No.68 of 1979 by which the application of the appellant under Sec.75 read with Sec.77 of the Employees' State Insurance Act, 1948 ('the Act' for short) was dismissed.

(2.) In brief, it is the case that the appellant was a registered partnership firm engaged in the manufacture of engraving roll. According to the appellant, 17 employees were working in the said factory and it never engaged 20 or more employees. However, the respondent authority, based on the report of Insurance Inspector, made the provisions of the Act applicable to the appellant firm with effect from 8-8-1972 and directed it to pay ESI contribution. Though the appellant pointed out by reply that it never employed 20 or more employees at any point of time, the respondent decided that since the employees were covered under Sec.2(9) of the Act to whom voucher payments are made by the firm, the appellant was liable to pay ESI contribution failing which, the respondent would take legal action under Sec.85 of the Act. Since the appellant was not complying with the same, a recovery letter dated 12-9-1979 was issued by the Collector for recovery of Rs.29,875=47 under Sec.5 of the Revenue Recovery Act, 1890. Being aggrieved with the same, the appellant preferred Application (ESI) No.68 of 1979 before the EI Court at Ahmedabad. On recording the evidence of the witnesses and considering the documents on record, the EI Court dismissed the application of the appellant. Hence, the present appeal.

(3.) I have heard learned counsel, Mr.D.G.Chauhan for the appellant and Mr.Hemant S. Shah for the respondent and have gone through the record as well as the impugned order passed by the EI Court.