EMPLOYEES STATE INSURANCE CORPORATION, REGIONAL OFFICE (TAMIL NADU) AND ORS. Vs. NEYVELI LIGNITE CORPORATION LIMITED

JUDGEMENT

(1.) Heard learned counsel for the parties through video conferencing due to the Covid-19 pandemic.

(2.) Civil Miscellaneous Appeal Nos.1030, 1033, 1034 and 1035 of 2020 have arisen from the impugned orders dated 7.8.2014 passed by the Employees Insurance Court (Labour Court), Cuddalore in E.S.I.O.P.Nos.4, 3, 2 and 5 of 2014, respectively.

(3.) When the Thermal Power Station-I of Neyveli Lignite Corporation Limited situated at Neyveli, Cuddalore District admittedly stands covered under the provisions of the Employees' State Insurance Act, 1948, the said unit was required to pay the contribution within the time prescribed under Regulation 20 of the Employees' State Insurance (General) Regulations, 1950 which were framed under the Act. But the Neyveli Lignite Corporation Limited failed to make the contribution as required by law and therefore, a notice was issued to the respondent employer on 8.10.2012 to explain as to why damages to the extent of the percentage included in column-7 of the notice should not be imposed for such non-remittance. A written statement dated 20.10.2012 was given by the Neyveli Lignite Corporation Limited to the Employees' State etc. Insurance Corporation Limited to drop the damages levied, for the reasons stated therein, more particularly, when the ESI Authority have allotted the code number to the unit in Form C-11 only on 12.1.2012, though the provisions of the ESI Act were made applicable from 1.1.2011, the process of enrolling the contract workers as members of the scheme has to be done and therefore, as per the ESI Regulations, it became necessary to fill up the Form-I as prescribed in clause 11 of the Regulations in respect of each person to be enrolled in the scheme and besides, as most of the contract workers have not even attended the school, they were unable to fill up the forms by themselves and also unable to give the bank account particulars, the date of appointment, the details of family members, etc. Hence, the respondent-Corporation took steps to inform and contact the contract workers through their contractor, since there were difficulties in getting the contract workmen to assemble at one place for making them aware of the scheme and get the form-I filled up correctly. When there were more than 1000 workers, the data could not be collected on time, more particularly, when the ESI Corporation themselves have allotted the code number to the unit only on 12.1.2012. After obtaining the particulars, on line entry required careful and undisturbed attention and without the code number, it was impossible to make any remittance to the ESI authorities. When the ESI Corporation have allotted the code number through Form C-11 on 12.1.2012 only, they cannot ask the contribution from 1.1.2011. However, the etc. respondent-Corporation had paid the contribution with effect from 1.1.2011. In addition to the payment of contribution, they have also paid the interest for the belated payment. But with regard to the damages alone, though they paid the same under protest, an explanation was given to waive the same, by virtue of the proviso (c) to Regulation 31-C of the Employees' State Insurance (General) Regulations, that was turned down. Hence, the issue was taken to the ESI Court. The ESI Court, accepting more than one reason given by the Neyveli Lignite Corporation Limited, allowed the E.S.I.O.P's vide order dated 7.8.2014, setting aside the proceedings dated 30.8.2013 issued by the ESI Corporation. Aggrieved thereby, the present appeals have been filed.