S PRABAKAR Vs. IT EXPRESSWAY LTD

JUDGEMENT

(1.) HEARD Mr.G.Arul Murugan, learned counsel for the petitioner and Mr.V.Ramajagadeesan, learned counsel for the respondent.

(2.) THE petitioner has sought for a direction to the respondent to refund a sum of Rs.2,45,796/- to the petitioner which was deducted towards non-submission of ESIC and PF codes, in respect of the contract agreement dated 9.4.2009 for construction of culvert extension.

(3.) THE respondent has filed counter affidavit inter-alia stating that as per the work order issued to the petitioner, one of the conditions, namely No.(e), the contractor, namely the petitioner should submit a workmen compensation policy, but the petitioner has not submitted such workmen compensation policy to the respondent-Company and the petitioner has not taken insurance policy in respect of his liability towards the workmen compensation for the workers engaged by him for carrying out the work on behalf of the principal employer, the respondent herein. In 2010, when the audit party inspected the books of accounts of the respondent-Company, it was pointed out that it should be ensured that the contractors engaged by the respondent-Company take insurance policy in respect of the workers engaged by them, both under the ESIC Act and the Employees Provident Funds and Miscellaneous Provisions Act (for short, 'the EPF Act'). THE petitioner did not submit any records to the respondent-Company to establish that the petitioner is not covered under the provisions of the ESIC Act or EPF Act, and the petitioner has also not given any reference in respect of the registration under the ESIC Act or the EPF Act, inspite of the repeated requests made by the respondent-Company during the meetings held at the site office and also at the time of passing the bills by the Accounts Department of the respondent-Company. Because of the failure on the part of the petitioner in submitting the required proof to establish that he is not covered under the ESIC Act or the EPF Act and has also not produced any exemption certificate from the respective competent authorities under the said Acts and has also not given any reference for registration under those Acts, the respondent-Company has to retain the amount towards the petitioner's liability under the ESCI Act and EPF Act and the amount so retained by the respondent-Company works out to only Rs.2,21,360/- and not Rs.2,45,796/- referred to by the petitioner in his affidavit.