THIRUNELVELI CO-OPERATIVE MILK SUPPLY SOCIETY LTD Vs. JOINT REGIONAL DIRECTOR E S I CORPORATION MADRAS

JUDGEMENT

(1.) THE Tirunelveli Co-operative Milk Supply Society Limited. Tirunelveli is an establishment covered by the Employees' State Insurance Act 34 of 1948. Ex. A-1 is the notice dated 24-8-1978. Ex. A-1 is the notice dated 24-8-1978 from the Regional Director of E. S. I. served on the Society informing it that the society comes within the purview of the Act with effect from 14-5-1978 and that a code number had been allotted to it. The Society was called upon to pay the required contributions for the periods from 14-5-1978 to 30-9-1978 and from 1-10-1979 by the regional Director. As per Ex. A-3 dated 20-12-1979 the Society has informed the Regional Director that they have already sent the contributions for the period from 1-11-1978 to 31-3-1979 and requested for the cancellation of the contribution for the period from 14-5-1978 to 31-10-1978. Thereupon, the Regional Director sent Ex. A-6 communication dated 20-9-1994 requesting the Society to pay sum of Rs. 2,626. 85 towards interest for late payment of contribution for the wage periods of May, 1978 to November, 1978 March, 1979 and November, 1979, to March, 1980 Ex. A-7 is he reply sent by the society on 18-10-1984 mentioning that they have remitted Rs. 2,626. 85 in the State Bank of India, Tirunelveli Branch towards interest for the late payment of contribution. Thereafter the Corporation issued Ex. A-9 notice dated 5-10-1984 calling upon the Society to show cause as to why damages at the rate of 19% per annum may not be imposed and recovered for the failure of the society to pay the contribution under the Act within the stipulated time. Ex-A-8 is the reply sent by the society on 22-10-1984 stating that the delay was not intentional. However, as per ex. A-10 on 9-111984 the Joint Regional Director has passed orders under Sec. 85-B of the E. S. I. Act rejecting the reasons given by the society for the delay and levying an amount of Rs. 8,319 as damages. Thereupon, the Society preferred E. S. I. O. P. No. 1 of 1984 before the E. S. I. Court (District Judge), Tirunelveli challenging the above said order under Exa-10 and its liability to pay interest. Since the E. S. I. Court has dismissed that petition, the Society has come forward with this Civil Miscellaneous Appeal assailing the correctness of the findings of learned E. S. I. Judge.

(2.) MISS K. Suguna, learned counsel for the appellant submitted that the court below has erred in holding that the Joint Regional Director has valid authority to exercise the power vested in Sec. 85-B of the E. S. I. Act. The said Sec. 85-B reads as under :

(3.) HOWEVER, in this case as per notification No. 4/13-1-82 Ins. III, dated 29-4-1983 the E. S. I. Corporation has passed the following resolution to delegate fresh powers to levy and recover damages from the employers under Sec. 85-B of the E. S. I. Act to the officer of the Corporation.