GNANAMBIKA MILLS LIMITED COIMBATORE Vs. DIRECTOR GENERAL EMPLOYEES STATE INSURANCE CORPORATION NEW DELHI

JUDGEMENT

(1.) THIS appeal is against the order passed by the Principal district Judge, Coimbatore in E. S. I. O. P. No. 162/1984 on July 2, 1985.

(2.) THE said O. P. was filed by the petitioner for declaring the order, passed by the first respondent on November 24, 1980 which was confirmed by the second respondent on June 18, 1984 in which the petitioner was directed to pay damages of Rs. 3, 37, 208/ -.

(3.) SIMILARLY, in the decision reported in Sahni Silk mills P. Ltd. v. E. S. I. Corporation (supra), the Supreme Court has held that under Section 94-A Parliament only conceived of direct delegation by the corporation to different officers or authorities subordinate to the Corporation and there was no scope for the delegate to sub-delegate that power, by authorising for any other officer to exercise or perform the power so delegated. That part of the resolution of the Corporation dated February 28, 1976 which authorised the Director-General to permit any other officer to exercise the power under Section 85-B (1) was ultra vires Section 94-A. From the above two decisions, it is apparent that the stand taken by the appellant that the first respondent in this appeal had no power of delegation under Section 94-A of the Act to delegate the second respondent to pass an order under section 85 - B (1) of the Act for levying and recovering damages is well-founded. Therefore, I am of opinion that the learned counsel appearing for the appellant and the respondents have fairly requested this court to remand the matter to the E. S. I. Corporation for fresh disposal according to law and therefore, this is a matter in which the appeal has to be allowed and the matter has to be remitted to the E. S. I. Corporation to decide the question afresh.