EMPLOYEES STATE INSURANCE CORPORATION Vs. MOGRELIA

JUDGEMENT

(1.) The recovery proceedings initiated by the Employees State Insurance Corporation (hereinafter referred to as "ESIC") to recover the arrears of contribution from the respondent was quashed by the learned single Judge on the ground of limitation. The order is under challenge at the instance of the Employees State Insurance Corporation.

(2.) The respondent was running a Garment Export Unit by name Zero Garments Private Limited, situated at C3, Industrial Estate, Ambattur, Chennai. The industry was covered by the the Employees State Insurance Act. Since contribution was not paid, ESIC passed an order under Section 45-A of the ESI Act. The order was challenged before the ESI Court in EIOP No.105 of 1987. The original petition was dismissed by order dated 5 January 2013. Thereafter, writ petition was filed by the respondent challenging the recovery certificate, dated 10 May 1993. The writ petition was dismissed for default by order dated 13 February 2001.

(3.) The Recovery Officer by order dated 31 March 2009 called upon the respondent to pay the arrears with interest. The notice was challenged before the Writ Court in W.P.No.19032 of 2009. The learned single Judge was of the view that recovery action taken after a period of 18 years is barred by limitation under Rule 42(1) and (2) of the Tamil Nadu State Employees Insurance Court Rules, 1951.