MAHARASHTRA STATE CO-OPERATIVE COTTON GROWERS' MARKETING FEDERATION LIMITED Vs. EMPLOYEES' STATE INSURANCE CORPORATION

JUDGEMENT

(1.) The only question that arises for determination in this writ petition is whether on the withdrawal of the prohibitory order dated 04.03.2013 prohibiting the petitionerMaharashtra State Cooperative Cotton Growers' Federation Limited from withdrawing amount from its account in Bank of India, by the order dated 12.03.2013, the respondentEmployees' State Insurance Corporation was liable to redeposit the amount of Rs.27,25,171/ in the account of the petitionerFederation on the principle of restitution.

(2.) The respondentCorporation had issued recovery certificates against the petitioner under the provisions of the Employees State Insurance Act, as according to the respondent Corporation, the petitionerFederation was covered under the provisions of the Act. Against the recovery certificates for the period from 1976 to 1988, the petitionerFederation filed applications before the Employees' Insurance Court seeking a declaration that the petitionerFederation is not covered by the provisions of the Act and the issuance of the recovery certificates was bad in law. The applications filed by the petitionerFederation were dismissed by the Employees' Insurance Court and it was held that the provisions of the Act were applicable to the petitioner Federation. Several first appeals were filed by the petitioner Federation against the orders of the Employees' Insurance Court and after hearing the first appeals for admission and issuing notice on the stay application, this Court, by an order dated 30.06.2008, restrained the respondentCorporation from taking coercive steps for recovering the amount. The stay application was then heard by this Court on 11.08.2008 and as the respondentCorporation had withdrawn the amount deposited by the petitionerFederation in the Employees' Insurance Court before the adinterim order was passed on 30.06.2008, this Court observed that there was no question of granting any stay to the impugned orders passed by the Employees' Insurance Court. This Court disposed of the stay applications filed in the first appeals as infructuous, granting liberty to the petitionerFederation to move an appropriate application, which could be considered on its merits. It is an admitted position that after the order dated 11.08.2008 was passed and the stay applications were disposed of as infructuous, the petitioner Federation did not file any application for staying the effect and operation of the orders of the Employees' Insurance Court holding that the petitionerFederation was covered by the provisions of the Act. The first appeals were pending for some time and on 09.12.2013, they were dismissed for want of prosecution. It is informed to this Court by the learned counsel that the first appeals are restored yesterday. In the meanwhile, since there was no stay to the orders passed in the Employees Insurance Cases and since the last of the Employees Insurance Cases, Bearing No.3/2007 was also dismissed by the Employees' Insurance Court on 20.02.2013, the Employees Insurance Corporation issued a prohibitory order dated 04.03.2013 to the Bank of India prohibiting and restraining the Bank until further orders, from making payment from the account of the petitionerFederation in the Bank, to the petitioner.

(3.) After the issuance of the prohibitory order dated 04.03.2013, the respondentCorporation withdrew the sum of Rs.27,25,171/ from the account of the petitionerFederation towards contribution for the period from 1988 to 2004. After the said amount was withdrawn, the respondentCorporation cancelled the prohibitory order dated 04.03.2013 by the order dated 12.03.2013. According to the petitioner, in view of the withdrawal of the prohibitory order dated 04.03.2013 by an order dated 12.03.2013, the respondentCorporation was liable to redeposit the said amount in the account of the petitionerFederation, by applying the principle of Restitution.