EMPLOYEES STATE INSURANCE CORPORATION REGIONAL OFFICE Vs. KADAMBA TRANSPORT CORPORATION A PUBLIC LIMITED COMPANY

JUDGEMENT

(1.) HEARD learned Counsel for both the parties. In view of the facts and circumstances, Rule. Rule is made returnable forthwith.

(2.) THIS is an appeal preferred by the Employees State Insurance Corporation against the order passed by the Presiding Officer, E. S. I. C. , Panaji allowing the respondent's application, challenging the Order dated 6. 12. 95 whereby the Corporation had directed the applicant respondent to pay damages to the tune of Rs. 1,08,586/ in terms of Section 85 of the Act.

(3.) THE respondent applicant is a public limited company engaged in transport service to the public by plying state carriage within the State of Goa and to the neighbouring States. The applicant commenced its business in October, 1980 and its fleet strength crossed 20 in March, 1981. According to the applicant respondent, it had made an application to the ESI Office at Bombay for allotment of a code number. However, no reply was received and as such, the Manager of the applicant respondent had personally gone to the ESI Office at Bombay and he was handed over a letter allotting the code number. The applicant respondent has stated that thereafter, it commenced deduction of the contribution from 11. 3. 1982 and this contribution was regularly deposited in the State Bank of India, under intimation to the ESI Office. It was the case made out on behalf of the applicant that vide assessment order dated 18. 10. 1983, the Corporation claimed from the applicant respondent contribution to the tune of Rs. 1,10,05293 for the period from October, 1980 to March, 1982. The said order under Section 45b of the ESI Act was challenged by the applicant vide letter dated 2. 11. 1983. The ESI Court directed the respondent to correct the contributions payable taking into account the date of intimation of coverage. The Corporation, thereafter, determined the contribution at Rs. 1,08,586. 41 for the period from January, 1981 to March, 1982 and interest amounting to Rs. 44,321. 10 i. e. at the rate of 6 % for the period from 22. 2. 1982 to 19. 10. 1989 and Rs. 4,712. 55 i. e. at the rate of 12 % for the period from 20. 10. 1989 to 28. 2. 1990. A review application was filed before the ESI Court by the applicant, which was rejected on the ground that the ESI Court had no power to deal with the same. Therefore, the amount came to be deposited. Thereafter, the Corporation vide Notice dated 8. 8. 1990 informed the applicant respondent that it proposed determining and recovering from the applicant respondent damages under Section 85b of the ESI Act for not effecting the payment of the contribution within the stipulated time and, accordingly, made demand thereof and subsequently, passed the order dated dated 6. 12. 1995 under Section 85b of the said Act. This order came to be challenged before the ESI Court wherein the Corporation took up a stand that the ESI Court had directed the applicant respondent to pay the contribution along with interest within a period of 15 days from the date of issue of the order dated 22. 2. 1990. It was stated that the applicant had paid the said amount on 26. 7. 1990 and had not paid the contributions for the period from January, 1981 to March, 1982 and hence, the action that was sought to be taken by the Corporation was tried to be justified.