HOTEL NEW PRASANTH RAJAHMUNDRY EAST GODAVARI DISTRICT Vs. EMPLOYEES STATE INSURANCE CORPORATION VIJAYAWADA

JUDGEMENT

(1.) M/S. Hotel New Prasanth Devi Chwok, Rajahmundry, East Godavari District is a proprietary concern. Smt. P. Veera Venkata Prasadam the petitioner is Proprietrix of the hotel. Her husband-Bala Venkata Reddy managed the hotel during his life-time. She leased the hotel with effect from 1.4.1999 and subsequently she closed the hotel business in the year 2001. She moved out from Rajahmundry to Mahabubnagar for the reason of her second daughter securing a seat in S.P.S. Medical College, Mahabubnagar. The respondent-Employees State Insurance Corporation (for brevity, "the Corporation") filed PC No. 93 of 2001 and PC No. 299 of 2002 on the file of ESI-cum-Chairman, Industrial Tribunal-I, Hyderabad for prosecution of the petitioner for the offence under section 85 of the Employees State Insurance Act, 1948 (for brevity, 'the Act') for non-payment of contributions for the period from 1.1.1999 to 31.3.2001 and 1.4.2001 to 30.9.2001.

(2.) The petitioner filed EIC No. 10 of 2004 on the file of ESI Court-cum-Chairman, Industrial Tribunal-I, Hyderabad under section 75 (1) (g) of the Act seeking declaration that she is not liable to pay any contribution to the Corporation. An interim, order came to be passed by the Tribunal on 10.2.2004 subject to the petitioner depositing Rs. 20,000/- and the matter is pending adjudication. The Corporation issued proceeding No. 62-Q/27558-09/2005, dated 7.6.2006 for recovery of the arrears along with interest and proposed to execute the above said certificate by arrest and detention of the petitioner in civil prison. She has been directed to appear before the Court on 26.6.2006. The Corporation also issued another notice on 21.6.2006 calling upon her to explain as to why an arrest warrant and attachment of the movable and immovable properties should not be resorted to for realization of the amount of Rs. 2,29,689/-. She submitted an explanation. The Corporation issued notice dated 4.7.2006 calling upon her to pay ESI dues of Rs. 1,29,800/- for the period from 20.7.1993 to 31.3.1999. The petitioner filed the instant writ petition assailing the notice dated 4.7.2006.

(3.) For better understanding of the grievance of the petitioner, I deem it appropriate to refer Paras (3) and (4) of the affidavit filed in support of the writ petition and they are thus: