ANDHRA PRADESH HANDLOOM WEAVERS CO OPRATIVE SOCIETY LIMITED Vs. EMPLOYEES STATE INSURANCE CORPORATION HYDERABAD

JUDGEMENT

(1.) These four appeals which have been preferred by the appellant under S. 82 of the Employees State Insurance Act, 1984 (hereinafter called the Act) have raised the question of interpretation of S. 45-A of the Act which deals with what is known as best judgment assessment in respect of the contribution payable by the employers. Having regard to the procedure that is being adopted by the E.S.I. Corporation in this batch of appeals and other cases of similar nature, it has become necessary to deal with the question in some detail.

(2.) For the purpose of understanding the questions arising in these appeals it is necessary to state the following facts. C.M.A. No. 255/84 arises out of E.I. Case No. 45/82 and the contribution assessed is a sum of Rs. 85,394-40. Though it is stated in the judgment under appeal that the period covered by the said case is from 31/01/1977 to 30/06/1978, now it is stated that the period covered by the said case is right from 30/03/1975 up to 30/06/1978. C.M.A. No. 256/84 arises out of E.I. Case No. 46/82 and the contribution levied in that case is a sum of Rs. 19.301-05 covering the period from June, 1980 to Nov. 1980. C.M.A. No. 257/84 arises out of E.I. Case No. 47/82 and the contribution levied is a sum of Rs. 6,724-08 covering the period from August, 1980 to January 1981. The last case C.M.A. No. 259/84 arises out of E.I. Case No. 49/82 and the contribution levied is a sum of Rs. 42,658-52 covering the period from 1st April 197 9/03/1980. Under the common judgment delivered by the E.S.I. Court on 18/08/1983 the above said four E.I. Cases as well as two other cases viz., E.I. Cases Nos. 50 and 51 of 82, were also dealt with. In this batch of appeals we are not concerned with E.I. Cases Nos. 50 and 51 of 1982.

(3.) All the assessment made by the Employees State Insurance Corporation (hereinafter called the Corporation) are under S. 45-A of the Act. The procedure envisaged in that Section can be described generally as the best judgment method that is followed in cases where the employer does not cooperate with the Corporation in determining the contribution. In all these cases, the Corporation purported to exercise the powers under S. 45-A, levied the contribution and recovered the same by sending a certificate to the concerned District Collector for recovery of the amounts by way of attachment etc., under the Revenue Recovery Act as stated in S. 45-B of the Act.