SHANTINIKETAN ESTATE LTD Vs. E S I C

JUDGEMENT

(1.) In a proceeding under Section 75(2-B) of the Employees' State Insurance Act, 1948, the question of depositing 50 per cent of the amount was sought to be waived. But such waiver was not allowed and, however, injunction was granted. It is contended by the petitioner that in case this deposit is made, in that event it will not be able to recover the same. However, the petitioner contended that this law is not applicable in its establishment. According to the petitioner, today is the last date for depositing the said amount. Therefore, it has rushed to this Court for appropriate order. It is further contended that in the proviso to sub-section (2-B) of Section 75 of the Employees' State Insurance Act, the authority has discretion to reduce the amount, but the authority has not exercised the discretion lawfully.

(2.) Learned counsel for the respondent on the other hand, contended that it is mandatory under sub-section (2-B) of Section 75 of the said A.ct that 50 per cent of the amount is to be deposited. The discretion to reduce is the discretion of the authority which cannot be interfered with by the Writ Court. He also contended that the argument that the amount cannot be recovered is without any substance since such amount can be refunded under regulation 40 of the Regulations framed under the Act. Therefore, this writ petition cannot be maintained. He also contended that the question of applicability of the Act can be decided in the proceeding before the Employees Insurance Court itself. This Court should not enter into such question.

(3.) I have heard learned counsel for the parties at length. Sub- section (2-B) of Section 75 provides as follows: