CHHATRABHUJ Vs. REGIONAL DIRECTOR INSURANCE

JUDGEMENT

(1.) THIS appeal has arisen cut of the order dated 24.8.1990 passed by the Employees State Insurance Court, Pali (Civil Judge, Pali) on an application under Section 75 of the E.S.I. Act.

(2.) THE short issue raised in the appeal is that the industrial area where the factory of the appellant is situated was included in the limits of the Pali Municipality by notification No. Fl(3)/SLG/74/35 dated June 18, 1975 and the provisions of the E.S.I. Act were extended to the said extended Municipal limits of the Pali Municipality with effect from 1st January, 1984. The demand for contribution to E.S.I, fund was made relating to the period between 1979 to 1982 from the plaintiffs and his likes. The contention of the appellant is that the E.S.I. Act itself was not applicable to the area prior to 1st January, 1984 and demand in respect of contribution to ESI fund against the plaintiff could not have been raised, for that period. He places reliance on 1992 (64) for that a decision of Rajasthan High Court in which it was held that collection of the E.S.I. contribution in respect of factories situated in the extended Municipal limits upto December 31, 1983 was without authority of law and were liable to be refunded to the contributors. Relying on the afore said judgment, the appellant contended that the present case is squarely covered by ratio of aforesaid decision and he is entitled to relief in terms thereof. E.S.I. court has erred in taking contrary view.

(3.) IN the aforesaid circumstances, the order of the E.S.I, court, dated 24.8.1992 is set aside and the matter is remanded back to the E.S.I. court, Pali, for determining whether the factory premises in respect of which the E.S.I. contribution has been demanded from the appellant for any period prior to 31st December, 1983, is situated in the extended Municipal limits of Pali Municipality as aforesaid and if so, appropriate relief in terms of aforesaid judgment may be granted to the appellant. The parties are directed to appear before the lower courts on 17th March, 1993. The E.S.I. Court is directed to dispose off the matter within a period of one month from the date of appearance of the parties before it.