Judgment

P. JAGANMOHAN REDDY, J.:- In exercise of the powers under Section 96 (1) (b) of the Employees State Insurance Act 1948 (hereinafter referred to as the Act ) relating to "the procedure to be followed in proceedings before such Courts and the execution of orders made by such Courts". the Government of Bombay made the following Rule:

"17. Limitation: (1) Every application to the Court shall be brought within twelve months from the date on which the cause of action arose or as the case may be the claim became due:

Provided that the Court may entertain an application after the said period of twelve months if it is satisfied that the applicant had sufficient reasons for not making the application within the said period.

(2) Subject as aforesaid the provisions of Parts II and III of the Indian Limitation Act 1908 (IX of 1908), shall so far as may be applied to every such application."

The vires of this Rule was challenged by the Employee s State Insurance Corporation (hereinafter referred to as the Corporation ) when it filed an application on 7th October 1963 against the Appellant in the Employees Insurance Court (hereinafter referred to as the Insurance court ) claiming payment