SUPREME COURT OF INDIA
L.M. Sharma, C.J.I. and N. Venkatachala, J.
Civil Appeal Nos. 1689-1706 of 1982 and 2971-2974 of 1989
Decided On: 02.02.1993
Sahni Silk Mills (P) Ltd. and Ors. Appellants
Vs.
Employees State Insurance Corporation and Ors. Respondent
With
Regional Director, Employees State Insurance Corporation Appellants
Vs.
Shoba Engineers and Ors. Respondent
Counsel for the Parties
For Appellant/Petitioner/Plaintiff: V.C. Mahajan, Senior Adv.,S.C. Patel, Hemant Sharma and Anil Katiyar, Advs.
For Respondents/Defendant: M.L. Verma and V.C. Mahan, Senior Advs., V.J. Francis, V. Subramanian, A. Katiyar, N. Singh, K.R. Nagaraja, B.B. Dinkar and R.S. Hegde, Advs.
Employees State Insurance Act – Sections 40,75-G, 94-A, 85-B - Challenge - Application - Amount was reduced to on an application being moved under Section 75-G - Appellants challenged order by filing a writ petition before High Court which has been dismissed in limine by order under appeal - One of grounds urged on behalf of appellants is that Regional Director was not empowered to pass impugned order under Section 85-B as jurisdiction in this regard vests in Employees State Insurance Corporation and not in Regional Director - Held, Section 94-A empowers Corporation to delegate all or any of its powers and functions on any officer or authority subordinate to it - Very power of delegation of all or any of its powers or functions under Act by Corporation conferred under Section 94-A thereof on any officer or authority subordinate thereto could have been delegated to such officer or authority is therefore question which arises for our consideration - Having regard to general importance of this question Court are of opinion that same may be decided by a Bench of three Judges of this Court - Ordered Accordingly
ORDER
1. These appeals arise out of a proceeding under Employees State Insurance Act. An order under Section 85-B of the Act was passed against the appellants by the Regional Director, Chandigarh imposing damages assessed at over Rs 15,000, on the ground that the appellants had defaulted in depositing in time the employers contribution under Section 40 of the Act. The amount was reduced to Rs 9226 on an application being moved under Section 75-G. The appellants challenged the order by filing a writ petition before the High Court, which has been dismissed in limine by the order under appeal.
2. One of the grounds urged on behalf of the appellants is that the Regional Director was not empowered to pass the impugned order under Section 85-B as the jurisdiction in this regard vests in the Employees State Insurance Corporation and not in the Regional Director.
3. Section 94-A of the Act permits the Corporation to delegate the powers exercisable by it to any of its officers. Admittedly the Corporation had delegated the powers exercisable by it to the Director-General or any officer authorised by him. Purporting to act under this resolution the Regional Director, who has been authorised by the Director-General to exercise powers under the Act, has passed the order.
4. The contention is that the Director-General could not have further delegated his powers to the Regional Director, as that would amount to double delegation, which is forbidden in law. In reply the learned counsel has relied upon the decisions in Employees State Insurance Corporation v. Dhanda Engineers P. Ltd. 1981 Lab 1C 658 : (1981) 2 LLN 106 : (1981) 83 Punj LR 354 (P&H), Regional Director, E.S.I. Corporation v. Bhaskaran (1987) 1KLT 825, Barium Chemicals Ltd. v. Company Law Board, and Harishankar Bagla v. State of M.P.,
5. In Bombay Municipal Corporation v. Dhondu Naraya Chowdhary, it was held that double delegation was permissible if allowed by the statute. The decision in Manindra Nath v. Anil Chandra, AIR 1953 Cal 689 and the discussion in Halsburys Laws of England, Fourth Edition, Vol. 1, para 32, were also placed before us by the learned counsel,
6. Section 94-A empowers Corporation to delegate all or any of its powers and functions on any officer or authority subordinate to it. The very power of delegation of all or any of its powers or functions under the Act by the Corporation conferred under Section 94-A thereof on any officer or authority subordinate thereto could have been delegated to such officer or authority is, therefore, the question which arises for our consideration. Having regard to the general importance of this question we are of the opinion that the same may be decided by a Bench of three Judges of this Court. Let the case be listed for hearing accordingly.
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