Andhra Pradesh High Court
Judges : A.GOPAL REDDY
Nizam Club, Hyderabad - Appellant
Versus
Employees State Insurance Corporation, Hyderabad - Respondent
Decided On : 04-21-05
Employees State Insurance Act, 1948 - Sections 82 and 75 (2-B) - Limitation Act, 1963 - Sections 5 and 12 - Seeking indulgence - Dispute contending -- Employees State Insurance corporation issued proceedings to appellant-club demanding a sum - Questioning the said demand notice - Appellant-club filed No. Section 75 of the Act before the Employees Insurance court and Chairman, Industrial Tribunal, raising a dispute with regard to the contribution of the amounts demanded as due payable - Dispute between a principal employer and the Corporation in respect of any contribution or any other dues shall be raised by the principal employer in the Employees Insurance Court unless he has deposited with the Court fifty percent of the amount due from him as claimed by the Corporation. Provided that the Court may, for reasons to be recorded in writing, waive or reduce the amount to be deposited under this sub-section - -club filed i. A. No. 69 of 2004 in the said E. I. Case seeking indulgence of the ESI Court to waive the condition of depositing 50% of contribution amount as claimed by the ESI corporation to entertain the dispute contending that it is not covered under the provisions of the Act and when the respondent made an attempt earlier – Held, Learned Counsel for appellant-club that previous determination made by ESI Court was set aside holding that appellant-club is not a factory and is not governed by the provisions of Act will operate res judicata and demand made is unreasonable is a matter can be gone into in the main appeal - Supreme court in Employees State Insurance corporation v. Hyderabad Race Club Supreme AILD held that till the judgment of supreme Court in the case - Regional Director employees State Insurance Corporation AIR SC law in regard to institutions like a Club coming within purview of the definition of establishment for the purpose of the Act was nebulous - Court further held that judgment of Supreme court in M/s. Cochin Shipping Company v. ESI Corporation institution like - Race Club comes - Court question whether earlier decision operates res judicata or not can be gone into in the main appeal - Suffice it to say dismissing LA learned ESI Court has not decided issue involved which give raises a substantial question of law to maintain the appeal - Appeal is accordingly dismissed
( 2 ) THE facts, which are not in dispute, are that the Employees State Insurance corporation issued proceedings dated 5-5-2003 to the appellant-club demanding a sum of Rs. 19,51,950/ -. Questioning the said demand notice, the appellant-club filed E. I. C. (Sr.) No. 2711 of 2003 under Section 75 of the Act before the Employees Insurance court and Chairman, Industrial Tribunal, hyderabad, raising a dispute with regard to the contribution of the amounts, so demanded, as due payable by it.
( 3 ) SUB-SECTION 2-B of Section 75 of the Act mandates deposit of 50% of the amount for entertaining such dispute, which reads as under:"no matter which is in dispute between a principal employer and the Corporation in respect of any contribution or any other dues shall be raised by the principal employer in the Employees Insurance Court unless he has deposited with the Court fifty percent of the amount due from him as claimed by the Corporation. Provided that the Court may, for reasons to be recorded in writing, waive or reduce the amount to be deposited under this sub-section. "
( 4 ) FURTHER, the appellant-club filed i. A. No. 69 of 2004 in the said E. I. Case seeking indulgence of the ESI Court to waive the condition of depositing 50% of the contribution amount as claimed by the ESI corporation to entertain the dispute contending that it is not covered under the provisions of the Act and when the respondent made an attempt earlier, it moved ESI Court in E. I. Case No. 116 of 1978 and E. I. Case No. 2 of 1981 and the same were ended in its favour holding that the provisions of the Act are not applicable to it and the same was confirmed in Appeal No. 684 of 1982, dated 2-12-1984, by this Court. The ESI Court has not recorded any finding with regard to the said contentions in the interlocutory order, which is impugned in this appeal and opined that the above said issue can only be gone into in the main appeal.
( 5 ) THE ESI Court refused to exercise the discretion in favour of the appellant-club in view of the subsequent judgment of this court in Country Club, Secunderabad v. R. D. ESI Corporation, (CMA Nos. 1105 and 1097 of 2000, dated 15-10-2000) holding that prima facie, it cannot operate as a res judicata. Even otherwise, the same can be gone into only in the main appeal and the appellant, prima facie, is not entitled to waive the condition of depositing 50% of the contribution amounts as demanded by the Corporation. Accordingly, the ESI Court dismissed the LA.
( 6 ) LEARNED Counsel for the appellant- club contends that as per Section 82 of the Act, an appeal not only lies against the final order but also against an interlocutory order if it involves a substantial question of law and it is wide enough to cover up an interlocutory order also. He placed reliance on the judgment of the Allahabad High Court reported in M/s. Modi Steels Unit-A v. Employees State Insurance Court, 1985 lab. I. C. 28, wherein appeal was preferred against an order of ESI Court refusing to grant injunction restraining the ESI corporation from realizing the amounts of damages imposed.
( 7 ) LEARNED Standing Counsel appearing for the ESI Corporation contends that in the absence of any substantial question of law that arises for consideration against an interlocutory order, the appeal itself is not maintainable. Therefore, he prays to dismiss the appeal.
( 8 ) BEFORE I consider the above submission, it is appropriate to have an insight into the appeal provision under Section 82 of the Act, which reads as under: section 82 Appeal.
Employees State Insurance Corporation Vs Hyderabad Race Club
SupremeToday
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.