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2001 Supreme(AP) 437

Andhra Pradesh High Court
Judges : N.V.RAMANA, S.B.SINHA
Ashok Leyland Ltd. - Appellant
Versus
Dy.Tahsildar/special Revenue Inspector (ESI), Recovery Cell - Respondent
Decided On : 04-20-01

Headnote:

Employees state Insurance Act, 1948 – Sections 29, 74, 75, 55-A, (2-A),, 70, 68 sub-section (2) of section 54-A – Loan –Recovery of amount - Whether the provisions of the Employees state Insurance Act is applicable to the units of the petitioners or not and whether by reason of purchase of establishments/machinery of the loanees from Financial corporation in the auction held by them under Section of the SFC Act the petitioners are liable to contribute amount as employers towards their share to the employees Insurance Corporation (for short the Corporation), under the ESI Act - Employees Insurance court of such local area as may be specified in the notification - Court shall consist of such number of Judges as the State government may think fit - Any person who is or has been a judicial officer or is a legal practitioner of five years standing shall be qualified to be a Judge of the Employees Insurance Court - State Government may appoint the same Court for two or more local areas or two or more Courts for the same local area - Where more than one Court has been appointed for the same local area the State Government may, by general or special order regulate the distribution of business between them - Decided by the employees Insurance Court If any question or dispute arises as to whether any person is an employee within the meaning of this Act or whether he is liable to pay the employee s contribution - Wages or average daily wages of an employee for the purposes of the Act the rate of contribution payable by a principal employer in respect of any employee the person who is or was the principal employer in respect of any employee the right of any person to any benefit and as to the amount and duration – Held, Court is of the opinion that all questions including the question of applicability of the ESI Act to the petitioners can be raised before the Employees insurance Court - matter was also considered by a Division Bench as he then was, speaking for the Bench categorically held that even the Courts and Tribunals constituted under the ESI Act have inherent power to issue appropriate relief by way of injunction to the party before it and it can enforce the orders - Petitions with the following observations/directions: the petitioners may approach the ESI court constituted under Section 74 of the esi Act by filing appropriate applications and in the event such applications are filed by the petitioners the same shall be disposed of in accordance with law - Fact that law in this regard was uncertain – Court hope and trust that the respondents for a reasonable period shall not take any coercive steps for recovery of the purported dues from the petitioners – Ordered Accordingly.

S. B. SINHA, C. J.

( 1 ) IN all these writ petitions, the question as to whether the provisions of the Employees state Insurance Act, 1948 (for short the ESI act ) is applicable to the units of the petitioners or not, and whether by reason of purchase of establishments/machinery of the loanees from the A. P. State Financial corporation in the auction held by them under Section 29 of the SFC Act, the petitioners are liable to contribute amount as employers towards their share to the employees Insurance Corporation (for short the Corporation), under the ESI Act.

( 2 ) SECTION 74 of the ESI Act reads: constitution of Employees Insurance court: (1) The State Government shall, by notification in the Official Gazette, constitute an Employees Insurance court of such local area as may be specified in the notification. (2) The Court shall consist of such number of Judges as the State government may think fit. (3) Any person who is or has been a judicial officer or is a legal practitioner of five years standing shall be qualified to be a Judge of the Employees Insurance Court. (4) The State Government may appoint the same Court for two or more local areas or two or more Courts for the same local area. (5) Where more than one Court has been appointed for the same local area, the State Government may, by general or special order, regulate the distribution of business between them.

( 3 ) SECTION 75 of the ESI Act reads: matters to- be decided by the employees Insurance Court: (1) If any question or dispute arises as to (A) whether any person is an employee within the meaning of this Act or whether he is liable to pay the employee s contribution, or (B) the rate of wages or average daily wages of an employee for the purposes of the Act, or (C) the rate of contribution payable by a principal employer in respect of any employee, or (D) the person who is or was the principal employer in respect of any employee, or (E) the right of any person to any benefit and as to the amount and duration thereof, or (EE) any direction issued by the corporation under Section 55-A on a review of any payment of dependants benefits, or (F) xxxxxxxxxxx (G) any other matter which is in dispute between a principal employer and the Corporation, or between a principal employer and an immediate employer, or between a person and the Corporation or between an employee and a principal or immediate employer, in respect of any contribution or benefit or other dues payable or recoverable under this Act, or any other matter required to be or which may be decided by the employees Insurance Court under this Act, such question or dispute subject to the provision of sub-section (2-A), shall be decided by the Employees Insurance court in accordance with the provisions of this Act. (2) Subject to the provisions of sub-section (2-A), the following claims shall be decided by the Employees insurance Court, namely: (A) claim for the recovery of contributions from the principal employer; (B) claim by a principal employer to recover contributions from any immediate employer; (C) xxxxxxxxxx (D) claim against a principal employer under Section 68; (E) claim under Section 70 for the recovery of the value or amount of the benefits received by a person when he is not lawfully entitled thereto; and (F) any claim for the recovery of any benefit admissible under the Act. (2-A) If in any proceedings before the employees Insurance Court a disablement question arises and the decision of a medical board or a medical appeal tribunal has not been obtained on the same and the decision of such question is necessary for the determination of the claims or questions before the employees Insurance Court, the court shall direct the Corporation to have the question decided by this act and shall thereafter proceed with the determination of the claim or question before it in accordance with the decision of the medical board or the medical appeal tribunal, as the case may be, except where an appeal






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