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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
JITENDRA JAIN
Regional Director, Employees' State Insurance Corporation – Appellant
Versus
Bombay Gymkhana Ltd. – Respondent
| Table of Content |
|---|
| 1. appeal admitted on section 85-b limitation question. (Para 1 , 2 , 3) |
| 2. gymkhana liable under esi; contributions paid 2000. (Para 4 , 5 , 6 , 7 , 8) |
| 3. interest on delayed contributions court-upheld. (Para 9) |
| 4. damages order 2014 quashed by esi court. (Para 10 , 11 , 12 , 13 , 14) |
| 5. no limitation period for section 85-b damages. (Para 15) |
| 6. fourteen-year delay exceeds reasonable period. (Para 16) |
| 7. no express limitation assumed for damages. (Para 17 , 18 , 19 , 20) |
| 8. reasonable time required absent statutory limit. (Para 21 , 22) |
| 9. esi provisions imply five-year reasonable period. (Para 23 , 24 , 25) |
| 10. delay unreasonable; appeal dismissed upholding five years. (Para 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33) |
JUDGMENT :
JITENDRA JAIN, J.
1. On being disclosed about me being a service member of the respondent-gymkhana, both learned counsel stated that they do not have any objection to this Court hearing the present appeal.
2. Admit on following substantial question of law :-
“Whether, the Employees’ State Insurance Court (ESI Court) was justified in setting aside the order passed under Section 85-B of the Employees’ State Insurance Act, 1948 (ESI Act) on the ground that the
No express limitation under Section 85-B ESI Act for damages on delayed contributions, but orders must be within reasonable five-year period per Act's scheme; fourteen-year delay held unreasonable, q....
Damages under the E.S.I. Act are discretionary, not mandatory, and must consider genuine hardships, reaffirming that penalties should not automatically apply.
The main legal point established in the judgment is that a subsequent transferee may not be liable for belated payment of contribution under the ESI Act if there is no mens rea on their part, and the....
Belated payment of contribution - Payment of contribution under the ESI Act is a statutory liability and the ESI Corporation has no power to grant waiver
The court ruled that damages for delayed ESI contributions must be calculated from the correct demand date, emphasizing the need for authorities to consider mitigating circumstances in penalty assess....
Section 85-B damages order valid if considers employer's submissions; cannot be quashed for not addressing unraised factors like default number/extent/frequency; record manipulation shows mala fide, ....
Mens rea is not required for imposing penalties under the Employees State Insurance Act for breach of civil obligations.
An appeal against recovery proceedings under the E.S.I. Act is not maintainable without first challenging the correctness of the preceding order under Section 45-A.
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