IN THE HIGH COURT OF JUDICATURE AT BOMBAY
JITENDRA JAIN
Regional Director, Employees' State Insurance Corporation – Appellant
Versus
Bombay Gymkhana Ltd. – Respondent
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 same is passed beyond the time limit provided by proviso to explanation (b) to Section 77(1A)?
3. Since the issue revolves around a narrow compass, by consent of the parties, the appeal is heard finally at the admission stage.
Brief Facts:-
4. The respondent is a gymkhana incorporated and registered under the Companies Act with the object to promote, manage, assist in the promotion of all forms of athletic sports, pass time, recreation, etc.
Proceedings with respect to applicability of the ESI Act:-
5. There was some difference of opinion between the appellant- corporation and respondent-gymkhana as to whether the respondent-gymkhana was covered by the provisions of the ESI Act.
6. The respondent-gymkhana challenged the applica
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....
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.
The main legal point established in the judgment is the joint and several liability of the transferee and the transferrer under Section 93A of the Employees State Insurance Act.
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