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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HEMANT M.PRACHCHHAK
E.S.I.C. – Appellant
Versus
Ahmedabad Rifle Association Co-Op, Stores Ltd. – Respondent
JUDGMENT :
HEMANT M. PRACHCHHAK, J.
1. Present appeal is filed by the appellant – E.S.I.C. against the judgment and award dated 21.07.2006 passed by the learned Judge, Employees Insurance Court, Ahmedabad (hereinafter be referred to as “the ESI Court”) in ESI Application No. 28 of 1994, whereby the ESI Court has allowed the application and restrained the appellant from recovering the amount of contribution and interest etc from the respondent.
2. Brief facts of the present case are that the respondent herein is engaged in supplying, distributing and refilling the gas cylinders to the customers in the Ahmedabad. That the respondent is providing gas cylinders to the industrial units in the city. For that purpose, the respondent has engaged number of employees, allegedly known as contractors, only on oral agreement, to ply tempos, auto rickshaw, loading rickshaw and pedal rickshaw to supply and provide the gas cylinders at the residence as well as industrial unit of its own customers on the basis of lump sum amount, to be paid as wages and the amount of wages has been paying in the name and style of transport charges to its employees.
2.1 The respondent is paying the said amount as wages
Payments for transport charges do not constitute wages under the Employees' State Insurance Act, and contractors are not considered employees as per the Act's definitions.
A determination order under Section 45A of the ESI Act is mandatory before issuing recovery notices for omitted wages, ensuring adherence to principles of natural justice.
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 main legal point established in the judgment is that third party agents could not be treated as employees and amounts paid to them would not fall under the definition of ''wages'' under the Emplo....
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