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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
HEMANT M.PRACHCHHAK
E.S.I. Corporation – Appellant
Versus
Nanku Sitaldeen – Respondent
JUDGMENT :
HEMANT M. PRACHCHHAK, J.
1. The appellant-Employee's State Insurance Corporation ("E.S.I." for short) has filed these appeals under Section 82(2) of the E.S.I. Act, 1948 (hereinafter referred to as the "Act") challenging the impugned judgment and awards dated 20.5.2004 and 11.12.2003 passed in E.S.I. Application Nos. 5 of 2003, 6 of 2003, 20 of 2003, 19 of 2003, 8 of 2003, 9 of 2003, 10 of 2003, 11 of 2003, 13 of 2003, 12 of 2003, 14 of 2003, 15 of 2003 17 of 2003, 16 of 2003, 18 of 2003, 25 of 2003 and 52 of 2002 passed by Employee's Insurance Court, Vadoara ("E.I. Court" for short) whereby, the E.I. Court directed E.S.I. Corporation to pay 12% interest to the original claimants from the date of the disability considered by Special Medical Board with cost of Rs.200/-.
2. In view of the fact that identical issue involved in all these appeals, they are being disposed of by this common judgment by treating First Appeal No.1400 of 2005 as lead matter. In the said lead matter being Special Civil Application No.1400 of 2005, the appellant has prayed for below mentioned reliefs:-
"9 (a) Your Lordships may quash and set aside the judgment and order of paying interest and cost passe
The Employees' Insurance Court can award interest on belated compensation payments, and the E.S.I. Corporation's challenge lacked substantive merit regarding jurisdiction and time frame for the disbu....
The main legal point established in the judgment is that the levy of interest under Section 39(5)(a) of the ESI Act is mandatory, and the liability to pay the interest is a statutory liability, not s....
The employer's payment after the clarificatory order was a strict compliance with statutory regulations, making the demand for interest not legally sustainable.
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