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2024 Supreme(Jhk) 384

IN THE HIGH COURT OF JHARKHAND AT RANCHI
SANJAY KUMAR DWIVEDI, J.
M/s. AR Tyres & Cold Retreaders - Appellant
Versus
Regional Director & Ors. - Respondents
M.A. No. 163 of 2005
Decided On : 21-06-2024

Advocates Appeared:
For the Appellant : Mr. Indrajit Sinha, Mr. Rishav Kumar.
For the Respondents: Mr. Ashutosh Anand.

IMPORTANT POINT
The Employees State Insurance Act mandates a strict three-year limitation period for filing disputes, with no provision for condonation of delay, emphasizing the importance of adhering to statutory time limits in legal proceedings.

Headnote:

[LIMITATION] - [EMPLOYEES STATE INSURANCE ACT] - [Section 75, Section 77, Section 45A] - [The court discussed the limitation period for filing disputes under the Employees State Insurance Act, emphasizing that applications must be made within three years from the date the cause of action arose, as per Section 77. The court interpreted that the absence of a provision for condonation of delay in the Act means that the limitation period must be strictly adhered to. The court concluded that the appellant's petition was barred by limitation, as it was filed seven years after the initial order, thus influencing the dismissal of the appeal.]

Fact of the Case:

The appellant challenged the dismissal of their petition under Section 75 of the Employees State Insurance Act, which was dismissed by the Labour Court on the grounds of limitation. The appellant argued that the notice received regarding the applicability of the Act was incorrect and that various communications with the ESI should have been considered in determining the limitation period.

Finding of the Court:

The court found that the Labour Court correctly determined that the petition was barred by limitation, as the initial order was issued in 1995 and the appeal was filed in 2002, exceeding the three-year limitation period stipulated by Section 77 of the Act. The court also noted that there was no provision for condonation of delay in the Act.

Issues: Whether the appeal was filed within the limitation period as prescribed by the Employees State Insurance Act, and whether the various communications and petitions filed by the appellant could extend or affect the limitation period.

Ratio Decidendi: The court held that the limitation period for filing disputes under the Employees State Insurance Act is strictly three years from the date the cause of action arose, as per Section 77. The absence of a provision for condonation of delay means that the statutory limitation must be enforced, regardless of the circumstances presented by the appellant.

Final Decision: The appeal was dismissed, affirming the Labour Court's decision that the petition was barred by limitation.

JUDGMENT :

SANJAY KUMAR DWIVEDI, J.

Heard learned counsel appearing for the appellant and learned counsel appearing for the respondents.

2. This appeal is preferred by the appellant being aggrieved and dissatisfied with the judgment and order dated 25.06.2005 passed by learned Presiding Officer, Labour Court-cum-ESI Court, Ranchi in ESI Case No.11 of 2002 by which the learned Court has dismissed the petition filed under Section 75 of the Employees State Insurance Act (hereinafter referred to as Act of 1948) on the ground that it is barred by limitation.

3. Mr. Indrajit Sinha, learned counsel appearing for the appellant submits that the appellant received a notice in a prescribed Form C11 dated 17.12.1992, whereby and whereunder it has been intimated that on the basis of an inspection made by the Inspector on 01.09.1992, the establishment falls within the purview of factory with effect from 01.03.1991 and therefore, the appellant is directed to take steps for registration of the said establishment under the provisions of Employees State Insurance Act, 1948. He submits that the appellant in response to notice aforesaid vide its letter dated 28.01.1993 saying that no such inspection was ever made on 01.09.1992 by any inspector. Thereafter, the appellant filed a petition for extending the date and time fixed for filing the show cause and to produce records that thereafter ESI vide letter dated 10.03.1995 fixed a date for personal hearing on 03.05.1995. He submits that vide order dated 08.08.1995, the appellant was called upon to pay the determined amount under the ESI for the period from 01.03.1991 to 31.12.1994. By way of referring Annexure-3A, he submits that by letter dated 10.03.1995 the appellant was intimated that pursuant to letter dated 21/22.02.1995, the appellant was again called for hearing by letter dated 03.05.1995. The appellant herein again filed a petition intimating that the establishment is not coming within the definition of the ESI Act. He submits that by letter dated 12.03.1996, the ESI has also given an opportunity to disclose the stand of the appellant. He submits that this letter was dated 12.03.1996, however it was discussed later on and it was received by the appellant on 10.05.1996. He submits that in view of Annexure 7 dated 04.04.1996, the Deputy Regional Director has intimated the recovery officer for recovering of the said amount from the appellant. The appellant herein has again filed a petition on 14.05.1996 to hear the appellant for determination of the dispute by way of referring the Annexure-9 dated 20.02.1998. He submits that this proceeding was itself stayed. Again, the appellant was called upon to produce all the records at Patna by Annexure-10 dated 15.04.1998, the appellant intimated the ESI that appellant is ready to produce all the document at Ranchi and not in Headquarter. He submits that by letter dated 31.05.2000 contained in Annexure-11, the earlier stay order was stated to be vacated, if the appellant fails to appear on 29.06.2000. He submits that by letter dated 26.06.2000, the appellant herein further intimated the ESI that raising of the demand is bad in law and the appellant is not able to and the documents have already been produced before the ESI and again intervention was demanded by the appellant vide letter dated 21.12.2000 contained in Annexure-13. The recovery officer vide Annexure-14 called upon the appellant to appear for satisfying the order passed under Section 25A of the Act of 1948. In this background, he submits that the learned labour Court has erred in deciding the preliminary objection itself at the first point without considering the facts that there are mixed question of fact and law for deciding the issue of limitation, however learned Court has wrongly decided that only law points is there, there is no facts for deciding the same and he submits that order is fit to be set aside. He further submits in the second limb of the argument that Section 14 of the Limita

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