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IN THE HIGH COURT OF JUDICATURE AT MADRAS
D.BHARATHA CHAKRAVARTHY
McWane India Private Limited – Appellant
Versus
Recovery Officer – Respondent
| Table of Content |
|---|
| 1. challenges to garnishee order process (Para 2 , 3) |
| 2. assessment of contribution calculations (Para 4) |
| 3. final judgment and orders of the court (Para 5) |
ORDER :
D. BHARATHA CHAKRAVARTHY, J.
A. The Writ Petition:
The writ petition is filed seeking a Certiorarified Mandamus, calling for the records on the file of the first respondent relating to the garnishee order passed under Section 45G of the Employee State Insurance Corporation Act, 1948 , bearing Ref.No. CBE/RECY/56001155380000699, dated 28.05.2025, to quash the same, and consequently to direct the first respondent to refund a sum of Rs.61,10,983/- recovered from the fifth respondent pursuant to the garnishee order back to the petitioner’s bank account, together with interest on the said sum.
B. The Case of the Petitioner:
2. The case of the petitioner is that by an order dated 28.01.2020, assessment of the amount payable by the petitioner, towards contribution for the period from 01.01.2015 to 31.08.2019, was determined by the respondents as Rs.60,55,427/-. Respondents found that the employer had paid only a sum of Rs.7,01,437/-, and the balance payable was arrived at Rs.53,53,990/-. Aggrieved by the same, the peti
The garnishee order was quashed as the appellate authority's ruling on contribution liability was comprehensive, preventing double recovery under differing claims.
Writ petition dismissed for suppressing facts on hearing attendance; alternative remedy available under ESI Act Sections 75/77.
The court established that determinations under the Employees’ State Insurance Act must be based on current and relevant information, emphasizing the need for fairness in quasi-judicial actions.
Authority must not invoke Section 45A for best judgment assessment unless there is no submission of required documents; disputes should be resolved in ESI Court.
The main legal point established in the judgment is that when the order passed under Section 45-A of the ESI Act is not challenged and is allowed to become final, the consequential recovery proceedin....
Mandatory determination of contributions under Section 45-A of the ESI Act is required before recovery proceedings, ensuring compliance with principles of natural justice.
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