OAK, J. :- The question of law referred to us is : Whether R. 17 of the Uttar Pradesh Employees Insurance Court Rules, 1952 is ultra vires of the rule-making power of the State ?"

2. This reference arises out of a proceeding under the Employees State Insurance Act, 1948 (hereafter referred to as the Act). Employees State Insurance Corporation, Kanpur filed an application against a firm Messrs A.K. Brothers under S. 75(2) of the Act for the recovery of a certain sum as contribution under the Act. The firm raised various pleas in defence. One of the points raised by the firm was that, the application by the Corporation was barred by time. This plea was overruled by the Employees Insurance Court, Kanpur. That Court passed in favour of the Corporation-applicant a decree for a certain sum.

3. Against that decree, an appeal has been filed before this Court. When the appeal was taken up by a learned Single Judge of this Court, the appellant relied upon R. 17 framed by the State Government under the Act laying down that such applications must be filed within twelve months from the date of accrual of the cause of action. The Corporation urged that R. 17 was ultra vires. On finding that there was no

pronouncement on this question by this Court, the learned Single Judge referred the question of law quoted above to a larger Bench.

4. In order to appreciate the various points raised by the learned counsel for the parties, it will be useful to refer to the relevant provisions of the Act. The Employees State Insurance Corporation is established under S. 3 of the Act. Chapter IV of the Act provides for contribution by the employer and employees. Section 40 lays down that the principal employer must pay contributions in the first instance. Under S. 44, an employer has to furnish returns and maintain registers. Chapter V describes various benefits to employees. Section 68 provides for the Corporation's rights where a principal employer fails or neglects to pay any contribution. Chapter VI deals with adjudication of disputes and claims. Employees Insurance Courts (hereafter referred to as Insurance Courts) are established under S. 74 of the Act. Section 75 enumerates matters to be decided by Insurance Courts. One such matter is a claim for the recovery of contributions from the principal employer. Section

76 deals with institution of proceedings etc. Sub-Section (1) of S. 76 states :

"Subject to the provisions of this Act and any rules made by the State Government, all proceedings before the Employees Insurance Court shall be instituted in the Court. ......."

According to S. 77, proceedings before an Insurance Court can be commenced by application. Section 80 lays down that a beneficiary cannot establish his claim before the Insurance Court unless such claim is filed within twelve months. Section 82 provides for appeals to the High Court. Such an appeal has to be filed within sixty days. Chapter VII provides for penalties. According to S. 94, contributions due to a Corporation have priority over other debts. Section 98 confers power on State Government to make rules. Sub-Section (1) of S. 96 states :

"The State Government may, subject to the condition of previous publication, make rules not inconsistent with this Act in regard to all or any of the following matters, namely :

(a) .....................................

(b) the procedure to be followed in proceedings before such Courts and the execution of orders made by such Courts.

5. In exercise of the powers conferred by clauses (u) to (c) of Sub-Section (1) of S. 98 of the Act the State Government made rules in February 1952. They were published in the U.P. Gazette dated 23-2-1952 in Part 1-A of the Gazette. Rule 17 relates to limitation. The validity of that rule is now in dispute.

6. A similar rule on the question of limitation was framed by Madhya Pradesh Government. The validity of that rule was challenged before Madhya Pradesh High Court in "Employees State Insurance Corporation v. Madhya Pr