High Court Of Madhya Pradesh
Shiv Dayal, J.
JIWAJIRAO COTTON MILLS LTD. - Appellant
Versus
EMPLOYEES STATE INSURANCE CORPORATION - Respondents
Civil Misc. Appeal 8 Of 1959
Decided On : 08/24/1959
EMPLOYEES' STATE INSURANCE ACT - APPEAL - INTERLOCUTORY FINDINGS - NOT APPEALABLE - SECTION 82 OF THE ACT - INTERPRETATION.
Fact of the Case:
The appellant company challenged the preliminary findings of the Employees' State Insurance Court, which held that the company was the principal employer, had jurisdiction to entertain the claim, and that the claim was not barred by time. The company argued that the word "order" in Section 82 of the Employees' State Insurance Act includes any order, including interlocutory findings.
Finding of the Court:
The court held that the appeal was not competent because Section 82 of the Act only allows appeals from orders that involve a substantial question of law. The court found that interlocutory findings are not appealable because they would obstruct the trial and defeat the object of the provisions, which is to ensure expeditious disposal of disputes.
Issues: Whether interlocutory findings of the Employees' State Insurance Court are appealable under Section 82 of the Employees' State Insurance Act.
Ratio Decidendi: The court interpreted the word "order" in Section 82 of the Act to mean only those orders that involve a substantial question of law. The court held that interlocutory findings are not appealable because they would obstruct the trial and defeat the object of the provisions, which is to ensure expeditious disposal of disputes.
Final Decision: The appeal was dismissed in limine.
( 1 ) THE Employees' State Insurance Court lodged a claim before the Judge Employees' State Insurance Court, Madhya Pradesh, Gwalior. Three preliminary objections were raised by the appellant company before the said special Court. The learned Judge decided issues Nos. 1, 7 and 8 against the appellant. He held : (1) "that the appellant company was the principal employer" within the meaning of Section 2 (17) of the Employees' State Insurance Act; (7) That he had jurisdiction to entertain the claim and that claim was not barred by time; (8) That Shri Sachchar was competent to sign and verify the pleading.
( 2 ) IT is against these preliminary findings that the appellant company has come up in appeal to this Court. In my opinion, this appeal is not competent.
( 3 ) SHRI Dubey relies on Section 82 of the Employees' State Insurance Act and his contention is that the word "order" in that section is comprehensive enough to include "any" order that may be passed. It is the argument of the learned counsel that an interlocutory finding is an "order" and since Section 82 is not restricted to final orders, this appeal lies. I find myself unable to accept this contention. The scheme of the Act show that the Employees' Insurance Court has to adjudicate upon certain disputes and claims, and from an "order" made by mat Court an appeal lies to this Court, if it involves a substantial question of law. Section 74 provides for the constitution of Employees' Insurance Court Section 75 (1) enumerates the questions and disputes to be decided by that Court and Clause (2) of that section enlists the claims to be decided by it. The jurisdiction of that Court is made exclusive in Clause (3 ). Then, in Sections 76 and 77 provisions are made for the institution of proceedings and Section 79 enables legal practitioners etc. to appear before that Court. Section 80 prescribes time limit for making claims.
( 4 ) PROVISION has been made for certain powers, for example, summoning and enforcing attendance of witnesses and regarding costs etc. and Clause (4) of Section 78 lays clown that : "an order of the Employees' Insurance Court shall he enforceable as if it were a decree passed in a Civil Court. " Section 81 further empowers the Court to refer any question of law to the High Court. Then Section 82 provides for appeals in these words :
" (1) Save as expressly provided in this section no appeal shall fie from an order, of an Employees' Insurance Court. (2) An appeal shall lie to the High Court from an order of an Employees Insurance Court if it involves a substantial question of law. (3) The period of limitation for an appeal under this section shall be sixty days, (4) The provisions of Sections 5 and 12 of the Indian Limitation Act. 1908 (IX of 1908), shall apply to appeals under this section. "
( 5 ) THE question is how is the word "order" in Clause (2) above to be construed ? In the absence of any definition in the Act, that meaning must be accepted which would accord with the policy of the law and the intention of the provision. It is obvious enough that an appeal under Section 82 has been restricted only to those orders which involve a substantial question of law. I do not think that the legislature ever intended to permit appeals from interlocutory findings. The provisions obviously contemplated expeditious disposal of the disputes under the Act. To interpret the word 'order' so as to include preliminary findings in the course of a trial would be obstructing the trial and thereby defeating the object of the provisions. Then again, if every interlocutory finding is held appealable under Section 82 of the Act, it necessarily means' that in the appeal against the final judgment of the Insurance Court, no determination made by that Court at an interlocutory stage shall be open to challenge.
( 6 ) IF it is held that every interlocutory finding is appealable, it must also be held that if an appeal is not filed against any such finding, it will beco
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