The action taken under Section 45-A of the Employees' State Insurance Act is not subject to any limitation and cannot be struck down on the plea of limitation.

( 1 ) THE challenge in this petition filed under Articles 226 and 227 of the Constitution ofindia by the petitioner is to a letter dated April 15, 1987 (Annexure A), notice dated september 13, 1989 (Annexure B), letter dated april 2, 1990 (Annexure C), demand dated april 5, 1991 (Annexure D) and R. R. C. dated december 11, 1990 (Annexures E and F ). These demands are raised under the provisions of the Employees' State Insurance Act (1948 ). Facts in brief that led to filing of this writ need mention.

( 2 ) THE petitioner a Limited Company has their one factory at Industrial Area in Ratlam as defined under Section 2 (12) of the employees' State Insurance Act (for short called ESI Act), whereas, the petitioner falls in the definition of Principal Employer as defined under Section 2 (17) ibid. In other words, the petitioner is liable to comply with the provisions of the ESI Act for the employees working in their factory.

( 3 ) ON April 15, 1987, by Annexure A, the respondent (ESI Authorities) sent a letter seeking certain information from the petitioner for the period 1974-75 with a view to verify as to whether proper compliance of the ESI Act has been made. The letter also gave details of the amount which were not taken into consideration for payment of contribution. The petitioner was asked to submit the required information on July 19, 1989 (Annexure B), the respondent sent a letter intimating the petitioner that for the period October 1, 1986 to November 30, 1988, the respondent (ESI authorities) on inspection of the petitioner's record, have been able to notice several irregularities. The details of these irregularities were specifically mentioned in the letter. Petitioner was asked to supply the details and the necessary information as to why these irregularities were committed. This was followed by yet another letter dated June 9, 1996 (Annexure C) by the respondent to the petitioner informing that since despite repeated reminders sent to petitioner, they have not responded to any of the queries made nor have they supplied the details sought by the respondent, the respondent will recover the amount worked out in the letters by way of revenue Recovery (RRC) under the provisions of M. P. Land Revenue code. Since petitioner did not respond even to this letter, the respondent sent a demand under Section 45-K (Annexure D) followed by RRC Certificate (Annexure E and F ). It is these demands and rrc which are impugned by the petitioners in this petition.

( 4 ) HEARD Shri B. Chitale, learned counsel for the petitioner, Shri Vivek Saran, learned counsel for respondent No. 1 and Shri S. Mukati, learned Government Advocate for respondent State.

( 5 ) WHILE attacking the legality of these demands, learned counsel for the petitioner urged that firstly, these demands are barred by limitation if seen with reference to the provisions of Act and secondly, in the absence of any adjudication not being made and whatever has been made was with reference to capital and not wage, the impugned demand is bad in law.

( 6 ) IN my opinion, both the submissions made by the learned counsel for the petitioner has no force and hence petition has to be dismissed. So far as the issue regarding limitation is concerned it has no basis in view of Section 45-A of the Act. Section 45-A in clear terms provide that where in respect of a factory or establishment, no return, particulars, registers, or records are submitted by the person responsible to pay the contribution under the Act then in that event, the corporation may on the basis of information available to it by order determine the amount of contribution payable in respect of the employees of the factory. This section was added by way of amendment w. e. f. June 17, 1967 because great difficulty was being felt to recover the contribution if the employer withheld the register, books of accounts, or other documents or failed to tender when called upon to do so. It is to obviate these difficult