2023 Supreme(Online)(Kar) 35436
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MFA No. 5291 of 2019
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 12TH DAY OF JANUARY, 2023
BEFORE
THE HON'BLE MR JUSTICE H.T. NARENDRA PRASAD
MISCELLANEOUS FIRST APPEAL NO. 5291 OF 2019 (ESI)
BETWEEN:
EMPLOYEES STATE INSURANCE CORPORATION
SUB REGIONAL OFFICE, MYSORE
I FLOOR, ESI DISPENSARY BUILDINGS
BANGALORE-MYSORE ROAD
MYSORE-570 007
REPRESENTED BY ITS
DEPUTY DIRECTOR
…APPELLANT
(BY SMT. GEETHA DEVI M P., ADVOCATE)
AND:
NATIONAL CHILDRENS HIGHER
PRIMARY SCHOOL
ASHOKNAGAR
MANDYA-571401
REPRESENTED BY ITS PRESIDENT
…RESPONDENT
(NOTICE TO RESPONDENT IS SERVED BUT UNREPRESENTED)
THIS MFA IS FILED UNDER SECTION 82(2) OF ESI ACT
AGAINST THE ORDER DATED 30.03.2019 PASSED IN ESI
APPLICATION NO.04/2016 ON THE FILE OF THE DISTRICT &
SESSIONS JUDGE, ESI COURT, MYSURU, ALLOWING THE
APPLICATION FILED UNDER SEC.75 R/W 76 & 77 OF ESI ACT.
THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY,
THE COURT DELIVERED THE FOLLOWING:
Digitally signed
by
DHANALAKSHMI
MURTHY
Location: High
Court of
Karnataka
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MFA No. 5291 of 2019
This appeal under Section 82(2) of the Employees’
State Insurance Act, 1948 (hereinafter referred to as ‘the
Act’) has been filed by the Employees State Insurance
Corporation (hereinafter referred to as ‘the Corporation’)
challenging the order dated 30.03.2019 passed by the
Employees’ State Insurance Court, Mysuru (hereinafter
referred to as ‘ESI Court’) in E.S.I.Application No.04/2016
whereby the application filed by the respondent has been
allowed. The matter was remitted back to the Corporation
for fresh consideration.
2.
The case of the Corporation/appellant is that
the Government by notification dated 16.03.2011 has
extended the ESI Act to Education Institution. In view of
the above, the Education Institution i.e. respondent herein
has covered under ESI Act. They have not submitted
returns every year. Since they have failed to comply the
provisions of ESI Act, the Corporation by exercising the
power under Section 45A of the Act has initiated the
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proceedings and issued notice to the respondent on
07.11.2014. They have given more than 5 opportunities to
respondent to produce the relevant records as per the
provisions of ESI Act. Since they have failed to produce
the same, on the basis of material available with the
Corporation, the Corporation has passed an order under
Section 45A of the Act. Being aggrieved by the same, the
respondent herein has filed an application before the ESI
Court under Section 75 of the Act in E.S.I. Application
No.04/2016. The ESI Court has allowed the application
and remanded the matter back to the Corporation. Being
aggrieved by the same, the Corporation is before this
Court in this appeal.
3.
Learned counsel appearing for the Corporation
has contended that the Government by notification dated
16.03.2011 has extended the ESI Act to Education
Institution. From that day, the Education Institution i.e.
respondent herein has covered under that Act. Since they
have not submitted any report, the Corporation has
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initiated the proceedings under Section 45A of the Act and
issued notice to respondent on 07.11.2014 and they have
given more than 5 opportunities to the respondent to
produce the relevant records. Since they have failed to
produce the same, the Corporation has passed the order
under Section 45A of the Act. She further contended that
the respondent has challenged the order passed under
Section 45A of the Act before the ESI Court under Section
75 of the Act. ESI Court as an original jurisdiction has all
powers to examine the documents produced by the parties
and pass the order. The ESI Court instead of exercising
the power under Section 75 of the Act, has erred in
remanding the matter to the Corporation for fresh
consideration. In support of her contention, she has relied
upon the judgment of this Court reported in ILR 1986 KAR
3595 in the case of M/S.ESCORTS LTD. VS. REGIONAL
DIRECTOR, ESIC.
4.
Respondent served and unrepresented.
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5.
Heard the learned counsel for the appellant.
6.
The
Government
by
notification
dated
16.03.2011 has extended the ESI Act to Education
Institution. Since the respondent has not paid contribution
to the Corporation, the Corporation has initiated the
proceedings under Section 45A of the Act and issued
notice to the respondent calling upon the respondent to
why the Corporation should not be determined the
contribution
amount.
In
spite
of
giving
sufficient
opportunities, the respondent has not responded. Hence,
the Corporation has passed the order under Section 45A of
the Act and that order has been challenged by the
respondent by filing an application before the ESI Court
under Section 75 of the Act. The application has been
registered as ESI Application No.4/2016. As per Section
75 of the Act, the ESI Court has to decide the matter as an
original jurisdiction. This Court in case of ‘M/S.ESCORT
LTD.’ (supra) has held as follows:
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“It appears to us that the submission of Sri Papanna
that a strict view suggested by Sri Ullal