W.P.Nos.3612 & 3615 of 2023

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 09.02.2023

CORAM :

THE HONOURABLE MR.JUSTICE N.ANAND VENKATESH

W.P.Nos.3612 & 3615 of 2023 and

W.M.P.No.3692 of 2023

M/s. Archanas Traderss

A Partnership Firm

Represented by its Partner

Mr.V.Mohanarangan

No.10, Loganathan Nagar

3^rd Street, Choolaimedu

Petitioner in

Chennai – 600 094.

..

both W.Ps

vs

1. The Deputy Director / Authorized Officer

Regional Office

Employees' State Insurance Corporation

No.143, Sterling Road, Nungambakkam

Chennai – 600 034.

2. The Recovery Officer

Office of the Recovery Officer

Regional Office

Employees' State Insurance Corporation

No.143, Sterling Road, Nungambakkam

Respondents in

Chennai – 600 034.

..

both W.Ps

Prayer in W.P.No.3612 of 2023 : Writ Petition under Article 226 of the

Constitution of India praying for the issuance of a Writ of Certorari to call for

records of the Certificate dated 12.01.2023 bearing Ref. No.TN/Ins-V/51-00-

111513-000-1099 of the first respondent and quash the same;

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W.P.Nos.3612 & 3615 of 2023

Prayer in W.P.No.3615 of 2023 : Writ Petition under Article 226 of the

Constitution of India praying for the issuance of a Writ of Certorari to call for

Notice of Demand – Form No.ESI CP 2 dated 24.01.2023 bearing Ref.

No.51001115130001099/CP/531152/CCR-113570 of the second respondent and

quash the same.

For Petitioner in

:

Ms.G.Kiruthika

both W.Ps

For Respondents in

:

Mr.T.N.C.Kaushik

both W.Ps

Standing Counsel

COMMON ORDER

These writ petitions have been filed challenging the certificate issued by the

first respondent dated 12.01.2023 and the notice of demand issued by the second

respondent dated 24.01.2023, directing the petitioner to deposit a sum of

Rs.2,58,089/-.

2. The case of the petitioner is that they applied and got the ESI Code from

April, 2018 onwards in ESI Code No.51-00111513-000-1099. The further case of

the petitioner is that they received the certificate issued under Section 45C of the

ESI Act for recovery of a sum of Rs.2,58,024/-, for arrears of contribution for the

period covering September, 2016 to March, 2018, with appropriate interest.

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W.P.Nos.3612 & 3615 of 2023

3. The specific case that was pleaded by the petitioner is that the certificate

as well as the consequential demand has been raised by the respondents even

without conducting an enquiry and passing orders under Section 45A of the Act.

Therefore, according to the petitioner, the impugned certificate and the demand

are vitiated for violation of principles of natural justice. Aggrieved by the same,

these writ petitions have been filed before this Court.

4. When the matter was taken up for hearing, the learned Standing Counsel

appearing on behalf of the respondent Corporation brought to the notice of this

Court that the notice under Section 45A was dispatched to the petitioner and it was

also received and acknowledged by the petitioner on 11.03.2021. That apart, the

personal hearing was fixed on 16.07.2021 and no one from the side of the

petitioner appeared for the enquiry. Left with no other alternative, the competent

authority proceeded to pass orders under Section 45A of the ESI Act and

determined the total contribution of Rs.1,56,585/-. The learned Standing Counsel

further submitted that, since the contribution amount was not paid, the first

respondent proceeded to issue certificate under Section 45C to 45I of the ESI Act

to recover a sum of Rs.2,58,024/-. As a consequence, the second respondent issued

a notice of demand to the petitioner and the petitioner was directed to immediately

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W.P.Nos.3612 & 3615 of 2023

pay the amount within a period of fifteen days, failing which, recovery

proceedings will be initiated.

5. It was further contende