IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 29-10-2025 CORAM THE HONOURABLE MRS.JUSTICE N. MALA and WMP.Nos.38992 and 38993 of 2025 M/s.Everwin Security Services Pvt Ltd Represented by its Managing Director Flat No.3, Vignesh Apartment, No.85, 3rd Main Road, Gandhi Nagar, Adyar, Chennai 600 020.

Petitioner(s)

Vs

1.Employees State Insurance Corporation, Rep.by its Deputy Director, Tamil Nadu Regional Office

143, Sterling Road, Chennai 600 034.

2.The Branch Manager Indian Bank, Indira Nagar Branch

1st Avenue, Indira Nagar, Adyar, Chennai 600 020.

Respondent(s)

PRAYER Calling for the records in Order bearing Reference No.TN/RECY/45(G)/51- 001047850000999/CCR-97178 dated 28.07.2025 issued by the 1st respondent quash the same and direct the 1st respondent to refund a sum of Rs.24,92,443/- (Rupees Twenty Four Lakhs Ninety Thousand Four Hundred and Forty-three only) debited from the Petitioners Account No.6025133949, Indian Bank, Indira Nagar Branch, Chennai dated 29.07.2025.

For Petitioner(s): Mr.J.Satheesh For Respondent(s): Mr.M.Nirmalkumar, for R1 Mr.K.Vasu Venkat, for R2

ORDER

(1)The Writ Petition has been filed to quash the order dated 28.07.2025 of the 1st respondent and consequently, direct the 1st respondent to refund a sum of Rs.24,92,443/- debited from the petitioner's Bank account on 29.07.2025.

(2)The petitioner/Company was incorporated in the year 2012, and is engaged in the supply of man power and materials required for establishments. The petitioner contends that ever since it commenced its activity, it was remitting contributions in respect of its employees. While so, the 1st respondent, on 08.10.2020, passed an order under Section 45-A of the ESI Act, claiming a sum of Rs.48,12,647/- for the Financial Years 2016-17, 2017-18 and 2018-19 and Rs.63,73,734/- towards contributions with interest. The petitioner challenged the 45-A order before the Principal Labour Court, at Chennai, in EIOP.No.21/2021 and on 17.05.2022, the Labour Court granted an order of interim stay. However, the said EIOP.No.21/2021, was dismissed for default on 07.07.2025. Pursuant to the dismissal, the 1st respondent, passed the impugned attachment order on 28.07.2025, and recovered a sum of Rs.24,92,443/- from the petitioner's Bank account, on 29.07.2025. Aggrieved by the impugned Attachment Order, the petitioner has filed the above writ petition for the aforesaid relief.

(3)The learned counsel for the petitioner submitted that when the impugned order of attachment was passed, the limitation for filing application for restoration of EIOP.No.21 of 2021 did not lapse. The learned counsel therefore submitted that the impugned attachment order and the consequent recovery of Rs.24,92,443/- from the petitioner's Bank account, in the interregnum was illegal. The learned counsel prayed that since the recovery was illegal, the petitioner was entitled for the refund of the same.

(4)The learned counsel for the 1st respondent, on the other hand submitted that when the impugned order of attachment was passed on 28.07.2025, proceedings were not pending before the Labour Court since EIOP.No.21 of 2021, was dismissed for default on 07.07.2025. The learned counsel further submitted that the OP was restored only on 08.02.2025, and therefore, in the absence of any pending proceedings, the Attachment Order was valid. The learned counsel therefore submitted that the prayer for refund of the amount was unsustainable and the writ petition deserved to be dismissed.

(5)Heard both sides and perused the materials placed on record.

(6)Admittedly, the Section 45-A order was passed by the 1st respondent, on

08.10.2020, directing the petitioner to pay contribution of Rs.48,12,647/-. The said order was challenged by the petitioner by way of appeal in EIOP.No.21 of 2021, before the Principal Labour Court, Chennai. In EIOP.No.21 of 2021, the Principal Labour Court, Chennai, granted an interim stay on 17.05.2022. Thereafter, the Appeal was dismissed for default on 07.07.2025. Thereafter, on 2