Dismissed

The Regional Director , Employees State Insurance Corporation v. M/S. Elegant Weaving Industries Pvt. Ltd.

Bombay HC7 Aug 2006FA/1682/2006

Case brief

AI extract

What is this about?

This Court dismissed an appeal by the E.S.I.C. against an order directing a respondent to pay contributions with interest. The Court held that, following a decision in First Appeal No. 2284 of 2005, no substantial question of law arose regarding the applicable interest rate under the amended Act, thus upholding the lower court's order of 6% interest.

What did the court decide?

The appeal was dismissed with no order as to costs; the order directing payment of interest at 6% per annum stood.

The	A	ppellant	has	taken	exception to t	he	judgment	and
order	dat	ed	02nd	April,	2004 passed by		the	learned
Judge		of	the	Employees’	State Insurance	C	ourt,	Mumbai
on	an	Appl	ication	under	section 75 of	the	E	mployees’
State	Insu	rance	Act	, 1948	. The griev	ance	of	the
Advocate		for	the	Appellant	is that by	the		impugned
order	the	l	earned	Judge	of the	E.S.I.C	ourt	has
directed		the	Re	spondent	to pay interest	only	at	the
rate	of	6%	per	annum	on sum of Rs.	18,737/	- and	infact
interest		should	have	been	awarded at the	rate	of	12%
per	annu	m in	view	of the	amendment made	to	section	5
of	the	said	Act	of 1948	by the Amendme	nt	Act of	1989.
He	subm	itted	that	interest	ought to have		been	made
payable	at	th	e r	ate of	12% per annum	up	to	31st
August,	1	994	and	at the	rate of 15% per		annum	from

The

ppellant

has

taken

exception
to
t

judgment

and

order

dat

02nd

April,

2004
passed
by

the

learned

Judge

the

Employees’

State
Insurance

ourt,

Mumbai

Appl

ication

under

section
75
of

the

mployees’

State

Insu

rance

Act

,
1948

.
The
griev

ance

the

Advocate

for

the

Appellant

is
that
by

the

impugned

order

the

earned

Judge

of
the

E.S.I.C

ourt

has

directed

the

spondent

to
pay
interest

only

the

rate

per

annum

on
sum
of
Rs.

18,737/

-
and

infact

interest

should

have

been

awarded
at
the

rate

12%

per

annu

m
in

view

of
the

amendment
made

section

the

said

Act

of
1948

by
the
Amendme

Act
of

1989.

subm

itted

that

interest

ought
to
have

been

made

payable

e
r

ate
of

12%
per
annum

31st

August,

994

and

at
the

rate
of
15%
per

annum

from

01st		Septe	mber,	1994.	He	submi	tted that	the	learned
Judge		had	no	authority	to	award	interest	at the	rate
which	is lesser	than	what is	prescribed	by the
statute.

01st

Septe

mber,

1994.

submi

tted
that

the

learned

Judge

had

authority

award

interest

at
the

rate

which

is lesser

than

what is

prescribed

by the

statute.

2.	I have considered the	submissions. It is not
in	dispute that the	sum of Rs.18,737/-	is	the
contribu	tion payable by	the Respondent for	the	period
between	04th November,	1983 to 23rd October,	1984	and
from	24th October, 198	4 to 12th Nove	mber,	1985.
Interest	at the rate of	6% per annum has	been	granted
which	was the rate	prevailing as per stat	ute	during
the	period for which dema	nd is made. The	issue	raised
by	the learned Counsel	appearing for the	Appella	nt is
covered	by a decision	of this Court dated	05th	May,
2006	in First Appeal	No.2284 of 2005 (T	he	Regional
Director	, Employees’ State	Corporation Vs.	M/s	Hotel
Suresh).	In view of	the said decision of	this	court,

I have considered the

submissions. It is not

dispute
that
the

sum
of
Rs.18,737/-

the

contribu

tion
payable
by

the
Respondent
for

the

period

between

04th
November,

1983
to
23rd
October,

1984

and

from

24th
October,
198

4
to
12th
Nove

mber,

1985.

Interest

at
the
rate
of

6%
per
annum
has

been

granted

which

was
the
rate

prevailing
as
per
stat

ute

during

the

period
for
which
dema

nd
is
made.
The

issue

raised

the
learned
Counsel

appearing
for
the

Appella

nt
is

covered

by
a
decision

of
this
Court
dated

05th

May,

2006

in
First
Appeal

No.2284
of
2005
(T

Regional

Director

,
Employees’
State

Corporation
Vs.

M/s

Hotel

Suresh).

In
view
of

the
said
decision
of

this

court,

The Regional Director , Employees State Insurance Corporation v. M/S. Elegant Weaving Industries Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

The Regional Director , Employees State Insurance Corporation v. M/S. Elegant Weaving Industries Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

The State of Maharashtra and Anr. Vs Shashikant Ambrushi Kade

The State of Maharashtra and Anr. Vs Shashikant Ambrushi Kade

Smt. G.D. Sohal and Anr. Vs Smt. S.V. Navalkar

Shri. Ramesh Bapu Gurav Vs Shri. Balu Gunda Gurav and Ors.

Pranay Parshuram Patwardhan Vs Bank of India

smt Jaibunissa Khudbuddin Bohari Vs Mohammad Husen Abdul Gaphar and Ors.