Remanded

Regional Director, Esi Corpn. v. Rachel Mathew

Kerala HC13 Nov 2013Ins.APP/14/2011

Case brief

AI extract

What is this about?

The High Court of Kerala quashed an order exempting an establishment from Employees' State Insurance coverage. The court held that unverified account books and an unauthenticated balance sheet could not conclusively prove employee liability and remitted the matter for fresh verification.

What did the court decide?

The impugned judgment is set aside; the appellant held to examine the respondent's books of accounts and other documents and pass fresh orders.

Regional Director, Esi Corpn. Vs Rachel Mathew — Pension and Retirement Benefits | Kerala HC (2013)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE MR.JUSTICE S.SIRI JAGAN & THE HONOURABLE MR. JUSTICE K.RAMAKRISHNAN

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WEDNESDAY, THE 13TH DAY OF NOVEMBER 2013/22ND KARTHIKA, 1935

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Ins.APP.No. 14 of 2011 ( )

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(AGAINST THE JUDGMENT IN I.C.No. 27/2006 OF EMPLOYEES' INSURANCE COURT, ALAPPUZHA DATED 15-01-2010)

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APPELLANT/RESPONDENT:

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THE REGIONAL DIRECTOR, EMPLOYEES' STATE INSURANCE CORPORATION, REGIONAL OFFICE, ROUND NORTH, THRISSUR.

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BY ADV. SMT.T.D.RAJALAKSHMY

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RESPONDENT/APPLICANT:

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RACHEL MATHEW, PROPRIETRESS, LEO PRINTERS, WELCOME ROAD, AYYAPPANKAVU, COCHIN - 682 018.

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BY ADV. SRI. M.B.PRAJITH

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THIS INSURANCE APPEAL HAVING BEEN FINALLY HEARD ON 13-11-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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S.SIRI JAGAN & K.RAMAKRISHNAN, JJ.

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==================

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Insurance Appeal No.14 of 2011

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==================

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Dated this the 13^th day of November, 2013 J U D G M E N T

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S.Siri Jagan, J.:

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The Regional Director of E.S.I. Corporation, Thrissur, who is the respondent in I.C.No.27/2006, before the Employees' Insurance Court, Alappuzha, is the appellant herein. The respondent is an establishment sought to be covered under the Employees' Insurance Act. The appellant issued an order to the respondent directing the respondent to comply with the provisions of the Act, since the respondent is liable to be covered under the Employees' State Insurance Act they having been employing 9 or more persons in their establishment. The respondent filed I.C.No.27/2006 before the Employees' Insurance Court, Alappuzha, challenging the direction of the appellant. According to them, the inspector, who inspected the premises on 7.5.2001, was satisfied that there were only seven employees as recorded in the attendance register as well as the wages register and despite the same, the appellant directed

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INSAP 14/11 - : 2 :-

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coverage on the basis of a unauthenticated balance sheet, wherein allegedly more amounts than what have been actually paid as wages to the employees were shown as wages, which was taken into account for the purpose of deciding whether the respondent had employed more than nine persons in the establishment. The Employees' Insurance Court, Alapuzha accepted the contention of the respondent and held that the respondent is not liable to be covered under the Act, since there is no evidence that the establishment had employed more than nine persons in the establishment, which is a condition precedent for coverage.

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We have heard the parties.

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The dispute boils down to the question as to whether the books of accounts of the respondent show more wages than actually paid to the employees mentioned in the attendance register and wages register, as wages. The insurance inspector gave evidence to the effect that the respondent herself had supplied him with the balance sheet. Of course, the respondent would take a stand that that balance sheet was not authenticated and in fact it was prepared for producing before the bank for availing bank loan, which cannot be relied upon for the purpose

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INSAP 14/11 - : 3 :-

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of deciding whether there were more than nine employees working in the establishment. We are of opinion that insofar as the account books have not been verified by the inspector, the matter should be remitted to the appellant for fresh consideration after verifying the accounts of the respondent. It would be open to the appellant to call for any account book or other document relating to the establishment for deciding the issue. Accordingly, the impugned judgment is set aside. The appellant is directed to pass fresh orders after examining the books of accounts and other documents of the respondent. It would be open to the inspector of the appellant to call for any document of the respondent to decide the issue. The appellant shall pass orders expeditiously.

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The appeal is disposed of as above.

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Sd/S.SIRI JAGAN, JUDGE

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Sd/-

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sdk+

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K.RAMAKRISHNAN, JUDGE

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///True copy///

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P.A. to Judge

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INSAP 14/11 - : 4 :-

Regional Director, Esi Corpn. v. Rachel Mathew

Case brief

What is this about?

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Regional Director, Esi Corpn. v. Rachel Mathew

Case brief

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