Partly allowed

The Regional Director, Esi Corporation v. the Executive Director, Commonwealth Tru

Kerala HC8 Apr 2013Ins.APP/54/2008

Case brief

AI extract

What is this about?

The High Court distinguished E.S.I. Corp. v. Premanandan, holding that financial difficulty does not completely avoid damages under Section 85B for delayed contribution payment. The court modified the lower court order, fixing damages at Rs. 10,000.

What did the court decide?

Damages fixed at Rs. 10,000 to be paid by the respondent within two months instead of the originally demanded amount.

The Regional Director, Esi Corporation Vs the… — 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 &

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THE HONOURABLE MR. JUSTICE BABU MATHEW P.JOSEPH

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MONDAY, THE 8TH DAY OF APRIL 2013/18TH CHAITHRA 1935

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Ins. APP.No. 54 of 2008 ( D)

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AGAINST THE ORDER IN I.C.NO. 53/2005 of E.I.COURT, KOZHIKODE DATED 27-12-2007 APPELLANT/RESPONDENT:

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THE REGIONAL DIRECTOR, E.S.I CORPORATION, THRISSUR.

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BY ADV. SRI.T.V.AJAYAKUMAR

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RESPONDENT/APPLICANT:

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THE EXECUTIVE DIRECTOR, THE COMMONWEALTH TRUST (INDIA) LTD., 7/1136 SOUTH MANANCHIRA ROAD, CALICUT-673 001.

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BY ADV. SRI.V.KRISHNA MENON

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THIS INSURANCE APPEAL HAVING COME UP FOR ADMISSION ON 08-04-2013,

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THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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S. SIRI JAGAN & BABU MATHEW P. JOSEPH, JJ.

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

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Ins. Appeal No. 54 of 2008

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===================== Dated this the 8^th day of April, 2013

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JUDGMENT

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SIRI JAGAN, J.

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The E.S.I. Corporation, Thrissur is the appellant herein. They are aggrieved by the order of the Employees Insurance Court, Kozhikode in I.C.No. 53 of 2005, wherein the E.I. Court has set aside the order passed by the appellant under Section 85 B of the Employees State Insurance Act, demanding damages for delayed payment of contributions from the respondent on the ground that the delay occurred because of financial difficulties which is a good ground for avoiding damages under the Act.

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We have heard both sides. On going through the order of the E.I. Court, we find that the E.I. Court has misread the decision in E.S.I. Corporation v. Premanandan (2007 (2) KLT 666). The E.I. Court held that in that the said decision this court held that if the delay is on account of financial difficulty damages cannot be demanded. That decision does not categorically say so. That decision is only to the effect that financial difficulty is a factor which has to be taken into account

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Ins. Appeal No. 54 of 2008

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-2-

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while imposing damages under Section 85 B of the Act. Perhaps in very acute cases of financial difficulty that may be a ground for waiving damages completely. But it must be remembered that when wages are paid to the employees and amounts are deducted from the wages of the employees, if there is delay in payment of employees contribution at least for that the employer would be liable to pay damages.

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We are of the opinion that this is a case coming within the second circumstance. Therefore, we are of the opinion that the damages cannot be completely avoided in this case. After hearing both sides, we fix Rs. 10,000/- as the damages payable by the respondent. Accordingly, the impugned order of the E.I. Court is modified accordingly and instead of the amount demanded by the order impugned before the E.I. Court, the respondent shall pay Rs. 10,000/- as damages within two months in respect of the demands involved in I.C.No. 53 of 2005.

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Appeal is disposed of as above.

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Sd/- S. SIRI JAGAN, JUDGE Sd/- BABU MATHEW P. JOSEPH JUDGE

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kvr/

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/TRUE COPY/

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P.S. TO JUDGE

The Regional Director, Esi Corporation v. the Executive Director, Commonwealth Tru

Case brief

What is this about?

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The Regional Director, Esi Corporation v. the Executive Director, Commonwealth Tru

Case brief

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