Dismissed¶31

M/S.Goodsun Industries (P) Ltd., v. M/s.Employees State Insurance Co.Ltd.

Madras HC15 Dec 2025CMA/1453/2024

Case brief

AI extract

What is this about?

ESI refund claim rejected as time-barred: Madras HC dismisses appeal against ESI Court, Coimbatore order in ESIOP No.50 of 2020; refund of contributions for 01.01.2012-31.01.2014 sought in 2020 under Section 75(g) read with Regulation 40; Section 77(1)(A) three-year limitation held binding on ESI Court; Section 5 of the Limitation Act inapplicable to Section 75 proceedings; principle of C.M.A.No.1874 of 2021 applied; Goodsun Industries (P) Limited v. Employees State Insurance Corporation; no costs.

What did the court decide?

None; the appeal was dismissed, the ESI Court's order dated 21.11.2023 in ESIOP No.50 of 2020 was upheld, and no costs were awarded. ¶31

M/S.Goodsun Industries (P) Ltd., Vs M/s.Employees State Insurance Co.Ltd. — Madras HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

None; the appeal was dismissed, the ESI Court's order dated 21.11.2023 in ESIOP No.50 of 2020 was upheld, and no costs were awarded.

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Issue for consideration

Whether the appellant-factory, having paid ESI contributions from 01.01.2012 to 31.01.2014 while contending it was not covered under the ESI Act from 01.01.2012 onwards, was entitled to a refund of those contributions. +2 more

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Ratio / Principle

The petitioner approached the Court after a lapse of 6 years, and therefore the ESI Court had no power to entertain the refund petition beyond the period of limitation prescribed under Section 77(1)(A) of the ESI Act.

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Key takeaways

Section 5 of the Limitation Act has no application to proceedings under Section 75 of the ESI Act.ratio¶29
Applying the same principle as held in C.M.A.No.1874 of 2021, this Court found the present Civil Miscellaneous Appeal devoid of merits, the refund claim having been raised well beyond the Section 77(1)(A) limitation period.ratio¶30

Detailed headnote1 paragraphs

Madras High Court (K. Govindarajan Thilakavadi, J.; dated 15.12.2025) dismissed C.M.A.No.1453 of 2024, filed under Section 82(2) of the Employees State Insurance Act, 1948 by M/s. Goodsun Industries (P) Limited, against the order dated 21.11.2023 of the Employees State Insurance Court, Coimbatore in ESIOP No.50 of 2020, which had rejected the appellant's petition under Section 75 (g) read with Regulation 40 for refund of ESI contributions paid from 01.01.2012 to 31.01.2014 on the plea that the factory was not covered under the ESI Act from 01.01.2012 onwards and that Section 77(1) A of the Act and Regulation 40 (1) were only procedural. HELD: the petitioner approached the Court after a lapse of 6 years, so the ESI Court had no power to entertain the petition beyond the limitation prescribed by Section 77(1)(A); Section 5 of the Limitation Act has no application to proceedings under Section 75 of the ESI Act; applying the principle in C.M.A.No.1874 of 2021, the appeal was devoid of merits. Impugned order upheld; no costs.

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C.M.A.No.1453 of 2024 IN THE HIGH COURT OF JUDICATURE AT MADRAS

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CORAM

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DATED: 15.12.2025

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THE HONOURABLE MRS.JUSTICE K.GOVINDARAJAN THILAKAVADI,J.

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C.M.A.No.1453 of 2024

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M/s. Goodsun Industries (P) Limited,

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Represented by its Managing Director &

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authorised Signatory Mr. R. Jaganathan S.F. No.6/42, Kallapalayam Village, Near Kamachi Amman Koil, Coimbatore …Appellant

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Vs.

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M/s. Employees State Insurance Company Limited Represented by Deputy Director, E.S.I. Corporation, Sub Regional Office, No.1897, Trichy Road, Ramanathapuram, Coimbatore 641 045 … Respondent

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Prayer: This Civil Miscellaneous Appeal is filed under Section 82(2) of the Employees State Insurance Act,1948, against the order dated 21.11.2023 passed in ESIOP No.50 of 2020 on the file of the Employees State Insurance Court, Coimbatore.

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https://www.mhc.tn.gov.in/judis

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C.M.A.No.1453 of 2024

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For Appellant : Mr. A.S. Balaji For Respondent : Ms. G. Narmadha

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JUDGMENT

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The present Civil Miscellaneous Appeal is filed against the order dated 21.11.2023 passed in ESIOP No.50 of 2020 on the file of the Employees State Insurance Court, Coimbatore.

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The above said order is challenged by the appellant on the ground that the appellant / factory is not covered under the ESI Act from 01.01.2012 onwards, whereas the contribution was erroneously paid for the period from 01.01.2012 to 31.01.2014. It is submitted that the Employees State Insurance Court failed to appreciate that Section 77(1) A of ESI Act and Regulation 40 (1) of the ESI Regulations are only procedural and not mandatory. While so, the said Court ought to have ordered for refund of the contribution paid erroneously by the appellant for the period from 01.01.2012 to 31.01.2014 and ought not to have dismissed the petition filed for refund on the ground of limitation. Hence, prayed for setting aside the order passed by the ESI Court on 21.11.2023 in ESIOP. No.50/2020.

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https://www.mhc.tn.gov.in/judis

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C.M.A.No.1453 of 2024

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On the other hand, the learned counsel for respondent/ESI would

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submit that the petitioner factory is covered under the ESI Act with effect from 01.04.2004 and further submitted that the petition filed under Section 75 (g) read with Regulation 40 is barred by limitation under Section 77(1)(A). The appellant / petitioner has sought for refund of contribution only in the year 2020 for the contribution made from 01.01.2012 to 31.01.2014. Hence, the petition was rightly rejected by the ESI Court on the ground of limitation itself, which calls for any interference by this Court. In support of her contention she has relied upon the judgment of this Court in CMA No.1874/2021 in which it is clearly held that Section 77(1)(A) of the ESI Act provides 3 years period as maximum time to initiate any proceedings under the ESI Act. Hence, prayed for dismissal of the present appeal.

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Heard on both sides. Records perused.

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In the present case, the petitioner has approached the Court after a

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lapse of 6 years and therefore, the ESI Court has no power to entertain the petition beyond the period of limitation prescribed under Section 77(1)(A) of

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https://www.mhc.tn.gov.in/judis

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C.M.A.No.1453 of 2024 the ESI Act. Section 5 of the Limitation Act has no application to the proceedings under Section 75 of the ESI Act. Applying the same principle, as

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held in C.M.A.No.1874 of 2021, this Court finds the present CMA is devoid of merits.

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In the result, the Civil Miscellaneous Appeal is dismissed. The order dated 21.11.2023, passed in ESIOP No.50 of 2020, on the file of the Employees State Insurance Court, Coimbatore, is upheld. No costs.

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15.12.2025

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bga

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Internet:Yes/No Index:Yes/No Speaking/Non-speaking order

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https://www.mhc.tn.gov.in/judis

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C.M.A.No.1453 of 2024