IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE HARUN-UL-RASHID MONDAY, THE 3RD NOVEMBER 2008 / 12TH KARTHIKA 1930 Ins.APP.No. 75 of 2005() ------------------------ IC.15/2000 of EMPLOYEES INSURANCE COURT,IDUKKI .................... APPELLANTS/OPPOSITE PARTIES: ------------------------------------- 1. THE E.S.I. CORPORATION, PANCHADEEP BHAVAN, N.S.ROUND, THRISSUR-20. 2. THE RECOVERY OFFICER, E.S.I. CORPORATION, PANCHADEEP BHAVAN, N.S. ROUND, THRISSUR. BY ADV. SRI.T.V.AJAYAKUMAR RESPONDENT/APPLICANT: ---------------------------- MANGALAM PUBLICATIONS (INDIA) PVT.LTD., S.H. MOUNT POST, KOTTAYAM, REPRESENTED BY ITS MANAGING DIRECTOR. BY ADV. SRI.U.K.RAMAKRISHNAN, SENIOR ADVOCATE SRI.P.V.LOHITHAKSHAN SMT.P.VIJAYAMMA SMT.UMA GOPINATH THIS INSURANCE APPEALS HAVING BEEN FINALLY HEARD ON 03/11/2008,THE COURT ON THE SAME DAY PASSED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & HARUN-UL-RASHID, JJ. -------------------------------------------- INS. APP. No. 75 OF 2005 -------------------------------------------- Dated this the 3rd day of November, 2008 JUDGMENT Ramachandran Nair,J. Appeal is filed against the order passed by the EI Court setting aside the demand of contribution for the period from April, 1988 to March, 1993 and from April, 1993 to March, 1996. It appears that subsequent to income-tax raid, respondent did not retain any books of accounts during the above period. Consequently ESI Corporation estimated wages and determined the contribution payable. However, respondent challenged the order on the ground that estimation made is excessive. In order to prove this, respondent relied on wage estimated from out of total cost for subsequent period 1993-1996. Counsel for the appellant contended that EI Court is not justified in interfering with the demand on this ground alone. On the other hand, counsel for the respondent pointed out that wage rate is only 7 per cent of the total cost and for the period the demands works out to 25 per cent. Even though INS.App : 75/05 2 EI Court is justified in setting aside the award, we feel the court cannot impose any ceiling or embargo on the Corporation in arriving at the actual wages which they are free to determine after collecting details about the employees. Appeal is accordingly disposed of leaving freedom to the Corporation to verify the records, collect information about wages and determine the contribution payable for the period under appeal. (C.N.RAMACHANDRAN NAIR) Judge. (HARUN-UL-RASHID) Judge. kk INS.App : 75/05 3