IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN MONDAY, THE 18TH FEBRUARY 2008 / 29TH MAGHA 1929 OP.No. 21606 of 1998(V) ----------------------- PETITIONER: ------------ S.P.VAIRAVAN, 6/2, M.I.G., FLATS, KOTTUPURAM, CHENNAI-85. BY ADV. SRI.S.RAMESH BABU RESPONDENTS: ------------- 1. REGIONAL DIRECTOR, E.S.I. CORPORATION, SWARAJ ROUND, TRICHUR. 2. THE RECOVERY OFFICER, E.S.I. CORPORATION, CHENNAI-34. BY ADV. SMT.T.D.RAJALAKSHMI THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 18/02/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: O.P.21606/1998. APPENDIX PETITIONER'S EXHIBITS: P1. COPY OF THE NOTICE DTD.28.9.98. RESPONDENTS' EXHIBITS: R1(A) COPY OF THE LETTER DTD.12.3.96 BY MVR INDUSTRIES LTD. R1(B) COPY OF THE LETTER DTD.18.1.96 BY M/S.MAXWELL EXIM PVT. LTD. Sdk+ ///True copy/// P.A. to Judge S.SIRI JAGAN, J. ================== O.P.No.21606 of 1998 ================== Dated this the 18th day of February, 2008 J U D G M E N T The petitioner was a former director of a company by name, “M/s.M.V.R. Industries Limited”. That company defaulted payment of dues under the Employees' State Insurance Act, due to the respondents. By Ext.P1 notice, amounts due from that company are sought to be recovered from the petitioner personally. The same is challenged before me. The petitioner's submission is that the petitioner was only a director of the company and he is not personally liable for the dues from the company. According to him, there is no provision in the Employees State Insurance Act, enabling the respondents for recovery of the amounts due from a company personally or personal assets of the directors of the company. 2. The respondents submit that, by Ext.R1(a), the company has informed the ESI Corporation that the petitioner was the managing director of the company and the principal employer of another company which was also in default. It is 2 under above circumstances that Ext.P1 has been issued to the petitioner . 3. Whether the petitioner was the Managing Director or principal employer of the company or not, for the dues of the company in respect of payment of contributions under the Employees' State Insurance Act, the petitioner is not personally liable, which is the law. The respondents could not also place before me any provision of the Act which enables the respondents to proceed against the director or principal employer of a company personally for the dues of the company. That being so, no proceedings can be initiated personally against the petitioner for recovery of the amounts from the company. Accordingly, Ext.P1 is quashed to the extent it seeks to recover amounts personally from the petitioner, which amounts are due from the company. However, this shall not preclude the respondents from proceeding against the assets of the company for recovery of the amounts due. The original petition is disposed of as above. Sd/- sdk+ S.SIRI JAGAN, JUDGE 3 S.SIRI JAGAN, J. =============== O.P.No.21606 of 1998-V =============== J U D G M E N T 18th February, 2008