IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE HARUN-UL-RASHID TUESDAY, THE 23RD SEPTEMBER 2008 / 1ST ASWINA 1930 INS.APPEAL No. 6 of 2004() ----------------------- IC.17/2001 of EMPLOYEES INSURANCE COURT, ALAPPUZHA .................... APPELLANT/APPELLANT: ---------------------------------------- T.C.M. LIMITED, BUILDING NO.36/2125, SHENOY ROAD KALOOR P.O, ERNAKULAM, KOCHI-17 (NOW AT PULIKUNNEL BUILDINGS, FERRY ROAD, KALAMASSERY-683 604, REPRESENTED BY K. GOPALAN, MANAGING DIRECTOR. BY ADV. SRI.H.B.SHENOY SRI.B.ASHOK SHENOY SMT.LAKSHMI B.SHENOY SRI.ABU MATHEW SRI.ANIL KURIAN THOMAS SRI.SOBHAN GEORGE RESPONDENTS: OPPOSITE PARTY: ------------------------------- 1. THE REGIONAL DIRECTOR, ESI CORPORATION, PANCHDEEP BHAVAN, N.S. ROUND, THRISSUR-20. 2. THE RECOVERY OFFICER, ESI CORPORATION, THRISSUR-20. BY ADV. SRI.T.V.AJAYAKUMAR FOR R1 & R2 THIS INSURANCE APPEAL HAVING BEEN FINALLY HEARD ON 23/09/2008, ALONG WITH INS.APPEAL 20/2004 THE COURT ON THE SAME DAY PASSED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & HARUN-UL-RASHID, JJ. ---------------------------------------------------- Ins.Appeal Nos. 6 & 20 of 2004 ------------------------------------------------- Dated this the 23rd day of September, 2008 JUDGMENT Ramachandran Nair .J, These two connected appeals one filed by the E.S.I. Corporation, the other filed by the company arise from a common judgment of the E.I court Alappuzha in I.C. 17/2001, directing the company to pay the contribution for employees and authorising the Corporation to recover contribution from the employees who were drawing wages from Rs.1,600 upto Rs.3,000/- for the period from 1.4.1992 up to 30.11.1992. The contribution for the E.S.I. Coverage was intially fixed for employees who are drawing wages upto Rs.1,600/ per month. When this was increased to Rs. 3,000/- the employees challenged the notification of enhancement of the wage limit before this Court. This Court granted stay. Though that notification was finally sustained by this Court , it was directed that the effective date for implementation of notification should be from 1.11.1992. However, on appeal by the Corporation the Supreme Court reversed the judgment of this Court holding that the E.S.I coverage is applicable from the effective date of notification i.e 27.3.1992 which resulted in additional demand from the company. The E.I. Court upheld demand of contribution amount and interest thereon for the period from 1.4.1992 to 31.11.1992. One of the main contention of the appellant in Ins.Appeal 6/2004 is regarding limitation which is decided against them by the E.I Court following the principles in the decision in Employees State Insurance Ins.Appeal Nos. 6 & 20 of 2004 -2- Corporation Vs. Santhakumar reported in 2007 (1) KLT 133(SC).Therefore recovery cannot be interfered with on ground of limitation. 2. The counsel for the company further contended that the company was precluded from collecting arrears of contribution in respect of employees who were not treated as covered during the period from 1.4.1992 to 30.11.1992. The company is already closed. Therefore recovery will cause prejudice to the company, if demand is not cancelled is their case. We do not think this contention is tenable. However, since the company is before B.I.F.R. for revival of the industry it is up to the B.I.F.R. to consider the grievances if any, including the dispute of contribution payable during the period of stay. Therefore leaving open the said issues to the company, we dismiss the appeal filed by them upholding the order of the E.I.Court . 3. So far as the appeal No. 20/2004 filed by the Corporation is concerned, the issue is demand for interest The counsel for the company, relying on the decision in Regional Director, ESI Corporation Vs. Cannanore Spinning and weaving mills reported in 2001 (3) KLT 393 submitted that interest cannot be demanded for the period when the stay was in force. Consequently the order of E.I Court in this regard is uphold and the appeal filed by the E.S.I. Corporation . (C.N.RAMACHANDRAN NAIR,JUDGE) (HARUN-UL-RASHID, JUDGE) es. C.N.RAMACHANDRAN NAIR & HARUN-UL-RASHID, JJ. --------------------------- Ins.Appeal Nos. 6 & 20 of 2004 ---------------------------- JUDGMENT 23rd September, 2008