IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE V.K.MOHANAN FRIDAY, THE 29TH MAY 2009 / 8TH JYAISHTA 1931 OP.No. 38436 of 2001(A) ---------------------------------- PETITIONER(S): ------------------------- M/S.KERALA STATE DETERGENT AND CHEMICALS LTD., KUTTIPPURAM, REP.BY ITS PERSONAL OFFICER, N.K.NANDAKUMAR, KUTTIPPURAM P.O., MALAPPURAM DISTRICT. BY ADVS. MR.T.V.GEORGE MR.RAJESH MATHEW RESPONDENT(S): ------------------------- 1. THE EMPLOYEES STATE INSURANCE CORPORATION, REP.BY ITS DEPUTY REGIONAL DIRECTOR, E.S.I., CORPORATION, PANCHDEEP BHAVAN, NORTH SWARAJ ROUND, THRISSUR. 2. THE RECOVERY OFFICER, E.S.I., CORPORATION, REGIONAL OFFICE (KERALA), PANCHDEEP BHAVAN, NORTH SWARAJ ROUND, POST BAG NO.2 THRISSUR. BY ADVS.MR.T.P.M.IBRAHIM KHAN, SC, E.S.I MR.P.SANKARANKUTTY NAIR SC FOR ESI THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 29/05/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ORDER ON CMP. NO.63136/2001 IN OP. NO.38436/2001 DISMISSED 29.05.2009 SD/- V.K.MOHANAN, JUDGE APPENDIX PETITIONER'S EXHIBITS P1:- COPY OF THE ORDER DECLARING THE PETITIONER COMPANY AS A SICK INDUSTRY BY THE BIFR. P2:- COPY OF THE SANCTIONED SCHEME OF REVIVAL PACKAGE DT. 2.1.97. P3:- COPY OF THE APPROVAL ORDER DT. 2.1.92 PASSED BY THE BIFR. P4:- COPY OF THE LETTER DT. 22.4.93 FROM THE SECRETARY TO THE GOVERNMENT INDUSTRIES (J) DEPARTMENT, TRIVANDRUM TO THE CHIEF EXECUTIVES OF ALL PUBLIC SECTOR UNDERTAKINGS. P5:- COPY OF THE NOTICE DT. 4.12.2001 ISSUED TO THE PETITIONER COMPANY BY THE OFFICE OF THE RECOVERY INSPECTOR. P6:- COPY OF THE ORDER OP. NO.18902/99 DT. 23.6.2000 OF THIS HONOURABLE COURT. RESPONDENT'S EXHIBITS R1(a):- COPY OF THE POSTAL ACKNOWLEDGMENT CARD. DT. 31.7.2000. R1(b):- COPY OF THE POSTAL ACKNOWLEDGMENT CARD DT. 3.3.01. R1(c):- COPY OF THE POSTAL ACKNOWLEDGMENT CARD DT. 12.4.99. TRUE COPY P.S. TO JUDGE TSS ORDER ON CMP. NO.63136/2001 IN OP. NO.38436/2001 DISMISSED 29.05.2009 SD/- V.K.MOHANAN, JUDGE APPENDIX V.K.MOHANAN, J. ---------------------------------------------- O.P. No.38436 OF 2001 ---------------------------------------------- Dated, 29th May 2009 JUDGMENT The petitioner, the Kerala State Detergent and Chemicals Ltd., Kuttippuram, is a government owned company engaged in the business of manufacture and sale of detergent cakes/powder, cleaning powder cleaning liquid etc. The petitioner's company is covered by the Employees State Insurance Corporation, but failed to pay the employees contribution for the period from 6/2000 to 8/2000. Therefore, the respondent corporation issued Ext.P5 demand notice demanding to pay arrears towards the contribution to the insurance scheme. It is the above notice challenged in this writ petition. 2. The main ground taken in this writ petition is to the effect that the petitioner's company was already declared as a sick industrial company by the BIFR and therefore no coercive step and recovery proceedings shall O.P.27057/00 -:2:- be taken without the prior sanction of BIFR. 3. Refuting all the averments and contentions in the writ petition, a counter affidavit is filed by respondents 1 and 2 wherein particulars are given regarding the arrears due to the Corporation from the petitioner and also given the details as to how they arrived the amount shown as arrears. It is specifically contended that the provision of the Sick Industrial Companies Act does not prevent a principal employer from paying statutory dues like ESI, PF, etc. The petitioner being the Principal Employer is liable to pay the dues in view of Section 40 of the E.S.I. Act. It is also contended that Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 is applicable only to winding up proceedings etc. under the companies Act, and the said provision is not applicable to the statutory dues payable by a sick company. It is also contended that as per para 3.3 (f) of Ext.P2 sanctioned scheme itself, it has been provided that government of Kerala will meet all other O.P.27057/00 -:3:- financial liabilities including those towards statutory and/or other dues connected with the operations of the company. Thus it is contended that the reliefs sought in the writ petition are not liable to be granted and the petitioner's establishment is liable to pay the amount demanded as per Ext.P5 revenue recovery proceedings. 4. I have heard the learned counsel for the petitioner as well as the respondent E.S.I. Corporation. 5. During the course of hearing, it is submitted by the learned counsel for the respondents that the petitioner has filed certain other writ petitions on identical grounds i.e., O.P.Nos.8902/99 and 28807/2000 before this Court and the same were dismissed. The above assertion is not controverted. The ground taken in this writ petition that because the petitioner's establishment is declared as sick industrial company, the petitioner is not liable to pay contribution or no coercive or recovery steps can be taken without the prior sanction of BIFR is not appealable, in view of the provisions referred above. O.P.27057/00 -:4:- In the result, I find no merit in this writ petition. The petitioner is not entitled to get any relief as prayed for. Accordingly this writ petition is dismissed. V.K.MOHANAN, JUDGE kvm/- O.P.27057/00 -:5:- V.K.MOHANAN, J. O.P.NO.38436 OF 2001 JUDGMENT Dated: 29.5.2009