IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN TUESDAY, THE 22ND JANUARY 2008 / 2ND MAGHA 1929 WP(C).No. 2536 of 2008(B) ------------------------- PETITIONER: ------------ CHENGANDA COIR VYAVASAYA CO-OPERATIVE SOCIETY,VARANAD P.O.,CHERTHALA,ALAPPUZHA DISTRICT REPRESENTED BY ITS SECRETARY,SMT.T.K.BHYMI. BY ADV. SRI.M.SASINDRAN SRI.TOJAN J. VATHIKULAM RESPONDENTS: ------------------ 1. EMPLOYEES STATE INSURANCE CORPORATION PANCHDEEP BHAVAN, TRISSUR, REPRESENTED BY ITS REGIONAL DIRECTOR. 2. RECOVERY OFFICER REGIONAL OFFICE (KERALA) E.S.I. CORPORATION, PANCHDEEP BHAVAN,THRISSUR. 3. ASSISTANTA DEPUTY DIRECTOR E.S.I. CORPORATION,,KURIMPELIL AVENUE, POLAYATHODE,KOLLAM 691 021. 4. THE STATE OF KERALA REPRESENTED BY ITS SECRETARY TO GOVERNMENT,DEPARTMENT OF LABOUR AND REHABILITATION,THIRUVANANTHAPURAM. 5. THE DISTRICT CO-OPERATIVE BANK ALAPPUZHA REPRESENTED BY ITS GENERAL MANAGER. BY ADV. SRI.V.G.ARUN,SC,ALAPPUZHA DIST.CO.OP.BA GOVERNMENT PLEADER SRI. A.J. VARGHESE. SRI.V.G. ARUN, SC SRI.P. SANKARANKUTTY NAIR -SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22/01/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: S. SIRI JAGAN, J. ------------------------------------ W.P.(C)No.2536 OF 2008 ---------------------------------------- Dated this the 22nd day of January, 2008 JUDGMENT The petitioner is a Co-operative Society. They have been enjoying exemption from the provisions of the Employees State Insurance Act for past several years, granted by the State Government. Now, on the ground that they have not paid contributions for the period when they were yet to get orders of exemption, Ext.P6 prohibitory order has been issued to the petitioner's bankers freezing the bank account of the petitioner. The petitioner submits that the petitioner has filed Ext.P7 application for exemption for the period from 1.4.2003 to 31.3.2006 which includes the period for which the contributions are demanded by the ESI Corporation. According to them since the same is pending, it was unjust on the part of the ESI Corporation to issue Ext.P6 prohibitory order, which would have the result of the employees of the Society, whose interest the ESI seeks to protect, being deprived of their salary. They would further submit that even for payment of contributions they have W.P. © No.2536/08 2 to draw amounts from their bank which also is prevented by Ext.P6 order. 2. Learned standing counsel appearing for the ESI Corporation submits that no exemption orders have been obtained by the petitioner Society and therefore contributions have been assessed which have not been paid by the Society. Therefore according to them they are perfectly within their rights to issue Ext.P6 prohibitory order. 3. I have considered the rival contentions in detail. I have also heard the learned Government pleader appearing for the 4th respondent, who is to consider the application for exemption under the ESI Act. It may be true that the ESI Corporation is well within their rights in issuing Ext.P6 order as the petitioner has not yet obtained orders of exemption. However, it must be noted that by issuing Ext.P6 order what the ESI corporation seeks to protect is the right of the employees of the petitioner Society. But actually by issuing Ext.P6 order, the ESI corporation is harming those very employees, whom they seek to protect, in so far as by virtue of Ext.P6 order they would be deprived of their salary also. As such I am of opinion that the 4th respondent should consider W.P. © No.2536/08 3 and pass appropriate orders on Ext.P7 expeditiously and Ext.P6 order should be lifted in the meanwhile. I am inclined to take this view also in view of the fact that the petitioner had been enjoying exemption for past periods. The petitioner should not be put to prejudice because of the delay on the part of the 4th respondent in passing orders in their application for exemption. In the above circumstances, I dispose of this writ petition with the following directions: The 4th respondent shall consider and pass appropriate orders on Ext.P7 as expeditiously as possible, at any rate, within two months from the date of receipt of a copy of this judgment. Till orders are passed on Ext.P7, the ESI Corporation shall not enforce recovery of contributions and Ext.P6 would stand lifted with immediate effect. S. SIRI JAGAN, JUDGE Acd W.P. © No.2536/08 4