IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No 11734 of 2009 Sharda Jhunjhunwala Mahila Mahila Mahavidyalaya, Rameshwar Narain Agrawal Path, Chunihari Tola, P O – City Post Office & P S – Adampur, District – Bhagalpur through its Principal, Dr Juhila Mishra, wife of Shri P S Mishra, resident of Shakuntala Bhawan, Mandroja, P O – Bhagalpur City, P S – Kotwali, District – Bhagalpur - Petitioner Versus 1 The State of Bihar through the Secretary, Labour, Employment & Training Department, Government of Bihar, New Secretariat, Patna 2 The Regional Director, Employees State Insurance Corporation, Panchdeep Bhawan, Jawahar Lal Nehru Marg, Patna – 1 3 The Deputy Director (Revenue Recovery Officer), Employees State Insurance Corporation, Panchdeep Bhawan, Jawahar Lal Nehru Marg, Patna – 1 4 The Assistant Director, Employees State Insurance Corporation, Panchdeep Bhawan, Jawahar Lal Nehru Marg, Patna – 1 5 The Branch Manager, Employees State Insurance Corporation, Branch Office, Karjbalichak, Bhagalpur – 2, Bihar 6 The UCO Bank, Head Office, 10, BTM Sarani, Kolkata – 700 001 through its Executive Director 7 The Senior Branch Manager, United Commercial Bank, Sujaganj, Bhagalpur - Respondents *** For the petitioner : M/s Shivaji Pandey, Sr Advocate & Suraj Samdarshi, Advocate For respondent No 1 : Mr Mani Kant Mishra, GP 21 For respondents 2 to 5 : Mr Anshuman Singh, Advocate For respondents 6 & 7 : Mrs Nilu Agarwal, Advocate *** 3 10.12.2009 The petitioner is a College (educational institution) affiliated to Tilka Manjhi Bhagalpur University, Bhagalpur. The State Government issued a notification in terms of Section 1 (5) of the Employees State Insurance Act, 1948 extending the provisions of the said Act to establishments which are educational institutions. Consequent to this coverage, petitioner-institution 2 was noticed for compliance with effect from 2005 when the notification was issued. There is controversy as to what was produced by the institution before the authorities or not. From the order, one thing is clear that the order by which the financial liability has been created in terms of the Act, the liability has been calculated on best judgment basis and there is no reference to records, if any, furnished by the petitioner. Steps having been taken to recover the dues leaving virtually no funds with the institution. It has come to this Court. Mr Shivaji Pandey, learned Senior Counsel appearing in support of the writ petition has challenged the applicability of the notification itself. On the other hand, learned counsel for the Corporation submits that this specific issue has been dealt with by various High Courts and negatived upholding the validity of similar notifications issued by various State Governments. However, considering the matter, in my view, it is not necessary to decide this issue at this stage and leave is granted to the petitioner to raise it at an appropriate stage where necessary. The assessment, as noted above, would show that either because of non-cooperation of petitioner or for any other reason, the assessment is based on best judgment, without reference to the materials and accounts of the College in question. In my view, the provision of the Act not being a tax but compensatory in nature, it is essential that it should not be expropriator. In that view of the matter, I set aside the order of 3 assessment and direct the petitioner to produce all books of accounts including payment register, bank accounts before the authorities concerned. The same shall be done within one month from today. Based on the accounts as furnished and any enquiry that is permissible, the authorities would reassess the liability within one month thereafter and then raise a demand accordingly. They would then be obliged to immediately refund the balance excess amount appropriated by them in course of the earlier proceedings. All this exercise must finish within three months from today subject to petitioner’s cooperating which would be based on the records as produced by the College in respect of payments made to its employees. With these observations and directions, this writ petition stands disposed of. M.E.H./ (Navaniti Prasad Singh)