FA/5291/2007 1/3 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD FIRST APPEAL No. 5291 of 2007 With CIVIL APPLICATION No. 14836 of 2007 For Approval and Signature: HONOURABLE MR.JUSTICE KS JHAVERI : ========================================================= 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ========================================================= REGIONAL DIRECTOR - Appellant(s) Versus ARVIND MILLS LIMITED - Defendant(s) ========================================================= Appearance : MR JITENDRA MALKAN for Appellant(s) : 1, MR KM PATEL for Defendant(s) : 1, ========================================================= CORAM : HONOURABLE MR.JUSTICE KS JHAVERI Date : 23/07/2008 ORAL JUDGMENT 1.0 This appeal is directed against the judgment and award dated 20.09.2005 passed by the Employees' State Insurance Court in E.S.I. Application No. 47 of 1994 FA/5291/2007 2/3 JUDGMENT whereby, the said application was allowed. 2.0 The facts in brief leading rise to the filing of the present appeal are as under; 2.1 The respondent herein is a private limited Company and is bound by the provisions of the E.S.I. Act, 1948 [for short, “the Act”]. On 18.11.1993, the authorized Officer of the appellant – Corporation inspected the records of the respondent – Company. On verification, certain irregularities were found and therefore, the appellant – Corporation issued Notice to the respondent – Company directing to pay an amount of Rs.4,02,703/-, being the outstanding amount towards its contribution. 2.2 Being aggrieved by the aforesaid action of the appellant, the respondent preferred an application u/s. 75 of the said Act before the E.S.I. Court. In the said application, it was the case of the respondent that it has been paying a substantial amount to its employees towards over-time allowance and training expenses and therefore, the demand of Rs.4,02,703/- made by the appellant – Corporation was improper in view of the provisions of the Act. In the said application, the appellant – Corporation filed its reply. 2.3 The Court below, after hearing the parties and after considering the evidence on record, allowed the FA/5291/2007 3/3 JUDGMENT application of the respondent and held the demand Notice issued by the appellant – Corporation to be illegal and quashed the entire recovery proceedings. Against the said order, the appellant has approached this Court by way of this appeal. 3.0 Heard learned counsel for the respective parties and perused the documents on record. The Court below, after duly appreciating the provisions of Section 2(9) and 2(22) of the said Act, has come to the conclusion that the demand raised by the appellant – Corporation was unjust and illegal. I have gone through the evidence on record and have considered the same in light of the relevant provisions of the said Act. 4.0 Considering the facts of the case, I am of the opinion that the Court below was completely justified in allowing the application of the respondent. I am in complete agreement with the reasonings given by and the findings arrived at by the Court below and hence, find no reasons to interfere in this appeal. Hence, the Appeal is dismissed. No order as to costs. Consequently, the civil application also stands disposed of. [K. S. JHAVERI, J.] Pravin/*