The corporation may recover damages from the employer by way of penalty: High Court Of New Delhi

6 & 7 IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 8th November 2021 Through: None. W.P.(C) 3030 2020 and CM APPL. 10548 2020 M S. VISHAKHA FACILITY MANAGEMENT(P) LTD... Petitioner EMPLOYEES STATE INSURANCE CORPORATION.. Respondent M S VISHAKHA FACILITY MANAGEMENTLTD... Petitioner W.P.(C) 3045 2020 and CM APPL. 10603 2020 Through: Mr. K.P. Mavi Advocate. Through: None. EMPLOYEES STATE INSURANCE CORPORATION.. Respondent Through: Mr. K.P. Mavi Advocate. JUSTICE PRATHIBA M. SINGH Prathiba M. Singh J.(Oral) This hearing has been done through video conferencing. The present two petitions have been filed by the Petitioner seeking to quash order dated 30th March 2020 by which damages have been imposed by the Respondent Employees State Insurance Corporation against the Petitioner under Section 85 B of the Employees’ State Insurance Act 1948 for the wage periods from June 2016 to September 2016 and February 2017 to May 2017 in W. P.3030 2020 as also May 2014 to May 2016 in W.P.3045 2020. The first petition was W.P. 3045 2020 wherein an interim order was granted on 5th May 2020 directing that no precipitative action shall be taken till the next date of hearing and the said order was continuing in the W.P.(C) 3030 2020 & W.P.(C) 3045 2020 said petition. Further in W.P.3045 2020 on the strength of the interim order passed in W.P. 3045 2020 an interim order was granted on 6th May 2020. In a connected matter being W.P.(C) 5630 2020 vide order dated 26th August 2020 the Petitioner was directed to deposit a sum of Rs. 50 00 000 as a condition for grant of an interim order which was also On 12th July 2021 a detailed order was passed by this Court vacating the interim orders granted in these matters. The said order dated 12th July not complied with. 2021 reads as under: These are three writ petitions filed by the “2. Petitioner M s Vishakha Facility Management Limited. In WP3045 2020 an interim order dated 5th May 2020 was granted by this Court directing that no precipitative action shall be taken till the next date of hearing. This interim order is continuing in the said writ petition and pleadings were directed to be completed. Vide order dated 27th August 2020 rejoinder was directed to be filed and some costs by way of donation of 200 trees was also imposed due to delay. Thereafter vide order dated 1st October 2020 since there was non compliance by the Petitioner vacation of the interim order granted was pressed for. However on the said date the said interim order was not vacated. On 6th October 2020 none appeared for the Petitioner and further time was granted for filing rejoinder. Again on 23rd February 2021 none appeared for the Petitioner. On the strength of the interim order passed in 3. WP(C) 3045 2020 an interim order was also granted on 6th May 2020 in WP(C) 3030 2020. Thereafter these two petitions have been taken up together and similar orders have been passed. There was no representation in either of these petitions on 23rd February 2021 i.e. the last date of hearing. W.P.(C) 3030 2020 & W.P.(C) 3045 2020 In WP(C) 5630 2020 vide order dated 26th 4. August 2020 the Petitioner was directed to deposit a sum of Rs. 50 00 000 as a condition for grant of an interim order and the appeal before the EPF tribunal was permitted to proceed. It is submitted by Mr. Kumar ld. counsel that the said amount of Rs. 50 00 000 has not been deposited. Further vide order dated 23rd October proceedings before the CGIT were stayed. Thereafter an application for modification was filed by the Petitioner seeking modification of the interim order passed by this Court. None appears for the Petitioner despite the matters having been passed over. Further the submission of the Respondents is that interim orders have been obtained by concealment of material facts before the court. 5. Under these circumstances interim orders granted in all these three matters stand vacated. In the interest of justice adverse orders are deferred in respect of the main matters. 6. List on 15th September 2021.” Even today none has appeared for the Petitioner. Vide order dated 9th September 2021 passed by this Court in W.P. 5630 2020 time was granted to deposit the sum of Rs.50 00 000 . The relevant extract from the order dated 9th September 2021 reads as under: “11. Accordingly the Petitioner is now directed to make the payment of Rs.50 00 000 as directed within two weeks. If the said payment is not made the CGIT is permitted to proceed in accordance with law…...” The said writ petition W.P.5630 2020 was disposed of. Since there is no representation in these petitions for at least the last two hearings the petitions are dismissed for non prosecution. For the period during which the interim orders were in operation and indulgence was W.P.(C) 3030 2020 & W.P.(C) 3045 2020 enjoyed by the Petitioner the Respondent would be entitled to recover interest as may be determined by the authorities. 7. With these observations the present petitions and all pending applications are disposed of. PRATHIBA M. SINGH NOVEMBER 8 2021 W.P.(C) 3030 2020 & W.P.(C) 3045 2020 

Summary: The present two petitions have been filed by the Petitioner seeking to quash the order dated 30th March 2020 by which damages have been imposed by the Employees State Insurance Corporation, and the same issue was held in the judgement passed by a single bench judge comprising JUSTICE PRATHIBA M. SINGH, in the matter M/S. vishakha FACILITY MANAGEMENT(P) LTD V. EMPLOYEES STATE INSURANCE CORPORATION W.P.(C) 3045/2020 and CM APPL. 10603/2020 M/S VISHAKHA FACILITY MANAGEMENT (P) LTD V. EMPLOYEES STATE INSURANCE CORPORATION dealt with an issue mentioned above The first petition was W.P. (C) 3045/2020 wherein an interim order was granted on 5 th May 2020 directing that no precipitative action shall be taken till the next date of hearing, and the said order was continuing in the W.P.(C) 3030/2020 &amp; W.P.(C) 3045/2020 said petition. Further, in W.P. (C) 3045/2020, on the strength of the interim order passed in W.P. (C) 3045/2020, an interim order was granted on 6th May 2020. Later the petitioner was directed to deposit a sum of Rs. 50,00,000/-, as a condition for grant of an interim order, which was also not complied with. On 12th July 2021, a detailed order was passed by this Court vacating the interim orders granted in these matters. The said order is dated 12th July 2021. Also, they mentioned the strength of the interim order passed in WP(C) 3045/2020, an interim order was also granted on 6th May 2020, in WP(C) 3030/2020. Thereafter, these two petitions was also been taken up together and similar orders have been passed. Meanwhile, the vide order dated 9th September 2021 passed by this Court in W.P. (C) 5630/2020, time was granted to deposit the sum of Rs.50,00,000/-. The relevant extract from the order dated 9th September 2021. The said writ petition W.P. (C) 5630/2020 was disposed of The court perused the facts and argument’s presented, it thought that- “Since there is no representation in these petitions for at least the last two hearings, the petitions are dismissed for non-prosecution. For the period during which the interim orders were in operation and indulgence was W.P.(C) 3030/2020 &amp; W.P.(C) 3045/2020 enjoyed by the Petitioner, the Respondent would be entitled to recover interest as may be determined by the authorities. With these observations, the present petitions, and all pending applications, are disposed of”.