Andhra Pradesh High Court - Amravati
Swapna Electricals Engineering Works vs Employees State Insurance Corporation on 11 September, 2024
APHC010374452024
IN THE HIGH COURT OF ANDHRA PRADESH
AT AMARAVATI [3329]
(Special Original Jurisdiction)
WEDNESDAY ,THE ELEVENTH DAY OF SEPTEMBER
TWO THOUSAND AND TWENTY FOUR
PRESENT
THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION NO: 19111/2024
Between:
Swapna Electricals Engineering Works ...PETITIONER
AND
Employees State Insurance Corporation and Others ...RESPONDENT(S)
Counsel for the Petitioner:
1. MARADA GOVARDHAN VARMA
Counsel for the Respondent(S):
1. V CH NAIDU
The Court made the following:
ORDER:-
1. This writ petition is filed claiming the following relief:
"...to issue a Writ, order or directions more particularly one in the nature of writ of mandamus declaring the action of Respondent No.1in issuing orders under Section 45 C to 45 I of the ESIC Act, 1948 vide order No.79000470450000905/1242024944, dated 04.04.2024, demanding of Rs.5,96,253/- for the period from March 2016 to December, 2020 as illegal, arbitrary and the actions of Respondent Nos.3 issued Form No.ESI CP 2 order Ref.No.790004704500006905/CP/593041, dated 29.04.2024 and the Notice of Show Cause Notice to garnishee before holding the garnishee as deemed defaulter under Section 45 G (3) (X) of the ESI Act, 1948, dated 15.07.2024 to the Canara Bank, Tadipatri-II Branch, Cuddapah-Bellary Road, Tadipatri, Andhra Pradesh -515411, to seized the Bank Accounts of the petitioner demanding for Rs.6,12,464/- without giving the 2 opportunity of hearing as illegal, arbitrary and consequently set aside the same and direct the Respondents not to take any coercive steps including the revocation Form No.ESI CP 2, order Ref.No.79000470450000905/CP/ 593041, dated 29.04.2024 issued by Respondent No.3 and withdraw the Notice of Show cause Notice to garnishee before holding the garnishee as deemed defaulter under Section 45 G (3)(X) of the ESI Act, 1948, dated 15.07.2024 for recovery of Rs.6,12,464/- and release the bank accounts of the petitioner for further operations and pass such other order or orders..."
2. Heard the learned counsel for the petitioner and learned Standing Counsel for the Respondents.
3. Learned counsel for the petitioner submits that the petitioner herein is the proprietor and carrying electrical engineering works under the name and style of M/s.Swapna Electricals Engineering works situated at Sanjeeva Nagar, Tadipatri. She further submits that the petitioner herein falls within the provisions of Employees' State Insurance Corporation (ESIC) and the Respondent Nos.1 and 2 issued the ESIC registration vide Registration No.79000470450000905. In view of the same, the petitioner firm has been paying contributions in respect of its employees and deposits with the Respondent Nos.1 to 3 herein.
4. While so, Respondent No.1 issued a demand notice dated 29.04.2024 demanding for recovery of an amount of Rs.5,97,324/-, for which the petitioner herein submitted an explanation on 29.07.2024 to Respondent No.3 and explained the reasons and also claimed that the petitioner herein is not come under the purview of the Employees State Insurance Act, 1948 (the ESI Act, 1948) and not obligated for compliance of provisions of the ESI Act, 1948. 3
5. Learned counsel for the petitioner further submits that without considering the explanation submitted by the petitioner herein, the Respondents proceeded further and freezed the accounts of the petitioner for recovery of an amount of Rs.6,12,464/- and also issued the show cause notice to 'garnishee' before holding the garnishee as deemed defaulter under Section 45 G(3)(X) of the ESI Act, 1948 vide proceedings No.79000470450000905, dated 15.07.2024. Having no other option, the petitioner herein preferred the present writ petition.
6. On the other hand, learned standing counsel for the Respondents submits that the present writ petition is not maintainable, for the reason that the petitioner herein is available with an effective statutory alternative remedy under Section 75 of the ESI Act, 1948 by way of filing an Appeal before the ESI Court. Without availing an effective alternative remedy, the petitioner herein straight away invoked the extraordinary jurisdiction under Article 226 of the constitution of India. Therefore, the writ petition is liable to be dismissed.
7. In reply, learned counsel for the petitioner submits that the petitioner herein is ready to pay 1/4th of the demanded amount by the Respondents and requested this Court to allow the petitioner herein to operate the accounts. She further submits that the petitioner herein will prefer an appeal before the Appellate Authority for redressal of the grievances and by assailing the order passed under Section 45 of the ESI Act, 1948, dated 15.07.2024. 4
8. Having considered the submissions made by the learned counsel for the petitioner and learned standing counsel for the Respondents and on perusal of the material placed on record, this Court is of the considered view that the present writ petition can be disposed of, directing the petitioner herein to avail statutory alternative remedy by way of approaching ESI Court as contemplated under Section 75 of the ESI Act, 1948 subject to deposit 50% of the demanded amount within a period of six weeks from the date of receipt of a copy of this order. The said deposited amount shall be treated as required deposit amount for filing an appeal before the ESI Court under Section 75 of the ESI Act,1948 and Rules made thereunder.
9. It is further directed the Respondents that, in view of the deposit of 50% of the demanded amount, by the petitioner herein within a period of six weeks, the order of the Respondent vide proceedings No.79000470450000905, dated 15.07.2024 should be revoked, until further orders of the Appellate Court / ESI Court.
10. With the above direction, the writ petition is disposed of. There shall be no order as to costs.
11. Consequently, Miscellaneous Petitions, if any, pending in the writ petition shall stand closed.
________________________________ VENKATESWARLU NIMMAGADDA, J 11th September, 2024 knr 5 HON'BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION No.19111 of 2024 11thSeptember, 2024 Knr