Karnataka High Court
M/S Gopalakrishna Textile Mills Pvt Ltd vs The Regional Director Esi Corporation on 30 March, 2011
Author: S.N.Satyanarayana
Bench: S.N.Satyanarayana
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J UIDCEMENT
The app1ican{. in ES} App§i{:a{.io1: No.36/200$':§ér:.:"j;If€~,'fi}e
af ESE Court Bzuzgalore has; COI}1f3 up in this a1p;'--;'éz1.I ch3£Ee:{2§1.:1gv.
the order dated 19.9.2006 whe're:i:nihe».z1pp§'fi{fefi'fi:§'éfl ' L. 2
applicazaii 'L1r1der Section 75 of the E531 "b,h2iEEe;'iggi:1p§
dated 313.2005 passed L1I1tZi€";T." 5;"-';f,§'C1Eli()}.A"1.V'1;5 A Of Act:
1"eje:::t€:d and the order i.rr1;3ugI1ed__t}':€-rtfixi is (:c:)'r:.!'iIVr_°m¢r3.
2. Brieef facts }e;1di:1g_{ :iQ .'":'Lf):'p9?'§V?',i'i are:
one Vasudeva Rae' an
Erzspecfar of BS1 iffizrfiaxfgitigvii jéiséiterd a,pp€:Iian£.'s estab§.ish.meni.
On \.>er'ifiCVé'ii_'Gi;.vOf;'3T€;;5{}I"{:1S:_':.'}ib1" the period April 1996 to March
19Qif§%.}§€LA'ik>11.:1C.§; " i--,I:}&2;§____;1;i};>e1E21nt has not ;3a1'.d the conflibution
»'i'v.-%"iE}'1'vI':Zf§.>:fiITC*i'«{.€i"'éF§§3I"§iC{if:3 Lxfiiissed from Pexlguiztze Securfiy Agency.
}§.€:§(?C1:f€iiVI'i;;;.;I"j§§.;__}§;駧r€parecI Qbser'vai1'.0n Ee1.E':,£::'S 21:5 {.331 *:XS.R} zmd
R2 i%ehic;;--i; an-5: §.>r<}d.u::,ez:i and m"121r'k€d by ES! C«:}rp<;}E:2ii..i.Un iyefifere
1*-TF_':T'EL__C(::Vi§"i., §3£1St'.{i an the said §§3U.€E'S en.1;,i}:€ p:"c:3c€€di:1g8 leading
is: i;§%;2'.S £:§:+g3€a3 has»: €_'.{}I1}.E'}.":€E"i.(2€f{§. E1': {he <3bSe:"va1ie32": E€E.i:€z'€,~. arm
' " ~»v--§:.1s:'sg:a<:{:"£.a:};" :32" {Tf{}%'§}€}.{"&%.§..§.€}E'1 .§11a.d:e SE12', hilt): *'§:'1g <}b:+;€:?v21§.§i>m3:
.3.
(a) E3ay'111e11t 0f C:€:11i..rib'ut.i<§:1s are paid .'iaix:-2 1.:-:i__,r:¥"};:;,-' 21
days 21i"i.<:n* c{:11'1p1e{icm <)f"g.-;;r21c?=:>: periadfi 'i'.h;er;:.?c:;y __;é'2;;a; ;;§{i1:1g;
'vi<31ai.ir:>;xz of ESE Gem3m.I F%<:*gz.:ie1r1.io'n_ ' H
(b) '£31e2'<:3 was L'}iT1i$SiOI] 0f v;ages:3"1.9Vai{i iii)'._i.Eu?j ;3éC;,1ri't.y
guards for the perioci, _1G/96.. 19$??? A.<,'4A£i'"I1(";'L11*i.t«i'z?:;;§;"'£0
Rs. 5,051) 1 0.29 wh1c2§;'-~15?" 't::«1EcuEa'EE: d ' ;as;".p¢i~ t:?;é Act.
[{1} Certain payménis Sh'6i&*"i"} :'iI1'»."'fl'1f3 Ie'cig;'€f}'(:ash book
ai11'act.s the def§f;§.{i01i'L$'i':'ix'23»§§éé§."#/¥\i"1'7}€I' Section 2[22}3
which n:q't1.ire:-E; §3E'Lj_.7I':"i:f'§f';'1'3.f{:.A"{';'¢'f €fQI;1ti?i§I$1iii.0I'1, which warks
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{c i§_fi.'f1.e C1()Iif.'i:;ii?i§iIivO.fi"~-Filflifi is re<:;L1i§°ed (.0 be paid on {he
ai"Of1§§Sz2id £§1"17Ai{31:1i1.*if':Of'RS,9.;88,Q93,Q5 is at 6.5% which
I ¥.xr=i3_1'E<:.s fit: .€_':1..Rs.6~iL285 /' A.
E:..h.i$ jL1z1Ct:.21':.=: it is; 11-:I.e:va:1£ '(.9 state that:
SL1';ipfESi:1_gi§-*' 1§_~::iid ObS€tE"g!"a'EiG§} Ee'E.i;'er X-*3'hi(th was pr:;=,p23_1'€d by {he
',_ir1sp<=:.{:*£:):":.<;>f c<n*§>c3::21:.ic:=n avzzsg an that officrriai si:at.ioner§,.r sf ESE
"C{)rg:}i;t°;1Tt§{3r1 Wiih 'zihs sagecific mzmber prmiifid an ézhe .s~33.1id Eei.':::<;%r.
w§iz;?.:tE1 155213 mair1'i'.z:2.i:2é3<fE in {E163 §::<><}k §:>€<22;:'§:":g;§ I'~§'0'E3;'€}82E%3. Tééfi
:»;:;:m:1::t 'W218 {mi}-' §$€3.§'i='"{'f{§ 9:': i_.}§:<:é {Tiff§§I¥'=£3E%€E§"£.§,2§_§_§.¥€ {>5 2':.§:2g'}€:EEa.§3;§. E25,?
:,z:.k§:::g; :a%.g2'221:§.:::'::~. 2-i.£j':E§,ZE£}*%,?=:Eé:?e:§.§?;€?:E.'1€?{ii ;f'<:>r Ezzzfiritzg *;:§:a
1,7 -z,»§_,§
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ctjpy. I1"1(:ir:i€niaEiy, {in 'she same day in (é{>I1t:im:21i'.i0r1 of
afogregaici observai,i<;:1 1<=:.t.te1' amo1;I:1€r Ieiier is aiso preigjared an
;>I.ai.n papex' statixig ihai. it. is in <::<:3:c1t:z'.m.'1:;11.i<:s1"1 Lfijés€ii'1-:'&'i;.i0n
Eet'f£'<3z' in N98/08283 dated 222. I999, 'Wh€?I'€:'fiI1'"«éf:€)I1§i*iE5i£§:iO3%'ii?'
respect of security guards for the p'é1'i<'n:i .fI"i';'-.;fIE io--.fE2V}'--€38' j
aiong with names, RSI .ir1surance I:ti'm§j'«?rf \/-'<3'L3.»<§:.33é.:'. (for
of £:0r1t;:ibL£i,i@n, xerox C0pie:s_ s::f C1'Z?3.E.E.'_c1I'ESVV 8'I"1€i._ 'f't*:?;Li 1"I1S bi
COn':;.ribL1t.i0I1 were called. for lobe _p'1'-Qtitaped I61' v»§;=,riAfi§cati0:1¢ The
said doL:cm<-:'r1t aisc} appé::r$.1€s_ 1"i;21Ve V'K3--*i§t).}fi1'E3if:3I'\'€3C££ on the same
rep1*es§§:91'f:'éiti\;e:ijfof \ArI:;c_)H 1"ééCeiv<3ci the first obsewation
§6:tt.:«:r. ISXR1. V in E1'§'3'Vé+;¢;V §.§igH.E1§LlF€ 0f 1'epres<:r1tatiVe is said
to have takézn 'on 'f_;ht':, :§e~r::'o11ci ObS€I"V.";1{.iOI1 Eeiier, which £55 at
%%%%%
'A . f321§"5i;'?d 03:; these two dOCL£§,"I1€§I1iZS :31'0C{~:€idiI1<5s ware
ir§ii:}i:;ii'.fid. _:»1{i:I1i"£ié%<i by both §3az"i.ié3.S C:ebservat;'.0nS m.ad<3 in {ha
fémi, %;ZIb"8§3I'VE?£f.E.{}§1 }t::3;:i.{:1x EX.R1 is; duiy {":{}{I'§f3Hf3id viiih by
~ *;1p§:§€:a--1.1a;11i. by <:iep<3si'£ir1g§ the f;"I}{,i.]1'€f <3Q:1i','rib'L:té<:z:1 é"iI"§'1()£IZ}1: as
<ti':;%m§:::':.<§£3d bjs,-=' ::<)1°;:3{§mi.i<>:3. "»-'~£'h2:.£', $5 in {"i:'s3p2.:i'.é: :t«:)m;";'E3L:'é'.§C::'1
fé1.i.§€%€{§ E2': ré;%s;§?;::%t7§, if E%Z;=«:.§~?;2, {Ea} §§{}i§":§§ E3} :*<>::g,;Tt"1 1.11%: :%:».=a1Z£é gm;
<§"§:*s5;tt:'=:::%.'i§:}:';s§a 2:;-fit-*::':'=;s: ihissa s£'.?{}U£.'i 9:" EEK'? :>;:s:?r§§{::'°:, éifégit
'an,»4./)3
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Gbsfirrveliiozi 1fi*.I,'Lt':'.*I' g€11fiI°Eii,€d on plaain pafiaer Vizirzi E1x.R--fi.__011 i,h.e
same day on wh.i.c}1 :"§x.R'E was £1150 g;ene1*at:<5€§
€i":C1C}1'S€F}1f31"1'1 of U716? offlher of app<311a_.I11. ihC'.I'€i.I1'.4 éipp€E U*S' {,G .bét'
highiy dfiubiilxi. Based an {hat d()L1-bffiil.dGt~§!CH1%§'fiiL
EEXRZ p§'OCE'€diI1§§S weave i11.itia't"ed.::__ fir é3;;1p€:1r:;, "
decuments were rectcziveci i'roii1'21;3pe11zi11%, 21ndT'£,.heV:*e:3;ff:.e2' order'
S€c:t.ior1 4:5--A of the E*?SI__A~:tt x>vfiic:h §=v'a$i§chaiienged
by appeiiant before éhtf Cc)::_,1r{; "
5. In the is adduced by
zappellziint' E0 S'Lv:'b?;§é;s:€Ti;:«i¢é"-.i.¥;s- Cage Siaiing it had £,ai~;€:: the
services ejfiemp103*.ee'S3 E?Q}3":._F'ér}gL:ine Agencies. Ftlriher, it also
pmd:;1.'s::=ecjI. docimzénis E"-1) sshow payxiierxtzss mack: by it {'0 said
";.:g6:35:€',3z ;" a§1fifA~.Ain {urn 801116 9f the dezzumerlis {,0 Show
A"~.{1()17;'iIf"ib{.£v§fi~Q§i §1:.::;?:ie by said agency 'LG the C01'pc3raE.i::>n, which
21ré%~..g33,§', {<22-,A.'_l{ ggmd A i 2.
6." E"ic}w«:%ver, in 'iihe said pm<::e.£:di1i1gs a sarzfaus
€;§3}é€:i:i{}r: *4,-'éi'E%,f:§ :":«:i55t:*d Bay §;§§}f}€;':}E£1I1?. :10 é:§<;'tm<3::s_:E,.m§:€ ?;.§":af. exaiirc
" "'%j',Xi;'.£'{i§53€;'f ${',z2,:*i:e%€§ E3}; i§::%;g}£:<té'.<>z' <32? {i%(}'rp{2:*z?:*§:i:>m wha is e:><a:':1§n€:{§
:25 E531? E ':3s:~:f:32's;% EILEEE {I?{m.:"%;. £2': §5$1.1§t'2g; §'s?v'{_'% s=ss;%§:;2;~;:";-':':.c% {.}E§§€~i'f§"s;'§;?:iiE{}Z"§
,. 6 .
§e£'.ir31's3 'side I%ZXs.R1 zmci R2, (me on s:)f§ic?§a} papal' 2'«H1d aI1Of;.heI*
on pmizi §)3.;.)€?'I' p'L12"p<3ri,c';'éd to be Qfficial (K111111111I]i{?E1'[.i_{§1'1"iii} f'l.O1. in
actcordamte with }a.w. The offjcia} C€}1T1U"EEI1'1iC2?';§j(}fi"__Ef'.;.Y{1
hzwixig 211.1*£l1E:r1'i'.ic Signztatflure of I'€p1'€.f3~"fi¥{1'{€ii.iV5'3" "of --- 2}1'§3pV€1Iani, gxnd,
0b:5£3rvat:ior1 Eetter germratrsd at I:"l§<;.R2-AAr:.c3arvi:21if1-irigi 'ii? t'3..__f1C3?:§_.§€Ci
sa'g.n.at.ure of repreaezniaiixreTo-Sf__ zzppéiiaiat *e::2Lé;j §1j;eci to bé:
high}ight.ed by E-kppellalit. befon-2 EZSI C'(.)'LE1_'i.'.' " 'Ur13f'or1.Lan.aie}y,
ES! Court. has {:21k<:1"'i ._ t.':i§is and bag Come to
erroneous (:onc:1us1'0z1 %:,.h2;,}E.V_{(:..i..1'1.éi__Vn.§1kcid éy%:;}§§)th the sigr1ai',L1res
appea11~'{d""uefine i}.1é:-sa:1:'ié;'"'E3eing§ aggrieved by the said
i'i11d£:1g"'A_a.rir;1_ {:r31i:s%§qp1ézr:_1fi[2aT1V'";js:jecrt:ion of its appiicaéion, the
appeffani; is"-b,ef01'<: t_hi :;_ C{>...x={ri..
~._Ht3E1.1'Ci'V{:fE'1'€ €.?OLIIiSE3§ fog" émpeiizant and respondent,
_ (Em, t.Eni:.;:£g11 t.E':r3 oral and d0C,um€:'1E:£1:jy' evi£i€:nCe available an'1'é%:7£>r{i'w3i§'%£' :1'::':i."<:"re1'1.:3€ t0 the g:':):..mds <)f appeal' 3161139 and findiilggg (>3 ESE C{;:L:.r*'£:_. '[lF1iE§ C(m;'i'. is of {"319 viisw i.§.121'i, ;:r€p:;1z"23.t.i<}:3 "3.:1{i';:s1°{3d%..:C£.i::m <3? E2<:;E7€~2 by :*<:ts~3p<m:f§<::m., 350.1, Vaiaszzdevei R:;1<:} is E": §.g§.%";i}z :§<:mbL§"uE iifiii S-E.1S§§i{3§{}E.1E§( Ths? :<5§,g;::ai.'L1:'é: :':2::'22.!;::;e:i 1:} ha "{§E.2.i'£l <1}? ;1g."§;}<;%EE2t:.r::.'s; :"€<§§:"€:s:;@:'1.E,;2i..§:re:: in E§>;.E¥E~2 21%: E~?;--2{z':j,§ 519::-.:é4 EEOE. ;1'§}§::é:%;'>s%' gr; 7;}? s;§§':;':;Z§;?::' 27:5 in Fi;%;,E~Z~ is §:'?€ ::{§z::2$ b:=é§.;§.;; at}? ::;2:;z2'.:&=. , .4 =... .
. -2
-.»,/ 14% 3 -3- (mi fi'G§I1 i,h<;*; re{:<3rcis. r10t.E1i:1g pI'€Vf3f1E.€'d him from mc:.1udiI3g the Same in obgervmion 1c:'£':{e1' at Ex.R1' In the in:~3E:e1.;1t. (:;l3{S'z2, it is net" n:i<3'r1<::. It is aisc} not mg Case tklat H3686 i',x.w,3...<;}bséfie:;,ii«r;r1 I::*t£.ers am: generatiéd on m*() difff3§'(;'.:1i'. days. '1T\?h.£j"1. E6 "i--1;:d"
access to the 21L1Ehent.ic and g,E:nui:'1c.' ':~3te1&T:.i0:i:1"6:':'_\_»-*. '{)'f' ELSE Ci0I'p0I"a*£.iO11 available with him. fur fl?1__e"r§:ason$_*V_bé€i 'E{fiO'R%;-*1f1 {Q him, he has generated one 1"11<:i'§--£f . '{3bSf31"\-'E{'_;i:()VI'i'~.léfiéif a white paper purported to be (.3519; of£'ic;,i:(iI"c+r§_fr:I:%i1;1_1'zicaiioia'AofCorporation by using {he SE.an1p of 'CVQT_r§;d'ra,§i"ig§'I1,__:w;i':is:f}§,ac:€:0:*dir1g to this Court 7;)r*ifi1aT.f%:cie a"i'.*teV'rnpi <':Siw;"'h'is part to (treats docunaent £13; {he 'pggr-p'o;g.«3 '(}'f'riflgjgi§&ii1§:..%»f?{TCi£'dS anfi <:0r:seqL1er1tE:; faisiiixig a faise proceedi%t1gs"--age.i'1sst"'~i_1'1é appellam herein. UmEbri'.L1r1a'te1;,r "Nh€fl' ~'L7(_1€S€'V t:w{§"é10(7t1r¥1{3:}ts are availabk and when the Sig:_i'1é§~iL:;i§3s Q11 'E§'§(3S'€3....§.'E?!?«£) Ci{)c':umeI1t$ {.0 {he naked eye apptiar' to »b€3'~.{jifft3iT€3§1E E§§IE1("§ izhss £iis;«;pué'€c§ ss:;gr1211.::1'e on EXNRE is 21 poor ";}zs'i{Ef1e'L§{:v :'3a:::E.e::":%1'._;_3'{: {<3 S.§'§{)i'L-' %§. 2163 g€3§'E'J:iI'i{3 as; {he a«:§:":1:Efi(':d §5ig1»1§zi:::1'€.£'%§§s:*£d zit. E§:>§.¥{E,, 'Lhé? ESE Ccmri. xvithimf, zipplying its ',;2::in:§ E22531. 2;¢:7<x:;>¥;r::%:} €:he: Sé:T:E"£1Ei wiiih 2:2 %;»ei;;ef{ Lézai. 3,31»:-1. o{£?i_<:erss 9:"
sihé"'€f3:c;*<£«zt1'*::§*::§2z*:'E. {1€3;>a::'E,m€,::€ v«£<mi.{§ mfi. $'§.0z>p {<3 {.218 Eéévei <3? E/'V N4