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(ii) The petitioner received notice in form C-18 dated 8.7.2002 on adhoc basis, directing the petitioner to pay a contribution of Rs.8,84,407/- comprising of repairs to building, machinery generator, vehicle maintenance, loading and unloading charges, stipend paid to staff and apprentice and exgratia payment made to trainees for the period from 1995 to 1996.

6. He would further depose that 40% of the employees were shown as trainees and apprentices, but he could not distinguish the duties and responsibilities between the regular workmen and the trainees or apprentices, the wages and stipend paid to them for want of bifurcation of expenditure by Management. http://www.judis.nic.in

7. It is well settled the inspector shall discharge the initial onus to prove the persons employed in the factory are regular workers, their names and wages paid to them as well as the number of apprentices engaged and the stipend paid to them. There was a specific report stating that the apprentices were engaged beyond the permitted period and that they were paid their wages under the nomenclature of stipend in order to exempt them from the coverage of payment of contribution. A perusal of the documents marked as Ex.R.1 to Ex.R.12 would show only the correspondences and notices exchanged between the appellant and the respondent. There are no materials to show with respect to the engagement of apprentices and avoidance of contribution.

8. On the other hand, Ex.P.29 reads the terms and conditions of engaging apprentices and the stipend paid during the training period for them. The stipend varies from cadre to cadre on the basis of efficiency and experience in respect of various trades. The respondent corporation without producing relevant materials, has made a vague reply and let in unsubstantiated evidence in this regard.

11. When the very same management is assisted by a legally trained person like a lawyer, they could produce those documents before Court on his advice. Only because they were produced before the ESI Court, the presumption of the learned Judge that they were fabricated is not sustainable and erroneous. The evidence of respondent witness RW1 clearly shows that the Inspector has failed to record the names of the persons regularly employed and the names of the apprentices and the wages/stipend paid to them respectively. In such a situation, it should be construed that the initial onus on the shoulders of the respondent ESI Corporation was not discharged.