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Rajasthan High Court · body

2011 DIGILAW 1369 (RAJ)

Curious Kids Nursery School v. Dy. Director, ESIC

2011-07-13

VINEET KOTHARI

body2011
JUDGMENT 1. - Heard learned counsels. 2. The present appeal has been filed against the order dated 3/11/2010, whereby, learned ESI Court rejected the application of the appellant to reduce or waive the requirement of pre-deposit of 50% of the demand raised by the ESI Corporation to the tune of Rs. 1,88,141/-. 3. Learned counsel for the appellant submitted that learned court below has not looked into the financial position and availability of cash with the appellant School and such a huge demand raised by the ESI Corporation is liable to be set aside as the number of employees with the appellant School is below the cut off of 20 employees. He, however, does not dispute that private educational institutions like that of appellant are otherwise covered by the Notification under Section 1(5) of the ESI Act, 1948 issued on 12/10/2004, copy of which is placed on record by the learned counsel for the ESI Corporation, Mr. Raj Kamal Soni. 4. Learned counsel for the appellant fairly submitted that he may be allowed to deposit 30% of the disputed demand subject to final decision of the appeal under Section 75 (2B) of the Act in which the appellant has disputed its coverage on the basis of its employees being below the cut off number. 5. Learned counsel for the ESI Corporation, Mr. Raj Kamal Soni opposed these submissions and submitted that since coverage is not disputed as far as Notification under Section 1(5) of the Act is concerned, there is no justification for waiving the pre-deposit, which is mandatory requirement under Section 75 (2B) of the said Act. 6. Considering the submissions made at the bar and in the interest of justice, it is considered appropriate that the pre-deposit of amount of 50% is reduced to 30% of the disputed amount and subject to deposit of 30% of Rs. 1,88,141 i.e. Rs. 94,070/-, the appeal filed by the appellant under Section 75(2B) of the Act may be entertained and decided on merits by the learned ESI Court. The said deposit will, however, abide by the final decision of the appeal. The amount of 30% so deposited may be disbursed to the ESI Corporation subject to undertaking that in case appeal of appellant is allowed, it will refund back the said sum with interest @ 6% p.a. 7. With the aforesaid direction, the present appeal is disposed of.Appeal Partly Allowed. *******