Employees State Insurance Corporation v. Empee International Hotels & Resorts Ltd.
2019-02-11
RANJAN GOGOI, SANJIV KHANNA
body2019
DigiLaw.ai
ORDER 1. Leave granted. 2. We have heard the learned counsels for the parties and have considered the matter. 3. The notice of recovery issued to the respondent - M/s Empee International Hotels & Resorts Ltd. under Section 45-C to 45-I of the Employees State Insurance Act, 1948 (for short "ESI Act") clearly sets out the periods of default and the amount that is recoverable along with the rate of interest for different periods of time. 4. The order dated 20th May, 2002 under Section 45-A of the ESI Act passed by the Deputy Director for the period 1996-1997 to 1998-1999 (challenged before the High Court) quantified the payable contribution at Rs.7,08,439/- along with interest at the rate of 15% per annum. 5. The High court by the impugned order had held the respondent (M/s Empee international Hotels & Resorts Ltd.) liable to pay a sum of Rs.6,84,792/- with simple interest at 6% per annum from 21st June, 2002 till 12th June, 2013. 6. It is the rate of interest as applicable and payable in the aforesaid period alone which is required to be considered by this Court. 7. Clearly and evidently, the statutory rate of interest during the aforesaid period was higher than 6% and the details of the rate of interest have been mentioned in paragraph 3 of the Notice dated 10th June, 2013. 8. Ex facie, the award of interest by the High Court at the rate of 6% per annum for the period from 21st June, 2002 till 12th June, 2013 does not appear to be correct. What would be the rate of interest applicable on the amount due subject to such adjustments of payments that the respondent - unit had made, are matters that would require reconsideration in the hands of the ESI Court. 9. We, therefore, remit the matter to the ESI Court for fresh order in the light of the directions as above. The order of the High Court, consequently, is set aside. The appeals are allowed to the said extent.