Case Note & Summary
The petitioners, Satyanarayan Mohanlal Jalan and others, filed a criminal writ petition under Article 226 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of criminal proceedings arising from Criminal Complaint No. 2865/1995 pending before the Judicial Magistrate First Class, Jalgaon. The complaint was filed by the Employees State Insurance Corporation (ESIC) alleging failure to pay ESI contributions for wage periods from April 1992 to March 1994, amounting to Rs. 23,958, in violation of Sections 39 and 40 of the Employees' State Insurance Act, 1948 read with Regulation 31 of the ESI Regulations, 1950. The petitioners had previously applied for discharge under Section 245 CrPC, which was rejected by the Chief Judicial Magistrate, Jalgaon on 2.4.2002. The petitioners then approached the High Court. The court noted that the proceedings had remained pending for over 18 years since the filing of the complaint in 1995, and the petitioners had suffered prejudice due to the inordinate delay. The court relied on the ruling in C.K. Gupta and another v. Employees' State Insurance Corporation and others, 1999 (1) CLR 895 (Bombay High Court), which held that such delay warrants quashing. The court allowed the petition and quashed the criminal proceedings.
Headnote
A) Criminal Procedure - Quashing of Proceedings - Inordinate Delay - The court quashed criminal proceedings under Section 482 CrPC where the complaint was filed in 1995 and remained pending for over 18 years, causing prejudice to the accused - Held that such delay violates the right to speedy trial and warrants quashing (Paras 1-5).
Issue of Consideration
Whether criminal proceedings for non-payment of ESI contributions can be quashed due to inordinate delay causing prejudice to the accused.
Final Decision
The petition is allowed. The criminal proceedings arising from Criminal Complaint No. 2865/1995 pending before the Judicial Magistrate First Class, Jalgaon are quashed.
Law Points
- Continuing offence
- limitation for prosecution
- quashing of criminal proceedings
- ESI Act
- delay and prejudice
Case Details
2013 LawText (BOM) (06) 15
Criminal Writ Petition No. 519 of 2001
A.G. Talhar for petitioners, S.K. Tambe APP for respondent
Satyanarayan Mohanlal Jalan, Purushottam s/o Mohanlal Jalan, Krushna Santanarayan Jalan, Parsuram s/o Kishorilal Jalan
Employees State Insurance Corporation, The State of Maharashtra
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Nature of Litigation
Criminal writ petition seeking quashing of criminal proceedings for non-payment of ESI contributions.
Remedy Sought
Petitioners sought quashing of criminal proceedings in Criminal Complaint No. 2865/1995 pending before JMFC, Jalgaon.
Filing Reason
Failure to pay ESI contributions for wage periods from April 1992 to March 1994, amounting to Rs. 23,958.
Previous Decisions
Application for discharge under Section 245 CrPC was rejected by Chief Judicial Magistrate, Jalgaon on 2.4.2002.
Issues
Whether the criminal proceedings for default in ESI contribution can be quashed due to inordinate delay causing prejudice to the accused.
Submissions/Arguments
Petitioners argued that the proceedings were pending for over 18 years and relied on C.K. Gupta v. ESIC (1999) to quash the complaint.
Respondent submitted that the discharge application was rejected by a reasoned order.
Ratio Decidendi
Inordinate delay in prosecution of a complaint under the ESI Act, causing prejudice to the accused, warrants quashing of criminal proceedings under Section 482 CrPC.
Judgment Excerpts
The petitioners have prayed to quash the criminal proceeding arising from criminal complaint no.2865/1995 pending before the Judicial Magistrate First Class, Jalgaon.
It appears that proceedings remained pending pursuant to order dated 12.8.2002.
Learned counsel for the petitioners placed reliance upon ruling in the case of C.K.Gupta and another Vs. Employees’ State Insurance Corporation and others reported in 1999 (1) CLR 895 (Bombay High Court).
Procedural History
Criminal Complaint No. 2865/1995 filed by ESIC in 1995. Petitioners applied for discharge under Section 245 CrPC, rejected on 2.4.2002. Petitioners filed Criminal Writ Petition No. 519 of 2001 in Bombay High Court. Proceedings remained pending. Judgment delivered on 12.6.2013 quashing the complaint.
Acts & Sections
- Employees' State Insurance Act, 1948: 39, 40
- Code of Criminal Procedure, 1973: 245, 482
- Employees' State Insurance Regulations, 1950: 31
