High Court of Bombay at Goa Dismisses ESI Corporation's Appeal for Lack of Substantial Question of Law. The court held that findings of fact by the ESI Court cannot be re-appreciated in an appeal under Section 82 of the Employees' State Insurance Act, 1948.

High Court: Bombay High Court Bench: GOA
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Case Note & Summary

The Employees' State Insurance Corporation (ESIC) appealed against the judgment and order dated 26/8/2005 passed by the Presiding Officer, Employees Insurance Court, North Goa at Panaji in ESIC No.4/2000. The appeal was preferred under Section 82 of the Employees' State Insurance Act, 1948. The respondent, M/s. R.K. Furnaces, had filed an application under Section 75 of the Act seeking a declaration that they were not covered under the provisions of the Act. The ESIC's case was that their Inspector visited the respondent's establishment in August 1981 and found that the respondent had engaged 13 employees. The coverage intimation was sent on 26/10/1981, but the respondent failed to furnish particulars. The ESI Court, after considering the evidence, held that the respondent was not covered under the Act. The ESIC challenged this finding in the High Court. The High Court noted that under Section 82 of the Act, an appeal lies only if it involves a substantial question of law. The court examined the impugned judgment and the records and found that the ESI Court had appreciated the evidence and recorded findings of fact. The High Court held that it could not re-appreciate the evidence in an appeal under Section 82. The court concluded that no substantial question of law arose in the appeal and dismissed it. The court also noted that the appeal was filed after a delay of 89 days, but since the appeal was dismissed on merits, the delay was not condoned.

Headnote

A) Employees' State Insurance - Appeal - Substantial Question of Law - Section 82, Employees' State Insurance Act, 1948 - The court examined whether the appeal involved a substantial question of law as required under Section 82 of the ESI Act. The appellant ESI Corporation challenged the ESI Court's finding that the respondent's establishment was not covered under the Act. The High Court held that the ESI Court's findings were based on appreciation of evidence and were findings of fact, which cannot be re-appreciated in an appeal under Section 82. The appeal was dismissed as it did not involve any substantial question of law. (Paras 1-5)

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Issue of Consideration

Whether the appeal under Section 82 of the Employees' State Insurance Act, 1948 involves any substantial question of law.

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Final Decision

The High Court dismissed the appeal, holding that no substantial question of law arose. The court did not condone the delay of 89 days in filing the appeal as the appeal was dismissed on merits.

Law Points

  • Appeal under Section 82 of ESI Act lies only on substantial question of law
  • Findings of fact cannot be re-appreciated in appeal
  • Coverage under ESI Act depends on number of employees
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Case Details

2006 LawText (BOM) (06) 80

APPEAL UNDER ESI ACT NO.1/2006

2006-06-29

Smt. Ranjana P. Desai, J.

Ms. A.A. Agni with Mr. M.S. Prabhu Desai for the appellants, Mr. V. Palekar for respondent 1, Mr. S. Vahidulla, AGA, for respondent 2

Employees State Insurance Corporation, through its Deputy Regional Director, Panchadeep Bhavan, EDC Plot No.23, Patto, Panaji, Goa

1. M/s. R.K. Furnaces, S/A-5, Industrial Estate, Zuarinagar, Sancoale, Goa, represented by Shri Ramakant P. Kamat, Sole Proprietor. 2. Mamlatdar, Marmagoa Taluka, Marmagoa.

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Nature of Litigation

Appeal under Section 82 of the Employees' State Insurance Act, 1948 against the judgment of the Employees Insurance Court.

Remedy Sought

The appellant ESI Corporation sought to set aside the ESI Court's order declaring that the respondent was not covered under the ESI Act.

Filing Reason

The ESI Corporation challenged the ESI Court's finding that the respondent's establishment was not covered under the Act, based on the Inspector's visit in August 1981 which found 13 employees.

Previous Decisions

The ESI Court in ESIC No.4/2000 held that the respondent was not covered under the ESI Act.

Issues

Whether the appeal under Section 82 of the ESI Act involves any substantial question of law.

Submissions/Arguments

The appellant argued that the ESI Court erred in holding that the respondent was not covered under the Act. The respondent contended that the findings of fact by the ESI Court cannot be re-appreciated in appeal.

Ratio Decidendi

An appeal under Section 82 of the Employees' State Insurance Act, 1948 lies only on a substantial question of law. Findings of fact recorded by the ESI Court after appreciation of evidence cannot be re-appreciated in such an appeal.

Judgment Excerpts

Under section 82 of the said Act, an appeal lies to the High Court from an order of an Employees’ Insurance Court if it involves a substantial question of law. It would be, therefore, necessary to see whether this appeal involves any substantial question of law.

Procedural History

The respondent filed an application under Section 75 of the ESI Act before the ESI Court seeking a declaration that they were not covered under the Act. The ESI Court allowed the application on 26/8/2005. The ESI Corporation appealed to the High Court under Section 82 of the Act on 29/6/2006.

Acts & Sections

  • Employees' State Insurance Act, 1948: Section 75, Section 82
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