High Court of Bombay at Goa Remands ESI Matter for Fresh Adjudication Due to Inadequate Evidence and Non-Consideration of Relevant Circular. ESI Corporation's appeal allowed; order of ESI Court set aside and matter remanded for fresh consideration in light of Supreme Court rulings and circular dated 16/11/1981.

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

The Regional Director, ESI Corporation, appealed against an order of the ESI Court, Panaji, which had allowed an application filed by Farmacia Ananta under Sections 75 and 77 of the Employees' State Insurance Act, 1948. The High Court heard both sides and found that the evidence led by the appellant was inadequate for the lower court to reach a concrete conclusion. Additionally, the lower court was not aware of a circular dated 16/11/1981 (Instruction no.17 of 1981) that had bearing on the issues, granting certain concessions to establishments covered under the Act. Consequently, the High Court set aside the impugned order and remanded the matter to the ESI Court for fresh adjudication. The ESI Court was directed to give both sides an opportunity to deal with the evidence on record, especially in light of the Supreme Court rulings in Rajkamal Transport & Anr. v. Employees' State Insurance Corporation, Hyderabad (1996) 9 SCC 644 and E.I.D. Parry (India) Ltd., Vijaywada v. Employees State Insurance Corporation & Anr. (2002) II CLR 349, and to give due consideration to the circular. The adjudication was to be completed within six months from the receipt of the writ. The appeal was disposed of with no order as to costs.

Headnote

A) Employees' State Insurance Act, 1948 - Sections 75 and 77 - Appeal against order of ESI Court - Inadequate evidence - Remand - The ESI Court's order was set aside as the evidence led by the appellant was insufficient and the Court failed to consider a circular dated 16/11/1981 bearing on the issues. The matter was remanded for fresh adjudication with opportunity to both sides to deal with evidence in light of Supreme Court rulings and the circular. (Paras 3-4)

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Issue of Consideration

Whether the ESI Court's order was sustainable given inadequate evidence and non-consideration of a relevant circular.

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Final Decision

The impugned order of the ESI Court, Panaji is set aside. The matter is remanded to the ESI Court for adjudication afresh, with opportunity to both sides to deal with evidence in light of Supreme Court rulings and the circular. Adjudication to be completed within 6 months. Appeal disposed of with no order as to costs.

Law Points

  • Inadequate evidence
  • Remand for fresh adjudication
  • Consideration of circular
  • Application of Supreme Court rulings
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Case Details

2006 LawText (BOM) (11) 86

APPEAL UNDER E.S.I. NO. 4 OF 2006

2006-11-23

P.V. KAKADE, J

Mrs. A. Agni with Mr. M.S. Prabhudesai (for Appellant), Mr. R.G. Ramani (for Respondent)

Regional Director, E.S.I. Corporation

Farmacia Ananta

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Nature of Litigation

Appeal under ESI Act against order of ESI Court allowing application under Sections 75 and 77.

Remedy Sought

Appellant sought setting aside of the ESI Court's order.

Filing Reason

Appellant contended that evidence was inadequate and lower court failed to consider relevant circular.

Previous Decisions

ESI Court, Panaji allowed the respondent's application under Sections 75 and 77 of the ESI Act.

Issues

Whether the ESI Court's order was sustainable given inadequate evidence and non-consideration of a relevant circular.

Submissions/Arguments

Appellant argued that evidence led was inadequate and lower court was not aware of circular dated 16/11/1981. Respondent's submissions not detailed in judgment.

Ratio Decidendi

The ESI Court's order was unsustainable because the evidence led by the appellant was inadequate and the lower court failed to consider a relevant circular. The matter requires fresh adjudication after considering the evidence and the circular in light of Supreme Court rulings.

Judgment Excerpts

the evidence laid on behalf of the present appellant is not adequate for the purpose of coming to any concrete conclusion by the lower Court. the lower Court, as in so many other matters, is not aware of the circular dated 16/11/1981 no. P 11/14/41/79 Ins. IV, Instruction no.17 of 1981, which has got bearing over the issues involved

Procedural History

The respondent filed an application under Sections 75 and 77 of the ESI Act before the ESI Court, Panaji, which allowed it. The appellant (Regional Director, ESI Corporation) appealed to the High Court of Bombay at Goa against that order.

Acts & Sections

  • Employees' State Insurance Act, 1948: 75, 77
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