Case Note & Summary
The petitioner, Buldana Urban Cooperative Society Ltd., challenged an order dated 22.3.2013 passed by the Deputy Director, Employees State Insurance Corporation under Section 45A of the Employees' State Insurance Act, 1948 directing payment of contribution for the period from 1.9.2009 to 30.9.2010. The order was dispatched by registered post on 22.3.2013 and received by the petitioner on 28.3.2013. The petitioner preferred an appeal under Section 45AA of the Act on 22.5.2013 along with a demand draft of Rs. 30,000. However, on 29.5.2013, the respondent informed the petitioner that the appeal was submitted after the period of sixty days and could not be considered. The petitioner then sought review, which was also rejected on 29.4.2014. The petitioner filed a writ petition challenging the order under Section 45A and the refusal to entertain the appeal. The legal issue was whether the limitation period of sixty days for appeal under Section 45AA runs from the date of the order or from the date of its communication. The petitioner argued that the period should be counted from the date of receipt (28.3.2013), making the appeal filed on 22.5.2013 within time. The respondents contended that the period runs from the date of the order (22.3.2013). The court analyzed the provision and held that the period of sixty days must be reckoned from the date of receipt of the order, as the right of appeal is valuable and limitation should be construed liberally. Since the appeal was filed within sixty days from 28.3.2013, it was within limitation. The court set aside the communication dated 29.5.2013 refusing to entertain the appeal and directed the respondents to consider the appeal on merits within four weeks. The writ petition was allowed in those terms.
Headnote
A) Employees' State Insurance Act, 1948 - Section 45AA - Limitation for Appeal - Period of sixty days for appeal under Section 45AA is to be reckoned from the date of receipt/communication of the order, not from the date of passing of the order. The court held that the appeal filed within sixty days from the date of receipt of the order is within limitation. (Paras 1, 5-6) B) Employees' State Insurance Act, 1948 - Section 45A - Assessment of Contribution - Order under Section 45A - Communication - The order under Section 45A was passed on 22.3.2013 but received by the petitioner on 28.3.2013. The appeal filed on 22.5.2013 was within sixty days from the date of receipt. (Paras 3, 5-6)
Issue of Consideration
Whether the period of sixty days for preferring an appeal under Section 45AA of the Employees' State Insurance Act, 1948 should be reckoned from the date of the order or from the date of its actual communication.
Final Decision
Writ petition allowed. The communication dated 29.5.2013 refusing to entertain the appeal is set aside. The respondents are directed to consider the appeal filed by the petitioner on merits within a period of four weeks from the date of the order.
Law Points
- Limitation period for appeal under Section 45AA of ESI Act runs from date of receipt of order
- not date of passing
- Limitation should be construed liberally in favour of appellant
- Communication of order is essential for starting limitation
