SHUKAL GUPTA vs EMPLOYEES STATE INSURANCE CORPORATION

Judgment text excerpt

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 13th November, 2025 Judgment pronounced on: 15th November, 2025 + FAO 503/2019 & CM APPLs. 54666/2019, 54668/2019, 49128/2022 & 49129/2022 SHUKAL GUPTA .....Appellant Through: Mr. S. Singhal, Advocate Versus EMPLOYEES STATE INSURANCE CORPORATION .....Respondent Through: Mr. T. Singhdev, Ms. Yamini Singh, Mr. Tanishq Srivastava, Mr. Sourabh Kumar and Mr. Vedant Sood, Advocates CORAM: HON'BLE MS. JUSTICE CHANDRASEKHARAN SUDHA JUDGMENT CHANDRASEKHARAN SUDHA, J. 1. The present appeal under Section 82(2) of the Employees’ State Insurance Act, 1948 (the ESI Act) has been preferred by the original appellant, late Sh. Shukal Gupta, the proprietor of M/s Vandana Carpets, a proprietorship concern engaged in the manufacture of machine-made, hand- tufted and hand-knotted carpets, registered with the Employees’ State Insurance Corporation (the ESIC) under Code No. 11-20555. Signature Not Verified Signed By:RAJ BALA FAO 503/2019 Page 1 of 11 Signing Date:15.11.2025 16:51:23 2. The dispute arises out of ESIC’s assessment of contributions on alleged omitted wages for the period from April 1993 to March 1998, in respect of the establishment of the appellant, which culminated in the passing of orders under Sections 45A and 45AA of the ESI Act. Annexure B show-cause notice was first issued on 17.02.1999, proposing assessment of contribution. This was followed by an order under Section 45A of the ESI Act on 16.02.2000, where after the appellant furnished representations and produced statutory records seeking formal verification. Between 2000 to 2008, the ESIC issued recovery notices on multiple occasions, at times contemplating warrant proceedings, while the appellant continued to seek reconsideration and made deposits. Duri