THE DEPUTY REGIONAL DIRECTOR, EMPLOYEES STATE INSURANCE CORPORATION vs M/S. AASHU ENGINEERING WORKS

Judgment text excerpt

2026:BHC-AS:8492 Sayyed 35-FA.756.2011.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION FIRST APPEAL NO.756 OF 2011 1. The Deputy Regional Director, Employees’ State Insurance Corporation, Panchdeep Bhavan 689/690, Bibevewadi, Pune – 400 037 2. The Recovery Officer, Sub-Divisional Office, ESIC Panchdeep Bhavan 689/690, Bibevewadi, Pune – 411 037 ...Appellants (Org. Opponent No.1) Versus M/s. Aashu Engineering Works Sr. No.4A, Salunke Vihar Road, Pune – 411 004 ...Respondent (Org. Applicant) _____________________________________________________ Mr. Mayuresh Nagle for the Appellants. Mr. Rutwij Bapat for the Respondent. _____________________________________________________ CORAM : JITENDRA JAIN, J. DATE : 17 FEBRUARY 2026 JUDGMENT: 1. This appeal was admitted on 23 August 2011 on following substantial question of law :- “Whether, on admitted facts, the learned Judge of the Employees State Insurance Court (ESI Court) could have set aside the order passed under Section 85-B of the Employees' State Insurance Act, 1948 (ESI Act) ?” 1 of 7 Sayyed 35-FA.756.2011.doc 2. On 10 January 2006, the appellant passed an order under Section 85-B of the ESI Act, levying damages of Rs.27,849/-. The respondent was given an opportunity of hearing before levying damages. The respondent made submissions for reduction/waiver of damages. The submissions being verbal request made to the recovery officer for payment in installments and that had they known that damages are to be paid they would have paid the entire contribution at one time in lumpsum by taking a loan. The appellant considered the said reply and passed a detailed order levying damages. The said order was challenged before the ESI Court by the respondent. 3. On 22 February 2010, the ESI Court quashed the ab