V.R. Spinning Mills v. The Recovery Officer

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 22.03.2024

CORAM

THE HON'BLE MR.SANJAY V.GANGAPURWALA, CHIEF JUSTICE AND THE HON'BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY V.R. SPINNING MILLS rep.by Managing Director by Arun Karthik : Appellant Vs The Recovery Officer Employees State Insurance Corporation 1897, Trichy Road Panchdeep Bhavan Ramanathapuram Coimbatore- 641 045.

: Respondent Prayer: Writ appeal filed under Clause 15 of the Letters Patent against the order of the learned Single Judge in WP No.16248 of 2018 dated 08.09.2023. For the Appellant :

Mr.B.Gopalakishnan For the Respondent :

Mr.Bharadwaj

JUDGMENT

(Made by the Hon'ble Chief Justice) We have heard Mr.B.Gopalakishnan, learned counsel for the appellant and Mr.Bharadwaj, learned counsel for the respondent.

2. The learned counsel for the appellant, on instructions, submits that the appellant is not a registered company. However, it is a sick company and as such, damages are required to be waived. Damages cannot be imposed upon the appellant under the provisions of the Employees State Insurance Act. The learned Single Judge has only granted installments but has failed to consider the main challenge to the levy of damages.

3. If the petitioner is not a company registered under the Companies Act, then the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985, would not apply. There is no declaration that the appellant is a sick company by the Board for Industrial and Financial Reconstruction also. In absence thereof, the contentions of the appellant cannot be accepted.

4. The writ appeal as such is dismissed. There shall be no order as to costs. Consequently, CMP No.1666 of 2024 is closed. (S.V.G., CJ.) (D.B.C., J.) 22.03.2024 Index : Yes/No : Yes/No tar To The Recovery Officer Employees State Insurance Corporation 1897, Trichy Road Panchdeep Bhavan Ramanathapuram Coimbatore- 641 045.

THE HON'BLE CHIEF JUSTICE AND D.BHARATHA CHAKRAVARTHY, J.

(tar) 22.03.2024