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Madras High CourtWP/27807/2021disposed of

M/S.Srinivas Waste Management v. The Recovery Officer

2022-01-05Honourable Mr Justice V. Parthiban3 pages

IN THE HIGH COURT OF JUD9ICATURE AT MADRAS

DATED : 05.01.2022

CORAM

THE HONOURABLE MR.JUSTICE V.PARTHIBAN W.P. NO.27807 OF 2021 AND WMP NO.29374 OF 2021 M/s.Srinivas Waste Management Service Pvt. Ltd., 33, 15th Avenue, Ashok Nagar, Chennai - 600 083 represented by its Director

...Petitioner

Vs The Recovery Officer, Employees' State Insurance Corporation Sub Regional Office, 39/57, Theertha Malai Vaniga Valagam, Salem - 636 009.

...Respondent

PRAYER : Petition filed under Article 226 of the Constitution of India praying for the issuance of Writ of Mandamus directing the respondent to accept monthly instalments pursuant to the notice dated 03.12.2021 in proceedings No.RECY/SLM/63510902250031001 and permit the petitioner to remit the interest sum of Rs.19,14,676/- on 20 monthly instalments.

For Petitioner :

Mr.Anand Gopalan For Respondent :

Mr.C.V.Ramachandramurthy Standing Counsel

O R D E R

The petitioner has filed this Writ Petition seeking for issuance of Writ of Mandamus directing the respondent to accept monthly instalments pursuant to notice dated 03.12.2021 in proceedings No.RECY/SLM/63510902250031001 and permit the petitioner to remit the interest sum of Rs.19,14,676/- in 20 monthly instalments.

2. In consideration of the prayer for payment, pursuant to the notification issued by the respondent Corporation, in instalments, notice was ordered to the respondent Corporation. In response to the notice, Mr.C.V.Ramachandramurthy, learned

Standing Counsel appeared for the respondent and submitted that the scheme of the Employees State Insurance Act, 1948 does not provide payment of interest in instalments.

3. As far as the financial difficulties expressed by the petitioner company is concerned, learned Standing Counsel has no instructions and ultimately he would submit that it is entirely the discretionary power of this Court to accept the case of the petitioner for payment in instalments. However, he would firmly submit that 20 monthly instalments as sought by the petitioner company may not be reasonable, as such longer time cannot be given to any defaulter for payment of interest on the contribution.

4. For this submission, learned counsel for the petitioner would submit that if not for 20 instalments, at least the petitioner company may be permitted to make payments in 10 equated monthly instalements. According to the learned counsel, the petitioner company is going through a severe financial crisis and they would not be able to make the payment towards interest upfront in one lumpsum. According to the learned counsel that the petitioner company has been reduced to the extent of mortgaging its property and also forced to resort to external borrowings to meet its liabilities towards payment of wages to their employees and statutory dues, therefore, requests this Court to show indulgence in view of the difficulties expressed by the company.

5. Considering the submissions of the learned counsel for the petitioner and also the fact that in similar circumstances, this Court has intervened and allowed payments towards interest or damages in monthly instalments in certain deserving cases, this Writ Petition is disposed of with the following directions: (i) The respondent Corporation is directed to accept payments towards interest under the impugned notice in 10 equated monthly instalments by the petitioner company, commencing from 01.02.2022.

(ii) The petitioner company is directed to make payment on or before 5th of every following month for a total period of 10 months.

(iii) This being a concessional order, it is clarified that the petitioner should strictly adhere to the schedule as above in making the payments.

(iv) In the event of any default in making the payment as directed above within the time lines stipulated, the respondent Corporation is at liberty to proceed against the petitioner company in terms of their impugned notice without any further reference to this Court.

No costs. Connected Miscellaneous Petition is closed. Sd/- Assistant Registrar(CO) // True Copy // Sub Assistant Registrar sl To The Recovery Officer, Employees' State Insurance Corporation Sub Regional Office, 39/57, Theertha Malai Vaniga Valagam, Salem - 636 009.

+1cc to M/s.T.S.Gopalan & Co., Advocate Sr.No.586 +1cc to Mr.C.V.Ramachandramurthy, Advocate Sr.No.1435 W.P. No.27807 of 2021 and WMP No.29374 of 2021 NMI(CO) RVM(31/01/2022)