LI Network
Published on: December 25, 2023 at 21:48 IST
The Karnataka High Court has ruled against the appeal filed by Group 4 Securitas challenging an order of the Employees State Insurance Court.
The ESI Court had rejected the appellant’s plea, contesting a determined contribution of Rs.65,20,855.18 imposed by the ESI Corporation.
The Division Bench comprising Justice K S Mudagal and Justice Ramachandra D Huddar dismissed the appeal, imposing a cost of Rs.1 lakh payable to the Karnataka State Legal Services Authority.
The Court emphasized that the ESI Court, after a thorough examination of relevant documents and oral and documentary evidence, concluded that the appellant failed to prove that the payments categorized under “OT wages” were conveyance charges not subject to contribution.
The Court clarified that the appellant was in obligated to disprove the order under Section 45A of the Employees State Insurance Act, along with the materials relied upon for that purpose.
The appellant argued that it was entitled to a reasonable opportunity of hearing and that the notice of hearing was not served on it.
The corporation countered this claim, asserting that the appellant neither produced records nor examined employees to substantiate that the head “overtime wage” represented payment for conveyance allowance.
Upon reviewing the records, the bench noted that the appellant had been given multiple opportunities over more than a year to present documents and rectify irregularities.
The Court concluded that the appellant failed to discharge its burden of disproving the determination made under Section 45A of the Act.
The Court rejected the appellant’s plea to remand the matter for fresh consideration, stating that the appellant’s failure to present records during the initial determination compelled the ESI Court to accept the determination unless disproved by the appellant.
Case title: M/s GROUP 4 SECURITAS GUARDING LIMITED AND The Regional Director, ESI Corporation
