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In a major relief to a city-based manpower agency, the ESI court has set aside orders of the Employees’ State Insurance Corporation (ESIC) and directed its Regional Director in Chandigarh to refund Rs 6,56,318 along with 6% interest to M/s B & J Labour Consultants.
The verdict, delivered by Rahul Garg, Civil Judge (Sr. Division), ESI Court, quashed ESIC’s earlier orders, dated February 22, 2018, and May 8, 2018, which had directed the firm to deposit Rs 9,65,378 as ESI contribution for manpower deployed in a non-implemented area from April 2013 to March 2014.
Represented by advocates Jasbir Singh and Karam Singh, the petitioner argued that B & J Labour Consultants is engaged solely in providing manpower to establishments and has been regularly paying ESI contributions wherever applicable. In this case, however, the manpower was supplied to a company located in a non-implemented area, where the ESI Act did not apply.
“The Assessing Officer passed the impugned order in an illegal, arbitrary, unsustainable, and unconstitutional manner under Section 45A of the ESI Act, without properly considering the facts,” counsel for the petitioner submitted.
Challenging the demand, the firm had filed ESI Case No. 07 of 2018 before the Chandigarh ESI Court. After hearing both sides, the court ruled in favour of the petitioner, observing that the ESIC orders were unsustainable.
“The petitioner is hereby held entitled to refund of Rs 6,56,318 from the respondents along with interest at 6% from the date of payments till realisation. The orders, dated 22-02-2018 and 08-05-2018, are set aside being illegal and arbitrary,” the court held.
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