TMI Blog2011 (1) TMI 1219X X X X Extracts X X X X X X X X Extracts X X X X ..... of debts. The contentions raised by the petitioner does not stand scrutiny of law.Appeal dismissed. - W.P. NOS. 8583, 8932 & 9072 OF 2005 W.P.M.P. NOS. 9264, 9679 & 9855 OF 2005 - - - Dated:- 12-1-2011 - K. CHANDRU, J. R. Parthiban for the Petitioner. A. Paramasivam for the Respondent. JUDGMENT K. Chandru, J. The petitioner in these three writ petitions is one and the same company. They have filed the present writ petition seeking to challenge the recovery notices issued by the respondent ESI Corporation, dated March 2, 2005, in respect of the contribution for the period from 1985-86 to 1999-2000, then 4/01 to 3/03, 4/04 and 5/04. In the notices, the petitioners were informed that in addition to the amount paya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the stand of the petitioner, in the counter affidavit, it is stated that since the petitioner is disputing their liability under the ESI Act, they must file an appropriate petition under section 75 before the ESI court and the writ remedy is not available. On the question of application of the BIFR and the so-called scheme framed by the BIFR, it is stated that section 22 will not apply. 5. In the light of the rival contentions, it has to be seen whether the petitioner's stand is legally valid ? 6. With reference to the BIFR framing a scheme or appointing an operating agency, the impunity provided under section 22 will not come into service of the employer automatically. The scope of section 22 came to be considered by a Full Bench of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties without any payment of wages and this also cannot be the intention of the Legislature. If the purpose of the said Act of 1985 is to rehabilitate the company itself, the same cannot mean that the workmen are to be compelled to continue without payment of wages as workmen are important constituent of the industrial unit. The said Act cannot be interpreted to mean that it saves only the employer and not the employees. Such an interpretation will not only leave the workmen to starve but also will lead to slavery.' A Division Bench of the Karnataka High Court in the case of Indian Plywood Manufacturing Co. Ltd. v. Commissioner of Labour [2000] 2 LLN 677, following the decision of the Allahabad High Court in the case of Modi Industries Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hrined in section 11 will operate against statutory as well as non-statutory and secured as well as unsecured debts including a mortgage or pledge. Sub-section (2) was designedly inserted in the Act for ensuring that the provident fund dues of the workers are not defeated by prior claims of secured or unsecured creditors. This is the reason why the Legislature took care to declare that irrespective of time when a debt is created in respect of the assets of the establishment, the dues payable under the Act would always remain first charge and shall be paid first out of the assets of the establishment notwithstanding anything contained in any other law for the time being in force. It is, therefore, reasonable to take the view that the statuto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having a certificate of registration from the Reserve Bank under section 3 of the Securitisation Act. Evidently, Parliament did not intend to give priority to the dues of private creditors over sovereign debt of the State. If the provisions of the DRT Act and the Securitisation Act are interpreted keeping in view the background and context in which these legislations were enacted and the purpose sought to be achieved by their enactment, it becomes clear that the two legislations, are intended to create a new dispensation for expeditious recovery of dues of banks, financial institutions and secured creditors and adjudication of the grievance made by any aggrieved person qua the procedure adopted by the banks, financial institutions and oth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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