Sahni Silk Mills Private Limited, And Othersv. Employees' State Insurance Corporation And Others v. Shoba Engineers And Others

Sahni Silk Mills Private Limited, And Othersv. Employees' State Insurance Corporation And Others v. Shoba Engineers And Others

(Supreme Court Of India)

Civil Appeal Nos. 2971-2974 of 1989 and 1689-1706 of 1982 | 02-02-1993

1. These appeals arise out of a proceeding under Employees State Insurance Act. An order under Section 85-B of thewas passed against the appellants by the Regional Director, Chandigarh imposing damages assessed at over Rs. 15, 000, on the ground that the appellants had defaulted in depositing in time the employers contribution under Section 40 of the. The amount was reduced to Rs. 9226 on an application being moved under Section 75-G. The appellants challenged the order by filing a writ petition before the High Court, which has been dismissed in limine by the order under appeal

2. One of the grounds urged on behalf of the appellants is that the Regional Director was not empowered to pass the impugned order under Section 85-B as the jurisdiction in this regard vests in the Employees State Insurance Corporation and not in the Regional Director

3. Section 94-A of thepermits the Corporation to delegate the powers exercisable by it to any of its officers. Admittedly the Corporation had delegated the powers exercisable by it to the Director-General or any officer authorised by him. Purporting to act under this resolution the Regional Director, who has been authorised by the Director-General to exercise powers under the, has passed the order

4. The contention is that the Director-General could not have further delegated his powers to the Regional Director, as that would amount to double delegation, which is forbidden in law. In reply the learned counsel has relied upon the decisions in Employees State Insurance Corpn. v. Dhanda Engineers P. Ltd. (1981 Lab IC 658 : 1981 (2) LLN 106 : (1981) 83 Punj LR 354 (P&H), Regional Director, E.S.I. Corpn. v. Bhaskaran [ 1987 (1) KLT 825], Barium Chemicals Ltd., v. Company Law Board [1966 Supp SCR 311] and Harishankar Bagla v. State of M.P.

5. In Bombay Municipal Corporation v. Dhondu Naraya Chowdhary it was held that double delegation was permissible if allowed by the statute. The decision in Manindra Nath v. Anil Chandra 1953 AIR(Cal) 689 : 54 CrLJ 1592 : 57 CWN 716] [LQ/CalHC/1953/63] and the discussion in Halsburys Laws of England, Fourth Edition, Vol. 1, para 32, were also placed before us by the learned counsel

6. Section 94- A empowers Corporation to delegate all or any of its powers and functions on any officer or authority subordinate to it. The very power of delegation of all or any of its powers or functions under the by the Corporation conferred under Section 94- A thereof on any officer or authority subordinate thereto could have been delegated to such officer or authority is, therefore, the question which arises for our consideration. Having regard to the general importance of this question we are of the opinion that the same may be decided by a Bench of three Judges of this Court. Let the case be listed for hearing accordingly.

Advocate List
Bench
  • HON'BLE JUSTICE L. M. SHARMA (CJI)
  • HON'BLE JUSTICE N. VENKATACHALA
Eq Citations
  • (1993) 2 SCC 1
  • 1993 (4) SCT 456 (SC)
  • 1 (1993) ACC 677
  • JT 1993 (1) SC 439
  • 1993 (1) SCALE 441
  • 1993 (4) SLR 386
  • (1993) SCC (CRI) 470
  • LQ/SC/1993/88
Head Note

Insurance Act, 1948 — Ss. 94-A and 85-B — Delegation of powers — Delegation of power of delegation — Permissibility — Held, a question of general importance — Hence, referred to a Bench of three Judges — Employees State Insurance Act, 1948, S. 94-A