Supreme Court – Section 45A ESI Act Applicable, Available & Can Be Invoked Only when No Records Produced by the Employer
On 27.11.1996, ESI Corporation had issued show cause notice that the appellant employer had neither paid contribution nor submitted returns nor produced complete record for August 1988 to March 1992.
In the hearing, the appellant had produced ledgers for the said period. Moreover, the relevant cash books, bank books, journal vouchers, bills, contractors record and returns of contributions were produced for verification.
However, by the order dated 17.4.2000, the Regional Office, ESI, passed under Section 45A of the ESI Act, 1948, held that the amount of Rs.5,42,575.53 ps is statutorily due as arrears of contribution payable by the appellant.
ESI Court and the High Court had confirmed the said order.
In the above context, the applicability of Section 45A invoked by the ESI arose for consideration.
The Supreme Court held that Section 45A comes into effect only when no returns, particulars, registers or records are submitted, furnished or maintained as per section 44. The ESI Court and the High Court did not consider this jurisdictional requirement.
Judgment dated 18.12.2025 of the Supreme Court of India in Civil Appeal No.14858 of 2025 of M/s Carborandum University Ltd Vs. ESI Corporation
