Authority: High Court at Calcutta, Circuit Bench at Jalpaiguri

Order Date: August 17, 2026

Case Overview

  • Parties: Petitioner – Poddar Seva Sadan Pvt. Ltd.; Respondents – Employees' State Insurance Corporation (ESI Authority) and an additional respondent.
  • Nature of Proceeding: Writ petition (WPA 956 of 2026) challenging an assessment order issued under Section 45G of the Employees' State Insurance Act, 1948.
  • Background:
  • An assessment order dated April 15, 2024 demanded a total sum of Rs 9,32,719 from the petitioner for alleged ESI dues (principal amount, interest disputed).
  • The petitioner filed an application before the jurisdictional ESI Court under Section 75(1)(g) of the Act (see annexure p‑10).
  • The petitioner claimed to have received an assurance via a communication dated September 17, 2025 that the ESI Authority would consider its case under the Amnesty Scheme 2025.
  • Relying on that assurance, the petitioner withdrew its challenge from the ESI Court; the withdrawal was approved by an order dated December 22, 2025.
  • Subsequently, a communication dated March 20, 2026 rejected the petitioner’s proposal to avail the Amnesty Scheme.
  • Contentions:
  • Petitioner argued that an injunction had been passed against recovery, that the assurance led to withdrawal, and that the rejection violated the assurance.
  • ESI Authority denied any such assurance and contested the petitioner’s claim, stating the demand is only the principal amount, not inclusive of interest.

Final Outcome

  • The Court observed that the withdrawal order of December 22, 2025 extinguished any pending challenge and the earlier injunction lost its effect.
  • No evidence was produced to substantiate the alleged assurance by the ESI Authority.
  • The Court issued the following directions:

1. Deposit: Petitioner must deposit the entire amount of Rs 9,32,719 with the Registrar, High Court, Calcutta (Jalpaiguri Circuit Bench) within three weeks from the order date, without prejudice to its rights.

2. Fixed Deposit: The Registrar shall place the deposited sum in an interest‑bearing fixed deposit with a nearest branch of a nationalized bank within two working days of receipt and inform both parties in writing.

3. Application for Amnesty: Within two working days of the deposit, the petitioner may apply to the appropriate ESI Authority to avail the Amnesty Scheme 2025.

4. Reasoned Decision: Upon receiving the application, the ESI Authority must grant a hearing, then issue a reasoned decision in accordance with law within two weeks of receipt.

5. Communication of Decision: The reasoned order must be communicated to the petitioner within three working days of its issuance.

  • The fate of the deposited amount will be determined by the reasoned order of the ESI Authority under the Amnesty Scheme.
  • If the reasoned order finds that additional sum is payable, the petitioner must pay the extra amount as per the ESI demand.
  • In case of default by the petitioner, the ESI Authority is free to take coercive steps as provided by law.
  • The order does not create any right or equity in favour of the petitioner; the ESI Authority’s decision will be final.
  • The Registrar shall encash the fixed deposit and transmit the amount with accrued interest as directed by the reasoned order.
  • The Court did not adjudicate the merits of the parties’ rival claims; the petitioner remains free to raise any points before the ESI Authority.
  • The writ petition is disposed of without any order as to costs.

Topics: Employees' State Insurance, Amnesty Scheme 2025, Court Order