APHC010393362025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) FRIDAY, THE FIRST DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT honourable SRI JUSTICE VENKATESWARLU WRIT PETITION NQ: 19991 pp pn?^ NIMMAGADDA Between: M/s. M.S.N. Degree and P.G. College Vizianagaram Thotapalem, Near RTC Complex, Rep. by its 535003 Secretary/Correspondent. Vizianagaram District, ...Petitioner AND 1. Employees State Insurance Corporation ESIC, Rep. by its Director Sub-Regional Office, D. No. 45-57-2/1/1, 1^‘ and 2"^ Floors, RR House, Narasimha Nagar, Akhayyapalem, Visakhapatnam 2. Employees State Insurance Corporation ESIC, T Director, Sub-Regional Office, Visakhapatnam - 530024. 3. Employees State Insurance Corporation, f Sub-Regional Office, Visakhapatnam - 530024. - 530024. Rep. by its Assistant Rep. by its Recovery Officer, ...Respondents Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, pleased to issue the High Court may be an appropriate writ, order or direction more particularly one in the nature of WRIT OF MANDAMUS declaring the Respondents in issuing orders under Section 45A of ESI Act No.70000423070001303/48, dated 29. for the period from 01.10.2010 action of the vide order 10.2015, demanding of Rs.5,71,643/- to 28.02.2014, Order No.7000-042307-000- 1303/48, dated 09.10.2017, demanding a sum of Rs.5,91,162/- for the period from 01.03.2014 to 30.06.2017 and another AP/SROA/SP/INS/70-00-042307- « 000-1303/862, dated 12.01.2024 demanding for Rs. 7,41,249/- for the period from December, 2018 to September, 2023 of the 2nd respondent and consequential order of the 3rd respondent in Form No.ESI CP-12, by order of attachment of immovable property vide No 70Q/70000423070001303, dated 19.06.2025 demanding for Rs.38,18,862/- without giving any opportunity of hearing as illegal, arbitrary and set aside the same and consequently direct the respondents not to take any coercive steps including revocation the Form No.ESI CP-12, by order of attachment of immovable property vide No 70Q/70000423070001303, dated 19.06.2025 demanding for Rs.38,18,862/-. lA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the Fligh Court may be pleased to stay of all further proceedings issued under sec 45A of the ESI Act by directing the 3 Respondent not to take coercive steps including the revocation Form No.ESI CP-12, by order of attachment of immovable property vide No 70Q/70000423070001303, dated 19.06.2025. Counsel for the Petitioner; SRI T. BALAJI Counsel for the Respondents: SRI K. SANGAM NAIDU SC for ESIC The Court made the following order: r H ■ ^ • • I • • • • X • • APHC010393362025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3329] FRIDAY,THE FIRST DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 19991/2025 Between: 1.M/S. M.S.N. DEGREE AND P.G. COLLEGE THOTAPALEM, NEAR RTC COMPLEX, VIZIANAGARAM - 535003, VIZIANAGARAM DISTRICT, REP. BY ITS SECRETARY/CORRESPONDENT. > j ...PETITIONER AND 1.EMPLOYEES STATE INSURANCE CORPORATION ESIC, REP. BY ITS DIRECTOR, SUB-REGIONAL OFFICE, D. NO. 45-57-2/1/1, 1ST AND 2ND FLOORS, RR HOUSE, NARASIMHA NAGAR, VISAKHAPATNAM - 530024. 2.EMPLOYEES STATE INSURANCE CORPORATION ESIC, REP. BY ITS ASSISTANT DIRECTOR, SUB-REGIONAL OFFICE, VISAKHAPATNAM - 530024. 3.EMPLOYEES STATE INSURANCE CORPORATION, REP. BY ITS RECOVERY OFFICER, SUB-REGIONAL OFFICE, VISAKHAPATNAM - 530024. AKHAYYAPALEM, ...RESPONDENT(S): This Court made the following ORDER:- 1. This writ petition is filed under Article 226 of the Constitution of India seeking the following relief: ‘to issue an appropriate writ, order or direction more particularly one in the nature of WRIT OF MANDAMUS declaring the action of the Respondents in issuing orders under Section 45A of ESI Act, No.70000423070001303/48, dated 29.10.2015, vide order 2 demanding of Rs.5,71,643/- for the period from 01.10.2010 to 28.02.2014, Order 042307-000-1303/48, demanding a sum of Rs.5,91,162/-for the period from 01.03.2014 to 30.06.2017 and another AP/SROA/S P/I NS/70-00-042307-000-1303/862, dated 12.01.2024 demanding for Rs. 7,41,249/- for the period from December, 2018 to September, 2023 of the 2nd respondent and consequential order of the 3rd respondent in Form No.ESI CP-12, by order of attachment of immovable No.7000- dated 09.10.2017, property 70Q/70000423070001303, dated 19.06.2025 demanding for Rs.38,18,862/- without giving any opportunity of hearing as illegal, arbitrary and set aside the vide No same and consequently direct the respondents not to take any coercive steps including revocation the Form No.ESI CP-12, by order of attachment of immovable property vide No 70Q/70000423070001303, dated 19.06.2025 demanding for Rs.38,18,862/- and pass such 2. Fleard the learned counsel for the petitioners and Sri K.Sangam Naidu, the learned Standing counsel for the respondent Nos.1 to 3. 3. The learned counsel for the petitioner submits that the petitioner is an unaided educational institution, which has complied with all the statutory requirements governed by the Education Department and has been imparting education at the undergraduate level in Vizianagaram. While so, the 2 respondents herein issued demand notices under Section 45A of nd rd and 3 3 the ESI Act, 1948, demanding the petitioner to pay the ESI contributions on behalf of the employees of the petitioner institution. The subject orders under Section 45A were passed by the respondents on 29.10.2015, 09.10.2017, and finally on 12.01.2024. The petitioner has been contesting that the institution does not fall within the jurisdiction of the ESI Act, 1948. In the meanwhile, the 2 and respondents issued a warrant of attachment of immovable nd property dated 19.06.2025, attaching the administrative office of the petitioner institution and also sealing the office premises with lock and key. Hence, the present writ petition. 4. On the other hand, the learned Standing Counsel appearing for respondent Nos. 1 to 3 submits that the petitioner institution falls within the jurisdiction of the ESI Act and was subjected to orders passed under Section 45A by the respondents, dated 29.10.2015 for the period from 01.10.2010 to 28.02.2014, dated 09.10.2017 for the period from 01.03.2014 to 30.06.2017, and dated 12.01.2024 for the period from 2018 to 2023. Even after receipt of these orders, the petitioner institution neither chose to pay the demanded amounts nor submitted any explanation or representation, either seeking exemption from payment or contesting that the petitioner institution does not fall within the jurisdiction of the ESI Act, 1948. He further submits that the orders under Section 45A of the ESI Act, 1948 have been issued and served upon the petitioner institution time and again since a decade. Since the petitioner did not act upon the said orders and failed to remit the dues 5. , the respondents were left with no option but to issue a warrant of attachment against the immovable property dated 19.06.2025. He further submits that if the petitioner is willing to cooperate with the respondents for conducting any enquiry and submit relevant material to settle the issue, the respondents will consider the representation and supporting documents by providing an opportunity of hearing to the petitioner in accordance with law. 6. Having regard to the submissions made by the learned counsel for the petitioner and Sri K. Sangam Naidu Standing Counsel appearing for respondent Nos. learned 1 to 3, and on perusal of the material placed on record, this Court is of the considered opinion that the present writ petition can be disposed of, particularly in view of the impugned proceedings dated 19.06.2025, by directing the petitioner to deposit an amount of Rs.6,50,000/- 5 within a period of two (02) weeks. The petitioner is also permitted to substantiate his claim, if any, by submitting all the required documents and cooperate with the further enquiry of the respondents. Upon receipt of the representation and documents submitted by the petitioner, respondent Nos. 2 and 3 are hereby directed to consider the same after providing an opportunity of hearing to the petitioner and pass appropriate orders with reference to the earlier orders passed. In the meanwhile, the respondents directed to remove the lock and key with immediate effect for the administrative office of the petitioner, while continuing the attachment over the immovable property, and the petitioner shall be allowed to access the administrative office for discharging of its regular duties. In the event of failure by the petitioner to deposit the said amount of Rs.6,50,000/- as directed above, the respondent authorities shall proceed in accordance with law. The respondents are further directed to complete the entire exercise within a period of two (02) months from the date of submission of the representation and supporting documents by the petitioner. are 7. With the above direction, writ petition is disposed of. No costs. 6 As a sequel, interlocutory applications if any pending, shall stand closed. Sd/- K.KASI RAO ACHARI ASSISTANT REGISTRAR //TRUE COPY// SECTION OFF] ER To, 1. The Director, Employees State Insurance Corporation ESIC, Sub-Regional Office, D. No. 45-57-2/1/1, Nagar, Akhayyapalem, Visakhapatnam - 530024. 2. The Assistant Director, Employees State Insurance Corporation ESIC, Sub-Regional Office, Visakhapatnam - 530024. 3. The Recovery Officer, Employees State Insurance Corporation, Sub- Regional Office, Visakhapatnam - 530024. 4. One CC to Sri T. Balaji, Advocate [OPUC] 5. One CC to Sri K. Sangam Naidu, SC for ESIC [OPUC] 6. Two CD Copies 1st and 2nd Floors, RR House, Narasimha Cnr HIGH COURT DATED:01/08/2025 C.C. BY 06.08.2025 ORDER WP NO. 19991 OF 2025 DISPOSING OF THE W.P. WITHOUT COSTS