THE HON’BLE SRI JUSTICE BATTU DEVANAND WRIT PETITION No.28017 of 2025 ORDER: 1. This Writ Petition has been filed against the action of the respondent No.2 in issuing the notice in Form No.ESI CP 2, dated 05.06.2025 basing on the proceedings of a Certificate No.6200039940000/00001, dated 29.05.2025, as illegal, arbitrary and violation of Article 14, 19(1)(g) and 21 of the Constitution of India and consequently, sought direction to the respondents to give reasonable opportunity of hearing to the petitioner for presenting the case with relevant records and adjudicate the matter on merits in the interest of justice. 2. Heard the learned counsel for the petitioner and learned Standing Counsel appearing for the respondents. 3. On careful perusal of the material available on record, the case of the petitioner is that the petitioner established a small cloth showroom in Palakollu Town, West Godavari District, by availing loans from private financial institutions and engaged four local persons to assist in the day by day operations of the shop. The said establishment is duly registered with the Labour Department, 2 Government of Andhra Pradesh and a Certificate of Registration of Establishment under Form-C has been issued. 4. While the matter stood thus, the petitioner received the impugned notice, dated 05.06.2025 issued by the respondent No.2. A perusal of the same goes to show that the petitioner came to know that the said notice was issued basing on the Certificate, dated 29.05.2025 issued by the recovery officer for the recovery of an amount of Rs.3,61,052/- [Rupees Three Lakhs Sixty One Thousands and Fifty Two Only]. 5. Aggrieved by the said notice, which was issued without following due process of law, the present writ petition is filed. 6. Learned counsel for the petitioner would submit that the Certificate, dated 29.05.2025 which is the basis for issuing the impugned notice, dated 05.06.2025 has not been served on the petitioner. 7. Learned counsel for the petitioner further contends that, without conducting a proper assessment and without calling for the books of accounts or the details of the employees in the petitioner’s establishment, the impugned proceedings have been issued 3 erroneously. Accordingly, he sought to set-aside the same by allowing the Writ Petition. 8. On the other hand, learned Standing Counsel appearing for the respondents would submit that, against the notice under Section 45(c) to 45 (I) of the Employees’ State Insurance (E.S.I.) Act, 1948, issued by the respondent, the petitioner is having statutory remedy of appeal under Section 45 AA of the E.S.I. Act. He further contends that the petitioner, without exhausting statutory remedy, directly filed this Writ Petition, which is not permissible and accordingly, he sought to dismiss the Writ Petition at the stage of admission. 9. Having heard the submissions of the respective counsel and upon careful examination of the material available on record, it appears that the present Writ Petition is filed against the notice, dated 05.06.2025 issued by the respondent No.2 under Section 45 (c) to 45(I) of the E.S.I. Act, 1948, read with Rule-2 of the II Schedule to the Income Tax Act, 1961, and Income Tax (Certificate Proceedings), 1962. 10. It is an admitted fact that if an employer is not satisfied with the order referred to, he may prefer an appeal to the Appellate Authority under Section 45AA of the E.S.I Act, 1948. But the pre- condition imposed to prefer such appeal is that it has to be preferred 4 within a period of 60 days of such order and after depositing 25% of the contribution so ordered or the contribution as per own calculation, whichever is higher. In the present case, the petitioner without availing remedy provided under Section 45 AA of the E.S.I Act, 1948, the petitioner filed this Writ Petition by invoking Article 226 of the Constitution of India. 11. This Court, at the stage of admission, by order, dated 10.12.2025 granted interim suspension of the impugned proceedings subject to the condition of petitioner depositing 50% of the amount shown in the impugned proceedings, within two (02) weeks from the date of the order. Learned counsel for the petitioner would submit that, in compliance of the said interim order, the petitioner deposited 50% of the amount shown in the impugned proceedings. 12. In view of the above facts and circumstances of the case, in our considered view, instead of keeping this Writ Petition pending for years together, it is appropriate and desirable to dispose of the Writ Petition, with the consent of both the counsel, without going into merits of the case. 13. Accordingly, the Writ Petition is disposed of with the following directions:- 5 (a). The petitioner is at liberty to approach the Appellate Authority under Section 45AA of the Employees’ State Insurance (E.S.I.) Act, 1948, in the interest of justice, within a period of two weeks, from the date of receipt of a copy of this order. (b). In the event the petitioner files an appeal before the Appellate Authority within a period of two (2) weeks from the date of receipt of a copy of this order, the respondent-authority shall take the appeal on record and consider and dispose of the same in accordance with the due process of law. (c). Further, it is made clear that as the petitioner has already deposited 50% of the amount demanded in notice, dated 05.06.2025 in compliance of the interim order, dated 10.12.2025, the respondents are directed not to insist for deposit the amount mentioned in the Section 45 AA of the Employees’ State Insurance (E.S.I.) Act, 1948. 14. There shall be no order as to costs. Consequently, Miscellaneous Petitions, if any, pending in the Writ Petition shall stand closed. _____________________________ JUSTICE BATTU DEVANAND Date: 23.03.2025 PKR 6 THE HON’BLE SRI JUSTICE BATTU DEVANAND 95 WRIT PETITION No.28017 of 2025 Date: 23.03.2025 PKR