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High Court of Gujarat

M/S RINKOO PROCESSORS LTD. 238versusREGIONAL DIRECTOR, EMPLOYEES STATE INSURANCE CORPORATION

Disposal
56-DISPOSED AT ADMISSION STAGE

Holding

The daily order dated 12‑01‑2026 shall not be implemented until the final decision on the petitioner's representation, and the petition is disposed.

Summary

M/s Rinkoo Processors Ltd. filed a special civil application under Articles 226 and 227 of the Constitution and the Employees' State Insurance Act, 1948, seeking to quash a daily order dated 12‑01‑2026 issued by the Deputy Director, ESIC, Ahmedabad, which was based on alleged non‑production of documents and threatened recovery proceedings. The petitioner also asked for a stay on all coercive recovery notices and restraint on attachment of its assets. The Court observed that the dues for the period 2012‑13 were raised before the Social Security provisions came into force and that the petitioner had made a representation to the authority, which was still pending. Accordingly, the Court directed that the daily order not be implemented until the representation is finally decided, and ordered the petition disposed without costs.

Issues considered

  • Whether the daily order dated 12‑01‑2026 issued by the Deputy Director, ESIC, can be implemented pending the decision on the petitioner's representation.
  • Whether the authority has jurisdiction to pass an order under Section 45‑A of the Employees' State Insurance Act as a preliminary issue.
  • Whether the petitioner is entitled to a stay of coercive recovery proceedings and restraint on attachment of its assets.

Legislation cited

Subjects

Writ of CertiorariEmployees' State Insurance ActSection 45-ASection 125Article 226Article 227stay of proceedingsattachment of assetsrepresentation

Judgment

       C/SCA/1959/2026                            ORDER DATED: 16/02/2026




          IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

           R/SPECIAL CIVIL APPLICATION NO. 1959 of 2026

==========================================
                M/S RINKOO PROCESSORS LTD. 238
                               Versus
 REGIONAL DIRECTOR, EMPLOYEES STATE INSURANCE CORPORATION
==========================================
Appearance:
JWALIT B SONEJI(7895) for the Petitioner(s) No. 1
MR.KRUTARTH K PANDYA(7092) for the Respondent(s) No. 1
==========================================

     CORAM:HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK

                           Date : 16/02/2026

                              ORAL ORDER


1.      The present petition is 5led under Articles 226 and 227 of the
Constitution of India and under the provisions of the Employees’ State
Insurance Act, 1948 for the following reliefs:-

          (A) Your Lordships may kindly be pleased to issue a Writ of
              Certiorari and/or any other appropriate writ, direction to
              quash and set aside the Daily Order dated 12.01.2026
              passed by respondent as it is in violation of order dated
              06.02.2025 passed by the Hon’ble ESI Court, Ahmedabad
              in ESI Application No. 91/2017.

          (B) Your Lordships may kindly be pleased to issue a Writ of
              Certiorari and/or any other appropriate Writ, direction
              comply with the direction of the order dated 06.02.2025
              passed by the Hon’ble ESI Court, Ahmedabad in ESI
              Application No.91/2017 and further be pleased to direct
              respondent to decide whether the respondent has
              authority to pass order under S.45-A of ESI Act may be
              decided as preliminary issue as per representation.



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     C/SCA/1959/2026                            ORDER DATED: 16/02/2026




        (C) Pending the admission, hearing and 6nal disposal of this
            petition be pleased to stay all coercive recovery
            proceedings, including C-19 Notice dated 20.11.2017 and
            stay the further proceedings under the C-18 notice dated
            21.04.2017 issued by respondent be further pleased to
            direct the respondent not to pass any adverse order
            against appellant or recovery money from appellant.

        (D) Restrain the respondents from attaching any bank
            accounts or assets of the petitioner.

        (E) Your Lordships may kindly be pleased to pass any other
            further Order/s as are deemed 6t, just and proper in the
            facts and circumstances of the case and in the interest of
            justice.


2.    The petitioner has challenged the notice / daily order dated
12.01.2026 passed by the Deputy Director, ESIC, Ahmedabad wherein
the Deputy Director has observed that the petitioner had failed to
produce relevant documentary evidence with E.I. Application No. 91 of
2017 and therefore under Section 125 of the Code on Social Security
will be issued shortly after examination of all the records available
with the oBce. On the basis of that, the petitioner made
representation before the Assistant Director, E.S.I. Corporation,
Ahmedabad on 22.11.2025.


3.    Heard learned counsel appearing for the respective parties.


4.    Considering the issue involved in the present petition, it
appears that when the petitioner was charging dues of the
contribution along with the penalty for a period of 2012 – 2013, at
that time, the Social Security was not come into force and even the
concerned authority has initiated proceedings. Therefore, the
petitioner has made a representation before the concerned Authority,



                               Page 2 of 3
           C/SCA/1959/2026                                                               ORDER DATED: 16/02/2026




  which is at present pending for decision.


  5.         In view of the above, the concerned authority shall decide the
  representation made by the petitioner, after giving proper opportunity
  of hearing to the petitioner. The notice / daily order dated 12.01.2026
  passed by the Deputy Director, ESIC, Ahmedabad shall not be
  implemented till the 5nal decision of the representation.


  6.         With the aforesaid observation, the present petition stands
  disposed of accordingly. There shall be no order as to costs.

                                                                       (HEMANT M. PRACHCHHAK,J)
  V.R. PANCHAL


Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: VIJAYKUMAR RAMESHBHAI PANCHAL(HC00171), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 18/02/2026 14:44:15




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