# In the matter of The ESI Corporation vs. Renram Fashions India Pvt. Ltd.

> HC judgment dated 2024-11-19. Citation: TCN-2024-HC-00010. The case involves two appeals, MFA No.3185/2017 and MFA No.3186/2017, filed against orders of the…

- **Court:** HC
- **Order date:** 19 Nov 2024
- **Citation:** TCN-2024-HC-00010
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/the-esi-corporation-vs-renram-fashions-india-pvt-ltd-e023bc38

## Summary

### Background

The case involves two appeals, MFA No.3185/2017 and MFA No.3186/2017, filed against orders of the ESI Court. MFA No.3185/2017 challenges the ESI Court's order that partly allowed ESI Application No.27/2014, setting aside an order dated 13.6.2014 under Section 85-B of the Employees' State Insurance Act, 1948, which claimed Rs.26,34,569/- in contributions but directed the applicant to pay only Rs.6 lakhs. MFA No.3186/2017 challenges the ESI Court's order that partly allowed ESI Application No.28/2014, setting aside an order under Section 45-A of the ESI Act claiming Rs.13,04,074/- in interest for the period 01/2009 to 06/2013 but directed payment of only Rs.3 lakhs to the ESI Corporation. Both appeals concern delayed ESI contributions by the respondent, Renram Fashions

…

## Facts

The respondent, M/S Renram Fashions India Pvt. Ltd., made delayed payments of ESI contributions for the period between January 2009 and June 2013, totaling Rs. 40,30,086. Due to the delay, the ESI Corporation issued notices claiming Rs. 13,04,074 as interest and Rs. 26,34,569 as damages. The respondent then filed ESI applications before the ESI Court, which partly allowed the applications, reducing the interest to Rs. 3,00,000 and the damages to Rs. 6,00,000. The ESI Corporation appealed these reductions, arguing that the ESI Court erred in reducing the amounts. The respondent argued that the delay was due to a lack of awareness of the quantification of the contribution and poor health. The ESI Court had considered the applicant's lack of awareness of the

…

## Issues and analysis

### Issue 1: Whether the ESI Court was justified in reducing the damages claimed by the ESI Corporation from …

**Ratio:** The legal principle is that failure to deposit ESI contributions constitutes a breach of

…

**Reasoning:** The High Court reasoned that the ESI Court's decision to reduce the damages was erroneous

…

**Interpretation:** Section 85B of the ESI Act and Regulation 31C of the Regulations provide a

…

**Application:** In this specific case, the High Court found that the respondent did not meet

…

## Parties

- **Judges:** H.P. Sa…
- **Appellants:** The ESI CORPORATIO…
- **Respondents:** M/S RENRAM…
- **Other parties:** Kohi…

## Timeline

- **2009-01-01 — Start of Disput…**: The period for which ESI…
- **2013-06-01 — End of Dispute…**: The period for which ESI…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 75 — Punishment for false information furnished in…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-75)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/high-courts-new-delhi/the-esi-corporation-vs-renram-fashions-india-pvt-ltd-e023bc38