Essar Machine Works Limited v. Employees State Insurance Corporation

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 03-07-2026 CORAM THE HON'BLE MR JUSTICE N. ANAND VENKATESH CMA NOs.801, 815 & 818 of 2022 AND CMP NOs. 5747, 5822 & 5842 OF 2022 CMA.No.801 of 2022 Essar Machine Works Limited, Rep.by its Director, Ms.Ancy Verghese, Old No.1/39, New No.3/11, Chithalapakkam, Kolatchi Amman Kovil Street, Ootiambakkam, Chennai-600 130. ..Appellant(s) Vs.

¶1Employees' State Insurance Corporation, Rep.by the Regional Director, 143, Sterling Road, Nungambakkam, Chennai-600034.

¶2The Recovery Officer, Employees State Insurance Corporation, 143, Sterling Road, Nungambakkam, Chennai-600034. ..Respondent(s) CMA No. 815 of 2022 Essar Machine Works Limited, Rep.by its Director, Ms.Ancy Verghese, Old No.1/39, New No.3/11, Chithalapakkam, Kolatchi Amman Kovil Street, Ootiambakkam, Chennai-600 130. ..Appellant(s) Vs.

¶1Employees' State Insurance Corporation, Rep by the Regional Director, 143, Sterling Road, Nungambakkam, Chennai-600034.

¶2The Recovery Officer, Employees' State Insurance Corporation, 143, Sterling Road, Nungambakkam, Chennai-600034. ..Respondent(s) CMA No. 818 of 2022 Essar Machine Works Limited, Rep.by its Director, Ms.Ancy Verghese, Old No.1/39, New No.3/11, Chithalapakkam, Kolatchi Amman Kovil Street, Ootiambakkam, Chennai-600 130. ..Appellant(s) Vs.

¶1Employees' State Insurance Corporation, Rep by the Regional Director, 143, Sterling Road, Nungambakkam, Chennai-600034.

¶2The Recovery Officer, Employees' State Insurance Corporation, 143, Sterling Road, Nungambakkam, Chennai-600034. ..Respondent(s) PRAYER IN CMA No. 801 of 2022: Civil Miscellaneous Appeal is filed under Section 82 of the Employees State Insurance Act, to order and Decree of the Employees State Insurance Court (Principal Labour Court), Chennai in E.I.O.P.No. 68 of 2012 dated 30.12.2021. PRAYER IN CMA No. 815 of 2022: Civil Miscellaneous Appeal is filed under Section 82 of the Employees State Insurance Act, against the order decree of the Employees State Insurance Court Principal Labour Court, Chennai in E.I.O.P.No.69/2012 dated 30/12/2021 PRAYER IN CMA No. 818 of 2022: Civil Miscellaneous Appeal is filed under Section 82 of the Employees State Insurance Act, to being aggrieved by the order and Decree of the Employees State Insurance Court (Principal Labour Court), Chennai in E.I.O.P. No. 67 of 2012 dated 30.12.2021. For Appellant(s): (in all CMA Nos.) Mr.A.Ganapatheeswaran for M/s.Fox Mandal And Associates For Respondent (s): (in all CMA Nos.) Mr.S.P.Srinivasan COMMON JUDGMENT These Appeals have been filed challenging the order passed by the Employees State Insurance Court (Principal Labour Court), Chennai, in E.I.O.P No.68 of 2012 dated 30.12.2021 whereby the petition filed by the appellant under Section 75 of the Employees State Insurance Act, 1948 was dismissed and the order passed by the ESI Corporation under Section 45A of the Act, dated 08.04.2023 was confirmed.

¶2During the pendency of these appeals, this Court granted an order of interim stay on condition that the Appellant should deposit a sum of Rs.1,00,000/- to the credit of E.I.O.P No.68 of 2012 and accordingly, the amount was also deposited.

¶3When the matter was taken up for hearing on 20.11.2025, it was brought to the notice of this Court that the Appellant company underwent winding up process. Therefore, this Court directed the learned counsel for the liquidator to provide the necessary particulars.

¶4When the matter was taken up for hearing today, Mr.A.Ganapatheeswaran, learned counsel appearing for the liquidator of the Appellant company, filed typed set of papers. On going through the same, it is seen that the National Company Law Tribunal (NCLT), Chennai Bench, appointed a provisional liquidator for the appellant company by order dated 13.07.2022. Thereafter, by order dated

25.09.2023, the company liquidator was appointed.

¶5The NCLT, Chennai, by an order dated 13.03.2024 approved the appointment of the professionals to represent the appellant company under liquidation. Accordingly, the learned counsel has been appointed to represent the liquidator in the litigations that are pending against the appellant company.

¶6The Company liquidator has addressed a communication dated 25.08.2022 to the ESI corporation and for proper appreciation, the contents of the letter is extracted hereunder:-

¶1The winding up process has been initiated in respect of ESSAR MACHINE WORKS LIMITED ("Company") under the provisions of Section 271(a) of the Companies Act, 2013 vide an order dated 13th July 2022 passed by the Hon'ble National Company Law Tribunal, Chennai Bench ("NCLT" or "Tribunal") in CP /1334/2019. The Hon'ble NCLT in the same order was pleased to appoint Mr.Mutharasapuram Ganesan Chandrasekaran, having IBBI Registration Number IBBI/IPA-003/IP-NOO337/2021-2022 /13620 the undersigned as a Provisional Liquidator of the company. A copy of the order dated 13.07.2022 is attached herewith as Annexure A for your record and necessary actions.

¶2The undersinged after his appointment has made a public announcement in Form Win – 6 on 18.07.2022 intimating about the petition for the winding up of Essar Machine works limited. As per the said public announcement any opposition to the petition should be filed in Tribunal and a copy to be served on the petitioner or his representative not less than five days before the next date of the hearing I.e 21 September 2022. The copies of the public announcement dated 18.07.2022 is attached herewith as Annexure -B (Colly).

¶3Further as per the provisions of Section 279(1) of the companies Act, 2013 when a winding up order has been passed or a provisional liquidator has been appointed, no suits or other legal proceedings shall be commenced or if pending at the date of the winding up order, shall be proceeded with, by or against the company.

¶4In view of the above no suit or legal proceedings shall be commenced against the Essar Machine Works Limited since the company is undergoing winding up proceedings vide order dated

13.07.2022. The same is for your kind information and record.

¶7It is clear from the above that the appellant company is already under the control of the company liquidator. Hence, the claim made by the ESI Corporation will have to be dealt with by the company liquidator along with the other claims and it has to be settled as per the provisions of the Companies Act, 2013.

¶8In view of the above developments, no useful purpose will be served in keeping these appeals pending. The claim made by the ESI Corporation against the appellant company shall be made before the company liquidator, which will be considered in accordance with the provisions of the Companies Act, 2013. The sum of Rs.1,00,000/- that has been deposited by the appellant company shall be permitted to be withdrawn and it shall form part of the assets of the appellant company.

¶9With the above liberty granted to the ESI Corporation, all these appeals stands disposed of. No costs. Consequently, the connected miscellaneous petitions are closed.

03.07.2026 rka Index : Yes/ No Speaking / Non-speaking order N. ANAND VENKATESH

, J.

rka CMA.Nos.801, 815 & 818 of 2022

03.07.2026