When Recovery Certificate under section 45C of ESI Act 1948 Can be Issued.
Section 45C of the Employees’ State Insurance (ESI) Act, 1948 grants an authorized officer the power to issue a certificate to a Recovery Officer detailing any amount in arrears under the Act. Upon receipt of this certificate, the Recovery Officer is legally authorized to recover the specified amount from the factory, establishment, or principal/immediate employer using one or more of the prescribed methods, including attachment and sale of property, arrest of the employer, or appointment of a receiver for the property.
45C. Issue of certificate to the Recovery Officer.
(1)Where any amount is in arrears under this Act, the authorised officer may issue, to the Recovery Officer, a certificate under his signature specifying the amount of arrears and the Recovery Officer, on receipt of such certificate, shall proceed to recover the amount specified therein from the factory or establishment or, as the case may be, the principal or immediate employer by one or more of the modes mentioned below:
(a)attachment and sale of the movable or immovable property of the factory or establishment or, as the case may be, the principal, or immediate employer;
(b)arrest of the employer and his detention in prison;
(c)appointing a receiver for the management of the movable or immovable properties of the factory or establishment or, as the case may be, the employer:
Provided that the attachment and sale of any property under this section shall first be effected against the properties of the factory or establishment and where such attachment and sale is insufficient for recovering the whole of the amount of arrears specified in the certificate, the Recovery Officer may take such proceedings against the property of the employer for recovery of the whole or any part of such arrears.
(2)The authorised officer may issue a certificate under sub-section (1) notwithstanding that proceedings for recovery of the arrears by any other mode have been taken.
Section 45-I of the ESI Act provides for the powers of an Authorised Officer and a Recovery Officer to initiate recovery proceedings against employers who fail to comply with the Act’s provisions, such as depositing their required contributions. This includes the authority to recover arrears of ESI contributions, interest, and damages by attaching bank accounts or other assets, following the procedures of the Income Tax Act’s Third Schedule
