IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.1199 OF 2011 (@ SPECIAL LEAVE PETITION(C)NO.32701 OF 2010

ALL INDIA EMP.ST.INSU.CORPN EMP.FEDN&ANR          APPELLANT(S)

                VERSUS

EMPL. STATE INSURANCE CORPN & ORS.                RESPONDENT(S)

O R D E R

Leave granted.

Heard learned counsel for the parties. 2. This  appeal is  directed against  the judgment  and order  

dated 11.08.2010 passed in Writ Petition (C)No.7690 of 2004 by the  

High Court of Delhi at New Delhi.  The short question which arises  

for  consideration  is  regarding  the  refund  of  the  amount  by  the  

employees in view of their undertaking.  

3. The relevant portion of the undertaking given by each of  

the employee is reproduced as under :

“If the above said Writ Petition or any SLP that the  

ESI Corporation may choose to file in the Supreme  

Court  is  decided  in  favour  of  the  Corporation,  I  

shall refund forthwith the entire arrears of pay of  

allowances  and  also  the  excess  pay  and  allowances  

that  might  have  been  paid  to  me  consequent  upon  

implementation of the Orders of the Tribunal.”  

In the said undertaking it was also mentioned that “in the event of  

my   failure  to refund the arrears and also the excess payment made

: 2 :

forthwith,  the  Corporation  shall  have  a  right  to  recover  such  

amounts from me.”  

4. In  view  of  the  categoric  undertaking  submitted  by  the  

employees, they are under an obligation to  refund the excess amount  

paid   to the Corporation or the Corporation would be at liberty to  

recover excess  amount paid tot he employees.   

5. In the facts and circumstances of this case, we direct the  

Corporation  to  recover  the  excess  amount  paid  to  the  employees  

within six years by fixing yearly installments.

6. Looking to the peculiar facts of this case, we further  

direct the Corporation not to recover the amount from the legal  

heirs of the deceased employees.

With this observation, the appeal is disposed of, leaving  

the parties to bear their own cost.

...................J. (DALVEER BHANDARI)

...................J. (DEEPAK VERMA)

NEW DELHI; 31ST JANUARY, 2011