This case involves M/s Nahar Industrial Enterprises Ltd. and the Employees State Insurance Corporation. The main dispute was about whether a case, after significant progress in one court, should be “returned” or “transferred” to another court under Rule 18 of the Punjab Employees Insurance Court Rules, 1951. The High Court held that once a case has advanced beyond the initial stage, it must be transferred (not returned), and the new court can continue from where the previous court left off. The court set aside earlier orders and directed the new court to proceed from the same stage, saving time and resources for all parties involved.
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M/s Nahar Industrial Enterprises Ltd. Vs. Employees State Insurance Corporation & Others (Punjab & Haryana)
CR-938-2024 (O&M)
Date: 07th February 2025
Should a case that has already progressed significantly in one Employees Insurance Court be “returned” or “transferred” to another court under Rule 18 of the Punjab Employees Insurance Court Rules, 1951?
Petitioner (M/s Nahar Industrial Enterprises Ltd.)
Respondent (Employees State Insurance Corporation)
Q1: What is the main legal principle established in this case?
A: Once a case has progressed beyond the initial stage in an Employees Insurance Court, it must be transferred (not returned) to the appropriate court under Rule 18(2) of the 1951 Rules, and the new court can continue from where the previous court left off.
Q2: Why did the High Court set aside the previous orders?
A: Because the Ludhiana court wrongly returned the case instead of transferring it, and the Dera Bassi court wrongly ordered a fresh trial instead of continuing from the previous stage.
Q3: What does this mean for the parties?
A: The parties do not have to repeat the entire trial. The Dera Bassi court will pick up the case from where it was left in Ludhiana, using all the evidence and pleadings already on record.
Q4: Does this case change how similar cases will be handled in the future?
A: Yes, it clarifies that courts must transfer, not return, cases that have already progressed, and that the new court can continue from the same stage, saving time and resources.
Q5: What section or rule was central to the court’s decision?
A: Rule 18 of the Punjab Employees Insurance Court Rules, 1951.