Madras High Court Denies Suspension of Sentence for Actress Jayaprada in ESI Dues Case, Orders Surrender and Deposit of Funds

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Synopsis

It was alleged that Jayaprada Cine Theatre represented by its partners had collected the employee’s contribution, but not remitted along with its contribution as obligated under the Employee State Insurance Act

The Madras High Court has declined to suspend the sentence handed to actress and former Member of Parliament Jayaprada, along with associates of the Jayaprada Cine Theatre, for violating the Employee State Insurance Act by failing to pay dues.

In April of this year, the accused persons were sentenced to six months of simple imprisonment and fined Rs 5,000 by a Metropolitan Magistrate Court. Despite their request for sentence suspension, the Principal District and Sessions Judge had rejected their applications.

The bench of Justice G Jayachandran upheld the decision of the appellate court, stating that suspension of the sentence could not be granted since the accused had not surrendered or appeared before the trial court on the judgment day.

Considering the case history and conduct of the accused persons, the court found that the order was justified. However, the court allowed the possibility of bail or sentence suspension if the accused surrendered to the appellate court and deposited Rs 20 lakhs.

The court was dealing with a petition filed under Section 482 CrPC to call for the records relating to a case on the file of the Principal District and Sessions Judge, Chennai, and set aside the same as far as the Jayapradha Cine Theatre, represented by its Partner, Raj Babu was concerned. 

It was alleged that the petitioner partnership firm represented by its partners had collected the employee’s contribution, but not remitted along with its contribution.

Jayaprada and others were found guilty under the Employee State Insurance Act for failing to meet statutory obligations related to Employee State Insurance Corporation contributions.

The Metropolitan Magistrate had emphasized the seriousness of the offense and its socio-economic impact on employees, leading to the imposition of a sentence.

The petitioners argued that the absence of one partner during the judgment was due to sudden illness. They claimed the dues were paid during the trial, and the conviction should be set aside.

On the other hand, the standing counsel for the Employees State Insurance Corporation (ESIC) pointed out a significant delay in contribution payments and the non-appearance of the accused, supporting the court's decision not to suspend the sentence.

Case Title: M/s Jayapradha Cine Theatre and Anr  v. Employees State Insurance Corporation