Section 45C of ESI Act : Section 45C: Issue Of Certificate To The Recovery Officer

Explanation using Example

Imagine a scenario where XYZ Manufacturing Pvt. Ltd. has failed to pay its employees' state insurance contributions, which have accumulated over several months. The total due amount has become a significant arrear. Under Section 45C of the Employees State Insurance Act, 1948, an authorized officer from the ESIC (Employees' State Insurance Corporation) takes notice of these unpaid dues.

The authorised officer decides to issue a certificate to the Recovery Officer, indicating the exact amount that XYZ Manufacturing Pvt. Ltd. owes. Upon receiving this certificate, the Recovery Officer has the legal authority to recover the arrears through various methods, such as seizing and selling the company's property, arresting the owner and detaining him in prison, or appointing a receiver to manage the company's assets until the debt is cleared.

In this case, the Recovery Officer first targets the company's assets for attachment and sale, but if the proceeds from these actions are not enough to cover the full amount of the debt, the Recovery Officer can then proceed against the personal property of the company's owner to recover the remaining arrears.

This example shows how Section 45C provides a mechanism for the ESIC to enforce the collection of unpaid insurance contributions to ensure the protection and benefits for the employees are maintained.