https://www.taxtmi.com/caselaws?id=283972 ESI contribution liability that accrues during an establishment's period of coverage remains recoverable even after closure. The Act creates a continuing statutory obligation to contribute to the common fund once coverage applies, and employee contributions deducted from wages are deemed entrusted to the principal employer under section 40(4). Closure does not extinguish arrears already earned while the Act operated, so a post-closure demand notice may validly seek pre-existing dues. Recovery is therefore legally permissible notwithstanding subsequent shutdown of the establishment. en-us Fri, 15 Jan 1993 00:00:00 +0530 Tue, 22 Oct 2019 17:20:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=283972 ESI contribution liability that accrues during an establishment's period of coverage remains recoverable even after closure. The Act creates a continuing statutory obligation to contribute to the common fund once coverage applies, and employee contributions deducted from wages are deemed entrusted to the principal employer under section 40(4). Closure does not extinguish arrears already earned while the Act operated, so a post-closure demand notice may validly seek pre-existing dues. Recovery is therefore legally permissible notwithstanding subsequent shutdown of the establishment. Case-Laws Indian Laws Fri, 15 Jan 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=283972