A Magistrate court had on August 10 convicted Jayaprada for failing to pay contributions due to the ESIC.
The Metropolitan Magistrate Court in Chennai sentenced Jayaprada and co-accused to six months in prison after taking cognisance of a complaint by the ESIC.
As per the ESIC, while the management of the now defunct cinema theatre owned by Jayaprada had been deducting ESI amount dues from the workers’ dues, it had not been paying the money to the State Insurance Corporation.
An amount of ₹37.68 lakh was said to be outstanding.
Jayaprada and her brothers Ramkumar and Raj Babu were partners of Jayaprada Cinema, which went defunct around 10 years ago.
Under Section 40 of the ESI Act, the principal employer is required to pay towards the employer’s share of contribution, and the employees’ share of contribution. The principal employer is entitled to recover from the employees, their share of contribution from their wages.
After the Magistrate convicted her, she approached the Madras High Court challenging the order.
The High Court rejected her plea for suspension of sentence on October 20 and directed that the actress and other accused can apply for bail or suspension of sentence before the courts below only after surrendering and depositing ₹20 lakh each.
She then approached the Supreme Court.
She contended that the order of conviction suffers from patent infirmities as the concerned amount had been paid prior to the ruling. Therefore, the sentence should be suspended during the pendency of her appeal against her conviction.
Source: Barandbench
