The Supreme Court of India has granted exemption to Jayaprada, a former Parliamentarian and prominent cine actor, in a case concerning her alleged failure to meet contributions to the Employees State Insurance Corporation (ESIC). The order, issued by Justice SVN Bhatti, a single-judge, includes a scheduled next hearing on December 8.
The legal saga began on August 10 when a Magistrate court convicted Jayaprada for non-payment of contributions owed to the ESIC. The Metropolitan Magistrate Court in Chennai imposed a six-month prison sentence on Jayaprada and her co-accused based on a complaint filed by the ESIC. The complaint alleged that although Jayaprada's cinema deducted Employees' State Insurance (ESI) amounts from workers' earnings, it failed to remit the funds to the State Insurance Corporation. The outstanding amount was reported to be ₹37.68 lakh.
Jayaprada, along with her brothers Ramkumar and Raj Babu, were partners in Jayaprada Cinema, which ceased operations about a decade ago. Section 40 of the ESI Act mandates the principal employer to make payments for both the employer's and employees' share of contributions. The legal proceedings suggest allegations of non-compliance with these obligations, leading to the earlier-mentioned conviction.
Following her conviction, Jayaprada appealed to the Madras High Court to challenge the order. However, on October 20, the High Court rejected her request for the suspension of the sentence. The High Court directed that Jayaprada and the other accused could seek bail or sentence suspension only after surrendering and depositing ₹20 lakh each. Subsequently, she sought relief in the Supreme Court.
In her plea to the Supreme Court, Jayaprada argued that the conviction order was flawed as the relevant amount had been paid before the judgment. She contended that, due to this, the sentence should be suspended while her appeal against the conviction is pending.
Case: Jayapradha Cine Theatre vs Employees State Insurance Corporation,
SPECIAL LEAVE PETITION (CRIMINAL) Diary No. 45929/2023.
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