JUDGMENT :

Challa Gunaranjan, J.

All these writ appeals since involve the very same question of law as to applicability of provisions of the Employees’ State Insurance Act, 1948 (for short, the “ESI Act”) to various municipal corporations, the same are heard together and disposed of by this common judgment.

2. For the sake of convenience, the facts emanating in Writ Appeal No. 80 of 2024 are stated as under.

3. (a) The appellant-writ petitioner is a statutory corporation established under the provisions of the Andhra Pradesh Municipal Corporations Act, 1994 and governed by the Greater Hyderabad Municipal Corporation Act, 1955. The corporation provides civic amenities such as services in health, sanitation, maintenance and development of roads, urban forestry, street lighting and maintenance of works, playgrounds, etc., which are essential functions envisaged under the provisions of the Corporation Act.

(b) In order to perform aforesaid functions, the corporation engages the services of outsourcing workers provided by self-help groups/contractors. Though the said workers engaged by such independent self-help groups/contractors are not employees of the corporation, nevertheless, as a welfare measure, the corporation has been extending benefits under various enactments, such as payment of minimum wages, ESI and provident fund contributions, etc.

(c) It is stated that though the appellant was not notified by the appropriate Government as required under Section 1(5) of the ESI Act, bringing it within the purview of provisions of said Act as an establishment, the corporation on its own was providing the benefits of ESI contribution. Despite the appellant not being governed by provisions of the ESI Act and regulations made thereunder, 1^st respondent ESI corporation, by order, dated 20.05.2016, levied damages of Rs.31,52,988/- for delayed payment of contribution for the period from October 2010 to December 2014, in terms of Section 85-B of the ESI Act, treating the corporation as an establishment.

(d) The appellant Corporation had challenged the said orders in W.P. No. 19581 of 2016, which eventually came to be disposed of by setting aside impugned order on the ground that said order was passed without deciding as to whether damages were at all leviable or not, and whether there was any mens rea, accordingly, the matter was remanded to decide the issue afresh after conducting a detailed enquiry. In pursuance to the same, during the inquiry, appellant had raised a jurisdictional issue of applicability of the ESI Act in the absence of a statutory notification under Section 1(5) of the ESI Act and also sought to place reliance on order, dated 05.12.2018, passed in ESI Case No.13 of 2018 and batch relating to GHMC, which decided the issue in its favour, therefore, pleaded that question of imposing damages does not arise. However, the 1^st respondent has passed order, dated 29.11.2019, confirming the damages. Assailing the same, appellant corporation preferred W.P. No. 374 of 2019.

(e) After filing of the writ petition, Government of Andhra Pradesh, vide G.O.Ms.No.2, Labour, Factories, Boilers & Insurance Medical Services (IMS&VIG) Department, dated 19.04.2023, issued final notification in terms of Section 1(5) of the ESI Act, extending the provisions of ESI Act to all classes of establishments viz., municipal bodies including municipal corporations, municipal councils, nagar palikas and other urban local bodies run by the State Government, wherein ten or more persons on casual or contractual or both basis are employed, or were employed for wages on any day of the preceding 12 months. Even the respondent ESI Corporation issued circular, dated 22.05.2023, to the effect that Government of Andhra Pradesh had issued draft notification, dated 28.11.2022, and thereafter, final notification, dated 19.04.2023, under Section 1(5) of the ESI Act for coverage of casual or contractual workers engaged under municipal corporations and municipal councils, which h