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HIGH COURT OF BOMBAY
NITIN W. SAMBRE, VRUSHALI V. JOSHI
Employees State Insurance Corporation – Appellant
Versus
State of Maharashtra – Respondent
Judgment :
(Nitin W. Sambre, J.)
1. Heard.
2. Rule. Rule returnable forthwith. Heard Rule finally with consent of counsel for the parties.
3. Impugned in the petition is the notification dated 18/12/2018 issued by the respondent No.1 thereby granting exemption in favour of the respondent No.2-Board from the provisions of the Employees’ State Insurance Act, 1948 (herein after referred as “the Act of 1948”).
4. The facts necessary for deciding the petition are as under :
The petitioner-Employees State Insurance Corporation, which was established under Section 3 of the Employees State Insurance Act, 1948 (hereinafter referred to as ‘the Act of 1948’ for the sake of brevity) is required to act for the benefit of the employees in cases of sickness, maternity, suffering injury while in employment and certain other matters in relation thereto. Same is a welfare piece of legislation and also extend insurance cover to employees. Pursuant to the provisions under Section 26 of the Act of 1948, the establishment of Employees State Insurance Fund through the contributions made under the Act of 1948 is provided. Section 28 of the Act of 1948 contemplates purpose for which the funds may be expanded. Th
Exemptions under the Employees’ State Insurance Act cannot be granted retrospectively, as per Sections 87 and 91-A, which must be strictly adhered to.
Point of law: Power of the Government to grant exemption cannot be disputed and the Corporation gets a chance by virtue of Section 89 to put forth its views before Government decide on the question o....
The main legal point established in the judgment is the requirement for approaching the ESI Court for adjudication of disputes under the Employees State Insurance Act, 1948.
A reading of Section 87 coupled with its proviso, makes it clear that an enquiry is to be done by the Government after hearing all the affected parties before passing orders in the exemption applicat....
An appeal against recovery proceedings under the E.S.I. Act is not maintainable without first challenging the correctness of the preceding order under Section 45-A.
The duty of the Principal Employer to ensure compliance with the ESI Act for contract workers and the Corporation's right to proceed in accordance with the law if the employer fails to comply.
The court upheld the rejection of exemption requests under the ESI Act, emphasizing the necessity of including affected workers in welfare legislation proceedings.
Non-payment of mandatory contributions – Only Insurance Court constituted under Section 74 of Act of 1948 would be in a position to examine disputed questions of facts.
(1) ESI Act should be given liberal interpretation and should be interpreted in such a manner so that social security can be given to employees.(2) ESI contributions – For demand notices for period a....
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