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2023 Supreme(Cal) 694

IN THE HIGH COURT AT CALCUTTA
RAJA BASU CHOWDHURY, J.

Belur Sramajibi Swasthya Prakalpa Samity And Anr. – Petitioners
Versus
State Of West Bengal And Ors. – Respondents
WPO No.2471 Of 2022
Decided On : 09-02-2023

Advocates Appeared:
For the Petitioners: Mr. Supriyo Chattopadhyay, Mr. Tapan Sarkar.
For ESI Corporation : Mr. Siv Chandra Prasad.
For the Respondents: Mr. Debashish Ghosh, Mr. Pratik Garai.

Headnote:

Employee’s State Insurance Act, 1948 – Section 91 – Societies Registration Act, 1961 – Section 87 – Grant of exemption – Charitable Organization engaged in providing – Challenging order – Held, Court of view that Principal Secretary, Department of Labour, Government of West Bengal should reconsider aforesaid issue afresh, having regard to observation made in order and aforesaid order passed by him, and a fresh decision should be taken, as regards grant of exemption under Section 88 read with Section 91 of said Act in favour of petitioner no.1 and if found eligible to grant exemption – Aforesaid decision must be taken strictly in terms of observations made herein as within a period of six weeks from date of communication of this order, upon affording opportunity of hearing to both petitioners as well as Employee’s State Insurance Corporation – Petitioners shall be at liberty to file documents, if necessary, which shall be taken into consideration while passing order – Writ disposed of.

JUDGMENT :

(Raja Basu Chowdhury, J.) :

1. The present writ application has been filed, inter alia, challenging the order dated 8th June, 2022 passed by the Principal Secretary, Department of Labour, Government of West Bengal. The petitioner no.1 claims to be a society registered under the Societies Registration Act, 1961 and claims to be a Charitable Organization engaged in providing, inter alia, health care facilities to the poor and needy. The petitioner no.1 is involved in other philanthropic activities.

2. It is the petitioner’s case that in the year 2012, the Principal Secretary, Department of Labour, Government of West Bengal while considering an application for grant of exemption under Section 91 of the Employee’s State Insurance Act, 1948 (hereinafter referred to as the ‘said Act’), by an order dated 1st November, 2012, was, inter alia, pleased to observe as follows:-

    “The Applicant Establishment, it appears, is a Charitable organization. The way the activities of the establishment are administered apparently justify its claim for exemption from application of the provisions of ESI Act. The organization therefore may be considered eligible for exemption in terms of Section 91 of the Act. However, since such order of exemption is required to be issued with consent of the Corporation, Additional Commissioner & Regional Director is requested to examine and advise suitably on the limits of exemption that may be considered in case of this establishment. Since a decision on exemption under Section 91 of the Act will take some time, exemption hereby is given to the Applicant Establishment under Section 87 of the Act for one year from 01.4.2012 to 31.3.2013.”

3. Since then, the appropriate Government had from time to time granted exemption to the petitioner no.1. Incidentally, by an order dated 17th November, 2016, the appropriate Government, had inter alia, rejected the petitioner’s application for grant of exemption, for the period from 1st April, 2016 to 31st March, 2017.

4. Although, the writ petitioners had challenged such order before this Court by filing a writ application, which was registered as WPO no.1113 of 2016 and notwithstanding such application being entertained by this Court, the same was ultimately dismissed for default on 15th January, 2020.

5. Since then, the petitioners had made a representation dated 28th September, 2021, calling upon the Hon’ble Labour Minister to look into the matter, for grant of permanent exemption to the petitioner no.1. Simultaneously, since WPO No. 1113 of 2016 was dismissed, without a decision on merit, the petitioners also filed a fresh writ application challenging the order dated 17th November, 2016, which was registered as WPO. 917 of 2022. It is, in connection with the aforesaid application that this Hon’ble Court, by taking note of the order dated 1st November, 2012 passed by the Principal Secretary, Labour Department, whereunder the petitioner no. 1 was found to be eligible, for grant of exemption under Section 91 of the said Act, by order dated 17th February, 2022, directed the Joint Secretary, Government of West Bengal, Labour Department, Directorate of ESI Branch, to consider and dispose of the representation filed by the petitioner no.1 on 28th September, 2021, within one month from the date of communication of this order, after giving reasonable opportunity of hearing to all the interested parties. The Hon’ble Court by the aforesaid order, also directed the concerned respondent, in considering the representation to take into consideration the observation made by the Principal Secretary, Department of Labour, Government of West Bengal, in his order dated 1st November , 2012, without in any way, being influenced by the observation made in the order dated 17th November, 2016 as aforesaid.

6. Pursuant to the aforesaid order the Principal Secretary, Department of Labour, Government of West Bengal, had given an opportunity of hearing to the petitioners and thereafter, had pas

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