ORAL JUDGMENT

1. Present petition is filed by the petitioner – Surat Manav Seva Sangh under Article 226 & 227 of the Constitution of India read with the provisions of the Employees’ State Insurance Act, 1948 (hereinafter be referred to as “the Act”) against the order dated 22.12.2017 passed under Section 45A of the Act as also the order dated 07.03.2018 passed under Section 45AA of the Act and the consequential show-cause notices each dated 21.01.2020 issued by the respondent herein for recovery of the dues towards damages and interest as determined by the respondent.

2. Facts giving rise to present petition in nut-shell are as under :-

2.1 That, the petitioner is a registered Trust under the provisions ofthe Bombay Public Trust Act and is not doing any profit making activity but, is doing social welfare activity. That, the petitioner is giving free of cost food, education, shelter etc. to the needy and deserving persons in the society. That, the petitioner also runs medical activities and is committed to serve the down-trodden and poor people of the society.

2.2 As a part of its charitable activity, petitioner has executed Memorandum of Understanding for the purpose of establishing pathology laboratory center in the premises of New Civil Hospital, Surat. That, the agreement has been executed between the petitioner and New Civil Hospital, Surat on 21.01.2011. As a part of the agreement, petitioner has constructed laboratory at the second floor of the existing MRI Center at New Civil Hospital, Surat. That, the petitioner has agreed to provide pathology laboratory services, M.R.I and dialysis center to the patients of civil hospital only at 50% less than the market rate. That, every day five patients as recommended by the civil hospital are provided pathological tests free of cost. That, as per the avowed object of the petitioner, citizens registered as poor patients having BPL card besides the above free of cost five patients, without any cap, are being provided free tests as referred by the Medical Superintendent. That, the petitioner does not provide independent pathology services but the pathological laboratory is solely attached to New Civil Hospital, Surat. It does not admit and/or conduct tests on the patients without reference to the Medical Superintendent and only those patients who are referred by the doctors either as indoor or outdoor, are diagnosed at pathology laboratory. That, the petitioner runs laboratory mainly on the basis of donations it received through the Trust and no profit is being made bythe petitioner out of the activity. On the contrary, petitioner shall have to put in huge funds through donations for the purpose of providing pathological services at half the market rate or free of cost, as the case may be. That, petitioner also provide free of cost food to the patients admitted in the civil hospital.

2.3 It is the case of the petitioner that, after the first execution of Memorandum of Understanding, further extension of Memorandum of Understanding came to be executed on 22.05.2015 on the same terms and conditions except some minor modifications. That, the petitioner has also executed Memorandum of Understanding for the purpose of dialysis for the patients admitted in the New Civil Hospital, which is provided free of cost to all the patients irrespective of their income. That, as per the the Act more particularly Section 1(5) of the Act, appropriate government shall have to notify the establishments which are covered from time-to-time under the provisions of the Act. So far as State of Gujarat is concerned, appropriate government i.e. State of Gujarat, has thought it fit not to include medical and educational institutions for the implementation of the Act and therefore, the Act is not applicable to New Civil Hospital, Surat.

2.4 It is the case of the petitioner that, on 26.11.2014 one Enforcement Officer from the office of the respondent visited the pathology laboratory center of the petitioner and instruct