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2025 Supreme(Online)(MAD) 17179
HIGH COURT OF MADRAS
MR.JUSTICE R.VIJAYAKUMAR, J
R.C.Diocese of Kottar – Appellant
Versus
The Director – Respondent
REV.APLC(MD)No.163 of 2024 in CMA(MD).No.1438 of 2012
For Appellant :Mr.A.Irudayam For Respondents: Mr.C.Karthick Standing Counsel
A religious institution's administrative staff involved in secular activities can be covered under the Employees' State Insurance Act without a specific notification, as their activities are subject to statutory control.
Headnote:(A) Employees' State Insurance Act, 1948 - Section 1(5) and Section 45-A - Review petition filed by a religious and charitable institution challenging coverage under ESI Act - The court held that administrative staff involved in secular activities are subject to statutory control and can be covered under ESI Act - The review petition was dismissed as no new grounds were established. (Paras 2, 4, 6, 10, 15)
(B) Review Application - The court reiterated that a review is not an appeal in disguise and cannot reargue points already decided - The review petition was dismissed for lack of merit. (Paras 16, 17)
Facts of the case:
The review petitioner, a religious institution, sought to review a dismissal order regarding its coverage under the ESI Act, arguing that it requires a specific notification for coverage. The court noted that the administrative staff managing secular activities are already covered under the ESI Act.
Findings of Court:
The court found that the administrative staff of the institution, involved in secular activities, are liable to be covered under the ESI Act, and no error was apparent in the previous order.
Issues: The main issues were whether a religious institution can be covered under the ESI Act without a specific notification and the interpretation of the court regarding the coverage of administrative staff.
Ratio Decidendi: The court ruled that the secular activities of the institution are subject to statutory control, and the administrative staff managing these activities can be covered under the ESI Act without needing a specific notification.
Result: Review petition dismissed.
JUDGMENT
The instant review petition has been filed seeking to review the order passed by this Court on 09.06.2023 in CMA(MD).No.1438 of 2012.
2.The review petitioner is Roman Catholic Diocese of Kottar. The said institution has suffered an order under Section 45-A of the Employees State Insurance Act 1948 on 02.08.2006.
3.The review petitioner herein had filed E.S.I.O.P.No.8 of 2006 under Section 77 of Employees' State Insurance Act seeking a declaration that they are not coverable under ESI Act 1948. This petition was dismissed by Labour Court, Tirunelveli by an order dated 10.10.2012. Challenging the said order, the institution has filed the above appeal.
4.This Court by an order dated 09.06.2023 had dismissed the appeal with the observation that the institution is already covered under P.F.Act and therefore, there cannot be any objection for being covered under ESI Act on the ground that they are a religious and charitable institution.
5.It was further observed that only the administrative staff who are working in the Bishop's house and who are involved in the administration of Church properties, Educational Institution, Hospital, Home for aged, Home for mentally retarded persons, Orphanage, Counselling Centre, Dispensaries and other social religious and service related activities are covered.
6.This Court has also referred to the judgment of the Hon'ble Supreme Court reported in (1997) 4 SCC 606 ( Sri Adi Visheshwara of Kashi Vishwanath Temple, Varanasi and others Vs. State of Utter Pradesh and others ) wherein it is held that the secular activities of a temple would be subject to statutory control. Seeking to review the above said order, the present review petition has been filed.
7.The review petition has been filed primarily raising the following two grounds:
a) The petitioner institution is a charitable and religious institution. Unless a specific notification is issued as contemplated under Section 1(5) of E.S.I.Act, the Institution cannot be covered under ESI Act.
b) Merely because the employees of the said institution have been brought under EPF Act, the same institution cannot be brought under ESI Act automatically.
8.The learned counsel for the review petitioner had further contended that they have sought for information from ESI Corporation under Right to Information Act, whether the Christian Charitable Institution in Tamil Nadu has been brought under Section 1(5) of ESI Act. For the said query, they have replied that the said institutions are not covered. Therefore, it is clear that unless a notification is issued under Section 1(5) of the ESI Act, a Charitable and Religious Institution like that of the review petitioner, cannot be covered under ESI Act. This fact has not been brought to the notice of the Court at the time of hearing. The information and RTI Act has been furnished only on 08.07.2024, after the disposal of the appeal. When a new and important matter has been discovered, a review application is maintainable under Order 47 Rule 1 of C.P.C.
9.Per contra, the learned Standing Counsel appearing for the ESI Corporation had contended that this Court has not dismissed the appeal on the ground that the institution is already covered under Employees' Provident Fund Act. It is only an observation made by the Court. He had further contended that this Court has not given any finding that a religious and charitable institution is covered under ESI Act. This Court has only arrived at a finding that the secular activities of the petitioner institution can be regulated by the statute. The secular activities like running hospital, dispensaries, educational institution etc., are all administered by the staff working in the Bishop's house.
10.In such circumstances, the petitioner establishment cannot contend that the religious and charitable activities of the Church cannot be brought under the purview of ESI Act. The learned Standing Counsel had further contended that the staff working in these institutions which are loca
