BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 16.12.2025 CORAM:

THE HONOURABLE MR.JUSTICE B.PUGALENDHI and WMP(MD)Nos.20187, 20189 of 2023, 16847 of 2025 The Correspondent, Bishop Arockiasamy Higher Secondary School, Maravankudiyiruppu, Nagercoil, Kanyakumari District.

... Petitioner v.

1.The State of Tamil Nadu, Rep. by its Principal Secretary, Labour and Employment Department, Fort St.George, Chennai – 600 009.

2.Employees State Insurance – Regional Corporation (Tamil Nadu), Rep. by its Regional Director, 143, Sterling Road, Chennai – 600 034.

3.The Deputy Director (Revenue), Employee's State Insurance Corporation Sub-Regional Office, Tirunelveli Panchdeep Bhawan, ESIC Complex, Salai Street, Vannarapettai, Tirunelveli – 627 003.

4.The Assistant Director, Employee's State Insurance Corporation Sub-Regional Office, Tirunelveli Panchdeep Bhawan, ESIC Complex Salai Street, Vannarapettai, Tirunelveli – 627 003. ... Respondents Prayer: Writ Petition filed under Article 226 of the constitution of India, seeking for the issuance of Writ of Certiorari calling for the records relating to the impugned order passed by the fourth respondent Assistant Director in Proceedings No.66-00-041782-000-1303/45-A/SRO/TLI/692-14/246/22 dated 10.11.2022 u/s.45A of the Act, 1948 and quash the same.

For Petitioner : Mr.K.Ragatheesh Kumar for M/s.Isaac Chambers For Respondents : Mr.C.Venkatesh Kumar Special Government Pleader for R.1 Mr.C.Karthick for R.2 to R.4 *****

ORDER

The petitioner is a minority aided educational institution. This writ petition has been filed as against the demand notice dated 10.11.2022 issued by the 4^th respondent under Section 45A of the Employees State Insurance Act 1948 (“ESI Act”). The 4^th respondent, vide the impugned order, directed payment of ESI Contribution of Rs.1,82,325/- for the period from January 2013 to August 2014 along with statutory interest.

2.Learned Counsel appearing for the petitioner educational institution submitted that the ESI Act was made applicable to educational institution by notification dated 26.11.2010. It was challenged by the educational institutions and there was an order of interim stay on the operation of the notification since 31.01.2013 in WA.No.222 of 2013. This interim stay was subsequently extended by a Division Bench of this Court vide order dated 16.06.2015 in WA.Nos.918 of 2013, etc. In the meantime, the 3^rd respondent issued a show cause notice on 31.01.2019 directing the petitioner educational institution to show cause as to why a contribution of Rs.5,10,510/- should not be recovered for the period from September 2014 to August 2018. The petitioner institution provided an explanation for the same on 15.02.2019 pointing out the orders of the Division Bench. Thereafter, this issue was conclusively determined only in the year 2020 by the Hon'ble Full Bench of this Court, vide order dated 29.07.2020, holding that the educational institutions are covered under the ESI Act. The Full Bench, however, directed the authorities to consider the claim for write off under Section 91C in light of the pandemic situation. Even thereafter, the ESI Corporation has claimed huge contributions for the period from January 2013 to August 2014 vide the impugned demand notice which is arbitrary and unreasonable.

3.Heard the learned Counsel appearing for the respondents and perused the materials.

4.The main ground on which the demand notice is being challenged is the order of the Division Bench dated 16.06.2015 in WA.Nos.918 of 2013, etc., by which the earlier interim order was extended as under:-

“Learned counsel for the parties state that as recorded in the order dated 05.05.2005, reported in 2005 (5) SCC 1 (State of U.P vs. Jai Bir Singh), the question of law has been referred to the Larger Bench of the Honourable Supreme Court, i.e. whether the Employees' State Insurance Act, 1948, would apply to educational institutions. Interim orders have been operating in the present matters.

2.In view of the aforesai