SupremeToday Landscape Ad

Employees' State Insurance Act 1948

Employees' State Insurance (Central) Rules, 1950 Employees' State Insurance (General) Regulations, 1950 Notifications

Read full Act
S.75 Matters to be decided by Employees Insurance Court

Employees' State Insurance Act, 1948

Matters to be decided by Employees' Insurance Court :- (1) If any question or dispute arises as to--

(a) whether any person is an employee within the meaning of this Act or whether he is liable to pay the employee's contribution, or

(b) the rate of wages or average daily wages of an employee for the purposes of this Act, or

(c) the rate of contribution payable by a principal employer in respect of any employee, or

(d) the person who is or was the principal employer in respect of any employee, or

(e) the right of any person to any benefit and as to the amount and duration thereof, or


Legal Commentary on Section 75 of the Employees' State Insurance Act, 1948

Introduction

Section 75 of the Employees' State Insurance (ESI) Act, 1948, establishes the jurisdiction and scope of the Employees' Insurance Court (EIC) to adjudicate disputes and claims related to contributions, benefits, and other matters under the Act. It is a specialized tribunal designed to provide a speedy and effective resolution mechanism for issues arising between employers, employees, and the ESI Corporation.

What does Section 75 Say?

Section 75 delineates the matters that the Employees' Insurance Court shall decide, including:- Claims for recovery of contributions from principal or immediate employers (Section 75(1)(a))- Claims by employers to recover contributions (Section 75(1)(b))- Disputes regarding the status of persons as employees (Section 75(1)(g))- Disputes about benefits, exemptions, and other dues payable under the Act (Section 75(1)(g))- Matters relating to the determination of benefit or contribution payable to the Corporation or beneficiaries (Section 75(1)(h))- Any other matter that the Court is empowered to decide under the Act or by the government (Section 75(1)(i))- The Court also has the power to decide issues relating to exemption from coverage (Section 75(2-B))- The Court’s jurisdiction is exclusive and barred to civil courts in such matters (Section 75(3))

Essential Ingredients

  • Jurisdiction: The Court’s authority to adjudicate disputes specified under Section 75.
  • Scope: Covers claims for contributions, benefits, disputes about the status of employees, and exemptions.
  • Parties: Employers, employees, or the Corporation.
  • Procedure: The Court is to decide disputes based on the evidence presented, including documents and witnesses.
  • Inherent Powers: The Court can issue summons, enforce attendance, and administer oaths.
  • Exclusion of Civil Courts: Civil courts have no jurisdiction over matters covered under Section 75(3).

Scope of Section 75

  • The section confers exclusive jurisdiction on the ESI Court for disputes arising under the Act.
  • It encompasses claims for contributions, benefit entitlements, and disputes about the employment status.
  • The Court can decide questions relating to exemption from coverage, provided they are within the scope of the Act.
  • The scope also includes disputes about the amount payable and whether a person falls under the definition of an employee.
  • The Court’s jurisdiction is limited to statutory matters; it cannot entertain suits in civil courts on issues covered under Section 75.

Punishment for Violations

While Section 75 primarily deals with adjudication of disputes, violations such as non-compliance with Court orders or obstructing the Court’s proceedings may attract penalties under other provisions of the ESI Act, including fines or imprisonment. The Court can also impose costs or order recovery of dues as arrears of land revenue.

Legal Comments

  • Jurisdiction - Section 75 confers exclusive jurisdiction on the Employees' Insurance Court to decide disputes related to contributions, benefits, and employment status, thereby barring civil courts from entertaining such matters [Section 75(3)].
  • Scope - The section covers claims for recovery of contributions, disputes about the status of persons as employees, and issues regarding exemptions, benefits, and dues payable under the Act [Section 75(1)(a), (g), (h)].
  • Parties - The Court’s jurisdiction extends to employers, employees, and the ESI Corporation; however, proper impleadment of all concerned parties, especially employees, is essential for valid proceedings [Section 75(1)(g), (1)(i)].
  • Inherent Powers - The Court has implied powers to summon witnesses, enforce attendance, and administer oaths, necessary for effective adjudication, even though not explicitly stated in the Act [Section 75(1)(i)].
  • Exclusion of Civil Courts - Civil courts are barred from trying disputes that fall within the scope of Section 75, emphasizing the specialized nature of the ESI Court [Section 75(3)].
  • Natural Justice - The Court is bound to follow principles of natural justice, including providing an opportunity to be heard, especially in cases involving exemption or coverage disputes [Principles of Natural Justice].
  • Appeals and Limitation - Orders passed by the ESI Court are subject to appeal under Section 75(2-A). The limitation period for filing appeals is governed by Article 137 of the Limitation Act, 1963, and the Court’s jurisdiction is not barred by delay if the appeal is filed within the prescribed time [Section 75(2-A), Section 75(2-B)].
  • Disputes about coverage - The Court adjudicates whether an establishment or person falls within the ambit of the Act, relying on definitions and notifications issued under the Act [Section 2(12), Notifications].
  • Claims for contributions - The Court primarily deals with claims for the recovery of contributions from employers or disputes about the quantum payable by employers or employees [Section 75(1)(a)].
  • Benefit Claims - The Court also adjudicates claims related to benefits payable to employees or dependants, including compensation for injuries during employment [Section 75(1)(h), 75(1)(g)].
  • Exemptions - The Court’s jurisdiction does not extend to deciding exemption applications, which are the prerogative of the government or authorized authorities; such matters are beyond the scope of Section 75 [Section 75(1)(g), Section 87].
  • Legal Procedure - The Court can issue summons, examine witnesses, and record evidence, functioning similarly to a civil tribunal but with a specialized jurisdiction [Section 75(1)(i)].
  • Bar on Civil Courts - The bar under Section 75(3) ensures speedy resolution and prevents multiplicity of proceedings in civil courts on matters within the jurisdiction of the ESI Court.
  • Appeal Mechanism - Orders of the ESI Court can be challenged before higher authorities or tribunals as provided under the Act; the Court’s decisions are binding unless appealed or reviewed [Section 75(2-A)].
  • Penalties - Violations such as non-compliance with Court orders or obstruction may attract penalties under the Act, including fines and imprisonment, reinforcing the importance of compliance [Penal provisions].
  • Natural Justice - The principles of fair hearing and opportunity to be heard are integral to proceedings under Section 75, ensuring just adjudication [Principles of Natural Justice].
  • Limitations - The limitation for filing claims or appeals is governed by the Limitation Act, and the Court’s jurisdiction is not barred by delay if the statutory period is adhered to [Section 75(2-A), Limitation Act].
  • Legal Precedents - Courts have consistently held that Section 75 confers exclusive jurisdiction, and civil courts have no jurisdiction over disputes covered under the Act, emphasizing the specialized nature of the ESI Court [Judicial pronouncements].

This concise commentary synthesizes the legal provisions, judicial interpretations, and principles governing Section 75 of the Employees' State Insurance Act, 1948, highlighting its scope, jurisdiction, and procedural nuances.

S.6 Eligibility for re-appointment or re-election

Employees' State Insurance Act, 1948

Eligibility for re-appointment or re-election :- An outgoing member of the Corporation, Standing Committee, or the Medical Benefit Council shall be eligible for re-appointment or re-election as the case may be.


S.7 Authentication of orders, decisions, etc

Employees' State Insurance Act, 1948

Authentication of orders, decisions, etc :- All orders and decisions of the Corporation shall be authenticated by the signature of the Director-General of the Corporation and all other instruments issued by the Corporation shall be authenticated by the signature of the Director-General or such other officer of the Corporation as may be authorised by him.


S.8 Constitution of Standing Committee

Employees' State Insurance Act, 1948

Constitution of Standing Committee :- A Standing Committee of the Corporation shall be constituted from among its members, consisting of--

(a) a Chairman, appointed by the Central Government;

(b) three members of the Corporation, appointed by the Central Government;

(bb) three members of the Corporation representing such three State Government thereon as the Central Government may, by notification in the Official Gazette, specify from time to time;

(c) eight members elected by the Corporation as follows :_

(i) [x x x x]

(ii) three members from among the

S.9 Term of office of member of Standing Committee

Employees' State Insurance Act, 1948

Term of office of member of Standing Committee :- (1) Save as otherwise expressly provided in this Act, the term of office of a member of the Standing Committee, other than a member referred to in clause (a) or clause (b) or clause (bb) of Section 8, shall be two years from the date on which his election is notified:

Provided that a member of the Standing Committee shall, notwithstanding the expiry of the said period of two years, continue to hold office until the election of his successor is notified;

Provided further that a member of Standing Committee shall cease to hold office when he ceases to be a member of the Corporation.

(2) A member of the Standing Committee referred

S.10 Medical Benefit Council

Employees' State Insurance Act, 1948

Medical Benefit Council :- (1) The Central Government shall constitute a Medical Benefit Council consisting of_

* [(a) the Director General, the Employees' State Insurance Corporation, ex officio as Chairman;

(b) the Director General, Health Services, ex officio as Co-Chairman];

(c) the Medical Commissioner of the Corporation, ex officio;

(d) one member each representing each of the States (other than Union Territories) in which this Act is in force to be 1[appointed] by the State Government concerned;

(e) three members representing employe

S.11 Resignation of membership

Employees' State Insurance Act, 1948

Resignation of membership :- A member of the Corporation, the Standing Committee or the Medical Benefit Council may resign his office by notice in writing to the Central Government and his seat shall fall vacant on the acceptance of the resignation by that Government.


S.12 Cessation of membership

Employees' State Insurance Act, 1948

Cessation of membership :- (1) A member of the Corporation, the Standing Committee or the Medical Benefit Council shall cease to be a member of that body if he fails to attend three consecutive meetings thereof.

Provided that the Corporation, the Standing Committee, or the Medical Benefit Council, as the case may be, may, subject to rules made by the Central Government in this behalf, restore him to membership.

(2) Where in the opinion of Central Government any person appointed or elected to represent employers, employees or the medical profession on the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be, has ceased to represent such employers, employees or the medical profession,

S.13 Disqualification

Employees' State Insurance Act, 1948

Disqualification :- A person shall be disqualified for being chosen as or for being a member of the Corporation, the Standing Committee or the Medical Benefit Council-

(a) if he is declared to be of unsound mind by a competent Court; or

(b) if he is an un-discharged insolvent; or

(c) if he has directly or indirectly by himself or by his partner any interest in a subsisting contract with, or any work being done for, the Corporation except as a medical practitioner or as a shareholder (not being a Director) of a company; or

(d) if before or after the commencement of this Act, he has been convicted of an offence involving moral turpitud

S.14 Filling of vacancies

Employees' State Insurance Act, 1948

Filling of vacancies :- (1) Vacancies in the office of appointed or elected members of the Corporation, the Standing Committee and the Medical Benefit Council shall be filled by appointment or election, as the case may be.

(2) A member of the Corporation, the Standing Committee or the Medical Benefit Council appointed or elected to fill a casual vacancy shall hold office only so long as the member in whose place he is appointed or elected would have been entitled to hold office, if the vacancy had not occurred.


S.15 Fees and allowances

Employees' State Insurance Act, 1948

Fees and allowances :- Members of the Corporation, the Standing Committee and the Medical Benefit Council shall receive such fees and allowances as may from time to time be prescribed by the Central Government.


S.16 Principal Officers

Employees' State Insurance Act, 1948

Principal Officers :- (1) The Central Government may, in consultation with the Corporation, appoint a Director General and a Financial Commissioner.

(2) The Director-General shall be the Chief Executive Officer of the Corporation.

(3) The Director General and the Financial Commissioner shall be whole-time officers of the Corporation and shall not undertake any work unconnected with their office without the sanction of the Central Government and of the Corporation.

(4) The Director General and the Financial Commissioner shall hold office for such period, not exceeding five years, as may be specified in the order appointing him. An outgoing Director General or the Financial Commi

S.17 Staff

Employees' State Insurance Act, 1948

Staff :- (1) The Corporation may employ such other staff of officers and servants as may be necessary for the efficient transaction of its business, provided that the sanction of the Central Government shall be obtained for the creation of any post the maximum monthly salary of which exceeds 2[such salary as may be prescribed by the Central Government.

(2) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of the members of the staff of the Corporation shall be such as may be specified in the regulations made by the Corporation in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay :


S.18 Powers of the Standing Committee

Employees' State Insurance Act, 1948

Powers of the Standing Committee :- (1) Subject to the general superintendence and control of the Corporation, the Standing Committee shall administer the affairs of the Corporation and may exercise any of the powers and perform any of the functions of the Corporation.

(2) The Standing Committee shall submit for the consideration and decision of the Corporation all such cases and matters as may be specified in the regulations made in this behalf.

(3) The Standing Committee may, in its discretion, submit any other case or matter for the decision of the Corporation.


S.19 Corporations power to promote measures for health, etc., of insured persons

Employees' State Insurance Act, 1948

Corporation's power to promote measures for health, etc., of insured persons :- The Corporation may, in addition to the scheme of benefits specified in this Act, promote measures for the improvement of the health and welfare of insured persons and for the rehabilitation and re-employment of insured persons who have been disabled or injured and may incur in respect of such measures expenditure from the funds of the Corporation within such limits as may be prescribed by the Central Government.


S.20 Meetings of Corporation, Standing Committee and Medical Benefit Council

Employees' State Insurance Act, 1948

Meetings of Corporation, Standing Committee and Medical Benefit Council :- Subject to any rules made under this Act, the Corporation, the Standing Committee and the Medical Benefit Council shall meet at such times and places and shall observe such rules or procedure in regard to transaction of business at their meetings as may be specified in the regulations made in this behalf.


S.21 Supersession of the Corporation and Standing Committee

Employees' State Insurance Act, 1948

Supersession of the Corporation and Standing Committee :- (1) If in the opinion of the Central Government, the Corporation or the Standing Committee persistently makes default in performing the duties imposed on it by or under this Act or abuses its powers, that Government may, by notification in the Official Gazette, supersede the Corporation, or in the case of the Standing Committee, supersede, in consultation with the Corporation, the Standing Committee:

Provided that before issuing a notification under this sub_section the Central Government shall give a reasonable opportunity to the Corporation or the Standing Committee, as the case may be, to show-cause why it should not be superseded and shall consider the explanations and objections, if any, of the

S.22 Duties of Medical Benefit Council

Employees' State Insurance Act, 1948

Duties of Medical Benefit Council :- The Medical Benefit Council shall--

(a) advise the Corporation and the Standing Committee on matters relating to the administration of medical benefit, the certification for purposes of the grant of benefits and other connected matters;

(b) have such powers and duties of investigation as may be prescribed in relation to complaints against medical practitioners in connection with medical treatment and attendance; and

(c) perform such other duties in connection with medical treatment and attendance as may be specified in the regulations.


S.23 Duties of Director General and the Financial Commissioner

Employees' State Insurance Act, 1948

Duties of Director General and the Financial Commissioner :- The Director General and the Financial Commissioner shall exercise such powers and discharge such duties as may be prescribed. They shall also perform such other functions as may be specified in the regulations.


S.24 Acts of Corporation, etc., not invalid by reason of defect in Constitution, etc

Employees' State Insurance Act, 1948

Acts of Corporation, etc., not invalid by reason of defect in Constitution, etc :- No Act of the Corporation, the Standing Committee or the Medical Benefit Council shall be deemed to be invalid by reason of any defect in the Constitution of the Corporation, the Standing Committee or the Medical Benefit Council, on the ground that any member thereof was not entitled to hold or continue in office by reason of any disqualification or of any irregularity in his appointment or election, or by reason of such act having been done during the period of any vacancy in the office of any member of the Corporation, the Standing Committee or the Medical Benefit Council.


S.25 Regional Boards, Local Committees, Regional and Local Medical Benefit Councils

Employees' State Insurance Act, 1948

Regional Boards, Local Committees, Regional and Local Medical Benefit Councils :- The Corporation may appoint Regional Boards, Local Committees and Regional and Local Medical Benefit Councils in such areas and in such manner, and delegate to them such powers and functions, as may be provided by the regulations.


S.26 Employees State Insurance Fund

Employees' State Insurance Act, 1948

Employee's State Insurance Fund :- (1) All contributions paid under this Act and all other moneys received on behalf of the Corporation shall be paid into a fund called the Employees' State Insurance Fund which shall be held and administered by the Corporation for the purposes of this Act.

(2) The Corporation may accept grants, donations and gifts from the Central or any State Government, local authority, or any individual or body whether incorporated or not, for all or any of the purposes of this Act.

(3) Subject to the other provisions contained in this Act and to any rules or regulations made in this behalf, all moneys accruing or payable to the said fund shall be paid into the Reserve Bank of India or such other

S.27 Employees' State Insurance Act, 1948 27

Employees' State Insurance Act, 1948

[x x x x]


S.28 Purposes for which the fund may be expended

Employees' State Insurance Act, 1948

Purposes for which the fund may be expended :_ Subject to the provisions of this Act and of any rules made by the Central Government in that behalf, the Employees' State Insurance Fund shall be expended only for the following purposes, namely :--

(i) payment of benefits and provision of medical treatment and attendance to insured persons and, where the medical benefit is extended to their families, the provision of such medical benefit to their families, in accordance with the provisions of this Act and defraying the charges and costs in connection therewith.

(ii) payment of fees and allowances to members of the Corporation, the Standing Committee and the Medical Benefit Council, the Regional Boards, Local Committe

S.28-A Administrative expenses

Employees' State Insurance Act, 1948

Administrative expenses :- The types of expenses which may be termed as administrative expenses and the percentage of the income of the Corporation which may be spent for such expenses shall be such as may be prescribed by the Central Government and the Corporation shall keep its administrative expenses within the limit so prescribed by the Central Government.]


S.29 Holding of property, etc

Employees' State Insurance Act, 1948

Holding of property, etc :- (1) The Corporation may, subject to such conditions as may be prescribed by the Central Government, acquire and hold property both movable and immovable, sell or otherwise transfer any movable or immovable property which may have become vested in or have been acquired by it and do all things necessary for the purposes for which the Corporation is established.

(2) Subject to such conditions as may be prescribed by the Central Government, the Corporation may, from time to time, invest any moneys which are not immediately required for expenses properly defrayable under this Act and may, subject as aforesaid, from time to time re-invest or realise such investments.

(3) The Corporation may, wit

S.30 Vesting of the property in the Corporation

Employees' State Insurance Act, 1948

Vesting of the property in the Corporation :- All property acquired before the establishment of the Corporation shall vest in the Corporation and all income derived and expenditure incurred in this behalf shall be brought into the books of the Corporation.


S.31 Employees' State Insurance Act, 1948 31

Employees' State Insurance Act, 1948

[x x x x]


S.32 Budget estimates

Employees' State Insurance Act, 1948

Budget estimates : The Corporation shall in each year frame a budget showing the probable receipts and the expenditure which it proposes to incur during the following year and shall submit a copy of the budget for the approval of the Central Government before such date as may be fixed by it in that behalf. The budget shall contain provisions adequate in the opinion of the Central Government for the discharge of the liabilities incurred by the Corporation and for the maintenance of a working balance.


S.33 Accounts

Employees' State Insurance Act, 1948

Accounts :- The Corporation shall maintain correct accounts of its income and expenditure in such form and in such manner as may be prescribed by the Central Government.


S.34 Audit

Employees' State Insurance Act, 1948

Audit :- (1) The accounts of the Corporation shall be audited annually by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Corporation to the Comptroller and Auditor-General of India.

(2) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Corporation shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has, in connection with the audit of Government accounts and in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and in inspect any of the offices

S.35 Annual report

Employees' State Insurance Act, 1948

Annual report :- The Corporation shall submit to the Central Government an annual report of its work and activities.


S.36 Budget, audited accounts and the annual report to be placed before Parliament

Employees' State Insurance Act, 1948

Budget, audited accounts and the annual report to be placed before Parliament :- The annual report, the audited accounts of the Corporation, together with 1[the report of the Comptroller and Auditor-General of India thereon and the comments of the Corporation on such report under Section 34 and the budget as finally adopted by the Corporation shall be placed before the Parliament. [x x x].


S.37 Valuation of assets and liabilities

Employees' State Insurance Act, 1948

Valuation of assets and liabilities :- The Corporation shall, at intervals of * [three years], have a valuation of its assets and liabilities made by a valuer appointed with the approval of the Central Government:

Provided that it shall be open to the Central Government to direct a valuation to be made at such other times as it may consider necessary.


S.38 All employees to be insured

Employees' State Insurance Act, 1948

All employees to be insured :- Subject to the provisions of this Act, all employees in factories or establishments to which this Act applies shall be insured in the manner provided by this Act.


S.39 Contributions

Employees' State Insurance Act, 1948

Contributions :- (1) The contribution payable under this Act in respect of an employee shall comprise contribution payable by the employer (hereinafter referred to as the employer's contribution) and contribution payable by the employee (hereinafter referred to as the employee's contribution) and shall be paid to the Corporation.

(2) The contributions shall be paid at such rates as may be prescribed by the Central Government:

Provided that the rates so prescribed shall not be more than the rates which were in force immediately before the commencement of the Employees' State Insurance (Amendment) Act, 1989.

(3) The wage period in relation to an employee shall be the unit in resp

S.40 Principal employer to pay contributions in the first instance

Employees' State Insurance Act, 1948

Principal employer to pay contributions in the first instance :- (1) The principal employer shall pay in respect of every employee, whether directly employed by him or by or through an immediate employer, both the employer's contribution and the employee's contribution.

(2) Notwithstanding anything contained in any other enactment but subject to the provisions of this Act and the regulations, if any, made thereunder, the principal employer shall, in the case of an employee directly employed by him (not being an exempted employee), be entitled to recover from the employee the employee's contribution by deduction from his wages and not otherwise:

Provided that no such deduction shall be made from any wages other than s

S.41 Recovery of contribution from immediate employer

Employees' State Insurance Act, 1948

Recovery of contribution from immediate employer :- (1) A principal employer, who has paid contribution in respect of an employee employed by or through an immediate employer, shall be entitled to recover the amount of the contribution so paid (that is to say, the employer's contribution as well as the employee's contribution, if any) from the immediate employer, either by deduction from any amount payable to him by the principal employer under any contract, or as a debt payable by the immediate employer.

(1-A) The immediate employer shall maintain a register of employees employed by or through him as provided in the regulations and submit the same to the principal employer before the settlement of any amount payable under sub_section (1).]

General provisions as to payment of contributions :- (1) No employee's contribution shall be payable by or on behalf of an employee whose average daily wages 2[during a wage period are below 3[such wages as may be prescribed by the Central Government.

Explanation :- The average daily wages of an employee shall be calculated 1[in such manner as may be prescribed by the Central Government.

(2) Contribution (both the employer's contribution and the employee's contribution) shall be payable by the principal employer for each wage period, in respect of the whole or part of which wages are payable to the employee and not otherwise.

(3) [x x x x]

Method of payment of contribution :- Subject to the provisions of this Act, the Corporation may make regulations for any matter relating or incidental to the payment and collection of contributions payable under this Act and without prejudice to the generality of the foregoing power such regulations may provide for--

(a) the manner and time of payment of contributions;

(b) the payment of contributions by means of adhesive or other stamps affixed to or impressed upon books, cards or otherwise and regulating the manner, times and conditions in, at and under which, such stamps are to be affixed or impressed;

(bb) the date by which evidence of contributions having been paid is t

S.44 Employers to furnish returns and maintain registers in certain cases

Employees' State Insurance Act, 1948

Employers to furnish returns and maintain registers in certain cases :- (1) Every principal and immediate employer shall subject to the Corporation or to such officer of the Corporation as it may direct such returns in such form and containing such particulars relating to persons employed by him or to any factory or establishment in respect of which he is the principal or immediate employer as may be specified in regulations made in this behalf.

(2) Where in respect of any factory or establishment the Corporation has reason to believe that a return should have been submitted under sub_section (1) but has not been so submitted, the Corporation may require any person in charge of the factory or establishment to furnish such particulars as it may consider nec

S.45 Inspectors, their functions and duties

Employees' State Insurance Act, 1948

Inspectors, their functions and duties :- (1) The Corporation may appoint such persons as * [Social Security Officers], as it thinks fit, for the purposes of this Act, within such local limits as it may assign to them.

(2) Any * [Social Security Officer] appointed by the Corporation under sub-section (1) (hereinafter referred to as * [Social Security Officer]), or other official of the Corporation authorised in this behalf by it, may, for the purposes of enquiring into the correctness of any of the particulars stated in any return referred to in Section 44 or for the purpose of ascertaining

S.45-A Determination of contributions in certain cases

Employees' State Insurance Act, 1948

Determination of contributions in certain cases :- (1) Where in respect of a factory or establishment no returns, particulars, registers or records are submitted, furnished or maintained in accordance with the provisions of Section 44 or any * [Social Security Officer] or other official of the Corporation referred to in sub-section (2) of Section 45 is prevented in any manner, by the principal or immediate employer or any other person, in exercising his functions or discharging his duties under Section 45, the Corporation may, on the basis of information available to it, by order, determine the amount of contributions payable in respect of the employees of that factory or establishment :

Provided that

S.45-AA Appellate authority

Employees' State Insurance Act, 1948

* [Appellate authority :-If an employer is not satisfied with the order referred to in Section 45-A, he may prefer an appeal to an appellate authority as may be provided by Regulation, within sixty days of the date of such order after depositing twenty-five per cent, of the contribution so ordered or the contribution as per his own calculation, whichever is higher, with the Corporation:

Provided that if the employer finally succeeds in the appeal, the Corporation shall refund such deposit to the employer together with such interest as may be specified in the regulation.]


S.45-B Recovery of contributions

Employees' State Insurance Act, 1948

Recovery of contributions :- Any contribution payable under this Act may be recovered as an arrear of land revenue.


S.45-C Issue of certificate to the Recovery Officer

Employees' State Insurance Act, 1948

Issue of certificate to the Recovery Officer :- (1) Where any amount is in arrear under this Act, the authorised officer may issue, to the Recovery Officer, a certificate under his signature specifying the amount of arrears and the Recovery Officer, on receipt of such certificate shall proceed to recover the amount specified therein from the factory or establishment or, as the case may be, the principal or immediate employer by one or more of the modes mentioned below :--

(a) attachment and sale of the movable or immovable property of the factory or establishment or, as the case may be, the principal or immediate employer;

(b) arrest of the employer and his detention in prison;

Recovery Officer to whom certificate is to be forwarded :- (1) The authorised officer may forward the certificate referred to in Section 45-C to the Recovery Officer within whose jurisdiction the employer_

(a) carries on his business or profession or within whose jurisdiction the principal place of his factory or establishment is situate; or

(b) resides or any movable or immovable property of the factory or establishment or the principal or immediate employer is situate.

(2) Where a factory or an establishment or the principal or immediate employer has property within the jurisdiction of more than one Recovery Officer and the Recovery Officer to whom a certificate is sent by

S.45-E Validity of certificate and amendment thereof

Employees' State Insurance Act, 1948

Validity of certificate and amendment thereof :- (1) When the authorised officer issues a certificate to a Recovery Officer under Section 45-C, it shall not be open to the factory or establishment or the principal or immediate employer to dispute before the Recovery Officer the correctness of the amount, and no objection to the certificate on any other ground shall also be entertained by the Recovery Officer.

(2) Notwithstanding the issue of a certificate to a Recovery Officer, the authorised officer shall have power to withdraw the certificate or correct any clerical or arithmetical mistake in the certificate by sending an intimation to the Recovery Officer.

(3) The authorised officer shall intimate to the Recovery

S.45-F Stay of proceedings under certificate and amendment or withdrawal thereof

Employees' State Insurance Act, 1948

Stay of proceedings under certificate and amendment or withdrawal thereof :- (1) Notwithstanding that a certificate has been issued to the Recovery Officer for the recovery of any amount, the authorised officer may grant time, for the payment of the amount, and thereupon the Recovery Officer shall stay the proceedings until the expiry of the time so granted.

(2) Where a certificate for the recovery of amount has been issued, the authorised officer shall keep the Recovery Officer informed of any amount paid or time granted for payment, subsequent to the issue of such certificate.

(3) Where the order giving rise to a demand of amount for which a certificate for recovery has been issued has been modified in appeal or ot

S.45-G Other modes of recovery

Employees' State Insurance Act, 1948

Other modes of recovery :- (1) Notwithstanding the issue of a certificate to the Recovery Officer under Section 45C, the Director General or any other officer authorised by the Corporation may recover the amount by any one or more of the modes provided in this section.

(2) If any amount is due from any person to any factory or establishment or, as the case may be, the principal or immediate employer who is in arrears, the Director General or any other officer authorised by the Corporation in this behalf may require such person to deduct from the said amount the arrears due from such factory or establishment or, as the case may be, the principal or immediate employer under this Act and such person shall comply with any such requisition and shall pay the sum

S.45-H Application of certain provisions of the Income-tax Act

Employees' State Insurance Act, 1948

Application of certain provisions of the Income-tax Act :- The provisions of the Second and Third Schedules to the Income-tax Act, 1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules, 1962, as in force from time to time, shall apply with necessary modifications as if the said provisions and the rules referred to the arrears of the amount of contributions, interests or damages under this Act instead of to the income tax :

Provided that any reference in the said provisions and the rules to the "assessee" shall be construed as a reference to a factory or an establishment or the principal or immediate employer under this Act.


S.45-I Definitions

Employees' State Insurance Act, 1948

Definitions :- For the purposes of Sections 45-C to 45-H,_

(a) "Authorised Officer" means the Director General, Insurance Commissioner, Joint Insurance Commissioner, Regional Director or such other officer as may be authorised by the Central Government, by notification in the Official Gazette;

(b) "Recovery Officer" means any officer of the Central Government, State Government or the Corporation, who may be authorised by the Central Government, by notification in the Official Gazette, to exercise the powers of a Recovery Officer under this Act.


S.46 Benefits

Employees' State Insurance Act, 1948

Benefits :- (1) Subject to the provisions of this Act, the insured persons or their dependents or the persons hereinafter mentioned, as the case may be, shall be entitled to the following benefits, namely :_

(a) periodical payments to any insured person in case of his sickness certified by a duly appointed medical practitioner or by any other person possessing such qualifications and experience as the Corporation may, by regulations, specify in this behalf, (hereinafter referred to, sickness benefit);

(b) periodical payments to an insured woman in case of confinement or miscarriage, or sickness arising out of pregnancy, confinement, premature birth of child or miscarriage, such woman being certified to be

S.47 Employees' State Insurance Act, 1948 47

Employees' State Insurance Act, 1948

[x x x x]


S.48 Employees' State Insurance Act, 1948 48

Employees' State Insurance Act, 1948

[x x x x]


S.49 Sickness benefit

Employees' State Insurance Act, 1948

Sickness benefit :- The qualification of a person to claim sickness, benefit, the conditions subject to which such benefit may be given, the rates and period thereof shall be such as may be prescribed by the Central Government.


S.50 Maternity benefit

Employees' State Insurance Act, 1948

Maternity benefit :- The qualification of an insured woman to claim maternity benefit, the conditions subject to which such benefit may be given, the rates and period thereof shall be such as may be prescribed by the Central Government.


S.51 Disablement benefit

Employees' State Insurance Act, 1948

Disablement benefit :- Subject to the provisions of this Act :- [x x x]

(a) a person who sustains temporary disablement for not less than three days (excluding the day of accident), shall be entitled to periodical payment at such rates and for such period and subject to such conditions as may be prescribed by the Central Government;

(b) a person who sustains permanent disablement, whether total or partial, shall be entitled to periodical payment 3[at such rates and for such period and subject to such conditions as may be prescribed by the Central Government.


S.51-A Presumption as to accident arising in course of employment

Employees' State Insurance Act, 1948

Presumption as to accident arising in course of employment :- For the purposes of this Act, an accident arising in the course of * [an employee's] employment shall be presumed, in the absence of evidence to the contrary, also to have arisen out of that employment.


S.51-B Accidents happening while acting in breach of regulations, etc

Employees' State Insurance Act, 1948

Accidents happening while acting in breach of regulations, etc :- An accident shall be deemed to arise out of and in the course of * [an employee's] employment notwithstanding that he is at the time of the accident acting in contravention of the provisions of any law applicable to him, or of any orders given by or on behalf of his employer or that he is acting without instructions from his employer, if_

(a) the accident would have been deemed so to have arisen had the act not been done in contravention as aforesaid or without instructions from his employer, as the case may be, and

(b) the act is done for the purpose of and in connection with the employer's tra

S.51-C Accidents happening while travelling in employers transport

Employees' State Insurance Act, 1948

Accidents happening while travelling in employer's transport :- (1) An accident happening while an * [employee] is, with the express or implied permission of his employer, travelling as a passenger by any vehicle to or from his place of work shall, notwithstanding that he is under no obligation to his employer to travel by that vehicle, be deemed to arise out of and in the course of his employment, if_

(a) the accident would have been deemed so to have arisen had he been under such obligation; and

(b) at the time of the accident, the vehicle_

(i) is being operated by or on behalf of his employer or some other person by

S.51-D Accidents happening while meeting emergency

Employees' State Insurance Act, 1948

Accidents happening while meeting emergency :- An accident happening to an * [employee] in or about any premises at which he is for the time being employed for the purpose of his employer's trade or business shall be deemed to arise out of and in the course of his employment, if it happens while he is taking steps, on an actual or supposed emergency at those premises, to rescue, succour or protect persons who are, or are thought to be, or possibly to be, injured or imperilled, or to avert or minimise serious damage to property.


S.51-E Accidents happening while commuting to the place of work and vice versa

Employees' State Insurance Act, 1948

* [Accidents happening while commuting to the place of work and vice versa :-An accident occurring to an employee while commuting from his residence to the place of employment for duty or from the place of employment to his residence after performing duty, shall be deemed to have arisen out of and in the course of employment if nexus between the circumstances, time and place in which the accident occurred and the employment is established.]


S.52 Dependants benefit

Employees' State Insurance Act, 1948

Dependant's benefit :- insured person dies as a result of an employment injury sustained as an employee under this Act (whether or not he was in receipt of any periodical payment for temporary disablement in respect of the injury) dependant's benefit shall be payable 1[at such rates and for such period and subject to such conditions as may be prescribed by the Central Government] to his dependants specified in sub_clause (i), sub_clause (ia) and] sub_clause (ii) of clause (6-A) of Section 2.

(2) In case the insured person dies without leaving behind him the dependants as aforesaid, the dependant's benefit shall be paid to the other dependants of the deceased at such rates and for such period and subject to such conditions as may be prescribed by the Centra

S.52-A Occupational disease

Employees' State Insurance Act, 1948

Occupational disease :- (1) If an employee employed in any employment specified in Part A of the Third Schedule contracts any disease specified therein as an occupational disease peculiar to that employment, or if an employee employed in the employment specified in Part B of that Schedule for a continuous period of not less than six months contracts any disease specified therein as an occupational disease peculiar to that employment or if an employee employed in any employment specified in Part C of that Schedule for such continuous period as the Corporation may specify in respect of each such employment, contracts any disease specified therein as an occupational disease peculiar to that employment, the contracting of the disease shall, unless the contrary is proved, be deemed to be an "employme

S.53 Bar against receiving or recovery of compensation or damages under any other law

Employees' State Insurance Act, 1948

Bar against receiving or recovery of compensation or damages under any other law :- An insured person or his dependants shall not be entitled to receive or recover, whether from the employer of the insured person or from any other person, any compensation or damages under the Workmen's Compensation Act, 1923 (8 of 1923), or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act.


S.54 Determination of question of disablement

Employees' State Insurance Act, 1948

Determination of question of disablement :- Any question,_

(a) whether the relevant accident has resulted in permanent disablement; or

(b) whether the extent of loss of earning capacity can be assessed provisionally or finally; or

(c) whether the assessment of the proportion of the loss of earning capacity is provisional or final; or

(d) in the case of provisional assessment, as to the period for which such assessment shall hold good. shall be determined by a medical board constituted in accordance with the provisions of the regulations and any such question shall hereafter be referred to as the "disablement question".

S.54-A References to medical boards and appeals to medical appeal tribunals and Employees Insurance Courts

Employees' State Insurance Act, 1948

References to medical boards and appeals to medical appeal tribunals and Employees' Insurance Courts :- (1) The case of any insured person for permanent disablement benefit shall be referred by the Corporation to a medical board for determination of the disablement question and if, on that or any subsequent reference, the extent of loss of earning capacity of the insured person is provisionally assessed, it shall again be so referred to the medical board not later than the end of the period taken into account by the provisional assessment.

(2) If the insured person or the Corporation is not satisfied with the decision of the medical board, the insured person or the Corporation may appeal in the prescribed manner and within the prescribed time to_

S.55 Review of decisions by medical board or medical appeal Tribunal

Employees' State Insurance Act, 1948

Review of decisions by medical board or medical appeal Tribunal :- (1) Any decision under this Act of a medical board or a medical appeal Tribunal may be reviewed at any time by the medical board or the medical appeal Tribunal, as the case may be, if it is satisfied by fresh evidence that the decision was given in consequence of the non-disclosure or misrepresentation by the employee or any other person of a material fact (whether the non-disclosure or misrepresentation was or was not fraudulent).

(2) Any assessment of the extent of the disablement resulting from the relevant employment injury may also be reviewed by a medical board, if it is satisfied that since the making of the assessment there has been a substantial and unforeseen aggravation of the re

S.55-A Review of dependants benefit

Employees' State Insurance Act, 1948

Review of dependant's benefit :- (1) Any decision awarding dependant's benefit under this Act may be reviewed at any time by the Corporation if it is satisfied by fresh evidence that the decision was given in consequence of non-disclosure or misrepresentation by the claimant or any other person of a material fact (whether the no-disclosure or misrepresentation was or was not fraudulent) or that the decision is no longer in accordance with this Act due to any birth or death or due to the marriage, re-marriage or cesser of infirmity of, or attainment of the age of eighteen years by, a claimant.

(2) Subject to the provisions of this Act, the Corporation may, on such review as aforesaid, direct that the dependant's benefit be continued, increased, reduced or d

S.56 Medical benefit

Employees' State Insurance Act, 1948

Medical benefit :- (1) An insured person or (where such medical benefit is extended to his family) a member of his family whose condition required medical treatment and attendance shall be entitled to receive medical benefit.

(2) Such medical benefit may be given either in the form of out patient treatment and attendance in a hospital or dispensary, clinic or other institution or by visits to the home of the insured person or treatment as in-patient in a hospital or other institution.

(3) A person shall be entitled to medical benefit during any 1[period] for which contributions are payable in respect of him or in which he is qualified to claim sickness benefit or maternity benefit or is in receipt of such disablement

S.57 Scale of medical benefit

Employees' State Insurance Act, 1948

Scale of medical benefit :- (1) An insured person and (where such medical benefit is extended to his family) his family shall be entitled to receive medical benefit only of such kind and on such scale as may be provided by the State Government or by the Corporation, and an insured person or, where such medical benefit is extended to his family, his family shall not have a right to claim any medical treatment except such as is provided by the dispensary, hospital, clinic or other institution to which he or his family is allotted, or as may be provided by the regulations.

(2) Nothing in this Act shall entitle an insured person and (where such medical benefit is extended to his family) his family to claim reimbursement from the Corporation of any expenses inc

S.58 Provision of medical treatment by State Government

Employees' State Insurance Act, 1948

Provision of medical treatment by State Government :- (1) The State Government shall provide for insured persons and (where such benefit is extended to their families) their families in the State, reasonable medical, surgical and obstetric treatment :

Provided that the State Government may, with the approval of the Corporation, arrange for medical treatment at clinics of medical practitioners on such scale and subject to such terms and conditions as may be agreed upon.

(2) Where the incidence of sickness benefit payment to insured persons in any State is found to exceed the all-India average, the amount of such excess shall be shared between the Corporation and the State Government in such proportion as may be fixed

S.59 Establishment and maintenance of hospitals, etc., by Corporation

Employees' State Insurance Act, 1948

Establishment and maintenance of hospitals, etc., by Corporation :- (1) The Corporation may, with the approval of the State Government, establish and maintain in a State such hospitals, dispensaries and other medical and surgical services as it may think fit for the benefit of insured persons and (where such medical benefit is extended to their families) their families.

(2) The Corporation may enter into agreement with any local authority, private body or individual in regard to the provision of medical treatment and attendance for insured persons and (where such medical benefit is extended to their families) their families, in any area and sharing the cost thereof.


S.59-A Provision of medical benefit by the Corporation in lieu of State Government

Employees' State Insurance Act, 1948

Provision of medical benefit by the Corporation in lieu of State Government :- (1) Notwithstanding anything contained in any other provisions of this Act, the Corporation may, in consultation with the State Government, undertake the responsibility for providing medical benefit to insured persons and where such medical benefit is extended to their families, to the families of such insured persons in the State subject to the condition that the State Government shall share the cost of such medical benefit in such proportion as may be agreed upon between the State Government and the Corporation.

(2) In the event of the Corporation exercising its power under sub_section (1), the provisions relating to medical benefit under this Act shall apply, so far as may be

S.59-B Medical and para-medical education

Employees' State Insurance Act, 1948

* [Medical and para-medical education :-The Corporation may establish medical colleges, nurising colleges and training institutes for its para-medical staff and other employees with a view to improve the quality of services provided under the Employees' State Insurance Scheme.]


S.60 Benefit not assignable or attachable

Employees' State Insurance Act, 1948

Benefit not assignable or attachable :- (1) The right to receive any payment of any benefit under this Act shall not be transferable or assignable.

(2) No cash benefit payable under this Act shall be liable to attachment or sale in execution of any decree or order of any Court.


S.61 Bar of benefits under other enactments

Employees' State Insurance Act, 1948

Bar of benefits under other enactments :- When a person is entitled to any of the benefits provided by this Act, he shall not be entitled to receive any similar benefit admissible under the provisions of any other enactment.


S.62 Persons not to commute cash benefits

Persons not to commute cash benefits :- Save as may be provided in the regulations, no person shall be entitled to commute for a lumpsum any 1[disablement benefit] admissible under this Act.

S.63 Persons not entitled to receive benefit in certain cases

Employees' State Insurance Act, 1948

Persons not entitled to receive benefit in certain cases :- Save as may be provided in the regulations, no person shall be entitled to sickness benefit or disablement benefit for temporary disablement on any day on which he works or remains on leave or on a holiday in respect of which he receives wages or on any day on which he remains on strike.


S.64 Recipients of sickness or disablement benefit to observe conditions

Employees' State Insurance Act, 1948

Recipients of sickness or disablement benefit to observe conditions :- A person who is in receipt of sickness benefit or disablement benefit (other than benefit granted on permanent disablement)--

(a) shall remain under medical treatment at a dispensary, hospital, clinic or other institution provided under this Act and shall carry out the instructions given by the medical officer or medical attendant in charge thereof;

(b) shall not while under treatment do anything which might retard or prejudice his chances of recovery;

(c) shall not leave the area in which medical treatment provided by this Act is being given, without the permission of the medical officer, medical attenda

S.65 Benefits not to be combined

Employees' State Insurance Act, 1948

Benefits not to be combined :- (1) An insured person shall not be entitled to receive for the same period_

(a) both sickness benefit and maternity benefit; or

(b) both sickness benefit and disablement benefit for temporary disablement; or

(c) both maternity benefit and disablement benefit for temporary disablement.

(2) Where a person is entitled to more than one of the benefits mentioned in sub_section (1), he shall be entitled to choose which benefit he shall receive.


S.66 Employees' State Insurance Act, 1948 66

Employees' State Insurance Act, 1948

[xxx]


S.67 Employees' State Insurance Act, 1948 67

Employees' State Insurance Act, 1948

[xxx]


S.68 Corporations rights where a principal employer fails or neglects to pay any contribution

Employees' State Insurance Act, 1948

Corporation's rights where a principal employer fails or neglects to pay any contribution :- (1) If any principal employer fails or neglects to pay any contribution which under this Act he is liable to pay in respect of any employee and by reason thereof such person becomes disentitled to any benefit or entitled to a benefit on a lower scale, the Corporation may, on being satisfied that the contribution should have been paid by the principal employer, pay to the person the benefit at the rate to which he would have been entitled, if the failure or neglect had not occurred and the Corporation shall be entitled to recover from the principal employer either_

(i) the difference between the amount of benefit which is paid by the Corporation to the said person

S.69 Liability of owner or occupier of factories, etc., for excessive sickness benefit

Employees' State Insurance Act, 1948

Liability of owner or occupier of factories, etc., for excessive sickness benefit :- (1) Where the Corporation considers that the incidence of sickness among insured persons is excessive by reason of_

(i) insanitary working conditions in a factory or establishment or the neglect of the owner or occupier of the factory or establishment to observe any health regulations enjoined on him by or under any, enactment, or

(ii) insanitary conditions of any tenements or lodgings occupied by insured persons and such insanitary conditions are attributable to the neglect of the owner of the tenements or lodgings to observe any health regulations enjoined on him by or under any enactment,

the Corporation may send to the owne

S.70 Repayment of benefit improperly received

Employees' State Insurance Act, 1948

Repayment of benefit improperly received :- (1) Where any person has received any benefit or payment under this Act when he is not lawfully entitled thereto, he shall be liable to repay to the Corporation the value of the benefit or the amount of such payment, or in the case of his death his representative shall be liable to repay the same from the assets of the deceased, if any, in his hands.

(2) The value of any benefits received other than cash payments shall be determined by such authority as may be specified in the regulations made in this behalf and the decision of such authority shall be final.

(3) The amount recoverable under this section may be recovered as if it were an arrear of land revenue 1[or under Sec

S.71 Benefit payable up to and including day of death

Employees' State Insurance Act, 1948

Benefit payable up to and including day of death :- If a person dies] during any period for which he is entitled to a cash benefit under this Act, the amount of such benefit up to and including the day of his death shall be paid to any person nominated by the deceased person in writing in such form as may be specified in the regulations or, if there is no such nomination, to the heir or legal representative of the deceased person.


S.72 Employer not to reduce wages etc

Employees' State Insurance Act, 1948

Employer not to reduce wages etc :- No employer by reason only of his liability for any contributions payable under this Act shall, directly or indirectly, reduce the wages of any employee, or except as provided by the regulations, discontinue or reduce benefits payable to him under the conditions of his service which are similar to the benefits conferred by this Act.


S.73 Employer not to dismiss or punish employee during period of sickness, etc

Employees' State Insurance Act, 1948

Employer not to dismiss or punish employee during period of sickness, etc. :- (1) No employer shall dismiss, discharge, or reduce or otherwise punish an employee during the period the employee is in receipt of sickness benefit or maternity benefit, nor shall he, except as provided under the regulations, dismiss, discharge or reduce or otherwise punish an employee during the period he is in receipt of disablement benefit for temporary disablement or is under medical treatment for sickness or is absent from work as a result of illness duly certified in accordance with the regulations to arise out of the pregnancy or confinement rendering the employee unfit for work.

(2) No notice of dismissal or discharge or reduction given to an employee during the period s

S.73-A Definitions

Employees' State Insurance Act, 1948

* [Chapter V-A
Scheme for Other Beneficiaries

Definitions.—In this Chapter,—

(a) “other beneficiaries” means persons other than the person insured under this Act;

(b) “Scheme” means any Scheme framed by the Central Government from time to time under Section 73-B for the medical facility for other beneficiaries;

(c) “underutilized hospital” means any hospital not fully utilized by the persons insured under this Act;

(d) “user charges” means the amount which is to be charg

S.73-B Power to frame Schemes

Employees' State Insurance Act, 1948

Power to frame Schemes.—Notwithstanding anything contained in this Act, the Central Government may, by notification in the Official Gazette, frame Scheme for other beneficiaries and the members of their families for providing medical facility in any hospital established by the Corporation in any area which is underutilized on payment of user charges.


S.73-C Collection of user charges

Employees' State Insurance Act, 1948

Collection of user charges.—The user charges collected from the other beneficiaries shall be deemed to be the contribution and shall form part of the Employees’ State Insurance Fund.


S.73-D Scheme for other beneficiaries

Employees' State Insurance Act, 1948

Scheme for other beneficiaries.—The Scheme may provide for all or any of the following matters, namely.—

(i) the other beneficiaries who may be covered under this Scheme;

(ii) the time and manner in which the medical facilities may be availed by the other beneficiaries;

(iii) the form in which the other beneficiary shall furnish particulars about himself and his family whenever required as may be specified by the Corporation;

(iv) any other matter which is to be provided for in the Scheme or which may be necessary or proper for the purpose of implementing the Scheme.


S.73-E Power to amend Scheme

Employees' State Insurance Act, 1948

Power to amend Scheme.—The Central Government may, by notification in the Official Gazette, add to, amend, vary or rescind the Scheme.


S.73-F Laying of Scheme framed under this chapter

Employees' State Insurance Act, 1948

Laying of Scheme framed under this chapter.—Every Scheme framed under this chapter shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid both Houses agree in making any modification in the Scheme or both Houses agree that the Scheme should not be made, the Scheme shall thereafter have effect only in such modified form or to be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Scheme.]


S.74 Constitution of Employees Insurance Court

Employees' State Insurance Act, 1948

Constitution of Employees' Insurance Court :- (1) The State Government shall, by notification in the Official Gazette, constitute an Employees' Insurance Court for such local area as may be specified in the notification.

(2) The Court shall consist of such number of Judges as the State Government may think fit.

(3) Any person who is or has been a judicial officer or is a legal practitioner of five years' standing shall be qualified to be a Judge of the Employees' Insurance Court.

(4) The State Government may appoint the same Court for two or more local areas or two or more Courts for the same local area.

(5) Where more than one Court has

S.76 Institution of proceedings, etc

Employees' State Insurance Act, 1948

Institution of proceedings, etc. :- (1) Subject to the provisions of this Act and any rules made by the State Government, all proceedings before the Employees' Insurance Court shall be instituted in the Court appointed for the local area in which the insured person was working at the time the question or dispute arose.

(2) If the Court is satisfied that any matter arising out of any proceeding, pending before it can be more conveniently dealt with by any other Employees' Insurance Court in the same State, it may, subject to any rules made by the State Government in this behalf, order such matter to be transferred to such other Court for disposal and shall forthwith transmit to such other Court the records connected with that matter.

S.77 Commencement of proceedings

Employees' State Insurance Act, 1948

Commencement of proceedings :- (1) The proceedings before an Employees' Insurance Court shall be commenced by application.

(1-A) Every such application shall be made within a period of three years, from the date on which the cause of action arose.

Explanation :- For the purpose of this sub_section,--

(a) the cause of action in respect of a claim for benefit shall not be deemed to arise unless the insured person or in the case of dependants' benefit, the dependants of the insured person claims or claim that benefit in accordance with the regulations made in that behalf within a period of twelve months after the claim became due or within such further period as the Employ

S.78 Powers of Employees Insurance Court

Employees' State Insurance Act, 1948

Powers of Employees' Insurance Court :- (1) The Employees' Insurance Court shall have all the powers of a civil Court for the purposes of summoning and enforcing the attendance of witnesses, compelling the discovery and production of documents and material objects, administering oath and recording evidence and such Court shall be deemed to be a civil Court within the meaning of 1[Section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974)].

(2) The Employees' Insurance Court shall follow such procedure as may be prescribed by rules made by the State Government.

(3) All costs incidental to any proceeding before an Employers' Insurance Court shall, subject to such rules as may be made in this behal

S.79 Appearance by legal practitioners, etc

Employees' State Insurance Act, 1948

Appearance by legal practitioners, etc. :- Any application, appearance or act required to be made or done by any person to or before an Employees' Insurance Court (other than appearance of a person required for the purpose of his examination as a witness) may be made or done by a legal practitioner or by an officer of a registered trade union authorised in writing by such person or with the permission of the Court, by any other person so authorised.


S.80 Employees' State Insurance Act, 1948 80

Employees' State Insurance Act, 1948

[x x x x]


S.81 Reference to High Court

Employees' State Insurance Act, 1948

Reference to High Court :- An Employees' Insurance Court may submit any question of law for the decision of the High Court and if it does so, shall decide the question pending before it in accordance with such decision.


S.82 Appeal

Employees' State Insurance Act, 1948

Appeal :- (1) Save as expressly provided in this section, no appeal shall lie from an order of an Employees' Insurance Court.

(2) An appeal shall lie to the High Court from an order of an Employees' Insurance Court if it involves substantial question of law.

(3) The period of limitation for an appeal under this section shall be sixty days.

(4) The provisions of Sections 5 and 12 of the 1[Limitation Act, 1963 (36 of 1963) shall apply to appeals under this Section.


S.83 Stay of payment pending appeal

Employees' State Insurance Act, 1948

Stay of payment pending appeal :- Where the Corporation has presented an appeal against an order of the Employees' Insurance Court, that Court may, and if so directed by the High Court, shall, pending the decision on the appeal, withhold the payment of any sum directed to be paid by the order appealed against.


S.84 Punishment for false statements

Employees' State Insurance Act, 1948

Punishment for false statements :-Whoever, for the purpose of causing any increase in payment or benefit under this Act, or for the purpose of causing any payment or benefit to be made where no payment or benefit is authorised by or under this Act, or for the purpose of avoiding any payment to be made by himself under this Act or enabling any other person to avoid any such payment, knowingly makes or causes to be made any false statement or false representation, shall be punishable with imprisonment for a term which may extend to 1[six months] or with fine not exceeding 1[two thousand rupees] or with both:

Provided that where an insured person is convicted under this section, he shall not be entitled for any cash benefit under this Act for such period as m

S.85 Punishment for failure to pay contributions, etc

Employees' State Insurance Act, 1948

Punishment for failure to pay contributions, etc. :- If any person--

(a) fails to pay any contribution which under this Act he is liable to pay, or

(b) deducts or attempts to deduct from the wages of an employee the whole or any part of the employer's contribution, or

(c) in contravention of Section 72 reduces the wages or any privileges or benefits admissible to an employee, or

(d) in contravention of Section 73 or any regulation dismisses, discharges, reduces or otherwise punishes an employee, or

(e) fails or refuses to submit any return required by the regulations, or makes a false return, o

S.85-A Enhanced punishment in certain cases after previous conviction

Employees' State Insurance Act, 1948

Enhanced punishment in certain cases after previous conviction :- Whoever, having been convicted by a Court of an offence punishable under this Act, commits the same offence shall, for every such subsequent offence, be punishable with imprisonment for a term which may extend to 1[two years and with fine of five thousand rupees :

Provided that where such subsequent offence is for failure by the employer to pay any contribution which under this Act he is liable to pay, he shall, for every such subsequent offence, be punishable with imprisonment for a term which may extend to five years but which shall not be less than two years and shall also be liable to fine of twenty-five thousand rupees.


S.85-B Power to recover damages

Employees' State Insurance Act, 1948

Power to recover damages :- (1) Where an employer fails to pay the amount due in respect of any contribution or any other amount payable under this Act, the Corporation may recover 2[from the employer by way of penalty such damages not exceeding the amount of arrears as may be specified in the regulations] :

Provided that before recovering such damages, the employer shall be given a reasonable opportunity of being heard;

Provided further that the Corporation may reduce or waive the damages recoverable under this section in relation to an establishment which is a sick industrial company in respect of which a scheme for rehabilitation has been sanctioned by the Board for Industrial and Financial Reconstruction establis

S.85-C Power of Court to make orders

Employees' State Insurance Act, 1948

Power of Court to make orders :- (1) Where an employer is convicted of an offence for failure to pay any contribution payable under this Act, the Court may, in addition to awarding any punishment, by order, in writing, require him within a period specified in the order (which the Court may if it thinks fit and on application in that behalf, from time to time, extend), to pay the amount of contribution in respect of which the offence was committed 2[and to furnish for return relating to such contributions.

(2) Where an order is made under sub_section (1), the employer shall not be liable under this Act in respect of the continuation of the offence during the period or extended period, if any, allowed by the Court, but if, on the expiry of such period or ext

S.86 Prosecutions

Employees' State Insurance Act, 1948

Prosecutions :- (1) No prosecution under this Act shall be instituted except by or with the previous sanction of the Insurance Commissioner or of such other officer of the Corporation as may be authorised in this behalf by the Director General of the Corporation.

(2) No Court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the First Class shall try any offence under this Act.]

(3) No Court shall take cognizance of any offence under this Act except on a complaint made in writing in respect thereof [x x x x].


S.86-A Offences by companies

Employees' State Insurance Act, 1948

Offences by companies :- (1) If the person committing an offence under this Act is a company, every person, who at the time of the offence was committed was incharge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly :

Provided that nothing contained in this sub_section shall render any person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub_section (1), where an offence under t

S.87 Exemption of a factory or establishment or class of factories or establishments

Employees' State Insurance Act, 1948

Exemption of a factory or establishment or class of factories or establishments :- The appropriate Government, may, by notification in the Official Gazette and subject to such conditions as may be specified in the notification, exempt any factory or establishment or class of factories or establishments in any specified area from the operation of this Act for a period not exceeding one year and may from time to time by like notification renew any such exemption for periods not exceeding one year at a time.

* [Provided that such exemptions may be granted only if the employees in such factories or establishments are otherwise in receipt of benefits substantially similar or superior to the benefits provide

S.88 Exemption of persons or class of persons

Employees' State Insurance Act, 1948

Exemption of persons or class of persons :- The appropriate Government may, by notification in the Official Gazette and subject to such conditions as it may deem fit to impose, exempt any person or class persons employed in any factory or establishment or class of factories or establishments to which this Act applies, from the operation of the Act.


S.89 Corporation to make representation

Employees' State Insurance Act, 1948

Corporation to make representation :- No exemption shall be granted or renewed under Section 87 or Section 88, unless a reasonable opportunity has been given to the Corporation to make any representation it may wish to make in regard to the proposal and such representation has been considered by the appropriate Government.


S.90 Exemption of factories or establishments belonging to Government or any local authority

Employees' State Insurance Act, 1948

Exemption of factories or establishments belonging to Government or any local authority :- The appropriate Government may, after consultation with the Corporation, by notification in the Official Gazette and subject to such conditions as may be specified in the notification, exempt any factory or establishment belonging to [x x x x] any local authority, from the operation of the Act, if the employees in any such factory or establishment are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act.


S.91 Exemption from one or more provisions of the Act

Employees' State Insurance Act, 1948

Exemption from one or more provisions of the Act :- The appropriate Government may, with the consent of the Corporation, by notification in the Official Gazette, exempt any employees or class of employees in any factory or establishment or class of factories or establishments from one or more of the provisions relating to the benefits provided under this Act.


S.91-A Exemptions to be either prospective or retrospective

Employees' State Insurance Act, 1948

Exemptions to be either prospective or retrospective :- Any notification granting exemption under Section 87, Section 88, Section 90 or Section 91 may be issued so as to take effect either * [prospectively] on such date as may be specified therein.


S.91-AA Central Government to be appropriate Government

Employees' State Insurance Act, 1948

* [Central Government to be appropriate Government :-Notwithstanding anything contained in this Act, in respect of establishments located in the States where medical benefit is provided by the Corporation, the Central Government shlal be the appropriate Government.]


S.91-B Misuse of benefits

Employees' State Insurance Act, 1948

Misuse of benefits :- If the Central Government is satisfied that the benefits under this Act are being misused by insured persons in a factory or establishment, that Government may, by order, published in the Official Gazette, disentitle such persons from such of the benefits as it thinks fit: Provided that no such order shall be passed unless a reasonable opportunity of being heard is given to the concerned factory or establishment, insured persons and the trade unions registered under the Trade Unions Act, 1926 (16 of 1926), having members in the factory or establishment.


S.91-C Writing off of losses

Employees' State Insurance Act, 1948

Writing off of losses :- Subject to the conditions as may be prescribed by the Central Government, where the Corporation is of opinion that the amount of contribution, interest and damages due to the Corporation is irrecoverable, the Corporation may sanction the writing off finally of the said amount.]


S.92 Power of Central Government to give directions

Employees' State Insurance Act, 1948

Power of Central Government to give directions :- 1[(1)] The Central Government may give directions to a State Government as to the carrying into execution of this Act in the State.

(2) The Central Government may, from time to time, give such directions to the Corporation as it may think fit for the efficient administration of the Act, and if any such direction is given, the Corporation shall comply with such direction.


S.93 Corporation officers and servants to be public servants

Employees' State Insurance Act, 1948

Corporation officers and servants to be public servants :- All officers and servants of the Corporation shall be deemed to the public servants within the meaning of Section 21 of the Indian Penal Code (45 of 1860).


S.93-A Liability in case of transfer of establishment

Employees' State Insurance Act, 1948

Liability in case of transfer of establishment :- Where an employer, in relation to a factory or establishment, transfers that factory or establishment in whole or in part by sale, gift, lease or licence or in any other manner whatsoever, the employer and the person to whom the factory or establishment is so transferred shall jointly and severally be liable to pay the amount due in respect of any contribution or any other amount payable under this Act in respect of the periods up to the date of such transfer :

Provided that the liability of the transferee shall be limited to the value of the assets obtained by him by such transfer.


S.94 Contributions, etc., due to Corporation to have priority over other debts

Employees' State Insurance Act, 1948

Contributions, etc., due to Corporation to have priority over other debts :- There shall be deemed to be included among the debts which, under Section 49 of the Presidency Towns Insolvency Act, 1909 (3 of 1909), or under Section 61 of the Provincial Insolvency Act, 1920 (5 of 1920), or under any law relating to insolvency in force in the territories which, immediately before the 1st November, 1956, were comprised in a Part B State, or under Section 530 of the Companies Act, 1956 (1 of 1956), are, in the distribution of the property of the insolvent or in the distribution of the assets of a company being wound up, to be paid in priority to all other debts, the amount due in respect of any contribution or any other amount payable under this Act the liability wherefor accrued before the date of the order of adjudicati

S.94-A Delegatiaon of powers

Employees' State Insurance Act, 1948

Delegatiaon of powers :- The Corporation, and, subject to any regulations made by the Corporation in this behalf, the Standing Committee may direct that all or any of the powers and functions which may be exercised or performed by the Corporation or the Standing Committee, as the case may be, may, in relation to such matters and subject to such conditions, if any, as may be specified, be also exercisable by any officer or authority subordinate to Corporation.


S.95 Power of Central Government to make rules

Employees' State Insurance Act, 1948

Power of Central Government to make rules :- (1) The Central Government may, after consultation with the Corporation and, subject to the condition of previous publication, make rules not inconsistent with this Act for the purpose of giving effect to the provisions thereof.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :_

(a) the limit of wages beyond which a person shall not be deemed to be an employee;

(ab) the limit of maximum monthly salary for the purpose of sub_section (1) of Section 17;

(ac) the manner in which 1[appointments]

S.96 Power of State Government to make rules

Employees' State Insurance Act, 1948

Power of State Government to make rules :- (1) The State Government may, after consultation with the Corporation, subject to the condition of previous publication, make rules not inconsistent with this Act in regard to all or any of the following matters, namely--

(a) the constitution of Employees' Insurance Courts, the qualifications of persons who may be appointed as Judges thereof, and the conditions of service of such Judges;

(b) the procedure to be followed in proceedings before such Courts and the execution of orders made by such Courts;

(c) the fee payable in respect of applications made to the Employees' Insurance Court, the costs incidental to the proceedings in suc

S.97 Power of Corporation to make regulations

Employees' State Insurance Act, 1948

Power of Corporation to make regulations :- (1) The Corporation may, [xxx] subject to the condition of previous publication, make regulations, not inconsistent with this Act and the rules made thereunder, for the administration of the affairs of the Corporation and for carrying into effect the provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely :_

(i) the time and place of meetings of the Corporation, the Standing Committee and the Medical Benefit Council and the procedure to be followed at such meetings;

(ia) the time within which and the manner

S.98 Employees' State Insurance Act, 1948 98

Employees' State Insurance Act, 1948

[x x x x]


S.99 Medical care for the families of insured persons

Employees' State Insurance Act, 1948

Medical care for the families of insured persons :- At any time when its funds so permit, the Corporation may provide or contribute towards the cost of medical care for the families of insured persons.]


S.99-A Power to remove difficulties

Employees' State Insurance Act, 1948

Power to remove difficulties :- (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions or give such directions, by inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for removing the difficulty.

(2) Any order made under this section shall have effect notwithstanding anything inconsistent therewith in any rules or regulations made under this Act.


S.100 Repeals and savings

Employees' State Insurance Act, 1948

Repeals and savings :- If, immediately before the day on which this Act comes into force in any part of the territories which, immediately before the 1st November, 1956, were comprised in a Part B State, there is in force in that part any law corresponding to this Act, that law shall, on such day, stand repealed :

Provided that the repeal shall not affect_

(a) the previous operations of any such law; or

(b) any penalty, forfeiture or punishment incurred in respect of any offence committed against any such law; or

(c) any investigations or remedy in respect of any such penalty, forfeiture or punishment; and any such investigation, legal

S.2-A Registration of factories and establishments

Employees' State Insurance Act, 1948

Registration of factories and establishments :_ Every factory or establishment to which this Act applies shall be registered within such time and in such manner as may be specified in the regulations made in this behalf.


S.1 Short title, extent, commencement and application

Employees' State Insurance Act, 1948

Short title, extent, commencement and application :- (1) This Act may be called the Employees' State Insurance Act, 1948.

(2) It extends to the whole of India.

(3) It shall come into force on such date or dates as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and for different States or for different parts thereof.

(4) It shall apply, in the first instance, to all factories (including factories belonging to the Government other than seasonal factories) :

Provided that nothing contained in this sub_section shall apply to a factory or e

S.2 Definitions

Employees' State Insurance Act, 1948

Definitions :_ In this Act, unless there is anything repugnant in the subject or context,_

(1) "appropriate Government" means, in respect of establishment under the control of the Central Government or a Railway administration or a major port or a mine or oil field, the Central Government, and in all other cases, the State Government;

(2) [x x x x];

(3) "confinement" means labour resulting in the issue of a living child, or labour after twenty-six weeks of pregnancy resulting in the issue of a child whether alive or dead;

(4) "contribution" means the sum of money payable to the Corporation by the principal employer in respect of an em

S.3 Establishment of Employees State Insurance Corporation

Employees' State Insurance Act, 1948

Establishment of Employees' State Insurance Corporation :_ (1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the administration of the scheme of Employees' State Insurance in accordance with the provisions of this Act a Corporation to be known as the Employees' State Insurance Corporation.

(2) The Corporation shall be a body corporate by the name of Employees' State Insurance Corporation having perpetual succession and a common seal and shall, by the said name, sue and be sued.


S.4 Constitution of Corporation

Employees' State Insurance Act, 1948

Constitution of Corporation :- The Corporation shall consist of the following members, namely :_

(a) a Chairman to be appointed by the Central Government;

(b) a Vice-Chairman to be appointed by the Central Government;

(c) not more than five persons to be 2[appointed] by the Central Government;

(d) one person each representing each of the States in which this Act is in force to be appointed by the State Government concerned;

(e) one person to be appointed by the Central Government to represent the Union Territories;

(f) ten persons representing employers

S.5 Term of office of members of the Corporation

Employees' State Insurance Act, 1948

Term of office of members of the Corporation :- (1) Save as otherwise expressly provided in this Act, the term of office of members of the Corporation other than the members referred to in clauses (a), (b), (c), (d) and (e) of Section 4 and the ex-officio member, shall be four years, commencing from the date on which their appointment or election is notified:

Provided that a member of the Corporation shall, notwithstanding the expiry of the said period of four years, continue to hold office until the appointment or election of his successor is notified.

(2) The members of the Corporation referred to in clauses [a), (b), (c), (d) and (e) of Section 4 shall hold office during the pleasure of the Government appointing t

SupremeToday Portrait Ad

Enter the Future of Legal Excellence with SupremeToday AI

Elevate your legal practice with advanced AI-driven research and drafting solutions. Experience unmatched efficiency, precision, and security, tailored exclusively for legal professionals.

experience-legal
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon telegram-icon
whatsapp-icon Back to top