D.B. Bhosale, J.

1. The order of reference dated 30th of April, 2011, which has occasioned the constitution of this Larger Bench, was passed by the Full Bench in the instant Civil Miscellaneous Appeals, in view of a divergence of the opinions/views expressed in two judgments, the first being the judgment of another Full Bench in E.S.I Corporation, Hyderabad vs. Andhra Pradesh Paper Mills AIR 1978 AP 18 (FB) and the second of Division Bench in Deccan Chronicle vs. E.S.I.C, Hyderabad. 1980-II L.L.J. 474 The question referred by the learned Chief Justice is whether the parties are entitled to contract out of the beneficial provisions of Employees State Insurance Act, 1948 (for short the ESI Act).

2. The factual matrix, that occasioned the reference, is as under:-

"2.1 The first Civil Miscellaneous Appeal (No.3092 of 1998) was filed by M/s. Microraj Electronics Private Limited against the Employees State Insurance Corporation (for short the Corporation) while the second Civil Miscellaneous Appeal (No.2242 of 1999) was filed by the Corporation, which is the 1st respondent in the first CMA, against M/s. R.C.C.(Sales) Private Limited. The appellant in the first CMA and the respondent