Case Note & Summary
The appeal was filed by the Employees State Insurance Corporation (appellant) under Section 82 of the Employees State Insurance Act, 1948 (ESI Act) against the judgment and order of the Employees Insurance Court (EIC) at Margao, Goa, in EIC No.3/2004. The respondent, M/s. Elesbao Pereira & Sons, a partnership concern engaged in shipping and cargo handling, had filed an application under Section 75 of the ESI Act challenging the orders of the Corporation dated 29/07/1998 and 17/08/2004, which sought to cover the respondent's establishment under the ESI Act and demanded contribution. The Insurance Court allowed the respondent's application, setting aside the Corporation's orders. The Corporation appealed. The facts revealed that on 29/06/1998, an Inspector of the Corporation visited the respondent's premises and found 27 employees in January 1997. The Inspector left a visit note informing that the establishment was coverable from 01/01/1997. By letter dated 03/08/1998, the Regional Director asked the respondent to register and deposit contributions, citing a notification dated 21/06/1977 issued by the Goa Government under Section 1(5) of the ESI Act. After hearing the respondent, the Corporation passed an order under Section 45A determining the contribution payable. The respondent contended that the order under Section 45A was without jurisdiction. The High Court held that the Insurance Court erred in holding that the Corporation had no jurisdiction, as the respondent was given notice and hearing before the order was passed. The Court also held that the notification under Section 1(5) was valid and applicable. The High Court allowed the appeal, set aside the Insurance Court's order, and remanded the matter to the Insurance Court for fresh consideration on merits, directing the respondent to be given an opportunity to challenge the quantification of contribution.
Headnote
A) Employees State Insurance Act, 1948 - Section 45A - Jurisdiction of Corporation - The ESI Corporation has jurisdiction to determine contribution under Section 45A after giving opportunity of hearing to the employer. The Insurance Court erred in holding that the order under Section 45A was without jurisdiction, as the respondent was given notice and hearing before the order was passed. (Paras 2-4) B) Employees State Insurance Act, 1948 - Section 1(5) - Notification - Applicability - The notification dated 21/06/1977 issued by the Goa State Government under Section 1(5) of the ESI Act was valid and covered the respondent's establishment. The Insurance Court's finding that the notification was not applicable was erroneous. (Para 3) C) Employees State Insurance Act, 1948 - Section 75 - Application - Scope - The Insurance Court under Section 75 can examine the correctness of the order under Section 45A, but cannot hold that the Corporation had no jurisdiction to pass such order if the procedure under Section 45A was followed. (Para 4)
Issue of Consideration
Whether the Insurance Court was justified in setting aside the order of the ESI Corporation under Section 45A of the ESI Act on the ground that the Corporation had no jurisdiction to pass such order, and whether the establishment of the respondent was coverable under the ESI Act.
Final Decision
The High Court allowed the appeal, set aside the judgment and order of the Insurance Court, and remanded the matter to the Insurance Court for fresh consideration on merits. The respondent was directed to be given an opportunity to challenge the quantification of contribution.
Law Points
- Jurisdiction under Section 45A of ESI Act
- Applicability of ESI Act to establishments with 10 or more employees
- Validity of notification under Section 1(5) of ESI Act
- Scope of appeal under Section 82 of ESI Act
