Case Note & Summary
The present appeal arises from a judgment dated 01.04.2023 passed by the learned ESI Court, Ahmedabad in ESI Application No. 54 of 2017. The appellant, Employees' State Insurance Corporation (ESIC), challenged the order of the ESI Court which had partly allowed the application filed by the respondent, Chansma Taluka Sarvoday Mazdoor Kamdar Sahakari Mandali Limited, a cooperative society supplying manpower to ONGC. The respondent had been allotted an ESI code on 17.11.2014 and had been regularly paying contributions. However, the ESIC's social security officer visited the establishment on 07.12.2016, 08.12.2016, and 09.12.2016, and subsequently issued a notice dated 21.02.2017 demanding Rs.1,60,12,664/- on the ground that the date of coverage should be preponed from 01.11.2014 to 01.04.2011. After hearing the respondent, the ESIC passed an order on 30.06.2017 under Section 45-A of the Employees' State Insurance Act, 1948, holding the respondent liable to pay contribution of Rs.29,25,544/-. The respondent filed an application before the ESI Court under Section 75 of the Act, which was partly allowed by the ESI Court. The ESI Court set aside the order under Section 45-A and remanded the matter back to the appellate authority to re-decide the matter. The ESIC appealed against this order. The legal issue before the High Court was whether the ESI Court had the jurisdiction to remand the matter to the appellate authority. The High Court held that the ESI Court, while exercising jurisdiction under Section 75, is a court of first instance and must adjudicate the dispute itself. It cannot remand the matter to the appellate authority as that would amount to delegating its judicial function. The High Court allowed the appeal, set aside the impugned order of the ESI Court, and remanded the matter back to the ESI Court for fresh adjudication in accordance with law.
Headnote
A) Employees' State Insurance Act, 1948 - Section 75 - Jurisdiction of ESI Court - Remand - The ESI Court, while adjudicating a dispute under Section 75, has no power to remand the matter to the appellate authority after setting aside an order under Section 45-A. The court must decide the dispute itself and cannot delegate its adjudicatory function. (Paras 5-8) B) Employees' State Insurance Act, 1948 - Section 45-A - Order of Assessment - Challenge - The ESI Court, upon setting aside an order under Section 45-A, must determine the correct contribution amount or direct the Corporation to pass a fresh order after hearing, but cannot remand to the appellate authority. (Paras 5-8) C) Code of Civil Procedure, 1908 - Section 96 - Appeal - Maintainability - An appeal under Section 82 of the ESI Act read with Section 96 of CPC lies against the judgment of the ESI Court. The High Court can interfere if the ESI Court acts without jurisdiction. (Para 1)
Issue of Consideration
Whether the ESI Court, while exercising jurisdiction under Section 75 of the Employees' State Insurance Act, 1948, has the power to remand the matter back to the appellate authority after setting aside the order passed under Section 45-A of the Act.
Final Decision
The High Court allowed the appeal, set aside the impugned order dated 01.04.2023 passed by the ESI Court, Ahmedabad in ESI Application No. 54 of 2017, and remanded the matter back to the ESI Court for fresh adjudication in accordance with law.
Law Points
- Jurisdiction of ESI Court under Section 75 of ESI Act
- 1948
- Scope of remand by ESI Court
- Interpretation of Section 45-A of ESI Act
- Power of ESI Court to set aside and remand
