E.S.I. Case Laws - 2011

Definition of factory covers "shop", and there being more than 20 persons, ESI coverage is valid.
Anant Raj Agencies Pvt. Ltd. vs. Regional Director, ESI Corporation & Anr. 2011 I CLR 120 (Del. HC)

Doing loading and unloading of cargo outside the premises of employer will come under 'shop' for ESI purpose. ESI applicable.
Employees' State Insurance Corporation vs. Sea Hawk Cargo Carriers Pvt. Ltd. 2011 (128) FLR 82 (Del. HC)

Even if blending and packing of tea in continuation to manufacturing process in plantation is done whole the year, would amount to seasonal factory and will be out of ESI coverage.
Hindustan Lever Ltd. Kirumampakkam, Pondicherry vs. Deputy Director, Regional Office (Pondicherry) Employees, State Insurance Corporation, Pondicherry and others. 2011 (128) FLR 108 (Mad. HC)

The establishment providing professional services about machine tools and equipments to industries rightly covered under ESI as "shop".
Machine Tools (India) Ltd., vs. Employees' State Insurance Corporation. 2011 LLR 121 (Del. HC)

Providing services of sale and purchase of immovables will be termed as shop under Delhi Shops Act making the establishment coverable under ESI Act
Anant Raj Agencies Pvt. Ltd. vs. Regional Director, ESI Corporation & Anr. 2011 LLR 204 (Del. HC)

ESI Act not applicable on Nagar Palika/Parishad employees.
Nagar palika, Hardwar vs. Employees' state Insurance Corporation and others. 2011 (128) FLR 331 (Uttarakhand HC)

Proceedings under section 45A and under section 75 of the Employees' State Insurance Act are distinct and no period of limitation for recovering arrears under section 45A of the Act is applicable.

Deputy Director, Employees' State Insurance Corporation, Hyderabad vs. CMC Ltd. (A Govt. Business Manager of India Enterprise), Rep. by its Senior Executive, Legal & I.R. Sri A.M. Rao. 2011 LLR 247 (AP HC)

When the master servant relationship was not denied before the Labour Inspectors by the employer, absence of employee name in the ESI record will not be sufficient to prove that employee was not employed by the employer.
Vivek Metal Industries vs. P.O., L.C & Ors. 2011 LLR 239 (Del. HC)

Production incentive paid by the company to its employees would be part of "wages". E.S.I. contribution would be payable in respect of the same. Impugned order passed by E.S.I. Court set aside.
E.S.I. Corporation vs. Traco Cable Co. Ltd. 2011(128) FLR 656 (Kerala HC)

For recovery of ESI dues, the personal property of a former Director of a Company cannot be attached.
Rani K. Lulla vs. Employees' State Insurance Corporation, Chennai. 2011 LLR 289 (Mad. HC)

Clubbing of employees working in sales office and manufacturing unit for coverage under ESI is proper.
E.S.I. Corporation vs. Vijay Grover. 2011 (129) FLR 102 (Del. HC) ; 2011 LLR 499 (Del. HC)

Director / Managing Director receiving salary less than the prescribed under ESI Act will come within the definition of employee under the Act.
Employees' State Insurance Corporation through its Regional Director vs. Padma Bhawan Engineers (P) Ltd. and Others. 2011 LLR 433 (P&H HC)

Non profit making organization is not entitled to waiver of condition of 50% deposit of the amount directed by EI Court.
Sulabh International Social Service Organisation vs. Employees' State Insurance Corporation and Anr. 2011 LLR 435 (P&H HC)

For admitting the appeal against ESI demand, 25% instead of 50% deposit by employer would be proper because there is no ESI hospital near the workplace.
M/s. Bihar Industrial Corporation vs. State of Jharkhand and Others. 2011 LLR 485 (Jharkhand HC)

Recovery of ESI dues under section-45A of ESI Act not maintainable when raised after 5 years.
M/s. Madhav Retreads vs. Employees' State Insurance Corporation and Others. 2011 LLR 492 (Jharkhand HC)
Sick company cannot stall ESI recovery dues merely because it was sick under BIFR.

A&F Overseas Trade Limited vs. Regional Director, Employees' State Insurance Corporation & Anr. 2011 LLR 451 (Mad. HC)

Pendency of BIFR proceedings cannot prevent ESI authorities from enforcing the provisions of the Act. Employer cannot escape from interest on delayed payments. But damages can be waived or reduced.
M.M. Rubber Company Ltd. vs. Deputy Director, Employees' State Insurance Corporation & Ors. 2011 LLR 454 (Mad. HC)

Giving 7 days notice instead of 15 for recovery of ESI dues by the authorities would be illegal under sec. 45G.
M/s. G.R. Thangamaligai Jewellers vs. M/s. Employees' State Insurance Corporation & Anr. 2011 LLR 545 (Mad. HC)

Writ petition against show cause notice issued by ESI authorities under Sec. 75 & 45 A of ESI Act not maintainable. Employer is under obligation to reply show cause notice.
Alagappa Spinning Mills Pvt. Ltd. Represented by its Personnel Officer, Rajapalayam, Virudhunagar vs. Employees' State Insurance Corporation. 2011 LLR 573 (Madras HC)

Principles of limitation are not applicable on recovery of interest amount on delayed payment of ESI contributions.
Essma Woollen Mills Pvt. Ltd. vs. Employees' State Insurance Corporation and Anr. 2011 LLR 650 (P& H HC)

Prosecution against employer under ESI beyond limitation period of 6 months will not be maintainable.
E.S.I. Corporation vs. Brajakishore Panigrahi and Another. 2011 (129) FLR 347 (Orissa HC)

An order by Employees' Insurance Court rejecting plea for waiver of deposit of 50% amount due (under section 75(2-B) of ESI Act, 1948) is not appealable since no substantial question of law has arisen.
JCT Electronics Ltd. Mohali through its Vice President vs. Employee's State Insurance Corporation, New Delhi and Others. 2011-II LLJ 3803 (P& H HC)

The ESI Act has not provided for an appeal against an award declining to impose interest and/or penalty.
Shankarji Kaluji Thakur vs. Chabindas Babulal Jain. LLN (1) 2011 P. 472 (Guj. HC)

Schools fall within the ambit of establishments as provided in section 1(5) of the ESI Act.
Private Schools Co-ordination Committee vs. State & Ors. LIC 2011 P. 997 (J&K HC)

Architectural / Engingeering consultancy organization will be 'shop' for the purpose of coverage under ESI Act.
Consulting Engineering Services (I) Pvt. Ltd. vs. Chairman, ESI Corporation & Ors. 2011 LLR 687 (Del. HC)

When employees of two units working in the same premises having functional integrality with common electricity connection, both the units will be treated one for the coverage under ESI Act.
Regional Director, Employees' State Insurance Corporation Ltd., Chennai vs. M/s. Ambika Offset. 2011 LLR 726 (Mad. HC)

Conveyance allowance will not attract ESI contribution.
M/s Asian Paints (India) Ltd. (Now known as Asian Paints Ltd.) vs. The Employees' State Insurance Corporation & Anr. 2011 LLR 776 (AP HC) 
"Minority" institutions having constitutional protection to administer the institution in their own manner, signify an identifiable group of people or community, who are seen as deserving protection from likely deprivation of their religious, cultural and educational rights by majority communities and likely to gain political power in a democratic form of government based on election hence coverage of educational institutions by clubbing them with others will not be legal and their coverage under ESI Act  is liable to be set aside.
Salesian Province of Kolkata (Northern India), represented by its Secretary, Father Mananchira Chacko Matthew vs. State of West Bengal & Ors. 2011-II CLR 666 (Cal. HC)

When there were only eight employees and such attendance register was also scruitinized by the ESI inspector, no amount of contribution can be determined against such employer, specifically when the establishment was not liable to covered.
Syndicate Printers by its Proprietor, V. Chockalingam, Contract of Insurance-14 vs. The Regional Director, ESI Corporation, 143 Sterling Road, Contract of Insurance-34. 2011 LLR 963 (Mad.HC)

Travelling allowance is not wages for the purpose of ESI.
Conveyance allowance is synonymous to travelling allowance.
Sirpur Paper Mills Ltd. vs. Employees' State Insurance Corporation, Hyderabad. 2011 III CLR 121 (AP HC); 2011 LLR 1174

Order threatening coercive action for failure to pay ESI contribution cannot be challenged on the ground that the company had become sick or that the demand for interest was unjustified.
M.M. Rubber Co. Ltd. vs. Dy. Director, Employees State Insurance Corpn., Chennai. LLJ (III) 2011 P. 322 (Mad. HC)

Waiver of deposit of 50% of the amount as challenged in a petition under section 75 of the ESI Act rightly denied since no extraordinary circumstances have been made out from the petitioner.
M/s. Aakavi Spinning Mills Pvt. Ltd., Melasubrayapuram vs. Employees' State Insurance Corporation, Pondicherry. 2011 Lab. IC 3098 (Mad. HC)

Notifications relating to increase in wage limit under ESI Act do not violates Article 21 of Constitution.
Elgi Equipments Workers & Staff Union, Coimbatore vs. Union of India and Others. 2011(4) LLN 305 (Mad. HC)

No damages for late deposit without serving show cause notice.
A.K. Industries, Rohtak through its Authorised Signatory D. Mukherjee vs. Employees' State Insurance Corporation through its Regional Director, Faridabad and Ors. 2011 LLR 1248 (P&H HC)

In the absence of having any medical facility for treatment of heart ailment by ESIC, expenses incurred for treatment is a private hospital by the employee who died, his legal heirs will be entitled for reimbursement of expenditure from ESIC.
Regional Director, E.S.I. Corporation, Bangalore vs. Smt. Lakshmi Biradar and Others. 2011 LLR 1271 (Karn. HC)

Managing Director or Director of a company can't be treated as an employee under the Act.
Regional Director, E.S.I. v. Sri Vasavi Cold Storage Pvt. Ltd. LLN (3) 2010 P. 438 (A.P. HC)

Merely using deep freezer by a hotel employing 11 employees will not make him coverable under ESI with in the definition of factory.
Arif (Mohd.) vs. Employees' State Insurance Corp. 2011 LLR 91 (Del. HC)

The payment towards production incentive paid to the employees within a span of two months will be deemed as 'wages' for ESI contributions.
E.S.I. Corporation vs. Traco Cable Co. Ltd. 2010(4) KLT 892 (Kerala HC)
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