High Court suggests amending provisions in ESI Act

Justice S Vaidyanathan offered the suggestion while refusing to intervene in a plea moved by the ESI Corporation challenging the finding of the Employees Insurance Court that it had not proved its case that a film production unit Kamalchitram run by one Pazha Karuppiah has employed required number of employees to be brought under the coverage of the ESI Act.

“The time limit prescribed under Section 45-AA of the Employees State Insurance Act, 1948 is only 60 days. Section 45-AA of the Act appears to be redundant. There is no time limit prescribed under the ESI Act for the disposal of the appeal,” the judge said.

He further noted that similarly, the time limit to approach the Employees’ Insurance Court must be reduced to less than 120 days from three years. The Appellate Authority must be empowered to consider the delay if any, beyond 120 days, but, on a condition that the entire amount with interest at 9% per annum, is deposited within 30 days.

The other suggestion offered included empowering the appellate authority to extend time for depositing the amount in instalments within a maximum of 12 months, however with interest at 12% perannum.

That apart, the Appellate Authority must exercise powers to grant interim order, which would make the provision workable, and time limit must be fixed for disposal of the Appeal. After the disposal of the Appeal under Section 45-AA of the ESI Act, parties must be permitted to approach the ESI Court. Powers of Appeal would enable the parties to get clarification from the Appellate Authority and pay the legitimate dues, Justice Vaidyanathan said.