Lawstreet Journal

Madras High Court: Private Educational Institutions also covered by Employees' State Insurance Act [READ JUDGMENT]

Lawstreet Journal 3 Aug 2020 6:44pm

Image courtesy: Lawstreet Journal Judiciary Madras High Court: Private Educational Institutions also covered by Employees' State Insurance Act [READ JUDGMENT]

Remarkably, the judgment was given by an all-women Full Bench consisting of Justices Pushpa Sathyanarayana, Anita Sumanth, and PT Asha, constituted by Chief Justice AP Sahi.

Finally ending a decade-old suit, the Madras High Court has backed the enlargement of the scope of Employees' State Insurance Act, 1948 to all educational institutions, including private, unaided educational institutions 

In respect to this, a Full Bench of the High Court on July 29, 2020, backed the validity of a 2010 State Government order that had put private educational institutions under the perspective of the ESI Act. The writ pleas filed by the All India Private Educational Institutions Association and others were dismissed. 

"Whether unaided private educational institutions can be treated to be an establishment within the meaning of Section 1(5) of the Employees State Insurance Act, 1948 and be capable of being governed by notifications issued under the 1948 Act as being an establishment being covered within the word “otherwise”?" 

This was the primary question in coming to a resolution on the application of the ESI Act to the educational institutions run by the petitioners. 

The High Court also denied the arguments for a narrower interpretation of "establishments" covered by the ESI Act, giving the opinion that the phrase "otherwise" would be inclusive of all kinds of other establishments. 

"A plain reading of Sections 1(4) or 1(5) only goes to show that all kinds of establishments can be covered through a notification by giving prior notice of six months. It is also relevant to note that all the… Continue Reading...

Tagged: Madras High Court  
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