UNIVERSITY INSTITUTE OF LEGAL STUDIES,

PANJAB UNIVERSITY, CHANDIGARH

THE EMPLOYEES’ STATE

INSURANCE ACT, 1948
A project report to be submitted on the above topic in the subject of Labour
Laws and International Labour for partial fulfilment of the curriculum of the
degree B.A. LL.B. (Hons.), 10th Semester.

SUBMITTED TO: SUBMITTED BY:

DR. VIRENDER NEGI AMANDEEP KAUR
ASSOCIATE PROFESSOR B.A. LL. B. (HONS.)
UILS SECTION – C
PANJAB UNIVERSITY SEMESTER – 10 TH
CHANDIGARH ROLL NO. – 176/19

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ACKNOWLEDGEMENT
The success and the final outcome of this project required a lot of guidance and assistance from
many people and I am extremely privileged to have got this all along the completion of my
project. All that I have done is only due to such supervision and assistance and I would not
forget to thank them.
I respect and thank, Dr. Virender Negi for providing me an opportunity to do the project of
Labour Laws and International Labour on the topic of “The Employees’ State Insurance
Act, 1948” and giving me all support and guidance, which made me complete the project duly.
I am extremely thankful to him for providing such a nice support and guidance, although he
had busy schedule.
I would also like to thank my parents and friends who helped me a lot in finalizing this project
within the limited time frame.

Amandeep Kaur

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TABLE OF CONTENTS
Acknowledgement ..................................................................................................................... 2

Table of Contents ....................................................................................................................... 3

Introduction ................................................................................................................................ 5

Employees’ State Insurance Scheme.......................................................................................... 5

Historical Background of the Act .............................................................................................. 6

Applicability of the Act .............................................................................................................. 6

Constitutionality of the Act ........................................................................................................ 7

The Employees' State Insurance Act under the Code on Social Security, 2020 ........................ 7

Definitions.................................................................................................................................. 8

Employee ............................................................................................................................... 8

Wages ..................................................................................................................................... 8

Corporation, Standing Committee and Medical Benefit Council .............................................. 9

Employees’ State Insurance Corporation ............................................................................... 9

Standing Committee............................................................................................................... 9

Medical Benefit Council ...................................................................................................... 10

Powers of the Standing Committee...................................................................................... 10

Meetings ............................................................................................................................... 10

Duties of the Medical Benefit Council ................................................................................ 10

Finance And Audit ................................................................................................................... 11

Employees’ State Insurance Fund ........................................................................................ 11

Expenses of the fund ............................................................................................................ 11

Administrative expenses ...................................................................................................... 11

Holding of Property ............................................................................................................. 12

Accounts .............................................................................................................................. 12

Audit .................................................................................................................................... 12

Budget etc. to be placed before Parliament ......................................................................... 12

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 Valuation of assets and liabilities ......................................................................................... 12

Contributions............................................................................................................................ 13

All employees to be insured ................................................................................................. 13

Contribution ......................................................................................................................... 13

Method of payment of contributions.................................................................................... 13

Social Security Officers and their functions ........................................................................ 14

Benefits .................................................................................................................................... 14

Medical Benefits .................................................................................................................. 14

Sickness Benefits ................................................................................................................. 14

Maternity Benefits ............................................................................................................... 15

Dependants’ Benefits ........................................................................................................... 15

Disablement Benefits ........................................................................................................... 15

Other Benefits ...................................................................................................................... 15

Adjudication of Disputes and Claims ...................................................................................... 16

Constitution of Employees’ Insurance Court ....................................................................... 16

Power of Employees’ Insurance Court................................................................................. 16

Reference to High Court ...................................................................................................... 16

Appeal .................................................................................................................................. 16

Penalties ................................................................................................................................... 16

Judicial Precedents ................................................................................................................... 17

Case 1: Mr. A. Tehan V/S M/S. Associated Electrical Agencies & Anr. ............................. 17

Case 2: Western India Plywood Ltd V/S Shri. P. Ashokan .................................................. 17

Case 3: Kerala CBSE School Management vs State of Kerala ........................................... 18

Conclusion ............................................................................................................................... 19

Bibliography ............................................................................................................................ 20

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INTRODUCTION
The promulgation of the Employees' State Insurance Act, 1948, by the Parliament was the first
major legislation on social Security for workers in independent India. The Employees' State
Insurance Act, 1948, encompasses certain health related eventualities that the workers are
generally exposed to, such as sickness, maternity, temporary or permanent disablement,
Occupational disease or death due to employment injury, resulting in loss of wages or earning
capacity-total or partial. Social security provision made in the Act to counterbalance or negate
the resulting physical or financial distress in such contingencies are thus, aimed at upholding
human dignity in times of crises through protection from deprivation, destitution and social
degradation while enabling the society the retention and continuity of a socially useful and
productive manpower.
The Employees’ State Insurance Act incorporates a number of sections, these sections provide
for medical benefits and insurance for any employees working under factories registered under
the Employees’ State Insurance Corporation. This is an exciting prospect from both an
employee’s and a legal perspective as the beginning of a formal social security program in
India.

EMPLOYEES’ STATE INSURANCE SCHEME

Employees’ State Insurance Scheme of India is a multi-dimensional social security system
tailored to provide socio-economic protection to worker population and their dependants
covered under the scheme.
The scheme was inaugurated in Kanpur on 24th February, 1952. The comprehensive and
multi-pronged social security programme is administered by an apex corporate body called the
Employees' State Insurance Corporation.
Employees’ State Insurance Scheme, like most of the Social Security Schemes, is a self-
financing health insurance scheme. Contributions are raised from covered employees and their
employers as a fixed percentage of wages. The State Governments, as per provisions of the
Act, contribute 1/8th of the expenditure of medical benefit within a per capita ceiling of Rs.
1500/ per Insured Person per annum. Any additional expenditure incurred by the State
Governments, over and above the ceiling and not falling within the shareable pool, is borne by
the State Governments concerned.
Employees’ State Insurance Scheme being contributory in nature, all the employees in the
factories or establishments to which the Act applies shall be insured in a manner provided by

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the Act. The contribution payable to the Corporation in respect of an employee shall comprise
of employer's contribution and employee's contribution at a specified rate. The rates are revised
from time to time.

HISTORICAL BACKGROUND OF THE ACT

The Employees' State Insurance Act, 1948, is a pioneering measure in the field of social
insurance in our country. The subject of health insurance for industrial workers was first
discussed in 1927 by the Indian Legislature, when the applicability of the Conventions adopted
by the International Labour Conference was considered by the Government of India. The Royal
Commission on Labour, in its report (1931), stressed the need for health insurance for workers
in India. One of the earlier decisions of the Labour Ministers' Conferences between 1940 and
1942 was to invite an expert to frame a scheme of health insurance for workers.
In pursuance thereof, the responsibility for preparing a detailed scheme of health insurance for
industrial workers was entrusted in March, 1943 to Prof. B.P. Adarkar who submitted his
report in December 1944. This was considered by the Government of India and State
governments as well as other interested parties. The Adarkar Plan and various other suggestions
emerged finally in the form of Workmen's State Insurance Bill 1946, which was then referred
to a Select Committee in November 12, 1947. The Select Committee extended the cover-age
to all the employees in factories, and changed its name from Workmen's State Insurance Bill to
Employees' State Insurance Bill. The Employees' State Insurance Act came into force from
19th April, 1948. The scheme framed under the Act aims at providing for certain cash benefits
to employees in the event of sickness, maternity, employment injury, and medical facilities in
kind, and contains provisions for certain other matters having bearing thereon.

APPLICABILITY OF THE ACT

Under Section 1(4) of the Act, the implementation of the scheme is territorial. The Act applies
in the first instance to all factories using power and employing 20 or more persons on wages.
The provisions of the Act have also been extended, or are being gradually extended, under
Section 1(5) of the Act to cover:
a) Smaller power-using factories employing 10 to 19 persons;
b) Non-power using factories employing 20 or more persons;
c) Shops;
d) Hotels and restaurants;
e) Cinemas, including preview theatres;

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 f) Newspaper establishments; and
g) Road motor transport undertakings employing 20 or more persons.
The Act, however, does not apply to a mine or railway running shed., and specified seasonal
factories. The State Government may extend the provisions of the Act to cover other
establishments or class of establishments, industrial, commercial, agricultural or otherwise, in
consultation with the Corporation and with the approval of the Central Government, after
giving six months’ notice of its intention to do so in the Official Gazette.

CONSTITUTIONALITY OF THE ACT

The Employees' State Insurance Act serves as a constitutional instrument because of its practice
of providing insurance and medical insurance. While the Employees' State Insurance Act is
mostly executed through the Employees' State Insurance Corporation, the Central Government
takes control of most of the proceedings.
This control by the Central Government largely contributes to the constitutionality of the Act,
because Insurance, be it public or private, is listed in the Seventh Schedule of the Indian
Constitution as a Union List subject i.e. it can only be legislated by the Central Government.

THE EMPLOYEES' STATE INSURANCE ACT UNDER THE

CODE ON SOCIAL SECURITY, 2020
The Employees' State Insurance Act, 1948 along with 8 other Central Labour enactments, have
been subsumed in the Code on Social Security, 2020 (Act 36 of 2020). The Code on Social
Security, 2020 has not yet been implemented. The Central Govt. has notified the draft rules
namely the Code on Social Security (Central) Rules, 2020 in the Gazette of India on 13.11.2020
for stakeholder consultation.
Benefits available under the Employees' State Insurance Act have been retained in the Code.
Any member or beneficiary of the Social Security Code including under Employees' State
Insurance Scheme would be required to seed their Aadhaar for seeking benefits as per
provisions of Section 142 of the Code on Social Security.
In the Code of Social Security 2020, the coverage of the Employees' State Insurance scheme
shall be extended pan India to all establishments employing 10 or more employees, as against
the notified district/areas. However, contribution from employers and employees will be
collected from the notified date when the benefits are provided by Employees' State Insurance
Corporation.

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As per Section 1(7) of the Code on Social Security, 2020 read with its First Schedule, provision
for voluntary coverage of establishment with less than 10 persons has been incorporated.
Coverage for plantations as an establishment, on opting by the employer has been provisioned
in the Code. A major change has been brought in the coverage under Employees' State
Insurance whereby as per the proviso of First Schedule of the Code (ibid), establishments
engaged in hazardous or life-threatening occupation will have to cover every employee
employed by them. The Central Govt. by notification shall notify the hazardous industries and
life-threatening occupation.
Provision for special scheme for unorganized workers, gig workers, platform workers and other
beneficiaries have been included in the Code.

DEFINITIONS
Employee

The term "employee" as defined under Section 2(9) of the Act, refers to any person employed
on wages in, or in connection with, the work of a factory or establishment to which this Act
applies. It has a wide connotation and includes within its scope clerical, manual, technical and
supervisory functions. Persons whose remuneration (excluding the remuneration for over-time
work) does not exceed Rs. 6,500 a month are covered under the Act. The Act does not make
any distinction between casual and temporary employees or between technical and non-
technical employees. There is also no distinction between those employed on time-rate and
piece-rate basis. Employees employed directly by the principal employer and those employed
by or through a contractor on the premises of the factory and those employed outside the factory
premises under the supervision of the principal employer are all included under the Act: It also
covers administrative staff and persons engaged in the purchase of raw materials or the
distribution or sale of products and similar or related functions. However, the definition of
"employee" does not include any member of the Indian naval, military or air force.

Wages

"Wages" means all remuneration paid in cash if the terms of the contract are fulfilled, and
includes any payment in any period of authorised leave, lockout or strike which is not illegal
or lay-off, and includes other remuneration paid at intervals not exceeding two months but does
not include:
a) Contribution paid to the provident fund or pension fund;

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 a) Travelling allowance or value of travelling concession;
b) Sum paid to defray special expenses; and
c) Gratuity payable on discharge.

CORPORATION, STANDING COMMITTEE AND MEDICAL

BENEFIT COUNCIL
Employees’ State Insurance Corporation

The ESI Act exercises its function through the Employees’ State Insurance Corporation,
established via Section 3, a body created to maintain social security. It was established on 24
February, 1952. The corporation is supposed to grant relief to the employees in case of medical
emergencies.
The composition of the ESIC is defined in Section 4, and it is as follows:
 The Director-General.
 Chairman, appointed by the Central Government.
 Vice-Chairman appointed by the Central Government.
 Not more than 5 persons nominated by the Central Government.
 1 person to represent each state.
 1 person representing the Union Territories.
 10 persons representing employers.
 10 persons representing employees.
 2 persons representing the medical profession.
 3 members of parliament (2: Lok Sabha and 1: Rajya Sabha).

Standing Committee

According to Section 8, the composition of the Standing Committee of Employees' State

Insurance Corporation is as follows:
 A chairman appointed by Central Government.
 3 members within the corporation representing 3 state governments.
 3 members within the corporation representing employers.
 3 members within the corporation representing employees.
 1 member within the corporation representing the medical profession.
 One MP belonging to the corporation.

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  The Director-General.

Medical Benefit Council

Section 10 provides that the Medical Benefit Council is an advisory body on matters related to
the administration of medical benefits under the Employees' State Insurance scheme. It consists
of:
 The Director-General of ESIC as Chairman.
 The Director-General of Health Services as co-Chairman.
 The Medical Commissioner of ESIC.
 One member for each state appointed by State Government.
 Three members representing employers.
 Three members representing employees.
 Three members including one woman representing the medical profession.

Powers of the Standing Committee

The Standing Committee, with its powers defined in Section 18, shall administer the affairs of
the Corporation and may exercise any of the powers and perform any of the functions of the
Corporation, while authorised and under the jurisdiction of the corporation.
The Standing Committee shall submit for the consideration and decision of the Corporation all
such cases and matters as may be specified in the regulations made in this behalf.
The Standing Committee also, in its discretion, may submit any other case or matter for the
decision of the Corporation.

Meetings

According to Section 20, ESIC, its Standing Committee, and its Medical Council shall meet
periodically to observe rules and procedures in regard to the efficient functioning of the
corporation. Such observations can be specified as per the regulations in regard to the meeting.

Duties of the Medical Benefit Council

According to Section 22, the Medical Council’s functions are as follows:

 Advise the other two ESIC bodies on matters relating to the implementation that would
be beneficial in the medical field. It acquires certification for the grant of medical
benefits.

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  Investigate against complaints lodged against medical practitioners with relevance to
the medical relief offered.

FINANCE AND AUDIT

Employees’ State Insurance Fund

Section 26 provides that the Employees’ State Insurance Fund is the primary monetary source
for the ESIC to perform its functions. All contributions paid under this Act and all other money
received on behalf of the Corporation shall be paid into this fund to be held and administered
by the Corporation.
These could be in the form of grants, donations or gifts by the government.

Expenses of the fund

Section 28 provides that the ESI Fund is responsible for maintaining the expenses of ESIC,
which are as follows:
 Payment of benefits and provision of medical treatment and attendance to insured
persons and their families, if required.
 Payment of fees and allowances to members of the Corporation, the Standing
Committee and the Medical Benefit Council, the Regional Boards, Local Committees
and Regional and Local Medical Benefit Councils.
 Payment of salaries, leave and joining time allowances, travelling and compensatory
allowances, gratuities and compassionate allowances, pensions, etc.
 Establishment and maintenance of hospitals, dispensaries, and other institutions and the
provision of medical and other ancillary services for the benefit of insured persons and
their families, if required.
 Payment of contributions to any State Government, local authority or any private body
or individual, towards the cost of medical treatment and attendance provided to insured
persons and their families, if required.

Administrative expenses

Section 28A provides that the administrative expenses are termed so, those expenses which
cover the costs of administration of ESIC, prescribed by the Central Government.

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Holding of Property

Section 29 provides that the ESIC is subject to conditions prescribed by the Central
Government, in terms of acquiring, hold, sell or transfer any property, movable or immovable,
vested in or acquired by it, so as to fulfil the purposes of the corporation. The ESIC also has
the ability to invest in property as and when required, under the jurisdiction of the Central
government. It can also delegate property for the benefit of its staff.

Accounts

Section 33 provides that the Corporation shall maintain correct accounts of its income and
expenditure in such form and in such manner as may be prescribed by the Central Government.

Audit

Section 34 provides that the Corporation prepares accounts regularly which are audited
annually by the comptroller and Auditor-General of India, and any audit which leads to an
expenditure will be payable to the above parties.
Any person appointed by the Comptroller and Auditor-General to act on their behalf will
temporarily have the same powers as the above parties and are authorised to demand the
production of books, accounts, connected vouchers, and other documents and papers. They
shall also be authorised to inspect any offices of ESIC at any time.
The accounts of the Corporation, before being forwarded to the Central Government, have to
be verified by the Comptroller and Auditor-General, or any of their representatives. After
verification, the accounts can be forwarded to the Central Government along with any
comments on the report, given by the above parties.

Budget etc. to be placed before Parliament

Section 36 provides that the annual report, the audited accounts of the Corporation along with
the report of the Comptroller and Auditor-General of India, and the comments of the
Corporation on such report under section 34 and the budget, as finally adopted by the
Corporation, shall be placed before the Parliament.

Valuation of assets and liabilities

Section 37 provides that the Corporation shall, at intervals of three years, have a valuation of
its assets and liabilities made by a valuer appointed with the approval of the Central

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Government: Provided that it shall be open to the Central Government to direct a valuation to
be made at such other times as it may consider necessary.

CONTRIBUTIONS
All employees to be insured

Section 38 provides that All employees employed in the factories which meet ESIC prescribed
rules (under Section 2) are insured for all the benefits offered by it.

Contribution

Section 39 provides that:

 The contribution is a determinable amount of money payable by both the employer and
the employee, as per the situation, to the corporation.
 The rates, while usually prescribed by the government, are not set in stone, and are
subject to change. Rates defined by the government are mostly set as the unit standard
for the contribution payable by the employer.
 In the case of the employee’s contribution, the wage period in relation to the respective
employee shall be held as a unit to determine the compensation payable, and are
normally due on the last day of the wage period.
 Failure to pay contributions by the employer will make him liable to pay an interest rate
of 12%.

Method of payment of contributions

Section 43 provides that the manner for payments which the Act provides regulations for, has
been elaborated in the following conditions:
 The nature and time of contribution being paid.
 Payment which involves the usage of stamps or other adhesives fixed upon the books
of accounts, or any other documents.
 The evidence of the contributions, which reaches the Corporation, is to be dated.
 The different entries in the books of accounts along with the details of the insured
persons.
 The replacement of documents which have been lost, destroyed or defaced.

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Social Security Officers and their functions

Section 45 provides that the ESIC has the power to appoint persons as Social Security Officers.
Their functions are mostly to serve a role in inspecting the function of the corporation.
 If required, he can acquire any information from any employer as he sees fit.
 He can enter any corporation at any time and can get all the accounts, books and other
employment documents presented to him without any due notice. This can include
information like wages, expenses, etc.
 He can inspect and look into any matter regarding the employers and employees as and
when required under the jurisdiction of the court.
 He can make copies or take extracts from any register or account back as per his
discretion.

BENEFITS
Section 46 of the ESI Act grants benefits to employees as social security in case of injury,
which can be availed during the course of employment. There are 6 types of benefits that can
be availed:
 Medical benefit.
 Sickness benefit.
 Maternity benefit.
 Dependants’ benefits.
 Disablement benefits.
 Other benefits.

Medical Benefits

Section 56 provides that these benefits are guaranteed to the employee as soon as he/she is
hired, with the benefits extending to their family members as well.
This benefit covers the payment of all treatment expenses in lieu of medical issues faced by the
employee

Sickness Benefits

The employees covered by the ESI Act can avail periodical payments in case of sickness as per
Section 46(1)(a), as long as the medical condition is verified by the appointed medical
practitioner.

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The compensation is approximately 70% of their wages, with the upper limit for availing
compensation being 91 days in a year.
In a period of 6 months of employment, the employee must have been working for a minimum
of 78 days, else the benefit cannot be claimed.

Maternity Benefits

As per Section 46(1)(b) of the ESI Act, an insured woman can claim periodical payments in
case of occurrence of any of the following situations:
 confinement (labour leading to birth or birth after 26 weeks)
 miscarriage
 sickness arising out of pregnancy
 premature birth of child
The benefit is payable for three months, with an extension of one month, if required. The
minimum work duration must be 70 days in the year preceding the year of pregnancy.

Dependants’ Benefits

Section 46(1)(d) prescribes periodical payments (often made monthly) to the

dependants/family members of the person who dies during the course of employment, with the
cause of death being an employment injury or an occupational hazard. Compensation is
generally 90% of the employee’s wages.

Disablement Benefits

In case an employee suffers an injury during the course of employment which results in their
disablement. The nature of the disablement may be temporary or permanent. Unlike the other
benefits, there is no minimum work contribution required to avail the disablement benefit,
although eligibility for the same will be determined by the Medical Board.
This determination also affects the amount of compensation granted, if any, with the general
percentage of wages granted being around 90%.

Other Benefits

‘Other benefits’ refer to the miscellaneous benefits apart from the five major benefits that can
be availed by the employees. These are as follows:
 Funeral Expenses: Compensation of Rs. 10,000 is granted to the eldest surviving
member of an employee’s family to perform his last rites.

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  Vocational Rehabilitation: The benefit is payable to disabled employees undergoing
rehabilitation.
 Old age medical care: This benefit is available for retired employees, or those who eft
employment after suffering an injury, with general compensation being Rs. 120 p/m.

ADJUDICATION OF DISPUTES AND CLAIMS

Constitution of Employees’ Insurance Court

Section 74 provides that via a notification in the Official Gazette, an Employees’ Insurance
Court will be constituted by the State Government, with a set number of judges as per the
decision of the State Government.
The same court may be appointed for two or more local areas, or two courts or more courts
may be appointed for the same local area.

Power of Employees’ Insurance Court

Section 74 provides that the Employees’ Insurance Court will function with the same powers
as that of a Civil Court, in which, to enforce the provisions of the ESI Act, it can enforce witness
attendance, compel document and material evidence to be presented, it can administer an oath
and can record evidence.
All expenses incurred before a proceeding are subject to the discretion and liability of the court
itself.

Reference to High Court

An Employees’ Insurance Court, according to Section 81 may submit any question of law for
the decision of the High Court and if it does so, the answer to the question shall hold precedence
before any judgment.

Appeal

Section 82 defines that no appeal can be laid down as against an order from the Employees’
Insurance Court. However, appeals from the High Court can stand if they involve a substantial
question of law.

PENALTIES
Sections 84, 85, and 85A cover all the punishments for default listed within the ESI Act.

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  False Statement: Any person caught increasing the payment or benefit to avoid
payment by himself is known to make a false statement. Punishable with up to six
months and/or with fine not greater than Rs. 2000. Insured persons convicted of this
will not be entitled to cash benefits.
 Failure to pay contribution: Persons failing to pay the contribution, unlawfully deducts
wages or benefits, unfairly punishes an employee, obstructs inspector’s duties, etc. can
be punishable for up to three years, no less than one year with a fine up to Rs. 10000.
 Subsequent Punishment: If a person is found committing the same offence twice, he
shall be punished with imprisonment for a term extending up to two years with a fine
of Rs. 5000 for each subsequent offence.

JUDICIAL PRECEDENTS
Case 1: Mr. A. Tehan V/S M/S. Associated Electrical Agencies & Anr.

In this case, the plaintiff was under the employment of defendant 1 for carrying out television
repairs. On July 17, 1987, he was injured during the course of employment while repairing a
television set, when a component burst and he suffered injuries on his face.
After claiming relief from the ESIC Corporation under Section 46 of the Act, he then filed an
appeal asking for compensation under the Workman’s’ Compensation Act, which required an
amount paid by the defendant.
This was challenged by the defendant in the Bombay High Court via an appeal, which contested
their payment of the compensation, and called into usage Sections 38 and 46 of the ESI Act,
which lay the foundation for the insurance offered by the Act. (Section 38 guaranteeing that
every worker is insured and Section 46 defining the relief available to workers).
This was further verified by the High Court, whose Division Bench further stated that the
worker’s appeal for the amount to be paid by the plaintiff could not be upheld. Instead, he
would receive appropriate relief, to be determined by the ESIC.

Case 2: Western India Plywood Ltd V/S Shri. P. Ashokan

In this case, the defendant, P. Ashokan, was appealing to claim damages from the appellant, his
employer, ‘Western India Plywood Ltd.’ as compensation for an injury which he had suffered
during the course of employment. However, the defendant had already claimed compensation
from ESIC for his injuries as he was insured under the ESI Act.

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The appeal was filed in lieu of the existence of Articles 53 and 61, the former restricting
compensation to be availed from the Workers’ Compensation Act, and the latter restricted
compensation being availed from any law or action other than the ESI Act. This bar would only
hold if the employee who had suffered the injury had received adequate compensation for the
same.
The Full Bench assigned to this judgment then attempted to define what could constitute as
‘adequate compensation’ if an injury had been suffered, for which the reliefs received by the
ESIC under Sections 38 and 46 of the ESI Act were eligible as ‘adequate compensation’.
The final judgment laid down by the bench was to both, restrict the employee from getting
double relief as compensation from his employer, and to define the objective of Section 53,
which was then laid down as not only a bar to guarantee only the required amount of relief for
an injury by ESIC, but also to save the employer from facing more than one claim in relation
to the same accident, i.e. an indirect form of double jeopardy, in which he may have to
compensate twice for the same injury.

Case 3: Kerala CBSE School Management vs State of Kerala

This is one of the premier landmark judgments in relation to the ESI Act as the basis of this
case is the determination of whether a particular institution can be covered under the ESI Act
or not.
The matter originally under contention was the release of a new notification by the Kerala State
Government in the Official Gazette, which extended the scope of the ESI Act, i.e. which
organisations could fall under it, was extended to schools and other educational
institutions. The matter was then decided through the interpretation of the statute in Section
1 of the ESI Act.
It was held that educational institutions, while not being commercial in nature, nor having the
functions of a traditional factory, was not completely excluded from the statute itself, and could
still be applied as an instrument under the ESI Act.
The deciding contention was when the final responsibility towards educational institutions was
discussed. Since the Central Government had a priority to control and manage most educational
institutions, the notification which extended the provision of the ESI Act to schools was held
valid.

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CONCLUSION
Employees’ State Insurance Act, 1948 is the legislative body of India which provides enormous
benefits to the employees. The headquarters are located in New Delhi, from where the whole
functioning of the act is regulated. The central government and the ministry of labour and
employment together regulate the functioning of Employees’ State Insurance Act, 1948.
According to the reports, the act runs with a budget of ₹80,000 crores. Within the 70 years after
launching, this act had already provided numerous benefits to several employees of India and
will continue to provide such benefits in future with more facilities.
For a working-class employee in India, the Employees’ State Insurance Act, 1948 is an essential
utility that works in their favour, while also being beneficial for sectors outside that of the
working class.
The Employees’ State Insurance Act, 1948 is unique in the fact that it works in advantageous
ways for both employees and employers. While employees are insured under the act and get
financial aid in case of an injury, the employers are also protected from being jeopardized twice
in lieu of paying compensation to the employees.

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BIBLIOGRAPHY
1. Meenu Paul, Labour and Industrial Law, Allahabad Law Agency, Delhi, Tenth Edition-
2017.
2. “Employees’ State Insurance Act, 1948: details you must know” available at
https://blog.ipleaders.in/ , (last visited on 28th March, 2024).
3. “The Employees' State Insurance Act, 1948” available at https://www.jstor.org/stable/,
(last visited on 28th March, 2024).
4. “ESI Act, 1948” available at https://shodhganga.inflibnet.ac.in:8443/, (last visited on
28th March, 2024).

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