Madras High Court
Sri Vari Educational Trust vs The State Of Tamil Nadu on 28 March, 2023
W.P(MD)No.19412 of 2021
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 28.03.2023
CORAM
THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN
W.P(MD)No.19412 of 2021
Sri Vari Educational Trust
Represented by its Managing Trustee
S.Manjula
Sri Venkadeswara Vidyalaya Nursery & Primary School
Door No.283-B, Gandhi Nagar,
Kanjanayakanpatti,
Aruppukottai Taluk,
Virudhunagar District. ... Petitioner
Vs.
1.The State of Tamil Nadu
Represented by its Principal Secretary to Government,
Labour and Employment Department,
Fort St.George,
Chennai-600 009.
2.Employee's State Insurance Corporation,
Represented by its Additional Commissioner and
Regional Director,
143, Sterling Road,
Nungambakkam,
Chennai-600 034.
3.The Recovery Officer,
Employee State Insurance Corporation,
Sub Regional Office,
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W.P(MD)No.19412 of 2021
2nd West Street, K.K.Nagar,
Madurai-625 020. ... Respondents
Prayer : Writ Petition filed under Article 226 of the Constitution of India,
praying this Court to issue a Writ of Mandamus, to direct the third respondent
to consider the waiver of arrears of contribution, interest and damages based on
the petitioner's representation dated 18.09.2021 in the light of the full bench
Judgment reported in All India Private Educational Institutions Association-VS-
State of Tamil Nadu (2020 (5) CTC 93(FB)) within a stipulated time that may
be fixed by this Court.
For Petitioner : Mr.R.Karunanidhi
For Respondents : Mr.K.Balasubramani
Special Government Pleader for R1
: Mr.I.Pinaygash for R2 & R3
ORDER
Heard the learned counsel appearing for the petitioner, learned Special
Government Pleader appearing for R1 and the learned Standing Counsel
appearing for the respondent Corporation.
2. The question whether the private educational institutions would be
covered by ESI Act was settled authoritatively by the Hon'ble Full Bench in the
decision reported in 2020 (5) CTC 93 FB (All India Private Educational
Institutions Association Vs. State of Tamil Nadu). The petitioner wants the
corporation to waive the arrears of contribution, interest and damages. They
have given a representation dated 18.09.2021.
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W.P(MD)No.19412 of 2021
3. I am clearly of the view that the corporation can consider waiver of
damages in the special facts and circumstances of this case. The Hon'ble Full
Bench in Paragraph Nos.130 to 133 has observed as follows:-
130. This matter was heard and reserved for orders just before the
preparations for lock down of the Country on account of COVID-19 pandemic
were announced. Thus, in addition to whatever we have stated above on the
merits of the issue referred to us, we are also of the view that the present
economic conditions necessitate some leeway and negotiations in the matter of
settlement of arrears due by the Educational Institutions.
131. Section 91-C of the ESI Act comes to aid. Section 91-C provides for
the writing off of loss and states as follows:
“91-C. Writing off of losses subject to the conditions as may be
prescribed by the Central Government where the Corporation is of opinion that
the amount of contribution, interest and damages due to the Corporation is
irrecoverable, the Corporation may sanction the writing off finally of the said
amount.
132. A provision is, thus, made for the Corporation to sanction the writing
off of the contribution, interest and damages due to it if the Corporation is of the
opinion that such amounts are irrecoverable from the Educational Institutions
concerned. The pandemic has resulted in a situation where several Educational
Institutions are reportedly unable to even pay regular salaries to their employees.
The financial crunch faced by them, at this juncture, is a matter of public
knowledge. The impugned notification no doubt mandates certain contributions
to be made and we have upheld the validity of the same. The contributions to be
made under the Notification enure to the coffers of the Corporation and it is not
the Corporation's case that there are claims that have been made by the
employees of the Educational Institutions that remain unfulfilled on account of
the failure of the Institutions to make the contributions in the first place. No
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W.P(MD)No.19412 of 2021
prejudice has thus been caused to the employees per so for the periods till the
date on account of such failure by the Educational Institutions.
133. We, thus, strongly recommend that the provisions of Section 91-C be
applied in letter and spirit by the Corporation in considering the case for
reduction/waiver of pending arrears, if and when made by the Educational
Institutions. Such requests, if and when made, shall be considered by the
Corporation in line with the object and spirit of Section 91-C, particularly in the
light of the present economic conditions.”
4. The second respondent is directed to consider and pass final order on
the petition mentioned representation within a period of five weeks from the
date of receipt of a copy of this order.
5. The Writ Petition is disposed of accordingly. No costs.
28.03.2023
Index : Yes / No
Internet : Yes/ No
rmi
To
The Principal Secretary to Government,
Labour and Employment Department,
Fort St.George,
Chennai-600 009.
https://www.mhc.tn.gov.in/judis
W.P(MD)No.19412 of 2021
G.R.SWAMINATHAN, J.
rmi
W.P(MD)No.19412 of 2021
28.03.2023
https://www.mhc.tn.gov.in/judis
