FERTILIZERS & CHEMICALS TRAVANCORE LTD versus REGIONAL DIRECTOR, ESIC & ORS.

FERTILIZERS & CHEMICALS TRAVANCORE LTD versus REGIONAL DIRECTOR, ESIC & ORS.

Employer must implead workmen or representative trade union in petition before Employees' Insurance Court; failure to do so and a decision in favour of employer violates principles of natural justice. Employees' Insurance Court must properly determine employee status and entitlement under the Act after hearing all affected parties.

Parties
Appellant: Fertilizers & Chemicals Travancore Ltd.; Respondents: Regional Director, ESIC & Ors.
Jurisdiction
India
Judgment Date
20 August 2009
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeals allowed; Orders of Employees' Insurance Court and High Court set aside; Matter remanded for fresh decision.
Legal Topics
Natural Justice, Employees' State Insurance Scheme, Employees' Insurance Court Procedure, Party Impleadment
Labour Law Natural Justice Employees' State Insurance Scheme Employees' Insurance Court Procedure Party Impleadment

Case Brief

Summary, issues, holding and outcome

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Parties

Fertilizers & Chemicals Travancore Ltd.

Appellant

Regional Director, ESIC & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the workmen or their representative trade union must be impleaded as party in employer's petition before Employees' Insurance Court challenging ESIC demand notice.
  2. 2 Whether the Employees' Insurance Court properly determined if the workers were employees under the Act and entitled to its benefit.

Ratio Decidendi

Employer must implead workmen or representative trade union in petition before Employees' Insurance Court; failure to do so and a decision in favour of employer violates principles of natural justice. Employees' Insurance Court must properly determine employee status and entitlement under the Act after hearing all affected parties.

Court Disposition

Appeals allowed; Orders of Employees' Insurance Court and High Court set aside; Matter remanded for fresh decision.

Orders

  • Matter remitted to Employees' Insurance Court to decide afresh after impleading some workmen or their trade union in representative capacity and giving opportunity to all parties to lead evidence.
  • No order as to costs.