Petitioner challenged an order directing payment of ESI contributions, arguing its volunteer-based activities do not constitute employment. Single Judge reserved the petition, noting the alternate remedy under Section 75.
Petition closed; matter remitted to Employees State Insurance Court which will decide the questions of law and fact.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR. JUSTICE A.V.RAMAKRISHNA PILLAI
MONDAY, THE 13TH DAY OF JULY 2015/22ND ASHADHA, 1937
WP(C).No. 8615 of 2015 (B)
PETITIONER :
SEVASHRAM, MANGATTUKARA, PULIYANAM (P.O), ANGAMALLY, ERNAKULAM DISTRICT, PIN -683 572, RPRESENTED BY ITS SECRETARY MR.P.G.SURENDRAN.
BY ADVS.SRI.SHAJI CHIRAYATH SMT.JIJI M. VARKEY SRI.M.M.SHAJAHAN
RESPONDENT(S):
1. EMPLOYEES STATE INSURANCE CORPORATION,
2. DEPUTY DIRECTOR,
SUB REGIONAL OFFICE (ERNAKULAM), MALU'S COMPLEX,
PIN-682 017
3. RECOVERY OFFICER,
3. RECOVERY OFFICER, EMPLOYEES STATE INSURANCE CORPORATION,
SUB REGIONAL OFFICE (ERNAKULAM), MALU'S COMPLEX,
ST. FRANCIS CHURCH ROAD, KALOOR, ERNAKULAM DISTRICT,
PIN -682 017.
R1 TO R3 BY ADV. SRI.P.SANKARANKUTTY NAIR, SC, ESI CORPN
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 13-07-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
sts
WP(C).No. 8615 of 2015 (B)
APPENDIX
PETITIONER(S)' EXHIBITS
| EXHIBIT-P1: |
COPY OF THE MEMORANDUM ASSOCIATION & ALONG WITH CERTIFICATE OF REGISTRATION OF THE PETITIONER, DATED 01/03/1995 |
|---|---|
| EXHIBIT-P2(A): |
COPY OF THE DECLARATION OF MR.A.J.DEVASSY KUTTY AS A VOLUNTEER TO THE PETITIONER DATED 09.01.2004. |
| EXHIBIT-P2(B): |
COPY OF THE DECLARATION OF MRS.SHIBA JOSE AS A VOLUNTEER TO THE PETITIONER DATED 09.01.2004. |
| EXHIBIT-P2(C): |
COPY OF THE DECLARATION OF MRS.LINCY TOMY AS A VOLUNTEER TO THE PETITIONER DATED 09.01.2004. |
| EXHIBIT-P2(D): |
COPY OF THE DECLARATION OF MRS.RENAJI.V., AS A VOLUNTEER TO THE PETITIONER DATED 23.01.2004. |
| EXHIBIT-P2(E): |
COPY OF THE DECLARATION OF MR.P.D.VARGHESE AS A VOLUNTEER TO THE PETITIONER DATED 03.03.2004. |
| EXHIBIT-P2(F): |
COPY OF THE DECLARATION OF MR.M.T.ANTONY AS A VOLUNTEER TO THE PETITIONER DATED 27.11.2004. |
| EXHIBIT-P2(G): |
COPY OF THE DECLARATION OF MR.RIJO JOSE AS A VOLUNTEER TO THE PETITIONER DATED 20.07.2005. |
| EXHIBIT-P2(H): |
COPY OF THE DECLARATION OF MR.BENNY THOMAS AS A VOLUNTEER TO THE PETITIONER DATED 13.04.2006. |
| EXHIBIT-P2(I): |
COPY OF THE DECLARATION OF MRS.MARIYAMMA POULOSE AS A VOLUNTEER TO THE PETITIONER DATED 18.04.2006. |
| EXHIBIT-P2(J): |
COPY OF THE DECLARATION OF MR.P.O.VARGHESE AS A VOLUNTEER TO THE PETITIONER DATED 28.04.2006. |
| EXHIBIT-P2(K): |
COPY OF THE DECLARATION OF MR.LIJO JOSE AS A VOLUNTEER TO THE PETITIONER DATED 18.07.2006. |
| EXHIBIT-P2(L): |
COPY OF THE DECLARATION OF MRS.MOLLY JAMES AS A VOLUNTEER TO THE PETITIONER DATED 01.09.2006. |
| EXHIBIT-P2(M): |
COPY OF THE DECLARATION OF MRS.SONY DEVASIA AS A VOLUNTEER TO THE PETITIONER DATED 01.09.2006. |
| EXHIBIT-P2(N): |
COPY OF THE DECLARATION OF MR.M.J.THOMAS AS A VOLUNTEER TO THE PETITIONER DATED 01.09.2006. |
2/-
-2-
WP(C).No. 8615 of 2015 (B)
| EXHIBIT-P2(O): |
COPY OF THE DECLARATION OF MR.GEORGE.P.CHACKO AS A VOLUNTEER TO THE PETITIONER DATED 01.09.2006. |
|---|---|
| EXHIBIT-P2(P): |
COPY OF THE DECLARATION OF MRS.ANNIE GEORGE AS A VOLUNTEER TO THE PETITIONER DATED 05.05.2007. |
| EXHIBIT-P2(Q): |
COPY OF THE DECLARATION OF MRS.SHELJA M.M., AS A VOLUNTEER TO THE PETITIONER DATED 01.08.2007. |
| EXHIBIT-P2(R): |
COPY OF THE DECLARATION OF MR.P.O.DEVASSY, AS A VOLUNTEER TO THE PETITIONER DATED 03.12.2007. |
| EXHIBIT-P2(S): |
COPY OF THE DECLARATION OF MR.SADASIVAN NAIR @ C.S.MENON, AS A VOLUNTEER TO THE PETITIONER DATED 03.12.2007. |
| EXHIBIT-P2(T): |
COPY OF THE DECLARATION OF MRS.SOMIYA VIJAYAN, AS A VOLUNTEER TO THE PETITIONER DATED 15.02.2008. |
| EXHIBIT-P2(U): |
COPY OF THE DECLARATION OF MR.A.S.SURENDRA KUMAR, AS A VOLUNTEER TO THE PETITIONER DATED 10.12.2008. |
| EXHIBIT-P3: |
COPY OF THE ORDER PASSED BY THE 2ND RESPONDENT PURSUANT TO SECTION 45-A OF EMPLOYEES' STATE INSURANCE ACT 1948 DATED 13.02.104. |
EXHIBIT-P4: TRUE COPY OF ORDER OF 3RD RESPONDENT DATED 24.02.2014.
RESPONDENT(S)' EXHIBITS: NIL
/TRUE COPY/
P.S.TO JUDGE
sts
A.V.RAMAKRISHNA PILLAI, J
WPC No.8615 of 2015
Dated this the 13th day of July, 2015
JUDGMENT
Challenging Ext.P3 order passed by the second respondent, the petitioner has come up before this Court.
WPC No.8615/2015 2
economic upliftment. All members are volunteers of the petitioner society and all of them are engaged in social activities in order to achieve its objects. The petitioner is not providing employment to any person. There exists no employee-employer relationship between the society and its members. The petitioner's charitable society is not liable to pay any contribution as demanded by the respondents. According to the petitioner, the second respondent has no right or authority to assess the petitioner directing to pay contribution for the amount expended towards gift/honorarium to its members. The voluntary social charitable activities are not all, an employment as defined under the Employees' State Insurance Act or any other labour legislations. Moreover, members and voluteers are not carrying out any day to day activities. The petitioner is providing shelters to helpless people. The second respondent without considering the nature of the voluntary social charitable activities of the society, arbitrarily passed Ext.P3 order directing the petitioner to pay a sum of `4,27,928/-
WPC No.8615/2015 3
towards employees State Insurance Contribution. It is with this background the petitioner has come up before this Court.
The learned standing counsel for the respondent Corporation would submit that the petitioner has an alternate remedy of approaching the Employees State Insurance Court under Section 75 of the Act. As the petitioner has not availed of that remedy, this writ petition is closed reserving the right of the petitioner to approach the aforesaid court within the time frame prescribed by the statute. All questions are left open to be decided by the Employees Insurance Court.
sd/- A.V.RAMAKRISHNA PILLAI JUDGE
css/ true copy
P.S.TO JUDGE
1 issue framed by the court
Whether a charitable society organizing self-help groups for social upliftment is liable to pay contributions under the Employees State Insurance Act when no employer-employee relationship exists.
3 provisions across 1 enactments
SEVASHRAM
EMPLOYEES STATE INSURANCE CORPORATION
DEPUTY DIRECTOR
RECOVERY OFFICER
A.V. RAMAKRISHNA PILLAI
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
