M/S.Ponnaiyah Ramajayam Public Hr. Sec. School v. the E.S.I.Corporation

Madras HC26 Sept 2025WP(MD)/10728/2021

Case brief

AI extract

What is this about?

ESI Act — Section 45A determination order — Section 91C writing off of losses — educational institution — corona-period arrears — Full Bench recommendation (para 133) not a mandate to waive — installment concession to be considered by Corporation — challenge to quantum before ESI Court — Salim Akbarali Nanvi (2006 (5) SCC 302) relied on — W.P.(MD)No.10728 of 2021 disposed of, no costs.

What did the court decide?

No substantive relief; the writ petition was disposed of with no costs and the connected miscellaneous petition closed. The petitioner remains free to seek installment concession from the Corporation and to challenge the quantum before the ESI Court; no write-off or quashing was ordered. ¶¶44

M/S.Ponnaiyah Ramajayam Public Hr. Sec. School Vs… — Writ and Judicial Review | Madras HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the impugned order dated 22.12.2020 passed under Section 45A of the ESI Act can be quashed and the respondents directed to write off the demanded ESI contribution amount — i.e., whether the Corporation is mandated to waive the petitioner institution's liability on account of the corona period in view of the Full Bench recommendation regarding Section 91C of the ESI Act.

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Court's answer

It is not a mandate that the respondent ESI Corporation must waive the liability of the petitioner institution on account of the corona period; the Full Bench recommendation to apply Section 91C does not compel waiver.

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Ratio / Principle

If the petitioner management seeks concession of installments for payment of the liability, the same shall be considered by the Corporation.

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Key takeaways

If the petitioner establishment disputes the amount arrived at by the Authority, it is open to it to approach the ESI Court to challenge the quantum determined.ratio¶¶40

Detailed headnote1 paragraphs

Madras High Court (Madurai Bench) [B.Pugalendhi, J.] disposed of a writ petition by an educational institution challenging a demand order dated 22.12.2020 passed by the Deputy Director, ESI Corporation (Sub Regional Office, Salem) under Section 45A of the ESI Act, seeking quashing of the order and write-off of the demanded amount in reliance on the Full Bench recommendation in W.P.No.34236 of 2019 (batch), para 133, order dated 29.07.2020, to apply Section 91C of the ESI Act. Held: Section 91C confers a discretionary power on the Corporation to write off contributions, interest and damages found irrecoverable, subject to conditions prescribed by the Central Government (citing Salim Akbarali Nanji vs. Union of India and others, 2006 (5) SCC 302); hence the Full Bench recommendation does not mandate waiver of the institution's liability on account of the corona period. If the petitioner seeks installment concession, the Corporation shall consider it; disputes as to quantum lie before the ESI Court. Writ petition disposed of, no costs; connected M.P. closed.

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W.P.(MD)No.10728 of 2021

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED: 26.09.2025

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CORAM:

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THE HONOURABLE MR.JUSTICE B.PUGALENDHI

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W.P.(MD)No.10728 of 2021 and WMP(MD)No.8350 of 2021

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M/s.Ponnaiyah Ramajayam Public Higher Secondary School, Ramasamy Nagar, State Bank Colony, Thanjavur,

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Through its Trustee in charge

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... Petitioner

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versus

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The E.S.I. Corporation Regional Office (T.N) Rep. by its Regional Director Panchdeep Bhavan No.143, Sterling Road, Chennai – 600 034.

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Deputy Director, E.S.I. Corporation, Sub Regional Office 39/57, Theerthamalai Vaniga Valagam Three Roads, Salem – 636 009.

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... Respondents

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Writ Petition filed under Article 226 of the Constitution of India, praying for the issuance of a Writ of Certiorarified Mandamus, to call for the

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https://www.mhc.tn.gov.in/judis

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W.P.(MD)No.10728 of 2021

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records from the file of the 2^nd respondent in order No. 63000117650001302/INS-I/SRO/SLM/858/19 dated 22.12.2020 and to quash the order and consequently direct the respondents to write off the demanded amount.

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For Petitioner : Mr.C.Karthikeyan For Respondents : Mr.R.Ravikumar

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ORDER

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The petitioner, a private Educational Institution, has filed this writ petition as against the order passed by the 2^nd respondent/the Deputy Director of ESI Corporation, under Section 45A of ESI Act, dated 22.12.2020.

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The learned counsel for the petitioner has canvassed his case, based on the observations made by the Hon'ble Full Bench of this Court, in W.P.No.34236 of 2019, etc. (batch cases), in Paragraph 133 of the order dated 29.07.2020.

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The Hon'ble Full Bench, in W.P.No.34236 of 2019 etc. (batch cases) dated 29.07.2020, while deciding the liability of an Educational Institution

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https://www.mhc.tn.gov.in/judis

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W.P.(MD)No.10728 of 2021

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under ESI Act, has passed an order as under:

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“133. We, thus, strongly recommend that the provisions of Section 91C 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.”

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In fact, the Hon'ble Full Bench, considering the pending arrears,

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has suggested the parties to apply under Section 91(C) of the ESI Act and directed the Corporation to decide the same in line with the object and spirit of Section 91(C) of the ESI Act.

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Section 91(C) of the ESI Act reads as under:

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91C. Writing off of losses

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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.]

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https://www.mhc.tn.gov.in/judis

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W.P.(MD)No.10728 of 2021

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This is a power which has been conferred on the ESI Corporation

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to write off the liabilities if any from the Establishment, if the Corporation comes to a conclusion that it is irrecoverable and it is also subject to the condition prescribed by the Central Government.

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The Hon'ble Supreme Court, in Salim Akbarali Nanji vs. Union of India and others , reported in 2006 (5) SCC 302 , held that the bad debts written off cannot be recovered and that despite writing off the debt is still recoverable by the Bank.

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Therefore, it is not a mandate that the respondent Corporation is to waive the liability of the petitioner Institution on account of corona period. In the event, if the petitioner Management seeks concession of installment for making the liability, the same shall be considered by the Corporation. In the event, if the petitioner Establishment is having a dispute with regard to the amount arrived at by the Authority, then, it is open to the petitioner Management to approach the ESI Court to challenge the quantum arrived at by the Authority.

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https://www.mhc.tn.gov.in/judis

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W.P.(MD)No.10728 of 2021

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