Bhuban Womens Degree College, Bhuban Vs Govt. of India, Ministry of Labour and Employment Shram Shakti Bhawan — Orissa HC (2026) — LawSathi Research

Bhuban Womens Degree College, Bhuban Vs Govt. of India, Ministry of Labour and Employment Shram Shakti Bhawan — Orissa HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

Leave under I.A. No. 1915 of 2026 granted (I.A. favoured and disposed of); parties directed to work out amicable settlement under the Amnesty Scheme dated 28.11.2025; contentions in the writ application held not to bar such settlement; earlier interim order merged with the present order; writ petition disposed of without adjudicating the merits of the notices or the Regulation 31/40 appropriation claim.

Issue for consideration

Whether the wages of the petitioner-college's employees were calculated on an assumptive value although the factual wages and proportionate contribution had been accepted by the ESI, warranting quashing of the notices dated 23.02.2023 and 15.01.2024 (Annexure-4 and Annexure-6) and a direction to the ESI to appropriate contribution accounts per Regulation 31 and/or 40 of the ESI (General) Regulations, 1950. +1 more

Court's answer

It is clarified that the contentions raised in the writ application (including the assumptive-wage objection and the Regulation 31/40 appropriation demand) shall not, in any manner whatsoever, be a bar to the parties working out amicable settlement in terms of the Amnesty Scheme.

Ratio / Principle

It is expected that the parties shall work out an amicable settlement as per the Amnesty Scheme acceptable to both the parties, and the Court expressly encourages such settlement in view of the Amnesty Scheme dated 28.11.2025.

Key takeaways

The I.A. seeking leave to avail the Amnesty Scheme is favoured and disposed of; the parties shall work on the Amnesty Scheme dated 28.11.2025 and arrive at a settlement.ratio¶18
The interim order passed earlier merges with the order passed on 03.02.2026, and no order passed earlier shall in any manner come in the way of the parties arriving at a settlement.ratio¶20

Detailed headnote1 paragraphs

High Court of Orissa at Cuttack, W.P.(C) No. 12625 of 2024 with I.A. No. 1915 of 2026; order dated 03.02.2026 (Hybrid Mode) by Justice Mruganka Sekhar Sahoo (single-member Bench). Bhuban Women's Degree College, Bhuban, had challenged the ESI's computation of its employees' contributions on an 'assumptive value' of wages despite factual wages and proportionate contribution allegedly having been accepted by the ESI, praying for quashing of notices dated 23.02.2023 and 15.01.2024 (Annexure-4 and Annexure-6) and for adjustment of contribution accounts per Regulation 31 and/or 40 of the ESI (General) Regulations, 1950. During pendency, the parties sought leave to avail the 'Amnesty Scheme 2025' promulgated by the opposite parties (scheme dated 28.11.2025, reproduced in the order). The Court expected and expressly encouraged amicable settlement under the Scheme, favoured and disposed of the I.A., directed both sides to work on the Scheme dated 28.11.2025, clarified that the contentions raised in the writ application would not be a bar to such settlement, recorded that the earlier interim order merges with the present order, and disposed of the writ petition. The merits of the notices and the Regulation 31/40 appropriation question were left to be resolved through settlement; no precedents were cited and no monetary quantum is stated.

IN THE HIGH COURT OF ORISSA AT CUTTACK

W.P.(C) No. 12625 of 2024

Bhuban Women's Degree …. Petitioner College, Bhuban Mr. Srinibas Mohanty, Advocate -versus- Govt. of India, Ministry of …. Opposite Parties Labor and Employment Shram Shakti Bhawan, New Delhi & others

Mr. B.B.Mishra & M.K.Pati, Sr. Panel Counsels, Govt. of India, Orissa High Court For O.P. No.1 Mr. S.N.Mohapatra, Advocate For O.Ps. 2 3

CORAM: JUSTICE MRUGANKA SEKHAR SAHOO

ORDER

03.02.2026 (Hybrid Mode)

Order No.

12. W.P.(C) No. 12625 of 2024 & I.A. No. 1915 of 2026

1. The writ petition has been filed by the petitionercollege with the following prayer :

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“The petitioner, therefore, prays that your lordships would graciously be pleased to admit this writ petition, call for the records, and after hearing the parties be pleased to issue Rule Nisi calling upon the Ops as to how the wages of the employees are calculated on its assumptive value when the factual wages and its proportionate contribution has been accepted by the ESI and failing to show cause and/or insufficient cause make the absolute And further be pleased to quash the impugned notice dtd-23.02.2023 & dtd-15.01.2024 under ANNEXURE-4 AND ANNEXURE-6 with a direction upon the ESI to do well with the accounts of the contribution by way of the ratio of appropriation as per Regulation 31 and /or 40 of the ESI (General) Regulations, 1950”

2. Prayer in the I.A. is for granting leave to the parties to avail the benefit of the ‘Amnesty Scheme 2025’ promulgated by the opposite parties during pendency of the writ application. Annexed to the I.A. is the Amnesty Scheme dated 28.11.2025 which is scanned and reproduced herein:

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3. The learned counsel for the opposite parties endorses the submissions made at the bar by the learned counsel for the petitioner.

4. In view of the above, it is expected that the parties shall work out amicable settlement as per the Amnesty Scheme acceptable to both the parties and this Court in no uncertain terms encourages such settlement in view of the Amnesty Scheme dated 28.11.2025.

5. The I.A. is favoured and disposed of. The parties shall work on the Amnesty Scheme dated 28.11.2025 and arrive at a settlement.

6. It is further clarified that contentions raised in the writ application shall not be a bar in any manner whatsoever for the parties to work out amicable settlement in terms of the ‘Amnesty Scheme’.

The interim order passed earlier shall merge with the order passed today. Any order passed earlier shall not in any manner come in the way of the parties to arrive at a settlement.

7. The writ petition is disposed of.

(Mruganka Sekhar Sahoo)

Judge

dutta

Signature Not Verified

Digitally Signed Signed by: AJIT KUMAR DUTTA Reason: Authentication Location: ohc Date: 05-Feb-2026 20:52:01

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