MADRAS RACE CLUB Vs. SECRETARY TO GOVERNMENT

JUDGEMENT

(1.) THE petitioner is the Madras Race Club. In the present writ petition, they seek to challenge the order dated 11. 6. 1999 passed by the first respondent State Government. After quashing the same, they seek for a direction to the first respondent to grant exemption under Sections 87 and 90 of the Employees' State Insurance Act, 1948 (for short 'the ESI Act' ).

(2.) THE petitioner Race Club was established and it is registered under Section 25 of the Companies Act, 1956. Subsequently, by the Madras Race Club (Acquisition and Transfer of Undertaking) Act, 1986, the activities of the Club were taken over by the State Government. It was under the control of the custodian of the Department of Racing, Chennai. The said Act was struck down by the Supreme Court vide its judgment in K. R. Lakshmanan (Dr.) -vs- State of Tamil Nadu reported in (1996) 2 SCC 226. It is stated that at that time the petitioner Club employed 361 workmen and it included some employees who were drawing a monthly salary of Rs. 6500/ -.

(3.) EVEN before the judgment of the Supreme Court, the then custodian of the Department of Racing, aggrieved by the order passed by the second respondent Employees' State Insurance Corporation (for short 'the ESIC') dated 10. 4. 1991, moved this Court and sought for a direction to the State Government to grant exemption from the ESI Act. In the said writ petition (being W. P. No. 7222 of 1991), this Court by an order dated 08. 2. 1999 directed the State Government to dispose of the representation made by the then custodian of the Department of Racing requesting for an exemption pending with the first respondent in accordance with law. It was stated that till such time, the interim stay of the recovery order dated 10. 4. 1999 will be continued.