THAKKAIKKAL THOZHILALAR MUNNETRA SANGAM Vs. TAMILNADU HOUSING BOARD

JUDGEMENT

(1.) THE writ petitioner is a trade union of the employees working in the second respondent Management. When the said Institution is sought to be covered by the provisions of ESI Act, the same was challenged by the Union and an interim order of status-quo was obtained pending the writ petition. Subsequently, the case of the Union was rejected by this Court, thereby making it clear that the provisions of the ESI Act will apply.

(2.) DURING the pendency of the interim order, the Management, the second respondent herein, which is the Tamil Nadu Housing Board, granted medical allowance and did not deduct the employees' contribution towards ESI subscription. Subsequently after the disposal of the writ petition, the ESI Corporation recovered the entire arrears from the Tamil Nadu Housing Board in terms of Sec.40 of the ESI Act, 1948. After remitting the amount of employer share as well as employee share, the Corporation sent notice to the workers stating that they are liable to pay their share of contribution for the relevant period viz., from 01.04.1992 to 30.06.1998. It is this order dated 11.01.1999 is under challenge.