PANIMALAR POLYTECHNIC COLLEGE Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) The challenge in this intra court appeal is to the order dated 28 August 2017 dismissing the writ petition challenging the Government Order in G.O.Ms.No.237 Labour and Employment Department, dated 26 November 2010 and the consequential notice dated 21 December 2016 issued by the Employees' State Insurance Corporation, calling upon the appellant to show cause as to why provisional assessment of contribution should not be made.

(2.) The appellant is a Polytechnic college established by the Jaisakthi Educational Trust. The Government of Tamilnadu issued an order in G.O.Ms.No.237 Labour and Employment Department, dated 26 November 2010 extending the provisions of Employees State Insurance Act (hereinafter referred to as "ESI Act") to the educational institutions. The Government institutions and aided institutions were exempted from the purview of the ESI Act.

(3.) The Employees State Insurance Corporation pursuant to the order in G.O.Ms.No.237 dated 26 November 2010, which was published in the Government Gazette on 29 December 2010, initiated action for collecting contribution from the appellant under the ESI Act. The Corporation issued a provisional notice dated 21 November 2016, calling upon the appellant to state as to why assessment should not be completed and an order for collection of ESI Contribution should not be issued. The appellant filed a writ petition challenging the Government Order and the consequential proceedings primarily on the ground that the question as to whether educational institutions would come within the definition of "industry" is pending before the larger Bench and as such, it was not open to the Government to issue an order extending the provisions of the ESI Act to private educational institutions.