CONFEDERATION OF REAL ESTATE DEVELOPERS ASSOCIATION OF INDIA & ORS. Vs. EMPLOYEES STATE INSURANCE CORPORATION & ANR.

JUDGEMENT

(1.) The petitioners, who are carrying on their business of construction and real estate development in the State of Goa, through their registered Association along with its Members have challenged Circular No. P.12/11/11/60/20110-REV.II dated 31st July, 2015 issued by respondent No. 1 (the Corporation) under the provisions of the Employees' State Insurance Act, 1948 ( the Insurance Act) and E.S.I. (General) Regulations 1950, (the Regulation) including the Goa, Daman and Diu Employees' State Insurance (Medical Benefit) Rules, 1975 (the Rules) as, by the Circular, the Insurance Act and the Schemes have been extended to all construction site workers.

(2.) The respondents by reply dated 10th Oct., 2016, have resisted the prayers on every count. The petitioners filed affidavit-in-rejoinder dated 29th Nov. 2016 and reiterated the submissions.

(3.) The events led to filing the petition, as per the petitioners , are that on 31st July, 2015, respondent No. 1 issued the Circular bearing No. P.12/11/11/60/20110-REV.II extending the benefit of ESI Scheme to the construction site workers, deployed in the implemented area with effect from 1st Aug., 2015 and in pursuance thereto, respondent No. 1 issued notices to the Members of petitioner No. 1, as well as petitioners No. 2 and 3 stating that the Employees' State Insurance Corporation, New Delhi has decided to extend the benefit of ESI Scheme to the construction site workers w.e.f. 1st Aug., 2015. Thereafter, vide representation dated 19th Oct., 2015, the petitioner No. 1 requested respondent No. 2 to reconsider the matter and further requested that the Insurance Act may not be made applicable to the workers engaged in construction industry. Petitioner No. 1 also submitted a copy of an order dated 31st Sept., 2015 of the Madurai Bench of Madras High Court in WP(MD) 16996 of 2015 and WP(MD) No. 2 of 2015. However, the respondent No. 1 rejected the request of the petitioners vide letter dated 21st Oct., 2015 addressed to the President of Petitioner No. 1 and directed the Members of Petitioner No. 1 to comply with the Insurance Act forthwith, so as to avoid any penal proceedings. In the said letter, respondent No. 1 while not denying that Madurai Bench of Madras High Court had stayed operation of the impugned Circular, conveyed the petitioner No. 1 that their office is not aware of any stay of any Court, prohibiting enforcement of ESI coverage to the construction site workers, located within the jurisdictional areas of ESIC, Goa Region. According to the petitioners, respondent No. 1 thereafter, issued show cause notice dated 2nd Dec., 2015 threatening the members of petitioner No. 1 with criminal prosecution. Being aggrieved, the petitioners have filed the present petition.