SH. S.P. SINGH AND SH. DEEN DAYAL Vs. UNION OF INDIA THROUGH SECRETARY, MINISTRY OF LABOUR & EMPLOYMENT, CHAIRMAN, ESI CORPORATION AND DIRECTOR GENERAL, ESI CORPORATION

JUDGEMENT

(1.) MA -315/2012 has been filed for joining together in one application. For the reasons stated therein, the same is allowed.

(2.) FACTS of the case are that the applicant No. 1 joined ESIC on 01.12.1989 under Group -A service as an Accounts Officer. Gradually he got promoted as Joint Director in the year 2001 and further as Director in May, 2006. He superannuated on 31.01.2010. Applicant No. 2 was directly appointed in ESIC through UPSC as Deputy Director in October, 1996 and was further promoted as Joint Director in October, 2005. He retired on 31.01.2011.

(3.) WE have heard both sides and have perused the material on record. The applicants counsel relied on the judgment of Hon'ble Punjab & Haryana High Court passed in CWP No. 8438/2011 on 12.05.2011. In the aforesaid judgment the Hon'ble High Court while upholding the decision of the Chandigarh Bench of this Tribunal held that as per Section 5D(7) of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 the Central Board of Trustees of EPFO was not required to seek prior approval of the Central Government in a case where there was no departure from the rules or order. The Hon'ble Court held that if the benefit of NFSG was not extended to the employees of Central Government and departure was being made in respect of employees working in EPFO, only then approval from the Central Government was required. Learned counsel for the applicants argued that similar provision exists in ESIC. According to Section -17(2A) of the ESI Act, 1948 the method of recruitment, salary and allowances, discipline and other conditions of service of the members of the staff of the Corporation shall be such as may be specified in the Regulations made by the Corporation in accordance with the Rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay. However, if the Corporation was of the opinion that it was necessary to make a departure from the said Rules or orders in respect of any matters aforesaid, it shall obtain the prior approval of the Central Government. Learned counsel contended that once the Board of Trustees had approved the proposal for extending benefits of Organized Group -A services to the employees of ESIC, reference to the Ministry was not necessary and ESIC should have themselves implemented the decision.