SANKAR SHIKSHA SAMITI Vs. LABOUR DEPARTMENT

JUDGEMENT

(1.) Heard. By this writ petition, the petitioner is challenging the legality and validity of the notification dated 19.05.2011 issued under Section 1(5) of the Employees State Insurance Act (in short "the ESI Act"), 1948, whereby the provisions of ESI Act became applicable to educational institutions. The main contention in the petition is that the educational institution is not indulging in manufacturing of any product and it is not covered under the purview of factory, whereas the ESI Act is applicable upon factories. It has further been stated that the educational institutions are running on no profit no loss and by creating an additional burden to the educational institutions to pay contribution against their employees under the ESI Act which create hurdle to provide free education as provided under Article 21A of the Constitution of India.

(2.) In reply, Shri R. K. Mangal, learned GA has drawn our attention to the Division Bench decision of Kerala High Court in the case of CBSE School Management Association vs. State of Kerala, wherein the same issue regarding applicability of ESI Act on educational institutions by virtue of notification issued under Section 1(5) of the ESI Act has been raised and the Division Bench of Kerala High Court has upheld the notification )Annexure -R1/1). The same issue has also been raised before the Division Bench of Punjab & Haryana High Court in the matter of Seth Nand Lal Bajaj Educational Charitable Society, Chandigarh vs. State of Punjab and another reported in 2015 Labour IC 2991, the Division Bench has upheld the validity of the notification (Annexure -R1/2). Paras -19, 20, 23 and 28 of the judgement of Punjab & Haryana High Court reads as under : -

(3.) Against the judgment of Kerala and Punjab and Haryana High Court dated 03.07.2009 passed in W. P. No.20279/2008, a petition for Special Leave to Appeal (C) No(s).28285/2009 was filed by the Kerala Unaided School Manager Association and the Apex Court vide order dated 15.03.2016 dismissed the Special Leave Petition. The order dated 15.03.2016 reads as under : -