t~!~}.r~~DYEESSTATEINSCRANCE CORPORATIONEP' Ne KDEEP BHA vyAN, CLG ROAD.

NEW DELHi - 110002.\\'ebsite csic.ni12.in; Ph : (011) 23234092

No ~ !' :j:J/J/2009-Rev-II Dated: 5/1/2011

To

All RDs .ector L'c/Jt. Dir lieESI CorporationRegional Offiee/SRO/D.O

-_. _.- _ ...._------_ ..__ .._-

Sub 1''';ev} Inspection Policy -- Order of preference in respect ofh".s;:?:~.;~.~ion- regarding.

Sir,

K ~: refer vo Hqrs Instruction No. S-1l/12/2/2008-Rev-II dated16/6!2[):'>"cgarding New Inspection Policy wherein the policy of selectionof unit L i, inspection has been laid down,

,~ matter was examined after receipt of reference regardingprefcrcv.ce cf Inspection from RO, Hyderabad and it has been decided thatpreferc" . ~:~lIDL:ldlye, given to those inspection which are on the verge ofbecon T;e ~X6' aftc. recent amendment in the Act irrespective of thefact. -\:'..!'.,. . .' .;; " 'e·r~~lhF' unit closed unit big etcIt, "...... .".'_ to:) _.t- J.·~...;,U1L,,-,:;. . "":'.i. -; of ••. ~.••.•u , l.J~ .

r" RDs/DirectorsllD J/cs arc: requested to take necessary actionaccor«.: ":; v.

Yours faithfully,

~I\ll

(SUSHIL SACHDEV A)ASSTT. DIRECTOR (REV-I1)

L~RD, J:-'lvd~2rabad with reference to their letter no. 52-Z/14112/20H)/lVlisc/PICI dated 291l]/]JHO for information

EMPLOYEES STATE INSURANCE CORPORATIONPANCHDEEP BHAWAN', C.I.G ROAD,

NEW DELHI - 110 002.Website - csic.nic.in [(011) 23234092

No. P-12/11/11/38/2010-Rev.II Dated:

ToThe RD/Director!JD u«,ESI Corporation,RO/SRO/DO

Sub: ESI Amendment Act, 2010 - issue of order under section 45_-:8of Act - Clarification thereof.

Sir,A reference has been received where the employer disputes coveragei

claim of contributions in the court of law & further proceedings are stayed by court.

In this connection, the matter was analyzed & the legal opinion was obtained from

Shri K.N. Chaturvedi (Copy enclosed).

It was opined by Shri Chaturvedi that where the employer disputed

coverage/claim of contribution in court of law & further proceedings are stayed hv

the court conditionally or unconditionally, it is for the corporation to make a request

to the court granting stay that the period of stay be excluded for the purpose \)i the

proviso to Sec 4S-A

You are requested to take action according to the enclosed "~'\~j."

opinion.

Encl: As above

Yours faithfuhv,

(SUSHIL SACHDEVAiASSTT. DIRECTORi.RE'V'.!J:

Copy to:Regional Director, Kolkata with reference to their letter of even no. elated

06/07/2010 & 26/07/2010 for information.

ASSTT. DIRECTO.R.L~E\l,1D

Dr. K.N. ChaturvediLLB LLM. Ph.D

AdvocateSupreme Court

Former Secretary (Law)Ministry of Law & JusticeGovernment of India

ESIC-Legal Opinion/ -201O(October

Reference- An urgent legal opinion has been sought on the point where the employerdisputes coverage/claim of contribution in court of law and further proceedings are stayedby the court, conditionally or unconditionally, and the corporation is not in a position toproceed further on account of stay, can this office claim for the barred period in the lightof recent amendment.

Legal Analysis.-The ESI Amendment Act 2010 has been notified and it has come in toeffect w.e. f. 01-06-2010. The unbridled powers of the visiting inspectors demanding thecontribution for the very old periods also, have been put to hold by the Parliament (on therecommendations of the Apex Court). The New Proviso has been inserted in Section45A, which provides as under

"Provided further that no such order shall be passed by the Corporation in respect of theperiod beyond five years from the date on which the contribution shall become payable.".

Legal Opinion- The object of the proviso to section 4S-A is that no such order shall bepassed by the Corporation in respect of the period beyond five years from the date onwhich the contribution shall become payable. Where the employer disputescoverage/claim of contribution in court of law and further proceedings are stayed by thecourt, conditionally or unconditionally, it is for the corporation to make a request to thecourt granting stay that the period of stay be excluded for the purpose of the proviso tosection 45-A

\c......-~~,K N.Chaturvedi "\i .\0 . 'l..o\ o

Office. U-2, Lower Ground Floor, Green Park Main, New Delhi-110016Mobile: 98 1866 3334 • E-mail. chaturvedLkn@gmaiLcom

E\1 PLOYEES STATE I NSURANCE CORPORATIONPANCHDEEP BHAWAN, c.I.G ROAD,

NEW DELHI - 110002.-;

\Vcbsite - esic.nic.in . (011) 23234092

:) ,I,/r t ~.''\J )

..•/

\io. 'I-I L 14/Misc/2/20()q-Rev-I1 Dated: 22/11/10

ToAll the Regional Director/Director lncharge/Jt Director InchargeES I CorporationRegional Office/Sub-Regional Office/Divisional Office

Sub : Enhancement of compounding fees for withdrawal of cases undersection 138 of N.1. Act

Sir,

I am directed to draw your attention to the instructions issued by this officevide No. T-11114/32/4/2002-Ins-IV dated 6th March 2003 whereby the powers havebeen delegated to RDs and JD Incharges to withdraw the criminal cases u/s 138 of N.Isubject to the payment of total amount in the bounced cheque alongwith an additionalliquidated compounding fee of Rs 2000/- or the actual fee that we are required to payto our advocate, whichever is higher.

The existing rate of compounding fee has been reviewed in the light of rise inthe price-index over the years and it has been decided, after obtaining the concurrenceof Finance & Accounts, Hqrs, to enhance the compounding fee from Rs. 2000/- toRs. 5000/- or the actual fee that we are required to pay to our advocatewhichever is higher for withdrawing the criminal cases against the employer, onlyCorthe first offense.

All RDs/JD Incharges are requested to withdraw the case U/S 138 of N.r. Acton the lines of above instructions.

The other contents of the circular dated 6th March,2003 shall remainunchanged.

This issues with the approval of Insurance Commissioner.

Yours faithfully,

(ARUN KUMAR)DIRECTOR (REV>

Copy to:1. Officers of Hqrs2. PAlPS to DG/FC/MC/IC/CVO3. System Division for posting in ESIC Website4. RD, Gujarat - W.r.t their letter no. G/legaIlCRC/Misc/2003/L dated 8/21-12-09

for information and necessary action

, ,

\~~ \. '. \\ '. \ .)~-\'\\\\l '

EMPLOYEES STATE INSURANCE CORPORATIONPANCHDEEP BHAWAN, c.I.G ROAD,

NEW DELHI -110 002.Website - esic.nic.in ®(011) 23234092

No. P-l1114/441l 0/2007-Rev-II Dated : 19 19/2010

To

All RDs/DirectorlJt. DirESI CorporationRegional Office/SRO/D.O

Sub: Allotment of code numbers.

Kind attention is invited towards the central govt. notification dated201712009 and subsequent Hqrs office circular no. P-12/11l11/Misc/2010-Rev-IIdated 17/8/2010 regarding coverage of Public Sector Undertakings. The issue wasre-visited after observing that some of the regions are covering branch offices ofPSUs before registering their Head Office.

In this regard, it is clarified that it is not proper to cover branch office of theEstablishment without allotting code no. to its Head Office. All Regional DirectorslltDirector lies are therefore requested to allot code number only to the Head Office ofPSU if situated in their regions on the basis of all India strength. The code numbersso alloted to Head office of such PSU may be forwarded to those regions where thebranch office of that PSU is situated for taking necessary action for allotment of Sub-Code Number.

Yours faithfully,

.A5J~

(SUSHIL SACHDEV A)ASST. DIRECTOR (REV-I1)

EMPLOYEES STATE INSURANCE CORPORATIONPANCHDEEP BHA W AN',C.I.G ROAD,

NEW DLEHI - 110 002.Website - www.esic.nic.in t(on) 23234092

No.P-12/11/11/Misc/2010-Rev.II Dated: r 7 /08/2010

ToThe All Regional Director/Joint Directorl/c, Director,ESI Corporation,Regional Office/Sub Regional Office,

Sub: Coverage of Public Sector undertakings as Shop - regarding.

Sir,

Attention of all Regional Directors/Joint Directors I/c is invited towards the

notification no. 5-38025/5/2008/55-1 dated 20/07/2009 issued by Ministry of Labour

extending the coverage on all contract and casual employees employed for wages on

any day of the preceding twelve months in the establishments as spedfled therein

belonging to or under the control of the Central Govt.

After above Notification, many Establishments (other than factory), belonging to

or under the control of Central Govt, in your region will be coverable as "Shop" under

section 1(5) of the ESI Act with effect from the date the Establishment fulfils the

required condition for coverage irrespective of the fact that the activity has not been

specified in the Notification.

It is also made clear that the definition of "Shop" under Section 1(5) of E5I has

been expanded by Supreme Court in the case of M/s. Cochin Shipping Vs E5I

Corporation as "any ebtablishment carrying on systematic, economic, or commercial

activites, arising from customer Service".

You are therefore requested to furnish the action taken report on the

notification dated 20/07/2009 while indicating the number of employees & employer

covered.

Yours faithfully,

h/~(SUSHIL SACHDEVA)

ASSIST. DIRECTOR (REV.IIl

EMPLOYEES STATE INSURANCE CORPORATIONPANCHDEEP BHAWAN', C.I.G ROAD,

NEW DLEHI - 110 002.Websit~ - esic.org.in ~Oll) 23234092

No P-12/ 11/31/27/2004- Ins.IV Dated: /s--- /06/2010

ToAli Regional Directorj]oinl Director ilc,ESJ Corporation,Reqional Office/Sub Regional Office/Divisional Office

Sub: Coverage of Insurance Companies under ESI Act, 1948. as Shop

In continuation to this office letter of even no. dated 02/01/2008 regarding

coverage of Insurance Companies as shop on the basis of Supreme Court Judgements.

In this regard, information regarding coverage of Insurance Companies as

sought vide above referred letter has been received and it is observed that in many

reqions Insurance Companies are yet to be covered under ESI Act, though it satisfies the

definition of shop as defined by Supreme Court in cases of M/s. Cochin Shipping Co., R.

I< :-:,wamycase, Hind Jea Band case and Peerless Finance Ltd. etc.

It is therefore, directed to conduct special survey drive to bring all

Insurance Companies functioning in your region under the coverage from the date it

satrsfies the definition of Shop & send the action taken report by 30/06/2010.

This issue with the approval of Insurance Commissioner.

Yours faithfully,

u~+-DIRECTOR (Rev.Il)