Madras HC dismisses petitions challenging ESI regulation

Chennai, Jan 14 (PTI) The Madras High Court has dismissedpetitions challenging an ESI regulation mandating allfactories or establishments to register themselves underthe Employees State Insurance Act.

"The challenge to the regulation is misconceived,"Justice Chandru said on writ petitions by two private textilesseeking a direction to declare Regulation 10 B of the ESI(General) regulation 1950 as illegal.

Even in cases where no employer code was allotted or inrespect of any factory or establishment, to which the law wasearlier applicable but ceased to apply for the time being,they should furnish proper registration form to the ESICorporation, the Judge said.

The petitioners submitted that after providing allmedical facilities, the question of coverage under the ESI Actor in the alternative seeking payment of subscription wouldnot arise.

It was not clear as to how the petitioners couldchallenge the regulation without challenging the substantiveprovision of the Act. The regulation resembled Section 2-A ofthe Act, the Judge held.

When there was a substantial provision obliging theemployer to register the establishment in the mannerprescribed and also the regulation had been made to carry outthe purpose of Section 2-A, there could not be any challengeto the regulation independent of the Act''s main provisions,the Judge said.