IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN MONDAY, THE 24TH MAY 2010 / 3RD JYAISHTA 1932 WP(C).No. 15809 of 2010(A) -------------------------- PETITIONERS: --------------- 1. MALABAR CEMENTS EMPLOYEES'S ASSOCIATION (INTUC), WALAYAR, PALAKKAD, REPRESENTED BY ITS GENERAL SECRETARY. 2. MCL EMPLOYEES' ORGANISATION (STU), WALAYAR, PALAKKAD, REPRESENTED BY ITS SECRETARY. 3. MCL EMPLOYEES' UNION (CITU), WALAYAR, PALAKKAD, REPRESENTED BY ITS SECRETARY. 4. S.SULTHAN MUHAMMED SHAH, S/O.S.SHEIK KHADER, KADAMCODE HOUSE, P.O.KANGARAPALLY, PALAKKAD, GENERAL SECRETARY, MALABAR CEMENTS EMPLOYEES ASSOCIATION, WALAYAR, PALAKKAD. BY ADV. SRI.P.R.VENKETESH RESPONDENTS: --------------- 1. STATE OF KERALA, REPRESENTED BY THE SECRETARY, DEPARTMENT OF LABOUR AND REHABILITATION GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 2. UNION OF INDIA, REPRESENTED BY THE SECRETARY, MINISTRY OF LABOUR & EMPLOYMENT, NEW DELHI. 3. EMPLOYEES' STATE INSURANCE CORPORATION, REPRESENTED BY ITS REGIONAL DIRECTOR, THRISSUR. 4. MALABAR CEMENTS LIMITED, WALAYAR, PALAKKAD, REPRESENTED BY ITS MANAGING DIRECTOR. STANDING COUNSEL FOR ESI SRI.P.SANKARANKUTTY NAIR SRI.P.K.VIJAYA MOHAN FOR R4 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24/05/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.SURENDRA MOHAN, J. --------------------------------------- W.P.(C) No.15809 of 2010 --------------------------------------- Dated this the 24th day of May, 2010 J U D G M E N T Petitioners 1 to 3 herein are registered trade unions representing the employees and the 4th petitioner is an employee of the Malabar Cements Limited the 4th respondent in this writ petition. According to the petitioners, there are 526 employees who are working in the plants of the 4th respondent at Valayar as well as Cherthala. As per the recent notification of the Ministry of Labour and Employment under the Government of India, the ceiling limit of salary for the applicability of the Employees' State Insurance Act, 1948 has been raised to Rs.15,000/-. The said notification is evidenced as Exhibit P1. According to the petitioners, consequent to Exhibit P1, the employees would become covered under the ESI Act and contributions would be deducted from their salaries by the 4th respondent for the purpose of remitting the ESI contributions. According to the petitioners, the W.P.(C) No.15809 of 2010 2 workers of the 4th respondent are enjoying greater benefits than what is granted by the ESI Act. The company is conducting a dispensary within the company premises itself which offers Medical treatment by a qualified physician. Medical reimbursement is also provided to the employees. According to the petitioners they are getting better benefits from the company. Therefore, they have submitted applications before the State Government seeking exemption from the provisions of the Employees' State Insurance Act 1948 (ESI Act for short). It is submitted by the petitioners that no orders have been passed on their applications evidenced herein by Exhibits P6, P7 and P8. Therefore they pray for the issue appropriate of directions for an early disposal of their request for exemption. It is also submitted that ESI contributions may not be deducted from their salaries. W.P.(C) No.15809 of 2010 3 2. Adv. Mr. P.Sankarankutty Nair, who appears for the ESI Corporation submits that the applications submitted by the petitioners are not in proper form. They are also not submitted by the employer who is the proper person to have sought for exemption. It is further pointed out that the requests are addressed to the Minister and therefore the applications are not proper applications for exemption, as per the act. Adv. Mr. Vijayamohanan who appears for the 4th respondent has no objection to the request being considered by the Government. 3. In the above circumstances, this writ petition is disposed of directing the first respondent to consider the applications for exemption evidenced herein Exhibits P6, P7 and P8 in accordance with law and to pass appropriate orders thereon, as expeditiously as possible and at any rate within a period of two months from the date of W.P.(C) No.15809 of 2010 4 receipt of a copy of this judgment, after affording the opportunity of being heard to the interested parties. In the meantime the 4th respondent may recover the contributions payable to the ESI Corporation, from the salaries of the workmen and such amount shall be retained in a separate account without remitting the same to the ESI Corporation. In the event of the Government refusing to grant the exemption that is sought for, such contribution shall be remitted to the ESI Corporation. This writ petition is disposed of as above. K.SURENDRA MOHAN, JUDGE. rkc