THE HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION NO.16983 OF 2001 DATED 25TH NOVEMBER, 2010 BETWEEN National Workers Union Regd. No.2014 Rep. by its President Joseph Raju S/o Abraham, Aged about 53 years R/o Rajahmundry. … Petitioner And Government of A.P., Health, Medical and Family Welfare (Q-2) Department, Rep. by its Secretary, Secretariat, Hyderabad. And Another … Respondents THE HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION NO.16983 OF 2001 ORDER: The petitioner, a registered Trade Union representing the workers of M/s.A.P.Paper Mills, Rajahmundry, filed the present writ petition challenging the action of the Government of Andhra Pradesh in fixing a ceiling limit for medical benefit vide G.O.Ms.No.117, Health, Medical and Family Welfare (Q2) Department, dated 27.03.2000, payable to employees covered by the Employees’ State Insurance Act, 1948. The impugned G.O. reads to the effect that the Director of Insurance Medical Services, Hyderabad, under letter dated 21.07.1999 submitted certain proposals to the Government with regard to the constitution of a Special Scrutiny Committee for scrutinizing reimbursement bills and other aspects. Pursuant to these proposals, the Government of Andhra Pradesh issued the subject G.O. wherein, while constituting a Special Scrutiny Committee at the Directorate level for settlement of medical reimbursement bills, the Government also stipulated that the maximum ceiling for medical reimbursement shall be restricted to Rs.75,000/- irrespective of the claim. This is the cause for grievance for the petitioner Union. Sri Vedula Srinivas, learned counsel for the petitioner Union, contended that the scheme of the Employees’ State Insurance Act, 1948 (for brevity, ‘the Act of 1948’) does not provide for such a step being taken by the State Government. The learned counsel pointed out that under Section 96 of the Act of 1948, a State Government is empowered to frame Rules in consultation with the Employees’ State Insurance Corporation with regard to various matters including the scale of medical benefit which shall be provided at any hospital, clinic, etc. Pursuant to the said provision, the State Government promulgated the Andhra Employees’ State Insurance (Medical Benefit) Rules, 1955 wherein Rule 11 deals with scale of medical benefit. Thereunder, no provision is made as to any ceiling on the medical reimbursement of claims of the employees covered by the Act of 1948. The learned counsel therefore submitted that the Government did not have any jurisdiction under the scheme of the Act to impose a ceiling limit by way of execution instructions. In the counter filed on behalf of the first respondent, it is stated that for restricting the extent of medical reimbursement the Government made an objective assessment and accordingly fixed a ceiling of Rs.75,000/-. No mention however is made in the said counter as to the source of power for the Government to introduce such a measure. This Court finds merit in the argument advanced by the learned counsel for the petitioner Union. The scheme of the Act of 1948, which is a central enactment, grants power to the State Government to make Rules under Section 96. This power is to be exercised by the State Government in due consultation with the Employees’ State Insurance Corporation and after following the due procedure. The present exercise by the Government through the impugned G.O. does not fulfill the requirements of the delegation of rule making power bestowed upon the State Government under Section 96 of the Act of 1948. The impugned G.O. is therefore ultra vires the power of the State Government under the Act of 1948. The Writ Petition is accordingly allowed setting aside G.O.Ms.No.117, Health, Medical and Family Welfare (Q2) Department, dated 27.03.2000. In the circumstances of the case, there shall be no order as to costs. ____________________ SANJAY KUMAR, J. 25TH NOVEMBER, 2010. VGSR/PGS