Section 17 (2) of the ESI Act, 1948 specifically mentions that the recruitment, pay scales and allowances of the staff of the ESI shall be in accordance with the rules and orders applicable to the officers and employees of Central Government drawing corresponding scales of pay. It has also further provided in the said enactment that if the corporation is of the opinion for making departure from the said rules and orders in respect of any of the matters mentioned above, it shall obtain the prior approval of the Central Government.
The Hon’ble Delhi High Court in the matter of EMPLOYEES STATE INSURANCE CORPORATION VS ESIC MEDICAL OFFICERS ASSOCIATION (REGD.) THROUGH ITS SECRETARY DR MD MOZAFFAR UDDIN & ORS in W.P.(C) No. W.P.(C) 10816/2024 held that:-
- Further the stand of the respondents was that in terms of Section 17(2) of the ESIC Act, the salary and allowances of the staff of the Corporation shall be specified in accordance with the rules and order applicable to the W.P.(C) 10816/2024 Page 5 of 7 officers and employees of the Central Government drawing corresponding scales of pay. Section 17(2) of the ESIC Act reads as under :-
“17(2)(a) The method of recruitment, salary and allowances, discipline and other conditions of service of the members of the staff of the Corporation shall be such as may be specified in the regulation made by the Corporation in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay. Provided that where the Corporation is of the opinion that it is necessary to make a departure from the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of the Central Government. Provided further that this sub-section shall not apply to appointment of consultants and specialists in various fields appointed on contract basis.
2(b) In determining the corresponding scales of pay of the members of the staff under clause (a), the Corporation shall have regard to the educational qualifications, method of recruitment, duties and responsibilities of such officers and employees under the Central Government and in case of any doubt, the Corporation shall refer the matter to the Central Government whose decision thereon shall be final.”
- 12. In the aforesaid facts of the matter, the petitioner neither before the learned Tribunal nor before this Court has been able to produce any documentary evidence to substantiate that prior approval of Government of India, as has been prescribed under Section 17(2) of the Act, was obtained while deviating the entitlement of reimbursement of telephone facility for the respondents.
- In our considered opinion, learned Tribunal while passing the impugned judgment has rightly observed that the action taken by the petitioners by making deviations from the Circular dated 26.03.2018 issued W.P.(C) 10816/2024 Page 7 of 7 by the Department of Expenditure is not tenable under the law. T
