108 1. FOOD CORPORATION OF INDIA EMPLOYEES STATE INSURANCE CORPORATION AND ANOTHER 2. FOOD CORPORATION OF INDIA EMPLOYEES STATE INSURANCE CORPORATION AND ANOTHER 3. FOOD CORPORATION OF INDIA EMPLOYEES STATE INSURANCE CORPORATION AND ANOTHER 4. FOOD CORPORATION OF INDIA EMPLOYEES STATE INSURANCE CORPORATION AND ANOTHER IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision : 22 CM-5442 CWP No.434 of 2019 FOOD CORPORATION OF INDIA VERSUS EMPLOYEES STATE INSURANCE CORPORATION AND ANOTHER CM-5448 CWP No.17537 of 2019 FOOD CORPORATION OF INDIA VERSUS EMPLOYEES STATE INSURANCE CORPORATION AND THER CM-5441 CWP No.3597 of 2019 (O&M) FOOD CORPORATION OF INDIA VERSUS EMPLOYEES STATE INSURANCE CORPORATION AND ANOTHER CM-5443 CWP No.4026 of 2019 (O&M) FOOD CORPORATION OF INDIA VERSUS EMPLOYEES STATE INSURANCE CORPORATION AND ANOTHER IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision : 22-04-2025 5442-CWP-2025 in/and CWP No.434 of 2019 (O&M) .......Petitioner(s) VERSUS EMPLOYEES STATE INSURANCE CORPORATION AND ........Respondent(s) 5448-CWP-2025 in/and CWP No.17537 of 2019 (O&M) ........Petitioner(s) VERSUS EMPLOYEES STATE INSURANCE CORPORATION AND ........Respondent(s) 5441-CWP-2025 in/and CWP No.3597 of 2019 (O&M) ........Petitioner(s) VERSUS EMPLOYEES STATE INSURANCE CORPORATION AND ........Respondent(s) 5443-CWP-2025 in/and CWP No.4026 of 2019 (O&M) ........Petitioner(s) VERSUS EMPLOYEES STATE INSURANCE CORPORATION AND .......Petitioner(s) EMPLOYEES STATE INSURANCE CORPORATION AND ........Respondent(s) ........Petitioner(s) EMPLOYEES STATE INSURANCE CORPORATION AND ........Respondent(s) ........Petitioner(s) EMPLOYEES STATE INSURANCE CORPORATION AND ........Respondent(s) ........Petitioner(s) EMPLOYEES STATE INSURANCE CORPORATION AND SAPNA GOYAL 2025.04.29 10:49 I attest to the accuracy and integrity of this document CM-5442-CWP-2025 in/and CWP No.434 of 2019 (O&M) and other connected cases -2- ........Respondent(s) 5. CM-5427-CWP-2025 in/and CWP No.4032 of 2019(O&M) FOOD CORPORATION OF INDIA ........Petitioner(s) VERSUS EMPLOYEES STATE INSURANCE CORPORATION AND ANOTHER ........Respondent(s) 6. CM-5428-CWP-2025 in/and CWP No.4033 of 2019 (O&M) FOOD CORPORATION OF INDIA ........Petitioner(s) VERSUS EMPLOYEES STATE INSURANCE CORPORATION AND ANOTHER ........Respondent(s) 7. CM-5426-CWP-2025 in/and CWP No.3997 of 2019 (O&M) FOOD CORPORATION OF INDIA ........Petitioner(s) VERSUS EMPLOYEES STATE INSURANCE CORPORATION AND ANOTHER ........Respondent(s) 8. CM-5444-CWP-2025 in/and CWP No.427 of 2019 (O&M) FOOD CORPORATION OF INDIA ........Petitioner(s) VERSUS EMPLOYEES STATE INSURANCE CORPORATION AND ANOTHER ........Respondent(s) CORAM: HON'BLE MR. JUSTICE HARSIMRAN SINGH SETHI SAPNA GOYAL 2025.04.29 10:49 I attest to the accuracy and integrity of this document CM-5442-CWP-2025 in/and CWP No.434 of 2019 (O&M) and other connected cases -3- Present: Mr. K.K Gupta, Advocate for the petitioners. Mr. H.S Bhatia, Advocate for respondent No.1-ESIC. HARSIMRAN SINGH SETHI, J. (Oral) CM Nos. 5442, 5448, 5441, 5443, 5427, 5428, 5426, 5444 of CWP of 2025 1. These applications have been filed for recalling the order dated 18.03.2025, whereby the present bunch of petitions were dismissed for non- prosecution. 2. Notice of the applications. 3. Mr. Mr. H.S Bhatia, Advocate accepts notice on behalf of respondent No.1-ESIC and raises no objection for the grant of prayer as raised in the present applications which is duly supported by an affidavit. 4. For the reasons recorded, the applications are allowed. The order dated 18.03.2025 is recalled and the main bunch of writ petitions are restored to its original number and status and the same are taken on board for final hearing today itself. CWP No.434 of 2019 (O&M) and other connected cases. 5. Present are the bunch of eight writ petitions, the details of which are mentioned in the heading involve common question of law in the context of common set of facts and thus they are being decided by a common order. 6. In the present bunch of petitions, the challenge is to the orders passed by the respondent No.1 assessing the petitioners for the purpose of SAPNA GOYAL 2025.04.29 10:49 I attest to the accuracy and integrity of this document CM-5442-CWP-2025 in/and CWP No.434 of 2019 (O&M) and other connected cases -4- grant of benefit to the employees under the Employees State Insurance Act, 1948. 7. Learned counsel appearing on behalf of the petitioners submits that the impugned orders have been passed by respondent No.1 on the ground that the employees who are working under the direct payment system are to be treated as casual and contractual employees but they have not been given the facilities and benefits as are envisaged under the Employees State Insurance Act, 1948 hence, the order passed by respondent No.1 for assessing the contribution payable by the petitioners for violating the Employees State Insurance Act, 1948 which has been assessed by respondent No.1, is liable to be set aside keeping in view the fact that the casual and contractual employees under the FCI are covered under the Notification of the Government of India dated 20.07.2009 (Annexure P-2) whereas the employees who are working under the direct payment system are entitled for certain benefits available to the regular employees and cannot be treated as the casual and contractual employees. 8. Learned counsel appearing on behalf of the petitioners further submits that the said issue had already attained finality by the judgment the Hon’ble Supreme Court of India in Civil Appeal No.8841-8843 of 2019 titled “ESI Corporation Vs. FCI Workers Union and ors.”, 2021 (13) SCC 582, wherein it has already been held that the workers working under direct payment system in the FCI, cannot be treated as a casual or a contract worker so as to be entitled for the benefit of 2009 Notification, copy of which has been appended as Annexure P-2. SAPNA GOYAL 2025.04.29 10:49 I attest to the accuracy and integrity of this document CM-5442-CWP-2025 in/and CWP No.434 of 2019 (O&M) and other connected cases -5- 9. Learned counsel for the petitioners submits that keeping in view the order passed by the Hon’ble Supreme Court of India ESI Corporation (supra) dated 19.11.2019, the impugned orders passed by respondent No.1 which are in direct conflict with the said decision, are liable to be set aside. 10. Learned counsel appearing on behalf of the respondent-ESIC very fairly submits that keeping in view the judgment of the Hon’ble Supreme Court of India in ESI Corporation (supra), the worker working under direct payment system in the FCI are not to be treated as causal and contractual employees to be covered by the Notification dated 20.07.2009 (Annexure P-2), which is only applicable upon the casual and contract employee. 11. Learned counsel for the respondent No.1-ESI Corporation further submits that as the petitioners have not given the details of the casual or the contractual labour, which is causing prejudice, therefore the petitioners be directed to furnish the details of the casual and contract labour working under them so that, appropriate adjudication upon the said aspect could be done. 12. I have heard learned counsel for the parties and have gone through the records of the present bunch of cases with their able assistance. 13. The issue as to whether the Employees State Insurance Act, 1948, coupled with the 2009 Notification (Annexure P-2), dated 20.07.2009, which has already been interpreted by Hon’ble Supreme Court of India in ESI Corporation (supra), the assessment which has been done against the petitioner by the respondent No.1-ESI Corporation vide impugned order is correct or not so as to hold that the employees working under the direct SAPNA GOYAL 2025.04.29 10:49 I attest to the accuracy and integrity of this document CM-5442-CWP-2025 in/and CWP No.434 of 2019 (O&M) and other connected cases -6- payment system are to be treated as a casual and contractual employees. Once, Hon’ble Supreme Court of India has categorically held that the workers working under the direct payment system in the FCI are not to be treated as a casual or a contract labour as they are entitled to various service benefits which are admissible to the regular employees, the assessment by the respondent No.1-ESI Corporation by treating the workers working under the direct payment system in the FCI to be covered under the Notification dated 20.07.2009 (Annexure P-2) by treating the employees working under direct payment system as casual or contract labour, is incorrect. The assessment orders impugned in the present bunch of petitions are in violation of the orders passed by the Hon’ble Supreme Court of India in ESI Corporation (supra) hence, the same cannot be sustained and the same are accordingly set aside. 14. The question with regard to the supply of the information of the casual and contract labour working with the FCI, in case, any worker, who claims the benefit under the 1948 Act and is not being granted the said benefit by the FCI and he approaches the ESI Corporation with any complaint, the ESI Corporation will be within its jurisdiction to initiate the proceedings to find out the truth. But, the ESI Corporation cannot be given the powers so as to initiate a fishing inquiry to start investigation without there being any cogent proof of violation of the 1948 Act at the hands of the petitioners. In case, any cogent material is received by the respondent No.1- ESI Corporation against the petitioners whereby it is revealed that 1948 Act is being violated, the ESI-Corporation will be within its jurisdiction to act in accordance with law. SAPNA GOYAL 2025.04.29 10:49 I attest to the accuracy and integrity of this document CM-5442-CWP-2025 in/and CWP No.434 of 2019 (O&M) and other connected cases -7- 15. The present bunch of petitions are allowed in the above terms. 16. Photocopy of this order be placed on the files of other connected cases. 17. Pending application, if any, also stands disposed of. 22-04-2025 Sapna Goyal (HARSIMRAN SINGH SETHI) JUDGE NOTE: Whether speaking: YES Whether reportable: NO SAPNA GOYAL 2025.04.29 10:49 I attest to the accuracy and integrity of this document