Turf clubs and chit fund firms are covered by ESI Act, the Supreme Court ruled last week in two cases, Bangalore Turf Club vs. ESI and sri Visalam Chit Funds Ltd vs ESI. A three-judge bench was dealing with two conflicting stream of judgements of the court on the applicability of the law to the horse racing clubs in different cities. The court gave liberal interpretation of the word 'shop', not defined in the law. It rejected the argument of the clubs and the chit fund firms that the meaning of shop should be given the traditional meaning. In the chit fund case it was argued that there was no buying or selling in its offices and it was a matter of contract. Therefore it was not running shops. The court rejected this contention and asserted that the activities of chit funds would fall within the meaning of shops.
Business Standard.
Copy of Supreme Court order dated 31.7.2014

From India, Malappuram

Attached Files (Download Requires Membership)
File Type: pdf Chit funds are shops and covered under ESI - S.C. 31.7.2014.pdf (189.0 KB, 118 views)

Company Secretary In Practice
Management Consultants Legal & Hr
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Dear Mr Agarwal,
Thanks for sharing the recent judgement passed by the Apex Court in the matter of ESI Act and it's scope of applicability in other sectors. It will be useful for those managers including professions who are working in the field of HR domain.
Thanks once again,

From India, Calcutta
Dear Agrawal,

Since more tan 6 month I am searching your mail ID. Need your views on the below matter, Kindly reply .

Dear Sir,

Need your help on the below mentioned queries.

We have been covered under ESI from Sep 2009. In Feb 2012 SSO has done inspection for the period Feb 2010 till March 2012 , C-18 issued on 4th March 2013 received by us on 18th March 2013,Date of Payment made as per C- 18 is 13th June 2013, Interest and Damages paid on 25th July 2013, The said amount is paid in absence of Oder under 45A.

Q -It is mandatory to pass Order Under 45 A, in spite of paying the Determined Amount of Liability as per C- 18 & Int and damages amount paid?

Now we have received the Second / Another Notice dated 16th Dec. 2013 from Joint Director Vigilance under Section 45(4) of ESI Act. Asking for the documents to be kept ready for inspection for the period April 2009 till March 2011.

Q: - For the same period Inspection can be carried out again, even though we have paid the Liability & Int Plus Damages Amount?

Date of received of C- 18 & 45A under Notice dated 16th Dec. 2013, are as follow:-

Date of C-18 issued : 18/07/2014 (Received by us on 23/07/2014)

Date of Order u/s 45A : 16/10/2014 (Received by us on 17/10/2014)

Period covered : 01/04/2009 to 30/03/2012 ( For short payment - EC )

Period covered : 01/04/2009 to 30/03/2011 ( LC For casual/contractor's employees - Labour Charges under ESI Sec 2(22). ).

Further 45 A Order stipulate if not satisfied to make appeal under Sec 45AA within 60 days.

If we pay 25% OR 50% as the case may be as stipulated in the Order and Appeal is admitted, during pendency of appeal for final hearing. Can ESI Authority insist for the interest and damages determined during inspection ?

If we preferred Appeal before RO / SRO by paying 25% of demand liability & the Final Order of Appeal is not in our Favour to which Forum further appeal lies either EI Court OR High Court ?

Need help on the above matter. As per the ESI Amendment Act 2010, which has been notified and it has come in to effect w.e.f. 01-06-2010.

Q - Which is the authority is empowered to conduct Test Inspection OR Re -inspection?

Q -Under Amendment Section 45(4) of ESI, Joint Director / Deputy Director Vigilance has got power of Test Inspection / Re- Inspection.

If we lose before the entire Forum in Second Notice as stated above (Before Appellate Authority / EI Court / High Court / Apex Court.

Q -From Which date the amount of Interest and Damages are derived / charged by the ESI Authority - From the date of receipt of C- 18 Notice OR from the Order received under 45A. OR From either forums Order date

Q Need some clarification, How to calculate Interest And Damages to be paid?

From your view point which is the preferred option either to make Appeal OR to file case before EI Court.

Please give your valuable in puts on the above submission seriatim. As the time of making Appeal is running out from our hand, for such act of kindness, I will remain indebted to you.



From India, Mumbai

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