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TMI Blog2015 (8) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... rejection of claim for exemption, the Regional Director, ESI Corporation, issued various demand notices cumulatively demanding a sum of Rs. 65,38,537/- towards contributions for the period from 1.04.1993 to 31.03.1999. Challenging the order of appropriate government rejecting its claim for exemption and also challenging the demand notices, the appellant filed number of writ petitions before the High Court. The High Court disposed of those writ petitions with direction to the appellant to approach the ESI Court constituted under Section 74 of the Act. The appellant filed the review petition before the High Court, interalia, praying to remit the matter back to the government to rehear the representation of the appellant-company pertaining to its exemption of ESI Scheme under Section 87 of the Act for the period from 01.04.1993 to 31.03.1999 by affording personal hearing to the appellant. The review petition was dismissed observing that the appellant has an alternative remedy before the ESI Court constituted under Section 74 of the Act and therefore the question of remanding the matter back to the State Government does not arise. 3. The appellant again filed number of writ petitions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in dispute between the principal employer and the Corporation in respect of any contribution or benefit or other dues payable or recoverable under the Act and thus ESI Court has been conferred wide jurisdiction under Section 75(1)(g) of the Act to adjudicate any dispute under the Act and while so, the High Court erred in observing that ESI Court has no jurisdiction. It was interalia urged that the appellant has a full-fledged hospital with medical officers and para medical staffs and has spent around 4.09 crores towards establishment of hospital and the appellant is providing better medical and other benefits to the workers than available under the Act and considering those aspects, ESI Court rightly directed grant of exemption and set aside the demand notices and the High Court erred in reversing the order of the ESI Court. 5. Mr. M.N. Krishnamai, learned Senior Counsel appearing for the respondent-Corporation contended that as per Section 87 of the Act, only the appropriate government can grant exemption under the Act and under Section 75 of the Act, ESI Court has no jurisdiction to grant exemption and since ESI Court has acted beyond its jurisdiction, High Court rightly revers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporation and then grant an order of exemption or reject the same as the case may be. 8. Section 75 of the Act deals with the matters to be decided by the ESI Court constituted under Section 74 and the relevant provision of Section 75(1)(g) of the Act reads as under:- "75. Matters to be decided by the Employees' Insurance Court. - (1) If any question or dispute arises as to - (a) to (ee)......... g) any other matter which is in dispute between a principal employer and the Corporation, or between a principal employer and an immediate employer, or between a person and the Corporation or between an employee and a principal or immediate employer, in respect of any contribution or benefit or other dues payable or recoverable under this Act, or any other matter required to be or which may be decided by the Employees' Insurance Court under this Act. Such question or dispute subject to the provisions of sub- section (2A) shall be decided by the Employees' Insurance Court in accordance with the provisions of this Act." A reading of the above would show that the question or dispute can be adjudicated as is provided for in clauses (a) to (ee) of sub-section (1) of Section 75. Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ESI Court constituted under Section 74 of the Act for the relief which the appellant had claimed in the writ petitions. Notably, both the appellant as well as the ESI Corporation did not challenge the order of the High Court but subjected themselves to the jurisdiction of the ESI Court. In our view, neither the order of the High Court nor the act of Corporation subjecting itself to the jurisdiction of ESI Court would confer jurisdiction upon ESI Court to determine the question of exemption from the operation of the Act. By consent, parties cannot agree to vest jurisdiction in the Court to try the dispute when the Court does not have the jurisdiction. 12. As discussed earlier, in terms of Section 87 of the Act, only the appropriate government has the power to grant exemption to a factory or establishment or class of factories or establishments from the operation of the Act. In fact, the appellant-factory itself has obtained exemption from the appropriate Government-State Government under Section 87 of the Act for the period from 1986 to 1993. Likewise, the rejection of exemption was also under Section 87 of the Act. While so, seeking the relief of declaration from the ESI Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operation of the Act, it is to be done in that manner and not in any other manner. In State of Jharkhand and Others vs. Ambay Cements and Another, (2005) 1 SCC 368, it was held that "It is the cardinal rule of interpretation that where a statute provides that a particular thing should be done, it should be done in the manner prescribed and not in any other way". In Babu Verghese and Others vs. Bar Council of Kerala and Others, (1999) 3 SCC 422, it was held as under: "31. It is the basic principle of law long settled that if the manner of doing a particular act is prescribed under any statute, the act must be done in that manner or not at all. The origin of this rule is traceable to the decision in Taylor v. Taylor, (45 LJCH 373) which was followed by Lord Roche in Nazir Ahmad v. King Emperor, (AIR 1936 PC 253) who stated as under: "[W]here a power is given to do a certain thing in a certain way, the thing must be done in that way or not at all." 32. This rule has since been approved by this Court in Rao Shiv Bahadur Singh v. State of V.P., (AIR 1954 SC 322 and again in Deep Chand v. State of Rajasthan (AIR 1961 SC 1527). These cases were considered by a three- Judge Bench of thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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