TATA IRON AND STEEL CO LTD Vs. STATE OF BIHAR
LAWS(JHAR)-2006-7-8
HIGH COURT OF JHARKHAND
Decided on July 10,2006

TATA IRON AND STEEL CO. LTD. Appellant
VERSUS
STATE OF BIHAR Respondents

JUDGEMENT

AMARESHWAR SAHAY, J. - (1.) Though this writ petition was tagged with W.P.(C) No. 2857/2001 for hearing, but on perusal of the records, it appears that the point in issue in both the writ applications are not the same and similar and therefore, this writ application is being heard and disposed of separately. In this writ application, the petitioner has prayed for quashing of the Order dated September 26, 2000 as contained in Annexure-6 to the writ application issued by the Government of Bihar, whereby, the prayer of the petitioner for grant of exemption as provided under Section 87 of the Employees' State Insurance Act for the period October 1, 1996 to September 30, 1997 and October 1, 1997 to September 30, 1998 has been rejected.
(2.) The facts which are not in dispute are as follows: The petitioner Tata Iron and Steel Co. Ltd. (hereinafter referred to as TISCO in short) has its principal office at Jamshedpur and one of its work is situated at Adityapur. Employees State Insurance Act, 1948, a Central Act, was enacted for providing certain benefits to the employees in case of sickness, maternity and employment injuries and for certain other matters in relation thereto. Section 87 of the Employees' State Insurance Act provides that the appropriate Government may by Notification in the official Gazette exempt any factory or establishment or class of factories or establishment in any special area or the operation of this Act for a period not exceeding one year and may from time to time by like Notification renew any such exemption for a period not exceeding one year at a time. By issuance of letter dated January 9, 1985 (Annexure-3) the Central Government, Ministry of Labour, informed the General Manager (Operations) of TISCO that since there was no intention of the Government to apply the provisions of the Employees State Insurance Act to the Units of petitioner-Company and as such, the Employees State Insurance Corporation, vide letter dated August 2, 1982 has advised the Government of Bihar to grant exemption from operation of the provisions of the Act to the Units of the TISCO located in the area of Adityapur upto September 30, 1984 and the Corporation was also advised to recommend the continuation of exemption beyond September 30, 1984 on year to year basis. There is no dispute that the petitioner's-Unit was being given exemption from the application of the Act as provided under Section 87 of the said Act from 1982 to 1996. For subsequent years i. e. for the period October 1, 1996 to September 30, 1997 and October 1, 1997 to September 30, 1998, the applications were made by the petitioner to the State of Bihar for renewal of the aforesaid exemption under Section 87 of the Act. The said application for renewal of the exemption was rejected by issue of order as contained in Annexure-6 to the writ application which has been challenged in this writ application.
(3.) Mr. Rajiv Ranjan, learned counsel appearing for the petitioner has submitted that the impugned order as contained in Annexure-6 to the writ application has been passed in complete violation of the principles of natural justice since before issuing such order, no notice to show-cause or a chance of being heard was given to the petitioner and, as it appears from the said impugned order that only on the basis of a letter issued by the Employees' State Insurance Corporation, without application of mind, the State of Bihar has rejected the claim for exemption under Section 87 of the Act, which is illegal.;


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