Trived M. Setty since minor represented by Dr. M. A. Manohar v. Employees' State Insurance Corporation, New Delhi
2013-09-24
N.KUMAR, V.SURI APPA RAO
body2013
DigiLaw.ai
JUDGMENT N. Kumar, J. 1. In all these writ petitions, the petitioners are seeking a writ of certiorari for quashing the Admission Notice issued by the 1st respondent - Employees' State Insurance Corporation dated 18.08.2013 published in the Hindu Newspaper inviting applications for Admission of Wards of Insured persons (IPS) in UG Course (MBBS) in ESIC Medical Colleges for Academic Session 2013- 2014. 2. All the petitioners have completed Pre-University Education. They appeared for the National Eligibility-cum-Entrance Test Under Graduate 2013. The petitioners in W.P. Nos. 38261-38263 of 2013 are all children of Doctors who are employed in the ESI Corporation. The father of the petitioners in W.P. Nos. 41803 of 2013 and 41312 of 2013 are the Employees of ESI Corporation. By the impugned Admission Notice, the Employees State Insurance Corporation (for short hereinafter referred to as 'ESI') invited applications from Wards of insured persons (IPS) under ESIC Scheme for admission to Under Graduate Course (MBBS) in ESIC Medical Colleges under ESIC Management Quota for academic sessions 2013-14 as per Admission Policy and Procedure approved by the Central Government. Candidates who have been declared successful in NEET 2013 are eligible to apply. It is stated that the Provisional List of eligible candidates called for Councelling will be published in the ESIC Website. ESIC shall conduct centralized Councelling for Admission to Under Graduate Course, (MBBS) in New Delhi for its Medical Colleges located in the States of West Bengal, Tamil Nadu and Karnataka for ESIC Management Quota seats. A tentative calendar of events was also published. 3. The grievance of these petitioners is that no reservation has been provided in the said notification to the wards of the staff working in ESIC-ESIS. Therefore, they wanted a writ of mandamus to be issued to the respondents to provide reservation of 5% for the wards of staff working in the Employees' State Insurance Corporation - ESIC. It is stated that under the ESI Act, ESIC provides comprehensive health care to all insured persons and their family as one of the insurance related benefit. To administer this comprehensive medical care there is huge infrastructure comprising 144 hospitals including arrangements with other institutions for provision of Super-Speciality Care. A need was felt to upgrade the Medical facilities in ESI Medical Institution all over the country so as to improve the service, provide best medical care and to have in house super-specialty services.
To administer this comprehensive medical care there is huge infrastructure comprising 144 hospitals including arrangements with other institutions for provision of Super-Speciality Care. A need was felt to upgrade the Medical facilities in ESI Medical Institution all over the country so as to improve the service, provide best medical care and to have in house super-specialty services. With this objective of improving the quality of care provision, need was felt to constantly improve the medical competencies of its human resources. As a first step in realisation of this vision, ESIC decided to set up ESI Post Graduate Institute for Medical Sciences and Research (ESI-PGIMSR) at their Hospitals at Rajajinagar, Bangalore, KK Nagar, Chennai, Andheri (E), Mumbai, MGM Patel, Mumbai, Basaidarapur in the initial phase. This initiative marks the beginning of its venture in the field of Medical Education with the setting up of Medical Colleges, Dental Colleges and Nursing Schools all over India. Accordingly the colleges at West Bengal, Karnataka and Tamil Nadu i.e. respondent colleges were started. In order to improve the quality of Medical care being provided to the beneficiaries of the ESI Scheme and to overcome the shortage of Medical Staff and other Medical Specialists, the ESI Corporation decided to enter into the field of medical education. After the establishment of new medical colleges and after the approval given by the Government of India, the Government of India by the letter issued by the Ministry of Labour and Employment dated 29.01.2010 communicated to the Director General of ESIC regarding the procedure for admission in ESI Post Graduate Institute of Medical Sciences. According to the admission policy, any Medical College in respect of colleges opened by the ESI Corporation for Under Graduates and BDS Course, the reservation policy is as follows:- 40% – Sate Quota 20% – To be reserved for ESI Stake Holders (10% for wards of insured persons, 5% for wards of employees and 5% for wards of staff working in ESIC) 40% – On All India Basis Copy of the said letter is produced as Annexure-F. However, the grievance of the petitioners is that ESIC has not incorporated the policy of reservation and the quota for wards of the staff working in the ESIC - ESIS to an extent of 5% under the quota for ESIC Stake Holders, which is contrary to the Policy for providing quota for the wards of staff.
As the impugned admission notice is issued without providing quota for wards of the staff, it is liable to be set aside. In fact, representations were given by ESI Doctors to provide for the said quota. However, the same is not considered. The corporation has discriminated the wards of the staff as against the wards of insured persons in providing reservation of seats in the Under Graduate Medical Colleges in the ESIC Medical Colleges for the academic Session 2013-14. Therefore, they sought for appropriate reliefs. 4. The respondents contend, that the admission procedure is evolved by Central Government as it is an Institution run by the ESIC which is under the control of the Ministry of Labour and Employment, Government of India. The Ministry of Labour and Employment issued a letter dated 29.01.2010. However, the same was not implemented. After the Judgment of the Apex Court it was brought to the notice of the authorities where a Corporation was required to set up 50% of the Post Graduate Course seats to All India Quota, a revised admission procedure was formulated as set out in letter dated 17.6.2013 where no separate quota was provided for the employees of the ESIC. The ESI Scheme providing for seeking social security benefits of which comprehensive medical care being done is provided to the beneficiaries through a network of own and tie-up Hospitals and dispensaries. The ESI Corporation receives no budgetary support or funds from the Central Government. It is funded entirely through the contributions of both employees (1.75% of wages) and employers' (4.75% of wage bill). There is no other source of funds. The entire expenditure of the ESI Corporation's Medical Education (ME) Institutions is being borne by the Corporation itself. In furtherance of its newly formulated policy, Section 59-B was inserted by Act No. 18 of 2010. ESI Corporation is in the process of setting up of several Medical Education (ME) institutions across the country such as medical and dental colleges, post graduate institutes, nursing and para medical institutes, etc. to ensure availability of adequate manpower for its health care institution and to improve the quality of services to its claimants/beneficiaries.
ESI Corporation is in the process of setting up of several Medical Education (ME) institutions across the country such as medical and dental colleges, post graduate institutes, nursing and para medical institutes, etc. to ensure availability of adequate manpower for its health care institution and to improve the quality of services to its claimants/beneficiaries. Since ESI Corporation is not funded by the Government, but is solely financed through the contributions of its Stake holders and its medical educational institutions being established by the resources of the corporation, they are not comparable to any other medical educational institutions established funded or in any way supported by the Government. In furtherance of extension of its social security schemes and to participate and contribute in the social welfare measures of the governments, it seeks to establish institutions imparting professional education. It provides appropriate educational opportunities in professional courses to wards of insured persons and such other stake holders as may be considered required in furtherance of its social security scheme. In furtherance thereof, keeping in view the broad guidelines, laws and pronouncements of the Courts it has formulated a policy in the matter of grant of admissions and charging of fees in its established institution, which is duly approved by the Ministry of Labour and is being presently implemented. 5. The policy of the admission dated 29.01.2010 is no more applicable and in its place a new policy has been formulated by the Ministry of Labour and Employment. As per the new Policy/Revised Admission procedure to the wards of employees of ESI Corporation and wards of Employees of insured persons have been specifically excluded from seeking admission. Briefly stated, admission is now restricted to the wards of the insured persons after allocation of All India Quota and the State Quota. The said procedure was also modified on 12.08.2013 to exclusively have an All India ESIC Management Quota and State ESIC Management Quota has also been done away with. This means that the wards of insured persons will compete on an All India basis and there will be no preference for wards of insured persons of respective States under the State ESIC Management Quota. The admission notice as per Annexure-1 is in conformity with the said procedure.
This means that the wards of insured persons will compete on an All India basis and there will be no preference for wards of insured persons of respective States under the State ESIC Management Quota. The admission notice as per Annexure-1 is in conformity with the said procedure. The insured person will have to be an employee under Section 9 of the State Insurance Act, 1948 and further, the insured person has to fulfill the conditions stipulated regarding continuous insurable employment, the criteria that the wards of the insured persons have to fulfill apart from the merit. Therefore, it is only a candidate with ward of insured persons certificate who is entitled to apply and participate in the admission process. The policy of admission set out in the letter dated 29.01.2013 was never implemented. Therefore, the Staff of the ESIC cannot independently claim a separate reservation in the Medical Colleges when the purpose of the ESIC is to provide for welfare of the employees and insured persons under the ESIC Act. The Policy dated 17.6.2013 and 12.08.2013 are the policies in public interest. The plea of invidious discrimination has no legs to stand upon; as the insured persons are in different category than the State staff of ESIC. The insured persons contribute to the ESIC Scheme a percentage of the wages, whereas the employees/staff of the ESIC makes no such contribution. Rather, the staff receive money as salary, allowances from the ESIC for the services rendered. Therefore, they contend that there is no merit in the writ petition and the interim order granted is liable to be vacated forthwith. 6. Sri Subramanya Jois, the learned senior Counsel appearing for these petitioners contended that in view of Act No. 18 of 2010 Section 59B was introduced in the Act which came into effect from 1.6.2010. The medical colleges are established for the employees of the Corporation with a view to improve the quality of services and therefore, the wards of the employees are also entitled to the said benefit having regard to the object with which the amendment was effected.
The medical colleges are established for the employees of the Corporation with a view to improve the quality of services and therefore, the wards of the employees are also entitled to the said benefit having regard to the object with which the amendment was effected. Further, he submitted that the real intention behind the same could be gathered from the letter dated 29.1.2010 where the policy of providing reservation of 5% for wards of employers and 5% for wards of the staff working in ESI Corporation/scheme is explicit and therefore it was contended that when the wards of insured persons were extended the said benefit of reservation, the persons who are serving these insured persons and their children also should be extended the very same benefit as otherwise, it amounts to discrimination and therefore, he submits that the impugned admission notice is contrary to the aforesaid provisions as well as the policy of the Government and requires to be quashed and a direction is to be issued to the authorities to provide for the said reservation. 7. Learned Counsel appearing for the other petitioners supported the said argument. 8. Per-contra, Sri Madhusudhan Naik, learned senior Counsel appearing for the Corporation contended, that the letter dated 29.1.2010 was never implemented. After interaction, the Government policy is formulated as per the letter dated 17.6.2013, which also came to be modified by the subsequent order dated 12.8.2013, where ESIC Management quota was open to the wards of the insured persons at All India Level and therefore, he submits the impugned notice issued is strictly in accordance with the Government policy. In so far as Section 59B of the Act is concerned, it is meant to give an opportunity to the employees working in ESI to acquire higher knowledge so that there would be improvement in the quality of services provided under the Employees State Insurance scheme. It does not apply to undergraduate courses and more so to the wards of the employees. Lastly he contended, there is no discrimination between the wards of the insured and the wards of the employees in as much as these colleges are funded and run by the contributions made by the insured persons whose total emoluments would be less than Rs. 15,000/- whereas, the wards of the employees are economically well placed.
Lastly he contended, there is no discrimination between the wards of the insured and the wards of the employees in as much as these colleges are funded and run by the contributions made by the insured persons whose total emoluments would be less than Rs. 15,000/- whereas, the wards of the employees are economically well placed. The employees do not make any contribution to the scheme on the contrary, from out of the funds of the scheme these employees are paid. Therefore, there is a reasonable classification and there is no substance in the said argument. 9. In the light of the aforesaid facts and rival contentions, the point that would arise for our consideration in these batch of writ petitions are as under:- ''Whether the wards of the employees of ESI are entitled to reservations out of the seats reserved for ESIC Management quota for undergraduate courses." 10. From the aforesaid material on record it is clear that the Employees State Insurance Act was enacted to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provision for certain other matters in relation thereto. Section 46 of the Act provides for certain benefits to the insured persons, the dependants and other persons mentioned in the said provision. One such benefit is the medical facility. Section 59 of the Act provides for establishment and maintenance of hospitals etc. by Corporation. The Corporation may with the approval of the State Government establish and maintain in a State such hospitals, dispensaries and other medical and surgical services as it may think fit for the benefit of the insured persons and their families. In pursuance to the said object the ESIC has established several hospitals throughout the country. 11. By Act No. 18 of 2010 Section 59B was introduced into the Act for providing a paramedical education which reads as under:- "59B. The Corporation may establish medical colleges, nursing colleges and training institutes for its para-medical staff and other employees with a view to improve the quality of services provided under the Employees' State Insurance Scheme." 12. In pursuance of the said provision the ESI has established ESI Medical college, attached to four ESI hospitals namely, Joka-Kolkata, West Bengal, Rajajinagar-Bangalore, Karnataka, Gulbarga, Karnataka, KK Nagar - Chennai, Tamil Nadu.
In pursuance of the said provision the ESI has established ESI Medical college, attached to four ESI hospitals namely, Joka-Kolkata, West Bengal, Rajajinagar-Bangalore, Karnataka, Gulbarga, Karnataka, KK Nagar - Chennai, Tamil Nadu. The above colleges except Gulbarga initially imparted only postgraduate courses i.e. courses for the employees to the ESI to enable them to improve the quality of services provided under the scheme. However, now in all the four medical colleges, they are providing undergraduate course for MBBS. No doubt in the letter dated 29.1.2010 marked as Annexure-F to the writ petition, the Under Secretary to the Government of India, Ministry of Labour and Employment addressed a letter to the Director General, ESI Corporation, New Delhi in reply to the letter addressed by him regarding procedure for admission to ESI Postgraduate Institute of Medical Science and Research that they have approved the admission policy as under:- For under-graduate BDS Courses (a) 4% State quota (b) 20% to be reserved for ESI stakeholders (10% for wards of insured persons. 5% for wards of employees and 5% for wards of staff working in ESI Corporation/Scheme). (c) 40% All India basis. However, the said policy was not implemented. Subsequently, by a letter dated 17.6.2013 they revised the admission policy for undergraduate courses as under:- (i) All India Quota – 15% of total available seats in each of its Medical Institutions, shall be made over to an All India Quota. Or All India Quota will be as per the prevailing Central Government's (i.e. Ministry of H & FW) directives for the said quota, from time to time, to be filled up as per policy, including reservation policy and procedures of the Central Government. (ii) State Government Quota – Based on the location of the ESI's Medical Education Institution, a State Government Quota would be made over as per the policy of respective States applicable to un-aided non minority institutions, or, in the absence thereof, as may be mutually agreed to between the respective State Government and the ESI Corporation from time to time. The Admissions to these seats will be made according to the policy, including reservation policy and procedures of the State Government concerned, and these seats will be filled up accordingly.
The Admissions to these seats will be made according to the policy, including reservation policy and procedures of the State Government concerned, and these seats will be filled up accordingly. (iii) ESIC Management Quota – The remaining seats after allocation to All India Quota and the State Government Quota will be treated as ESIC Management Quota and will be bifurcated into (i) All India ESIC Management Quota and (ii) State ESIC Management Quota respectively, as detailed below:- (a) All India ESIC Management Quota shall comprise of 50% of the Management Quota seats. The seats shall be allotted to the Wards of Insured Persons' (IPS) on All India basis and shall be filled through merit cum preference basis, following due process specified below or as may be specified by ESIC from time to time. (b) State ESIC Management Quota shall comprise of remaining seats of the Management Quota after allocation to All India Management Quota to be allotted to the Wards of Insured Persons' (IPS) of respective State, and shall be filled through Corporation Entrance Test/Merit list of the State. Subsequently, by a letter dated 12.8.2013 they effected modification to ESIC management quota, which reads as under:- "I am directed to refer to ESIC's letter bearing No.L-11/12/3/2012/Administration Policy/MEC (PF) dated 09.07.2013 on the subject mentioned above and to say that the admission policy for admission in UG (MBBS/BDS) courses in ESIC Medical Education Institution has been revised and it has been decided that the remaining seat under ESIC Management Quota after allocation to All India Quota and State Government Quota will be open for the wards of Insured Persons (IPS) at All India Level and pooled together to create such institutes. It will also help in better administration of policy." 13. It is in pursuance to the said Government policy, the impugned notification is issued on 16.8.2013 Annexure-G. As is clear from the said admission notice, the applications were invited only from wards of insured persons under the ESI scheme under ESIC Management quota for academic session 2013-14. Along with the said admission notice, they have also set out the meaning of the words "Insured person" and "Ward of Insured Person." 8.
Along with the said admission notice, they have also set out the meaning of the words "Insured person" and "Ward of Insured Person." 8. Insured person for the purpose of availing benefit ESIC Management Quota for his/her wards shall be, as under:- "The Insured Person shall be an employee' as defined in the ESI Act; and he/she should have been in continuous insurable employment for a period of five years as on 1st January of the year of admission and should have paid at least 78 days of contribution in each contribution period, during this five year period." 9. Ward of Insured Person will be a legitimate natural born child who is wholly dependent on the earnings of the insured person and who is:- (i) Receiving education, till he or she attains the age of twenty-one years. (ii) An unmarried legitimate natural born daughter. 14. A reading of the aforesaid two provisions make it clear that the insured person shall be (a) an employee as defined in the ESI Act, (b) he or she should have been in continuous insurable employment for a period of 5 years as on 1st January of the year of admission, (c) should have paid at least 78 days of contribution in each contribution period during this five years period. The ward of the insured person should be (a) legitimate natural born child, (b) who is wholly dependant on the earnings of the insured person and (c) who is receiving education when he or she attains the age of 21 years or an unmarried legitimate natural born daughter. Therefore, there is no ambiguity to whom this benefit is extended. Though there was a proposal to extend the said benefit to the wards of the employees of the ESI now consciously they have been excluded from the benefit, which stands to reason. 15. As is clear from the definition of the Insured Person, the condition precedent for being eligible for the reservation is, an employee should have paid 78 days of contribution in each contribution period for 5 years. It is from the contribution of these employees, the fund is created and the college is opened. Therefore, it is rightly called as ESIC Management quota as it is these employees who contribute the fund and constitute the management of ESIC. This is a condition which is sine qua non for eligibility of reservation.
It is from the contribution of these employees, the fund is created and the college is opened. Therefore, it is rightly called as ESIC Management quota as it is these employees who contribute the fund and constitute the management of ESIC. This is a condition which is sine qua non for eligibility of reservation. Though under the scheme the employer also contributes to the fund and earlier there was a proposal to provide reservation to the wards of the employers consciously that has been excluded. Therefore, the intention is clear. As the insured persons are all persons who are drawing wages of less than Rs. 15,000/- and they have contributed their money for the establishment of this institution, only a percentage of seats is earmarked for their children again leaving nearly 55% of the seats to be allotted to the students all over the country who pass the requisite examination. It is a reservation for poor workmen or in other words, who are economically backward. Seen from that angle, the admission notice issued is in accordance with the policy of the Government and it serves the object for which these medical colleges were established. 16. In so far as Section 59B is concerned, the language employed in the said section is also clear. The benefit is extended to the employees of the para military staff and the employees of the Corporation who are already working as para medical staff or as Doctors. In order to enhance the quality of services, the medical colleges, nursing colleges and training institutes were established for providing higher and better education to such employees in service. In the said provision there is no mention that the wards of the employees also would be entitled to such benefit. If we have to uphold the case of the petitioners, we have to add those words into the said section, which is not permissible, as it amounts to legislation by the Court. 17. In that view of the matter, the contention of the petitioners that they are entitled to the benefit of the said reservation and a direction to be issued to the authorities in this regard cannot be countenanced. We do not see any merit in these petitions. Accordingly, these writ petitions are dismissed. Interim order passed in these petitions stands vacated. Parties to bear their own costs. 18.
We do not see any merit in these petitions. Accordingly, these writ petitions are dismissed. Interim order passed in these petitions stands vacated. Parties to bear their own costs. 18. Consequent to the interim order passed, if admission are made and amounts are taken for such admission, the said amount shall be refunded forthwith to those students. Sri D. Vijay Kumar, learned Additional Government Advocate is permitted to file memo of appearance for the State of Karnataka within four weeks.