ESI Corporation vs C. Saseendran

Leave granted in SLP (C) No. 22851 of 1997.

In these appeals, the respondent workmen claimed certain benefits arising out of the Employees'' State Insurance Act, 1948 as each of them sustained certain injuries in the course of employment. The E.I. Court after assessing the extent of disability benefits arising thereto was also computed with a direction to the effect that the appellant is bound to find a suitable employment for such an employee who became disabled on account of employment injury as provided in Section 19 of the E.S.I. Act. The matter was carried in appeal in each of the cases to the High Court. The High Court dismissed the appeals holding that the order made by the E.I. Court is in accord with the spirit of Section 19 of the E.S.I. Act.

It is now complained before us that the E.I. Court has no powers to give a direction to the E.S.I. Corporation to find a suitable employment for the respondent under Section 19 of the E.S.I. Act. This Court while granting leave confined the matter to this aspect only. Section 19 provides that the Corporation may in addition to the scheme of benefits specified in the Act, promote measures for the improvement of the health and welfare of insured persons and for the rehabilitation and re-employment of insured persons who have been disabled or injured and may incur in respect of such measures expenditure from the funds of the Corporation within such limits as may be prescribed by the Central Government.

Whatever may have been the situation at that time when the order was made, it has now been brought to our notice that a scheme is in fact framed in terms of Section 19 of the Act which provides not only Ky the payment of compensation but also for rehabilitation. If that is so, the direction issued by the E. I. Court under Section 19 of the Act will have to be given effect to in terms of the scheme. Viewed from that angle, no interference is called for with the order made by the E.I. Court as affirmed by the High Court except to the extent to notice that the direction issued will have to be given effect to in terms of the scheme. The appeals are dismissed accordingly.