Archive · 20 Aug 2025
ESI Court Orders ESIC Refund of Rs 6.56 Lakh to Agency
A company that provides workers was told to pay money to the government for insurance.
However, the company didn't think they should have to pay because they weren't in a specific area where the insurance applied.
The company went to court and won.
The court agreed with the company, canceling the government's demand for payment.
The government now has to return over six lakh rupees to the company, plus some extra money as interest.
This decision means the company doesn't have to pay the original amount of money they were told to pay.
ESI court overturned ESIC's orders regarding a manpower agency.
The court directed the ESIC to refund Rs 6.56 lakh with 6% interest.
The ruling involved M/s B & J Labour Consultants, a city-based agency.
ESIC's initial orders, from February 2018 and May 2018, were quashed.
The orders had demanded Rs 9.65 lakh for ESI contributions.
- Who
- The ESI court, M/s B & J Labour Consultants, and the ESIC.
- What
- ESI court quashed ESIC's demand and ordered a refund.
- When
- The verdict was delivered recently, quashing orders from February 2018 and May 2018.
- Where
- ESI court in Chandigarh.
- Why
- The court ruled in favor of the manpower agency, overturning the ESIC's demand for contributions.
Manpower Agency
ESIC
Contribution Payment
Manpower Agency
The manpower agency was wrongly assessed for contributions.
ESIC
The ESIC believed the agency owed contributions.
- Plaintiff
- M/s B & J Labour Consultants
- Defendant
- ESIC
- Refund Amount
- Rs 6,56,318
- Interest Rate
- 6%
- Original Demand
- Rs 9,65,378
- Court
- ESI Court
- Judge
- Rahul Garg