Bombay High Court Strikes Down ESIC Order for Denying Fair Hearing and Using Undisclosed Reports
The Bombay High Court has ruled that the Employees’ State Insurance Corporation (ESIC) violated the principles of natural justice by rejecting an appeal without granting a proper hearing. The court emphasized that every party has the right to be heard before a decision is made, especially in cases involving disputed facts.
Background of the Case
The case involved Mondelez India Foods Pvt. Ltd., which had filed an appeal against an ESIC order. However, ESIC rejected the appeal without allowing the company to present its arguments. The company contended that it had not received the original order in a timely manner, and thus, it should have been given a fair chance to respond.
A single-judge bench of Justice Sharmila U. Deshmukh reviewed the case and observed that ESIC’s decision was unfair because it failed to consider the company’s claim properly. The court noted that ESIC relied on undisclosed reports while rejecting the appeal, which further weakened its case.
Court’s Observations
The Bombay High Court pointed out two key issues with ESIC’s approach:
- Denial of Fair Hearing – The company was not given a chance to present its case, which is a fundamental violation of natural justice.
- Reliance on Undisclosed Reports – ESIC based its decision on reports that were not shared with the company, making it impossible for the company to respond effectively.
High Court’s Decision
Considering these factors, the court set aside ESIC’s order and ruled in favor of Mondelez India Foods Pvt. Ltd. The judge reiterated that all government bodies, including ESIC, must ensure transparency and fairness in their proceedings.
