M/S. Bharath Man Power Agency v. The Deputy Director

ORDER This Writ Petition has been filed challenging the order dated 17.04.2026 passed in I.A.No.1 of 2026 in O.P.(ESI).S.R.No.128 of 2026 by the Principal Labour Court, Chennai.

¶2By consent of the learned counsel appearing for the petitioner and the respondents, this Writ Petition is taken up for final hearing at the stage of admission itself

¶3The brief facts of the case are that the petitioner, M/s.Bharath Man Power Agency, is a proprietary concern engaged in supplying manpower to Government Hospitals and is registered under the Employees' State Insurance Act, 1948. According to the petitioner, ESI contributions for the period from

01.01.2022 to 28.02.2025 had already been remitted. Subsequently, the manpower supply contract with the Government Hospital, Trichy, came to an end. Thereafter, the first respondent passed an order under Section 45A of the ESI Act dated 26.09.2025, determining ESI contribution of Rs.18,96,048/- on an ad hoc basis without identifying the employees. Aggrieved by the said order, the petitioner preferred a statutory appeal before the Principal Labour Court along with an application seeking waiver of the mandatory pre-deposit. Since the waiver application came to be dismissed by the order dated 17.04.2026, the Page3 of 5 present Writ Petition has been filed.

¶4The main contention of the learned counsel for the petitioner is that the contract for supply of manpower to the Government Hospital, Trichy, had already been terminated and therefore, no employee were engaged by the petitioner in the said hospital thereafter.

¶5The Labour Court, while dismissing the waiver application, observed that the petitioner had addressed a letter dated 12.11.2021 to the Dean, Government Hospital, Trichy, intimating the termination of the contract.

¶6However, a perusal of the said communication issued by the Chief Administrator, Mahatma Gandhi Government Hospital, Trichy, addressed to the petitioner, specifically informing that the manpower supply arrangement through the petitioner's agency should not be continued beyond 15.11.2021. Therefore, the finding of the Labour Court that the petitioner had addressed the said letter to the hospital is factually incorrect.

¶7Having regard to the fact that the appeal is a statutory remedy under Section 75 of the ESI Act, and considering the aforesaid communication indicating that the manpower supply arrangement had been discontinued with effect from 15.11.2021, this Court is of the view that the interest of justice Page4 of 5 would be served by directing the petitioner to deposit a sum of Rs.5,00,000/- (Rupees Five Laksh Only) as a condition for entertaining the appeal.

¶8Accordingly, the petitioner is directed to deposit the aforesaid sum within a period of ten(10) days from the date of receipt of a copy of this order.

¶9Upon such deposit, the statutory appeal shall be entertained and disposed of by the Principal Labour Court on its own merits and in accordance with law.

¶10With the above observations and direction, this Writ Petition is disposed of. No costs. Consequently, connected miscellaneous petition is closed. K.SURENDER J. 16-07-2026 JAI To

¶1The Deputy Director ESI Corporation, 143 Sterling Road, Nungambakkam, chennai 34

¶2The Recovery officer ESI Corporation, 143 Sterling Road, Nungambakkam, chennai 34 WPoNo.o27616oofo2026 K.SURENDERoJ. JAI WPoNo.o27616oofo2026 AND WMPoNO.o30273oOFo2026 16-07-2026 Page5oofo5

Page1 of 5 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 16-07-2026 CORAM THE HON'BLE MR.JUSTICE K. SURENDER and WMP NO. 30273 OF 2026 M/s. Bharath Man Power Agency Rep. by its proprietor Abubakkar, No.5 Melapalayampattai pattai, Cuddalore, Panruti 607 106 ..Petitioner(s) Vs 1. The Deputy Director ESI Corporation, 143 Sterling Road, Nungambakkam, Chennai 34. 2. The Recovery officer ESI Corporation, 143 Sterling Road, Nungambakkam, Chennai 34. ..Respondent(s) Writ Petition filed under Article 226 of Constitution of India seeking Writ of Certiorarified Mandamus to call for the records of the Principal Labour court Chennai in I.A.No. 1 of 2026 in O.P. Sr No. 128/ 2026 and quash the same its order dated 17.04.2026 and consequently direct the Principal Labour court to restore I.A. No. 1 of 2026 O.P. Sr No. 128/ 2026. For Petitioner(s): Mr.Ananda Gopalan for Mr.RG.Babu Rajendran For Respondent(s): Mr.G.Narmadha for R1 and R2 Page2 of 5