New Delhi: The Supreme Court has upheld the notification issued by the Union Government in December 1996 enhancing the wage limit from Rs. 3,000 to Rs. 6,500 for medical benefits under the Employees State Insurance Act.

A Bench of Justices A.R. Lakshmanan and Justice Lokeshwar Singh Panta upheld the Calcutta High Court judgment affirming the notification. The High Court had, however, held that the notification would come into effect only from the date of the judgment dated March 16, 2004 and not from the date when it was issued. The Employees State Insurance Corporation and others, who felt aggrieved, preferred the present appeal before the apex court. The Bench dismissing the appeals and confirming the impugned judgment said ``the High Court's direction for deduction of contribution [by the employees] with effect from the date of the judgment is perfectly justified. The High Court has taken a just, pragmatic, fair and judicious view after considering all the equities and facts and circumstances of the case.''

Writing the judgment, Mr. Justice Lakshmanan said the respondent companies had spent large amount of money on the employees and provided medical facilities in view of the High Court granting stay/injunction etc.

The judges said the employees included casual, temporary or contractual and it would be impossible to find each and every employee to recover the contribution for the past several years since some of the workmen would have left the employment and expired The Bench permitted such of those employers who provided better medical facilities to the employees to file appropriate applications before the ESIC for claiming exemption. The ESIC should deal with such applications on merits and in accordance with law.

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