A query was raised as to whether the areas/villages subsequently added to the municipal limits of Surat shall mutatis mutandis be treated as areas notified for the purpose of implementation of the ESI Act, 1948.
In this regard findings of Hon’ble High Court of Jammu & Kashmir and Ladakh in order dated August 27, 2021, against MA 362/2014 are relied upon. While deciding a similar case, Hon’ble High Court observed that “any area subsequently included within the municipal limits of the city would be deemed to have become subject to the provisions of the Act on the premise that the applicability of notification (notifying implementation of the ESI Scheme in a municipal area) would deemed to be coextensive and coterminous with the issuance of any subsequent notification by the local government, either including or excluding any area from the municipal limits of the city, as such, fresh/new notification would not be required to be issued in this regard by the Central Government under sub section (3) of Section 1 of the Act.
In light of the above, HQrs ESIC has clarified that no fresh notification is necessary in this regard. Thus, any area(s) falling within the municipal limits of Surat shall deemed to be treated as notified for the purpose of implementation of the ESI Scheme from the date such area(s) is declared as part of the municipal limits of Surat by the Competent Authority. This provision shall also apply to the areas included in the municipal limits of Surat in future.
Therefore, establishments/factories/institutions falling within the municipal limits of Surat and coverable under the provisions of the ESI Act shall immediately get themselves registered as per already defined procedure.