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CMA Intermediate · Business Laws and Ethics · Employees State Insurance Act, 1948

Kaveri Foods Pvt. Ltd. disputes the Corporation's claim that 20 persons engaged through a contractor are 'employees' for whom contributions are payable. Which forum must decide this dispute under the ESI Act, 1948?

The Employees' Insurance Court decides whether a person is an employee and whether contribution is payable. The Act bars civil courts from deciding matters reserved for the Insurance Court, and administrative bodies like the Standing Committee do not adjudicate such disputes.

  1. AThe Employees' Insurance Court, as civil courts have no jurisdiction over such mattersCorrect
  2. BThe civil court of the district, as it is a dispute on liability to pay money
  3. CThe Standing Committee of the Corporation
  4. DThe Medical Benefit Council

Explanation

Questions such as whether a person is an employee and whether the employer is liable to pay contribution are matters the Employees' Insurance Court must decide. The Act bars civil courts from deciding questions that are to be decided by the Insurance Court. The Standing Committee and Medical Benefit Council are administrative bodies and do not adjudicate such disputes.

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