Legal news for the day.

All unaided private educational institutions will be treated as an establishment for the purpose of the Employees’ State Insurance (ESI) act: Madras HC.

All private educational institutions will come under the purview of the ESI act and will be treated as an establishment for all purposes under it , the Madras High Court has ruled.

The order was passed by an all women bench of Justice Pushpa Sathyanarayana, Justice Anita Sumanth and Justice PT Asha dismissing petitions moved by educational institutions, seeking to strike down a November 26, 2010 order of the Tamil Naidu High Court.

Whether unaided private institutions can be treated as an establishment within the meaning of section 1 (5) of the Employees State Insurance Act,1948.

There is no definition of the word establishment in the act noted the bench observing that the ESI act being a socio economic welfare orientation legislation, it has brought with it the avowed objective of securing social and economic justice.

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