# Kerala HC: Failure to follow precedent raises substantial question of law in ESI appeals 2026-08-19T13:46:16+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Kerala High Court has ruled that a failure by Employees' Insurance (EI) courts to follow binding precedents gives rise to a substantial question of law in appeals under the ESI Act. The judgment was delivered by Justice S. Manu in an appeal filed by the ESI Corporation against an EI court order that granted 100% permanent disability benefit to an insured toddy tapper. The EI court had ruled in favour of the respondent after a Medical Board assessed his loss of earning capacity at 20% following a spinal compression fracture. The EI court relied on a separate medical certificate certifying 100% loss of earning capacity. The High Court found that the EI court had failed to consider binding judgments, including the Full Bench decision in Vanajakshan v. Joseph, which held that compensation must account for loss of earning capacity and the ability to perform the job held at the time of the accident. The High Court set aside the EI court order and remitted the matter for fresh consideration. It directed the EI court to pass fresh orders within six months after the parties appear before it. ## Indian Opinion Analysis This case turns on the standard of review in ESI appeals. The ESI Act limits High Court jurisdiction to substantial questions of law, a high bar that typically blocks factual challenges. By ruling that ignoring binding precedent itself constitutes a substantial question of law, the court has opened a wider door for the ESI Corporation to challenge EI court orders that deviate from settled law. The key question on remand is whether the toddy tapper can prove he is incapable of any physical labour, not just his previous job, as per the Vanajakshan test. Watch for the EI court's order due within six months. ## Coverage - livelaw.in Straight court report, no editorial slant, balanced summary of both sides' arguments and the court's reasoning. This story was synthesised by AI from the source linked above. Tags: ESI Corporation, Justice S. Manu, Kerala High Court Canonical: https://indianopinion.org/kerala-hc-failure-to-follow-precedent-raises-substantial-question-of-law-in-esi-appeals/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/kerala-hc-failure-to-follow-precedent-raises-substantial-question-of-law-in-esi-appeals/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/