Now Reading: Kerala HC: Failure to follow precedent raises substantial question of law in ESI appeals
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Kerala HC: Failure to follow precedent raises substantial question of law in ESI appeals
Kerala HC: Failure to follow precedent raises substantial question of law in ESI appeals
The Story in Brief
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.
Source: livelaw.in
This story was synthesised by AI from the source linked above. Methodology and corrections.
