ESIC Issuing Demands Without Proper Inquiry Violates Principles Of Natural Justice: Kerala HC

The Kerala High Court ruled that the Employees’ State Insurance Corporation (ESIC) issuing demands without proper inquiry violates the principles of natural justice. The court quashed the demands issued to an employer without conducting a proper inquiry into the alleged non-compliance with ESIC regulations. The petitioner argued that the demands were arbitrary and issued without giving an opportunity to present their case. The court emphasized that any action resulting in adverse consequences must be preceded by a fair inquiry and an opportunity for the affected party to be heard. The ruling reinforces the importance of procedural fairness in administrative actions and the need for authorities to adhere to principles of natural justice.