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Sec 21, ESI Act 1948: Supersession of Corporation, & Standing Committee

Section 21 (Supersession of the Corporation, and Standing Committee) under the Chapter II (Corporation, Standing Committee and Medical Benefit Council) of the Employees’ State Insurance Act 1948

❝(1) If in the opinion of the Central Government, the Corporation or the Standing Committee persistently makes default in performing the duties imposed on it by or under this Act or abuses its powers, that Government may, by notification in the Official Gazette, supersede the Corporation, or in the case of the Standing Committee, supersede, in consultation with the Corporation, the Standing Committee:

 Provided that before issuing a notification under this sub-section the Central Government shall give a reasonable opportunity to the Corporation or the Standing Committee, as the case may be, to show cause why it should not be superseded and shall consider the explanations and objections, if any, of the Corporation or the Standing Committee, as the case may be.

(2) Upon the publication of a notification under sub-section (1) superseding the Corporation or the Standing Committee, all the members of the Corporation or the Standing Committee, as the case may be, shall, as from the date of such publication, be deemed to have vacated their offices.

(3) When the Standing Committee has been superseded, a new Standing Committee shall be immediately constituted in accordance with section 8.

(4) When the Corporation has been superseded, the Central Government may—
 (a) immediately appoint or cause to be appointed new members to the Corporation in accordance with section 4 and may constitute a new Standing Committee under section 8;
 (b) in its discretion, appoint such agency, for such period as it may think fit, to exercise the powers and perform the functions of the Corporation and such agency shall be competent to exercise all the powers and perform all the functions of the Corporation.

(5) The Central Government shall cause a full report of any action taken under this section and the circumstances leading to such action to be laid before Parliament at the earliest opportunity and in any case not later than three months from the date of the notification superseding the Corporation or the Standing Committee, as the case may be.❞




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Notes:

The Employees’ State Insurance Act, 1948 was amended by the:
- the A.O. 1950;
- the A.O. (No. 3) 1956;
- the A.O. (No. 4) 1957;
- the Employees' State Insurance (Amendment) Act, 1951 (Act No. 53 of 1951);
- the Employees' State Insurance (Amendment) Act, 1966 (Act No. 44 of 1966);
- the Employees' State Insurance (Amendment) Act, 1975 (Act No. 38 of 1975);
- the Employees' State Insurance (Amendment) Act, 1984 (Act No. 45 of 1984);
- the Employees' State Insurance (Amendment) Act, 1989 (Act No. 29 of 1989);
- the Employees' State Insurance (Amendment) Act, 2010 (Act No. 18 of 2010).

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