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Section 24: Central Board to maintain accounts

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter III: Employees' Provident Fund
Competent Labour Forum
Act No. 36 of 2020
Section 23 All 163 Sections of Code on Social Security, 2020 Section 25

Legal Commentary & Landmark Judgments: Section 24

Section 24 of the Code on Social Security, 2020 governs the appointment, executive authority, and cadre management of the Principal Officers and administrative staff of the Employees' State Insurance Corporation, anchoring plenary operational execution in the Director General and Financial Commissioner.

  • Appointment of Principal Officers by Central Government: Section 24(1) authorizes the Central Government to appoint the Director General (DG) as the Chief Executive Officer and the Financial Commissioner to manage the financial affairs of the Corporation for fixed statutory terms.
  • Plenary Administrative & Supervisory Competence: The Director General is statutorily vested with overall administrative control over insurance inspectors, medical referees, regional offices, and ESI hospitals across India, exercising delegated powers to enforce statutory compliance.
  • Cadre Governance & Staff Service Regulations: The Corporation is empowered under Section 24(2) to determine sanctioned staff strengths, recruitment rules, salary structures, and disciplinary regulations with Central Government approval, maintaining parity with central civil service standards.
Key Landmark Precedents:
  • Transport Corporation of India v. ESI Corp. (2000) 1 SCC 332: The Supreme Court held that principal officers of the ESI Corporation act under statutory empowerment to enforce uniform social insurance standards across the territory of India.
  • Employees' State Insurance Corporation v. Harrison Malayalam Ltd. (1993) 4 SCC 361: The Supreme Court confirmed that authorized officers acting under the Director General possess full legal competence to issue requisitions, conduct employer audits, and initiate coercive recovery.
  • Royal Western India Turf Club v. E.S.I.C. (2016) 4 SCC 521: Affirmed that executive leadership of ESIC holds a statutory mandate to advance worker coverage without being impeded by administrative technicalities.
Courtroom Practice & Strategic Litigation Guidance:

In administrative and legal challenges concerning ESIC notices, ensure that the issuing officer holds valid delegated authority under the regulations framed under Section 24. For corporate-wide policy clarifications or requests for compounding of minor procedural infractions, submit formal representations directly to the Director General at ESIC Headquarters in New Delhi.

Section 23 All 163 Sections of Code on Social Security, 2020 Section 25