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Section 27: Employees' Provident Fund Appellate Tribunal

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 26 All 163 Sections of Code on Social Security, 2020 Section 28

Legal Commentary & Landmark Judgments: Section 27

Section 27 of the Code on Social Security, 2020 confers corporate property rights upon the Employees' State Insurance Corporation, empowering it to acquire, hold, lease, develop, mortgage, or dispose of movable and immovable property, and execute binding contracts across India.

  • Corporate Real Estate & Asset Acquisition Powers: Section 27(1) authorizes the Corporation to purchase, acquire, take on lease, or construct hospitals, dispensaries, diagnostic hubs, administrative offices, and staff quarters across States.
  • Statutory Safeguards on Alienation of Assets: Sale, transfer, or alienation of immovable property owned by the Corporation requires prior sanction of the Central Government, ensuring that public medical assets are preserved.
  • Contractual Capacity & Commercial Procurement: Empowers the Director General and authorized delegates to execute binding procurement contracts, medical equipment leases, and public-private partnerships (PPP) for hospital management on behalf of the Corporation.
Key Landmark Precedents:
  • Transport Corporation of India v. ESI Corp. (2000) 1 SCC 332: The Supreme Court recognized that corporate property and operational powers under ESI legislation enable the Corporation to build and maintain a nationwide physical infrastructure.
  • Employees' State Insurance Corporation v. Harrison Malayalam Ltd. (1993) 4 SCC 361: The Supreme Court noted that property and asset management powers are statutory instruments designed to further the institutional delivery of worker social insurance.
  • BK Srinivasan v. State of Karnataka (1987) 1 SCC 658: Affirmed that statutory corporations possess all ancillary corporate powers necessary to execute their foundational statutory objects.
Courtroom Practice & Strategic Litigation Guidance:

Vendors, infrastructure developers, and medical technology firms entering into procurement or hospital construction contracts with ESIC must verify that the signatory officer holds explicit delegatory authorization under Section 27. Any long-term lease or joint venture involving ESIC land requires proof of Central Government approval to ensure contractual enforceability.

Section 26 All 163 Sections of Code on Social Security, 2020 Section 28