Section 45: Establishment and maintenance of hospitals by Corporation

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

Statutory Mandate
Chapter IV: Employees' State Insurance Corporation
Competent Labour Forum
Act No. 36 of 2020

Legal Commentary & Landmark Judgments: Section 45

Section 45 of the Code empowers the Corporation to establish, maintain, and upgrade hospitals, dispensaries, and occupational disease centers, either independently or in agreement with State Governments, local bodies, or private partners.

  • Statutory Healthcare Infrastructure Mandate: Authorizes the Corporation to acquire land, construct multi-specialty hospitals, and finance modern medical diagnostics using the ESI Fund.
  • Inter-Governmental Hospital Management Accords: Provides for formal memoranda of understanding between the Corporation and State Governments regarding the administration, staffing, and operational financing of state ESI hospitals.
  • Public-Private Partnership & Empanelment Authority: Empowers the Corporation to enter into tie-ups with leading private super-specialty hospitals and diagnostic chains to expand tertiary medical access.
Key Landmark Precedents:
  • Royal Western India Turf Club v. E.S.I.C. (2016) 4 SCC 521: Supreme Court emphasized that the massive financial resources of the ESI Fund are held in trust exclusively for creating world-class medical and social security infrastructure for the working class.
  • Consumer Education & Research Centre v. Union of India (1995) 3 SCC 42: Affirmed the duty of the state and statutory corporations to establish specialized clinics for treating and preventing occupational pulmonary diseases.
  • Transport Corporation of India v. ESI Corp. (2000) 1 SCC 332: Affirmed that ESI hospital administration must maintain seamless nationwide coverage across interstate transport and industrial corridors.
Courtroom Practice & Strategic Litigation Guidance:

Employers located in newly developed industrial parks should formally petition the Regional Director under Section 45 for the establishment of a dedicated ESI branch dispensary or the empanelment of local private trauma centers.