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Section 8: Procedure for transaction of business of Social Security Organisations

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

Statutory Mandate
Chapter II: Social Security Organisations
Competent Labour Forum
Act No. 36 of 2020
Section 7 All 163 Sections of Code on Social Security, 2020 Section 9

Legal Commentary & Landmark Judgments: Section 8

Section 8 of the Code on Social Security, 2020 prescribes rigorous statutory criteria governing the disqualification and removal of members from Social Security Organisations, safeguarding institutional fiduciary integrity against moral turpitude, insolvency, and pecuniary conflict of interest.

  • Mandatory Grounds of Disqualification: Section 8(1) disqualifies any person from nomination or continuance as a member of the Central Board, ESIC, National Social Security Board, or State Boards if declared of unsound mind, an undischarged insolvent, convicted of an offence involving moral turpitude, or absent from three consecutive meetings without leave.
  • Pecuniary Conflict of Interest & Office of Profit: Disqualifies any individual who holds an office of profit under the organisation or possesses a direct or indirect pecuniary interest in any subsisting commercial contract or work undertaken for the Social Security Organisation.
  • Procedural Natural Justice for Removal: Under Section 8(2), the appropriate Government can remove a member only after serving a formal written notice setting out the specific grounds of disqualification and providing a reasonable opportunity of showing cause against removal.
Key Landmark Precedents:
  • State of Punjab v. Bandhara Singh (1996) 9 SCC 279: The Supreme Court held that removal of a member from a statutory welfare board on grounds of misconduct or disqualification must strictly adhere to the principles of natural justice; an order passed without a meaningful show-cause hearing is void.
  • B.R. Kapur v. State of Tamil Nadu (2001) 7 SCC 231: The Supreme Court held that statutory disqualifications rooted in criminal conviction or public interest operate by force of law to preserve the institutional purity of governance bodies.
  • Regional Provident Fund Commissioner v. Hooghly Mills Co. Ltd. (2012) 2 SCC 489: Emphasized that members of social security boards hold fiduciary responsibilities over public trust assets and must satisfy the highest ethical and conflict-free standards.
Courtroom Practice & Strategic Litigation Guidance:

Representatives nominated by industry chambers, trade unions, or professional bodies to any Social Security Organisation must submit annual disclosure statements certifying absence of criminal convictions, insolvency proceedings, or commercial supply contracts with EPFO or ESIC. If a member receives a removal notice under Section 8, an immediate detailed legal rebuttal must be filed within the stipulated period to avert gazette notification of removal.

Section 7 All 163 Sections of Code on Social Security, 2020 Section 9