Bombay High Court: While hearing a writ petition under Article 226 of the Constitution, wherein Foundever CRM India (P) Ltd. (‘Foundever’) challenged fresh show cause notices issued by the Employees’ State Insurance Corpn. (‘ESI Corpn.’), the Division Bench of R. I. Chagla and Farhan P. Dubash, JJ., held that reliance on an inspection report already quashed by the Court’s earlier judgment amounted to wilful disobedience of judicial directions and was therefore illegal and invalid. Thus, the Court restrained ESI Corpn. from proceeding further on the basis of the impugned notices, granted ad-interim relief to Foundever, and directed both the parties to complete pleadings before the next hearing on 07-01-2026.
Background:
The dispute arose when fresh show cause notices dated 06-10-2025 were issued by ESI Corpn., relying upon an Inspection Report dated 15-07-2024. Foundever was called for a personal hearing on 28-10-2025. A preliminary objection was raised by ESI Corpn. regarding the maintainability of the writ petition before the present Bench, contending that it was to be filed before a Single Judge or a Bench assigned to Labour and Service Matters.
In response, Foundever submitted that the Registry informed them that the assignment was to this Bench since the petition was for enforcement of prior orders of the Court. It was argued that the fresh show cause notices were issued in wilful disobedience of the judgment dated 19‑09‑2025, which quashed the inspection report forming the basis of the notices.
On the other hand, ESI Corpn. submitted that pursuant to the said judgment, the impugned orders were already recalled by communication dated 03-10-2025. It contended that the fresh show cause notices were issued based on the inspection report and sought to argue on their merits. It was also noted that the personal hearing was kept in abeyance pending consideration of the writ petition.
Analysis and Decision:
The Court emphasised that it had jurisdiction to entertain the writ petition by referring to Bibekananda Mondal v. State of West Bengal, 2002 SCC OnLine Cal 571, noting that Article 226 of the Constitution is couched in comprehensive phraseology and recognises wide powers to remedy injustice wherever it is found. The Court further highlighted that the fresh show cause notices expressly relied upon the inspection report dated 15-07-2024, which had been quashed and set aside by the judgment dated 19-09-2025.
The Court observed that the submission of ESI Corpn., that the directions in the earlier judgment were confined only to the impugned orders and not to the inspection report, was without merit. The Court noted that the inspection report was specifically mentioned in the earlier judgment and was declared illegal, ultra vires the Constitution, and invalid under the ESI Act.
The Court further noted that issuing fresh show cause notices on the basis of the quashed inspection report amounted to wilful disobedience of the prior judgment and constituted an illegal and invalid act. Accordingly, the Court granted adinterim relief in terms of the prayer clause, directing ESI Corpn. to file its affidavit in reply within three weeks and allowing Foundever liberty to file a rejoinder thereafter. The matter was directed to be placed for consideration on 07-01-2026.
[Foundever CRM India (P) Ltd. v. ESI Corpn., Writ Petition (L) No. 36732 of 2025, decided on 19-11-2025]
Advocates who appeared in this case:
For the Petitioners: Rashmin Khandekar with Shalaka Patil and Harsh Khanchandani i/b. Trilegal
For the State: Shailesh S. Pathak
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