[ 757 ]

GOVERNMENT OF PUDUCHERRY

LABOUR DEPARTMENT

(G.O. Ms. No. 5/AIL/Lab./G/2023, Puducherry, dated 10th April 2023)

NOTIFICATION

The Employee’s State Insurance Corporation, Ministry of Labour

and Employment, Government of India has advised in its 172nd meeting

of the Employee’s State Insurance Corporation held on 06-12-2017 to

implement the Employees State Insurance Scheme under Section 58(5)

of the Employees State Insurance Act, 1948 by creating autonomous,

Empowered Body in the form of a Subsidiary Corporation/Society at the

state level with adequate administrative and financial powers for

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The Gazette of Puducherry

PART - II

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No. 40 Poudouchéry

Mardi

Avril

2023

No.

Puducherry

Tuesday

18th

April

2023

(28 Chaitra 1945)

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LA GAZETTE DE L'ETAT

[PART–II

improving the functioning and quality of delivery of medical services.

The Government of Puducherry has agreed to implement the Employee's

State Insurance Scheme through a Society as per the recommendations

of the Employees State Insurance Corporation. Accordingly, the

Lieutenant-Governor, Government of Puducherry, is pleased to order

establishment of a Society namely “Puducherry Employee's State

Insurance Society” in the Union territory of Puducherry.

2. The Memorandum of Association and the Rules and Regulations

of “Puducherry Employee’s State Insurance Society” are appended to

this Order (Appendix–I & II).

3. This issues with the concurrence of the Finance Department vide

ID No. l435/FC/FD/F3/2022-23, dated 07-12-2022.

(By order of the Lieutenant-Governor)

P. RAGINI,

Under Secretary to Government (Labour).

————

APPENDIX–I

PUDUCHERRY EMPLOYEES’ STATE INSURANCE SOCIETY

MEMORANDUM OF ASSOCIATION

l. Name.— The name of the Society shall be “Puducherry

Employee’s State Insurance Society” hereinafter referred to as the

"Society".

2. Registered Office.— The Society shall be situated in the

premises of Directorate of ESI Scheme located at “Office of Deputy

Director (ESI), Gorimedu, Puducherry-605 006” will have the liberty to

establish one or more support offices or outlets elsewhere in the State,

if so required.

3. Objectives.— The objectives for which the Society is

established are:

3.1 The Society shall serve as a Managerial and Health Care

Body in terms of section 58(5) of ESI Act, 1948, to the Employees’ State

Insurance Corporation for administration and management of medical

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benefits and medical establishments presently under Employees’ State

Insurance Scheme as per the MOU, dated 11-05-1970 between the

Corporation and the Union territory of Puducherry;

3.2 To operate and maintain ESIS Dispensaries and Hospitals,

Operation Theatre, emergency service, library, kitchen, canteen, rest

room, recreation, gymnasium, assembly hall, residential and hostel

buildings along with furniture, fixture, internet, Information Technology

Hardware/Software, telephone, electricity, transportation, parking, water,

garden, sanitation blocks, purifying water tanks/storage, potable water

and all other utilities so as to facilitate the beneficiaries of the Employee

State Insurance Scheme;

3.3 To motivate the Employers and Employees to register under

ESI Scheme;

3.4 To formulate policies for implementation, monitoring, repairs

and maintenance of the ESIS Dispensaries and Hospitals Campus

including all facilities and utilities;

3.5 To formulate policies for admission, charges and fees,

facilities to be provided to the Beneficiaries of ESIS Dispensaries and

Hospitals. Any user charges collected by Society under Section 73A of

ESI Act would be duly accounted by Society and same would be

credited/adjusted to ESIC Account;

3.6 To take appropriate decision for efficient administration and

management of the ESIS Dispensaries and Hospitals, therefore, formulate

policies for code of conduct, disciplinary actions, grievance reversal

mechanism and all other policies for the day to day smooth working of

the ESIS;

3.7 To provide, arrange and participate in training programs and

therefore, to organize conference, seminars, workshop, celebration

activities and all such other activities for the purpose of Capacity

augmentation of the manpower and beneficiaries of ESI Scheme and

therefore, to undertake activities for Human Resource Development,

deployment, education in the area of cleanliness and hygiene, its

maintenance, administration, creation of specialized skills and

infrastructure facility;

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[PART–II

3.8 To prepare related Schemes, plans, projects and programs

for Employees State Insurance Scheme so as to receive assistance from

Central and State Government Schemes and submit the proposal before

appropriate authority and avail the funds from time to time;

3.9 To receive and distribute the funds received as grant,

contributions, corpus fund or to arrange financial assistance as may be

permissible under the provisions of Societies Registration Act, 1860 and

the Indian Trust Act, 1882 and management, administration, investment

and reinvestment of funds so raised or available with the ESIS;

3.10 To facilitate or enter into MOU, Partnerships with eminent

Local National and International Organizations, Universities,

Institutions, Body Corporates, Societies, Trusts, Agencies, Associations

and Individuals for furtherance of objectives of ESI Scheme, its

management and administration;

3.11 To set up supervision, monitoring, coordination and

reporting framework and take up work for operation, maintenance, repairs

and restoration of the facilities created at ESIS Dispensaries and Hospital

Campus as per ESIC policies and guidelines;

3.12 To carry out or undertake Social Audit of implementation

of ESIS facilities and to evaluate outcomes through analysis, study or

survey data, management, administration and maintenance of records,

registers and various other information;

3.13 To undertake publication of newsletters, study reports,

survey and analysis report, IEC materials such as brochures, etc., in hard

copy and/or soft copy and to carry out information and communication

activities for the purpose of awareness creation among ESI Scheme

Beneficiaries;

3.14 To support all such activities that promote the objectives

of Employees State Insurance Scheme through education, awareness and

its related facilities;

3.15 To do such all other acts and undertake such other

activities and to create such infrastructure, institutions and organization

framework for any other work which may be entrusted by Central or State

Government from time to time;

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3.16 To carry out any other objective as specified by ESI

Corporation;

3.17 To do all other acts and things as may be conducive with

the objects of the Society.

Note : The Society will pursue the objective out of the above

as may be permitted by ESI Corporation from time to time.

4. Fund.— 4.1 The Society shall function with an initial Fund of ` 1,000;

4.2 The funds of the Society shall consist of the following:

(i) Funds of Society;

(ii) Grants-in Aid or any other receipt from the ESIC;

(iii) Grants-in Aid from the State Government and or from

Central Government;

(iv) Grants and donations from trade, industry, institutions

and individuals;

(v) Receipts from disposal of movable assets;

(vi) Any other income such as Bank interest, deposits, tender

fee and other miscellaneous expenses, etc.

4.3 The Society shall be entitled to receive grant, donations,

contribution, subscription, bequests, fees, loan or contingency in cash

or kind, either in Indian or foreign currency subject to approval of the

Governing Body;

4.4 The funds (Central/State and other) of Society should be

kept in a Public Sector Bank Account. The interest accrued on funds

shall be treated as part of the Society resources and it may utilize the

interest accrued on funds for the purpose of additional activities,

however, not exceeding the financial limit kept under the program and

for providing additional hardware/infrastructure.

4.5 The Member-Secretary of the Society shall hold and stand

possessed of the said amount of ` 1,000 (Rupees one thousand only)

hereinafter called the Society fund which Expression shall include further

additions, the conversions thereof and/or the investments for the time

being of the same and/or the investments or conversions of such

762

LA GAZETTE DE L'ETAT

[PART–II

accumulations, additions and accretions thereof and the dividends,

interest and or any other income of the said Society fund and subject

to powers and provisions declared and contained hereinafter;

4.6 The administrative, operation and maintenance expenditure

shall be provided in the schemes/programs of the Central/State

Government/ESIC and/or various bilateral/multilateral agencies like World

Bank, ADB, UN1CEF, etc.;

4.7 The investment of the Society’s fund or the interest and

income thereof or any part thereof shall always be kept in the name of

the “Puducherry Employees’ State Insurance Society” in Public Sector

Bank or with Government agency as may be decided by the Governing

Body from time to time.

5. Membership.— The following shall be the first members of the

Governing Body of the Society:

(a) Chief Secretary to Government, Government of Puducherry.

(b) Secretary to Government (Labour), Government of Puducherry.

(d) Secretary to Government (Finance), Government of Puducherry.

(e) Chief Executive Officer/Member Secretary/Director ESIS of

the Puducherry, Employees State Insurance Society.

(f) Employers’ Representatives- (Non-Official Members).

(g) Employees’ Representatives- (Non-Official Members).

(h) Regional Director, ESIC, Puducherry.

(i) State Medical Officer, ESIC, Puducherry.

6. Governing Body.— 6.1 All members of the Society as set out

in para 5 shall constitute the Governing Body of the Society (subject to

the prior approval of ESIC). The State Government may reconstitute

Governing Body.

6.2 The Governing Body shall consist of minimum nine Members

and maximum fourteen Members.

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6.3 The First Members of the Governing Body shall be as

follows and they shall hold office until anew Governing Body is

appointed according to the Rules and Regulations of the Society:

Sl.

Details

Designation

No.

(1)

(2)

(3)

Chief Secretary to Government,

Chairman

Government of Puducherry.

Secretary to Government (Labour),

Vice-Chairman/

Government of Puducherry.

Member

Secretary to Government (Health),

Member

Government of Puducherry.

Secretary to Government (Finance),

Member

Government of Puducherry.

Director ESIS of Puducherry

Chief Executive

Officer/

Member-Secretary

Employers' Representatives

Member

Employees' Representatives

Member

Regional Director, ESIC, Puducherry

Member

State Medical Officer, ESIC, Puducherry

Member

6.4 The Governing Body shall consist of the following

Members:

Sl.

Details

Designation

No.

(1)

(2)

(3)

Chief Secretary to Government,

Chairman

Government of Puducherry.

Secretary to Government (Labour),

Vice-Chairman/

Government of Puducherry.

Member

Secretary to Government (Health),

Member

Government of Puducherry.

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LA GAZETTE DE L'ETAT

[PART–II

Secretary to Government (Finance),

Member

Government of Puducherry.

Director ESIS of Puducherry

Chief Executive

Officer/

Member-Secretary

ESIC Nominee

Member

7 to 9

Employers’ Representatives (3 Nos.)

Member

10 to 12

Employees’ Representatives (3 Nos.)

Member

Regional Director, ESIC, Puducherry.

Member

State Medical Officer, ESIC, Puducherry

Member

6.5 The management of the affairs of the Society shall be

entrusted to Governing Body and the property of the Society shall be

vested in the Governing Body and the Society shall be responsible for

repair and maintenance of properties in the possession of the Society

and entrusted/vested in the Governing Body.

6.6 The Society may sue or be sued in the name of the Chief

Executive Officer of the Society or of such other members as shall, in

reference to the matter concerned, be appointed by the Governing Body

for the occasion.

6.7 We, the several persons whose names and addresses are

hereunder Subscriber are Desirous of being formed into a Society under

Societies Registration Act, 1860 and Indian Trust Act, 1882 in pursuance

of this Deed of Memorandum of Association and Rules and Regulations:

Sl.

Name

Address

Signature and

No.

Rubber stamp

(1)

(2)

(3)

(4)

Chief Secretary to Government,

Government of Puducherry.

Secretary to Government (Labour),

Government of Puducherry.

Secretary to Government (Health),

Government of Puducherry.

(1)

(2)

(3)

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Secretary to Government (Finance),

Government of Puducherry.

Director ESIS of Puducherry

ESIC Nominee

Employers’ Representatives

Employees’ Representatives

Regional Director, ESIC, Puducherry.

The above signatories have signed before me and I have

personally verified the same :

Chief Executive Officer-cum-

Member Secretary

Puducherry Employees’

State Insurance Society.

————

APPENDIX – II

PUDUCHERRY EMPLOYEES’ STATE INSURANCE SOCIETY

RULES AND REGULATIONS, 2023

1. Short title, extent and commencement.— (1) These rules shall

be called the Puducherry Employees’ State Insurance Society Rules and

Regulations, 2023.

(2) They shall extend to the whole of the Union territory of

Puducherry.

(3) They shall come into force on and from the date of their

publication in the Official Gazette.

2. Objectives.— The Society shall serve as a managerial and Health

Care Body in terms of Section 58(5) of Employees State Insurance

Corporation Act, 1948, to the Employees State Insurance Corporation

for administration and management of medical benefits and medical

establishments presently under Employees' State Insurance Scheme. The

Society shall pursue all other objectives as per Memorandum of

Association (MoA), subject to directions and superintendence by ESIC

from time to time.

(1)

(2)

(3)

(4)

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LA GAZETTE DE L'ETAT

[PART–II

3. Definitions.—In these rules, unless the context otherwise

requires,–

(a) “Act” shall means and includes, Employees’ State Insurance

Act, 1948 in terms of which Puducherry Employees’ State Insurance

Society has been constituted and Societies Registration Act, 1860 and

Indian Trust Act, 1882 as may be applicable:

(b) “Central Government” shall means and include, the

Government of India;

Governing Body of the Society;

(d) "Chief Executive Officer" shall mean and include, the Chief

Executive Officer-cum-Chief Executive Officer of the Governing Body or

Executive Committee of the Society, as the case may be;

(e) "Corporation/ESIC" shall means, Employees' State Insurance

Corporation set up under the Employees' State Insurance Act, 1948;

(f) "ESIC Nominee" shall mean, the Representative of the ESIC

as nominated by the Director-General, ESIC;

(g) "ESIS" shall means, and include, the Puducherry Employees'

State Insurance Society;

(h) "Executive Committee" shall mean and include, the

Executive Committee constituted by this Rules and regulations

consisting of Members who are empowered to take Operational and

Management decisions within the financial limits as may be prescribed

by the Governing Body from time to time;

(i) "Governing Body" shall mean and include, the Governing

Body of the Society as may be formed from time to time;

(j) "Government" shall means the Administrator of Puducherry

appointed under Article 239 of the Constitution.

(k) "Indian Trust Act, 1882" shall mean and include, a Public

Trust as may be applicable to the State of Puducherry ;

(l) "Member" shall means and includes, the Member of the

Society including Member of the Governing Body;

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(m) "Non-official Member" shall mean and include, person or

Representative of Employers and Employees nominated by the

Director-General, ESIC as the Member of the Governing Body or

Executive Committee;

(n) "Official Member" shall mean and include, the Officer of the

State Government/Central Government appointed as the Member of the

Society;

(o) "Prescribed" shall means and includes, prescribed Rules and

Regulations framed by the Governing Body;

(p) "Review/Inquiry Committee" shall mean, the Review/Inquiry

committee constituted for the purpose of periodical review or for inquiry

into the affairs of the Society as refunded to it for time to time

(q) "Rules and Regulations" shall mean and include, this

regulation framed and as approved by the State Government under this

Memorandum of Association;

(r) "Secretariat" shall means and includes, the Secretariat of the

Society;

(s) "Secretary" shall means and includes, the Secretary to the

Government and shall mean any officer occupying the position of the

Secretary, Additional Secretary or Commissioner or such officer in the

rank or equivalent Pay Scale of Secretary;

(t) "Society" shall means and includes, the Puducherry

Employees' State Insurance Society;

(u) "Vice-Chairman" shall means and includes Vice-Chairman of

the Governing Body of the Society;

(v) "Year" shall means and includes, 12 months period

commencing on the 1st of April and ending on the 31st March of the

succeeding.

4. Registered Office.— The registered office of the Society shall

be situated in the premises of the Directorate of ESI Scheme located at

the Office of Deputy Director (ESI), Gorimedu, Puducherry-605 006. It

will have the liberty to establish one or more Branch Offices elsewhere

in the Union territory of Puducherry, if so required.

768

LA GAZETTE DE L'ETAT

[PART–II

5. Functions.— (a) The Society shall direct its resources towards

performance of the following key tasks:

(i) Receive, expend, disburse and account for funds received

from ESI Corporation.

(ii) Receive funds from the Government/any other source.

(iii) Administer and manage health establishments for achieving

the desired objectives.

(iv) Undertake such other activities for strengthening the

medical facilities as may be directed and identified from time to

time by the ESIC.

(b) For performing the above tasks, the Society shall:

(i) Follow ESIC or the Government guidelines and its

procurement procedures of goods and services.

(ii) Make rules and bye-laws for the conduct of the activities

of the Society and its Secretariat and add, rescind or vary them

from time to time.

fulfill the requirements created by changes in technology, the Rules and

Regulations relating to it, in order to provide better services to the

beneficiaries of the ESI Scheme.

(d) Receive, manage (including disbursement of funds to

Implementing Agencies and other implementing Partners as approved

by the appropriate Authority within their powers, etc.) and account for

the funds received.

(e) Funds of the Society shall be used only for its objectives

and cannot be diverted for any other Government programmes.

(f) Mobilize financial and non-financial resources for

complementing/supplementing the ESI Scheme.

(g) Organize training, meetings, conferences, policy and

programme reviews studies/surveys, workshops, innovations and

Inter-State exchange visits, etc., for deriving inputs for better

implementation.

(h) Undertake all necessary actions for documentation,

increasing awareness for all the ESI Scheme related topics.

(i) Establish and carry out the administration and management

of the Society Secretariat, which will serve as the implementation arm of

the Society.

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(j) Create or upgrade administrative, technical and other posts

in the Secretariat of the Society as deemed necessary.

(k) Make rules, bye-laws and operational guidelines for the

conduct of activities of the Society and its Secretariat and modify or

change them from time-to-time, as deemed necessary.

6. Register of Members of the Society.— The Society shall

maintain a roll of Members at its Registered Office and every nominated

Member shall sign the roll and state therein his Rank or Occupation and

address/Contact details. Such Member shall not be entitled to exercise

rights and privileges of a Member unless he has signed the roll as

aforesaid.

7. Tenure of the Members of the Society.— 7.1 The Membership

of an Official Member of the Society shall terminate when he ceases to

hold the office by virtue of which he was inducted as a Member and his

successor to the office shall become such Member in his place.

7.2 The Society shall maintain a roll of Members at its registered

office and every Member shall sign the roll and state therein, his Rank

or Occupation and Address. No Member shall be entitled to exercise

rights and privileges of a Member unless he has signed the roll as

previously mentioned.

7.3 Resignation of Membership shall be tendered in person to

its Chief Executive Officer and shall not take effect until the Chairman

has accepted it.

7.4 If, a Member of the Society changes his address/Contact

details, he shall notify his new address/Contact details to the Chief

Executive Officer who shall thereupon enter his new address in the roll

of Members.

7.5 Any vacancy in the Society shall be filled by the Authority

entitled to make such appointment.

7.6 The management of the affairs of the Society shall be

entrusted to the Governing Body and the property of the Society shall

be vested in the Governing Body and the Society shall be responsible

for the repairs and maintenance of the properties in the possession of

the Society and entrusted/vested in the Governing Body.

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LA GAZETTE DE L'ETAT

[PART–II

7.7 The Society may sue or be sued in the name of the Chief

Executive Officer of the Society or of such other Member or Members

as shall, in reference to the matter concerned, be appointed by the

Governing Body for the occasion.

8. Authorities of the Society.— The following shall be the

Authorities of the Society:

(1) Governing Body

(2) Executive Committee

(3) Society Secretariat

8.1 Governing Body.—

8.1.1. Terms and Conditions of the Governing Body:–

Sl.

Details

Designation

No.

(1)

(2)

(3)

Chief Secretary to Government,

Chairman

Government of Puducherry.

Secretary to Government (Labour),

Member

Government of Puducherry.

Secretary to Government (Health),

Member

Government of Puducherry.

Secretary to Government (Finance),

Member

Government of Puducherry.

Director ESIS of Puducherry

Chief Executive

Employees State Insurance Society.

Officer/

Member-Secretary

Employers’ Representatives (3 Nos.)

Member

Employees’ Representatives (3 Nos.)

Member

Regional Director, ESIC, Puducherry

Member

State Medical Officer, ESIC, Puducherry

Member

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(i) The following shall be the Member of the first Governing

Body of the Society:

(a) Chief Secretary to Government, Government of Puducherry.

(b) Secretary to Government (Labour), Government of Puducherry.

(d) Secretary to Government (Finance), Government of Puducherry.

(e) CEO/Member Secretary/Director ESIS of the Puducherry

Employees State Insurance Society.

(f) Employers’ Representatives - (Non-Official Members).

(g) Employees’ Representatives - (Non-Official Members).

(h) Regional Director, ESIC, Puducherry.

(i) State Medical Officer, ESIC, Puducherry.

(ii) The Members of the Society as set out in Clause 8.1.1(i)

constituting the first Governing Body of the Society, shall be

re-constituted with the prior approval of the ESIC.

(iii) The term of the Members representing Employers, and

Employees shall be for a period of 2 years commencing from the date of

their appointment. Vacancies of the Nominated Members will be filled

up immediately on expiry of the term of the existing Nominated Members.

(iv) The Governing Body shall consist of a minimum of nine

Members and a maximum of Members is 13.

(v) The Membership of an official Member of the Governing

Body shall terminate when he ceases to hold the office by virtue of which

he was inducted as a Member and his successor to the office shall

become successor to the office shall become such Member in his place.

(vi) Non-official Members of the Governing Body will be

nominated by the ESIC. The nominated Members shall hold office for a

period of two years from the date of their nomination. Such Members

will be eligible for re-nomination for a maximum of one additional term

of 2 years.

(vii) A Member of the Governing Body shall cease to be

Member if he resigns or becomes insolvent or of unsound mind or is

convicted of a criminal offence involving moral turpitude or removed

from the post by virtue of which he was holding the Membership.

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LA GAZETTE DE L'ETAT

[PART–II

(viii) Resignation of Membership of the Governing Body shall

be tendered in person to its Chief Executive Officer and shall not take

effect until the Chairman has accepted it.

(ix) If, a Member of the Governing Body changes his address/

Contact details, he shall notify his new address/contact details to the

Chief Executive Officer who shall thereupon enter his new address in

the roll of Members.

(x) Any vacancy in the Governing Body shall be filled by the

Authority entitled to make such appointment.

(xi) No Member of the Governing Body shall be entitled to any

fixed remuneration.

(xii) The Governing Body shall maintain a roll of Members of

the Governing Body at its registered office and every such Member shall

sign the roll and state therein, his Rank or Occupation and Address. No

Member shall be entitled to exercise rights and privileges of a Member

of the Governing Body unless he has signed the roll.

8.1.2. Proceedings of the Meetings of the Governing Body.—

(i) The meetings of the Governing Body will be held at least

once in every six months and at such time and place as the

Chairman shall decide. If the Chairman receives a requisition for

calling a meeting signed by one-third Members of the Governing

Body, the Chairman shall call for such a meeting as soon as may

be reasonably practicable and at such place as he may deem fit.

(ii) A meeting of the Governing Body shall be held not later than

10th December and 10th June every year to deliberate/approve the

agenda placed for the purpose.

* ^{The financial statement (Receipt and Payment A/c., Income}

and Expenditure A/c. and Balance sheet) for the year ending

on 31st March shall be prepared by 31st May and presented

in the Governing Body meeting to be held before 10th June.

The approved accounts shall be sent to Chartered

Accountant Empanelled with C&AG for audit.

* ^{The audited accounts along with the Audit report shall be}

placed before the Governing Body meeting to be held before

10th December.

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* ^{The Budget Estimates (RE) for current year and (BE) for next}

year and annual action plan shall be placed in Governing

Body meeting to be held before 10th December.

* ^{Other businesses to be transacted shall be brought forward}

with the permission of the Chairman.

The approved minutes of the meetings along with the income

and expenditure account and budget proposal shall be submitted

to the ESIC by the prescribed date.

(iii) At the annual meeting of the Governing Body, the following

business shall be brought forward and disposed of;

(a) Annual physical and financial progress report of the

Society;

(b) Income and expenditure account and the balance sheet for

the past year;

(d) Budget for the next year;

(e) Policy and Project review, notes and recommendations if,

any;

(f) Appointments for the Executive Committee and other

Committees;

(g) Other business brought forward with the permission of the

Chairman.

(iv) Every notice calling for meeting of the Governing Body shall

state the date, time and place at which such meeting will be held

and shall be served upon every Member of the Governing Body

not less than ten clear days before the date appointed for the

meeting. Such notice shall be under the seal of the Chief Executive

Officer and shall be accompanied by an agenda of the business to

be transacted in the meeting. The notice shall be served before

the meeting provided that accidental omission to give such notice

to any Member shall not invalidate any resolution passed at such

meeting. In the event of any urgent business, the Chairman may

call for the meeting of the Governing Body at clear seven days

notice. However, if Governing Body or the Chairman desires to hold

more meetings for the reasons of society's better functioning or

improvement, they may do so under intimation to all concerned.

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LA GAZETTE DE L'ETAT

[PART–II

(v) The Chairman shall take the chair at the meetings of the

Governing Body. In his absence, the Vice-Chairman will chair the

meeting, failing which the Governing Body shall elect one from

among the Members present as Chairman of the meeting.

(vi) All disputed questions at the meeting of the Governing

Body shall be determined by majority of votes. Each Member of

the Governing Body shall have one vote and in case of any equality

of votes, the Chairman of the meeting shall have a casting vote.

(vii) Any Member desirous of moving any resolution at a

meeting of the Governing Body, shall give notice thereof in writing

to the Chief Executive Officer, not less than ten clear days before

the day of such meeting and seven days in case of an urgent

meeting, respectively.

(viii) Any business which may become necessary for the

Governing Body to perform, except such as may be placed before

its Annual meeting, may be carried out by circulation among all its

Members and any resolution so circulated and approved by

majority of the Members signing shall be as effectual and binding

as if, such resolution had been passed at a meeting of the

Governing Body provided that at least two-third Members of the

Governing Body have recorded their consent of such resolution.

(ix) In the event of any urgent business, the Chairman of the

Society may take a decision on behalf of the Governing Body. Such

a decision shall be reported to the Governing Body at its next

meeting for ratification.

(x) A copy of the minutes of the proceedings of each meeting

shall be furnished to the Governing Body Members as soon as

possible after completion of the meeting.

8.1.3. Powers of the Governing Body.– (i) The Governing Body

will have full control of the affairs of the Society and will have

authority to exercise and perform all the powers, acts and deeds

of the Society consistent with the aims and objects of the Society.

(ii) In particular and without prejudice to the generality of the

foregoing provisions, the Governing Body, may,–

(a) Make, amend, or repeal any bye-laws relating to

administration and management of the affairs of the Society

subject to the observance of the provisions as contained

in the ESI Act, 1948 and/or the Societies Registration Act,

1860 and/or ESIC directions, if any.

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(b) Consider the annual budget and the annual action plan, its

subsequent alternations placed before it by the Chief

Executive Officer from time to time and to pass it with such

modifications as the Governing Body may deem fit.

ensure smooth income flow and to review annual audited

accounts.

(d) Accept donations and endowments or receive grants with

the approval of the Governing Body.

(e) Delegate its powers, to the Chairman, Chief Executive Officer

or other authorities of the Society as it may deem fit.

(f) Appoint Committees or Sub-committees for such purpose

and on such terms as it may deem fit, and to dissolve/remove

any of them.

(g) Deploy staff presently working under the Directorate of ESI

Scheme, Government of Puducherry comprising of

Specialists, Doctors, Officers, Ministerial, Nursing, Para-

medical and other existing categories of employees for

performing the functions of the Puducherry Employees' State

Insurance Society.

(h) Follow ESIC/State Government guidelines and its

procurement procedures of goods and services.

(i) The society shall perform the functions as contained in

Clause 3 of the Memorandum of Association to achieve the

objectives of the Society in accordance with the provisions

of the ESI Act, 1948 and Rules and Regulations made

thereunder.

(j) Authorize the Chief Executive Officer to execute such

contracts on behalf of the Society as it may deem lit in the

conduct of the business of the Society, subject to State

Government norms.

(k) Do generally all such acts and things as may be necessary

or incidental to carrying out the objectives of the Society:

Provided that nothing herein contained shall authorize the

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[PART–II

Governing Body to do any act or to pass any bye-laws

which may be repugnant to the provisions hereof, to the

powers hereby conferred on the Governing Body and other

authorities, or which may be Inconsistent with the objectives

of the Society.

8.1.4. Powers and functions of the Chairman of the Governing

Body.—

(i) The Chairman shall have the powers to call for and preside

over all meetings of the Governing Body.

(ii) The Chairman may himself call, or by a requisition in writing

signed by him, may require the Chief Executive Officer to call, a

meeting of the Governing Body at any time and on the receipt of

such requisition, the Chief Executive Officer shall forthwith call for

such a meeting.

(iii) The Chairman shall enjoy such powers as may be delegated

to him by the Governing Body.

(iv) The Chairman shall have the authority to review

periodically, the work and progress of the Society and to order

inquiries into the affairs of the Society and to pass orders on the

recommendations of the Reviewing or Inquiry Committee. For the

purpose of the review/inquiry as the case may be, Reviewing or

Inquiry Committee shall consist of the following Members:

1. Director, Department of Health and Family Welfare Services

Puducherry;

2. Deputy Labour Commissioner, Puducherry; and

3. Senior Accounts Officer, Department of Health and Family

Welfare Services, Puducherry;

4. The person to the mentioned by the Chairman, if the

situation so warrants.

(v) Nothing in these Rules shall prevent the Chairman from

exercising any or all the powers of the Governing Body in case of

emergencies in furtherance of the objects of the Society. However,

the action taken by the Chairman on such occasions shall be

reported to the Governing Body subsequently for ratification.

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8.1.5 Review/Inquiry Committee.—

8.2 Executive Committee.—(1) The Governing Body will

constitute an Executive Committee, which will be responsible for

carrying out the functions of the Governing Body. It shall take

decisions and exercise powers to carry out the day to day functions

and implement the plans and schemes as approved by the

Governing Body. It shall prepare the Annual Budget, Annual

Action Plan and Annual Report and present them to the Governing

Body for approval. The Governing Body shall have the right to

create, alter, reduce or increase any functions or powers of the

Executive Committee.

8.2.1 Composition of Executive Committee.— The composition

of the Executive Committee shall be as follows:

Sl.

Details

Designation

No.

(1)

(2)

(3)

Secretary to Government (Labour),

Chairman/

Government of Puducherry.

Member

Secretary to Government (Finance),

Member

Government of Puducherry.

Secretary to Government (Health),

Member

Government of Puducherry.

Director, Puducherry ESI (MB) Scheme,

Chief Executive

Government of Puducherry.

Officer-cum-

Member-Secretary

Director, Directorate of Health and Family

Member

Welfare, Government of Puducherry.

Employers’ Representative (1 No.)

Member

(to be nominated by the Governing Body

from amongst the member of the Governing

Body representing Employers).

Employees’ Representative (1 No.)

Member

(to be nominated by the Governing Body

from amongst the member of the Governing

Body representing Employees).

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[PART–II

Regional Director, ESIC, Puducherry

Member

State Medical Officer, ESIC, Puducherry

Member

8.2.3 Term of the members of the Executive Committee.—

(iv) Term of Non-Official Member of the Executive Committee

shall be for a period of 2 years. The term of an Executive Member

shall be co-terminus with his tenure in the Governing Body.

8.2.4 Meeting of the Executive Committee.—

(i) Meetings of the Executive Committee shall be convened by

the Chief Executive Officer by giving clear seven days' notice in

writing along with the Agenda specifying the business to be

transacted, the date, time and venue of the meeting. The meeting

may be convened at a shorter notice by the Chairman of the

Executive Committee.

(ii) The meetings of the Executive Committee shall be held at

least once in three months or more frequently as may be necessary.

(iii) One-third or at least three, whichever is higher of the filled

in posts of the Members of the Executive Committee sitting and

voting, shall form a quorum at every meeting of the Executive

Committee.

(iv) The minutes of the Executive Committee meetings will be

placed before the Governing Body at its next meeting.

(v) The Executive Committee may co-operative additional

Members and/or invite subject experts to its meetings from time to

time.

(ix) The various Committees constituted by the Governing Body

shall submit their reports to the Executive Committee who shall be

empowered to take decisions on their recommendations with the

approval of the Governing Body.

The Executive Committee of the Society will have the overall

responsibility for planning and executing the work of the Secretariat for

supervising the work of the technical/management units of the

Secretariat, directing and over-seeing its implementation through the

Secretariat.

(1)

(2)

(3)

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8.3 Society Secretariat.— 8.3.1 (i) The Society will establish

a Secretariat of the Society consisting of technical, financial and

management professional to serve as the implementation arm of

the Society.

(ii) The Secretariat shall consist of all such technical/

management units put together and as may be determined by the

Governing Body with due regard to the scope of functions as set

out in Article 3 of the Memorandum of Association.

(iii) The Executive Committee of the Society will have overall

responsibility for planning and executing the work of the Society

for supervising the work of the technical/ management units of the

Society directing and overseeing Implementation of the society

through the Secretariat.

8.3.2 Powers and Functions of the Secretariat.—

(i) As the implementation arm of the Society, the Secretariat will

be responsible for day-to-day management of the Society’s

activities. In particular, it will be responsible for performing all the

functions of the Society as set out in Clause 3 of the Memorandum

of Association.

(ii) The Secretariat of the Society shall consist of the Chief

Executive Officer and Staff of the Society, including experts and

consultants hired with the approval of Governing Body regarding

their term and remuneration. Provided the society shall not have

its own manpower. All the manpower engaged in executing the ESI

Scheme shall be the employee of the concerned State Government

or PSU or Central Government or ESIC.

Provided further that the Society may authorize/approve hiring

of contractual employees on short term basis till regular employees

are in place and shall allow payment from the Society’s fund :

Provide also that, the man power services for additional work

load in the field of accounts, finance, administration, medical and

allied services may be outsourced.

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(iii) As a support structure for smooth delivery of medical

benefits and management of medical establishments, the Secretariat

shall:

(a) Cause its experts and staff to be subjected to such

operational arrangements with the Society (including seating

and reporting arrangements) as to generate synergies,

(b) Host external experts within its premises, and

Society as may be determined by the Governing Body.

(iv) Employees of the Society are on demand deputed from the

Government or PSU or Central Government or ESIC and their

Pension liabilities wherever applicable rests with the respective

appointing authorities. Society does not have any employees in

its rolls except on deputation or temporary contract/engagement,

till assigned work is completed. All employees on deputation will

be governed by the service rules and regulations of the State/

Central Government or PSU concerned and will accordingly be in

receipt of pay and allowances and other benefits as applicable to

the employees of the Government of Puducherry.

(v) No employee will have the right to claim to be an employee

of the ESIC directly or indirectly. No employee of the Society can

be absorbed by the ESIC directly except through a suitable

recruitment process.

9. Budget.— Annual Budget should be prepared on PIP (Program

Implementation Plan) model, within the ceiling prescribed. Revised

Budget Estimate of the current year and proposed Budget Estimate for

the following financial year as per the PIP, duly approved by the

Governing Body shall be submitted to the ESI Corporation not later than

10th December of each year. Expenditure of Capital or revenue nature, if

any, proposed outside the laid down ceiling should be supported by

full justification for its inclusion in the budget.

10. Powers of the ESIC.— ESIC may appoint one or more persons

to review the work and progress of the Society and to hold inquiries

into the affairs thereof and to report thereon in such manner as the ESIC

may stipulate. Upon receipt of any such reports; the ESIC may jointly

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take such action and issue such directions as they may consider

necessary in respect of any of the matters dealt with in the report and

the Society shall be bound to comply with such directions. In addition,

the ESIC may at any time issue directives or instructions on matters of

policy to the Society and the latter shall be bound to promptly comply

with such directives or instructions.

11. Accounts and Audit.— 11.1 The Society shall keep proper

Books of Accounts in compliance of the Societies Registration Act, 1860

and Indian Trust Act, 1882 as follows:

(a) All sums of money received and the sources thereof and all

sums of money expended by the Society and the objects or

purposes for which such sums are expended; and

(b) The Society’s Assets and Liabilities.

11.2 The Executive Committee may maintain such Bank accounts

in its name as may be necessary for operational management of the

Society with the approval of the Governing Body.

11.3 The financial year of the Society shall be from 1st April to

31st March;

11.4 The accounts of the Society shall be balanced each year

on the 31st day of March and Annual Accounts shall be prepared;

11.5 The Society shall hold a meeting of the Governing Body

to consider the Annual Report on its working and Audit Report generally

within six months of the close of the financial year.

11.6 The Society shall maintain accounts in the mode and

manner and format as specified by the ESIC by following Accrual System

of Accounting.

11.7 The Annual Accounts and report on working of the Society

shall include the progress and activities of the Society during the year

and it shall include the Audited Annual Accounts in a format in

conformity with the statutory requirements and good accounting

practice;

11.8 The Society shall cause regular accounts to be kept of all

its monies and properties in respect of the affairs of the Society. Society

may engage a professional Firm for auditing the accounts and for internal

audit.

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11.9 The Auditor shall be appointed by the Executive Committee

every year and fix the remuneration of such Auditor. The Auditor shall

be the Chartered Accountant/ Firm of Chartered Accountants Empanelled

with C&AG.

11.10 The Society shall submit a copy of the Audited Accounts

to the Government as well as to ESIC.

12. Bank Accounts.— 12.1 The account of the Society shall be

opened in the name of Puducherry Employees’ State Insurance Society

in a Public Sector Bank approved by the Executive Committee as may

be specified by the ESI Corporation. All the funds shall be paid into the

Society's account with the appointed bank and shall not be withdrawn

except through a Cheque/ RTGS/NEFT/Electronic mode, authorized by

such authorities of the Society Secretariat as may be determined by the

Executive Committee.

12.2 The Society shall switch over to e-banking procedures as

and when the ESI Corporation directs the Society to do so.

12.3 The Executive Committee shall authorize an Officer to

operate the accounts of the Society in conjunction with another Senior

Officer as may be decided by the Committee.

13. Returns to be filed with the Registrar.— 13.1 The Society

shall file such returns and documents and in the manner as may be

required by the Societies Registration Act, 1860 and Indian Trust

Act, 1882.

13.2 Once in every year, a list of the office bearers and Members

of the Governing Body of the Society shall be filed with the Registrar

of Societies as required under Section 4 of the Societies Registration

Act, 1860;

13.3 The Society shall submit its Annual Administration Report

along with Audit Report and Annual Accounts to the Government every

year.

14. Investment of Funds.— All monies forming part of the Society

funds and requiring investment shall be invested in the name of the

Society and operated in a manner as may be approved by the Governing

Body/Executive Committee as per the policies of ESIC.

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15. Annual Reports.— A draft Annual Report and the yearly

accounts of the Society shall be placed before the Governing Body at

next meeting for consideration and approval. A copy of the Annual

Report and Audited Statement of Accounts as finally approved by the

Governing Body shall be forwarded within six months of the closure of

a financial year to the Chairman of the Governing Body and ESI

Corporation.

16. Suits and Proceedings.— 16.1 The Society may sue and may

be sued in the name of its Chief Executive Officer as per Section 6 of

the Act. No suit or proceedings shall become void by reason of any

change in the nomenclature or temporary vacancy of the office.

16.2 No suit or proceedings shall abate by the reason of any

vacancy change in the holder of the office of the Chairman or Chief

Executive Officer or any other office bearer authorized in this behalf.

16.3 Every decree or order against the Society in any suit or

proceedings shall be executable against the property of the Society and

not against the person or the property of any office bearer of the

Society.

16.4 Nothing in sub-clause 16.3 above shall exempt the office

bearer of the Society from any criminal liability or entitle him to claim

any contribution from the property of the Society in respect of any fine

to be paid by him on conviction by a Criminal Court.

17. Trustees.— The Members of the Governing Body shall also

be the Trustees of the Society by Post and Designation they hold for

the purpose of the Public Trust and therefore, the Society is to be

registered under the Indian Trust Act, 1882.

18. Reimbursement of Expenses.— It shall be lawful for the

Executive Committee for the time being of these presents to reimburse

themselves or pay and discharge out of the Society funds, all costs,

charges and expenses incurred by them in or about the execution of the

Society.

19. Dispute.— It shall be lawful for the Executive Committee/

Governing Body to settle accounts and to compromise, compound,

abandon, or refer to arbitration, any action, proceeding or disputes,

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claims, demands or things relating to any matter in and do all other

things for such purpose without being responsible for any loss

occasioned thereby to the Society.

20. Dissolution and adjustment of affairs of the society.—

20.1 The Society shall have perpetual existence. However, the Society

may be dissolved in accordance with the provisions of Section 13 and

14 of the Societies Registration Act, 1860, after obtaining the previous

consent of the ESIC. The Governing Body may resolve to dissolve the

Society by bringing a proposal to that effect in a special meeting to be

convened for the purpose;

20.2 If, for some reason the Society is to be dissolved as

aforesaid, then no assets/property would go to any founder, setter,

trustee, donor, or member, etc., but the assets after meeting its liabilities

would be handed over as per the provisions of the Indian Trust

Act, 1882 to the ESIC with prior permission of the Charity Commissioner.

21. Amendments/Alterations of the Memorandum of the Society

under these Rules.— 21.1 The Society may alter or extend the purpose

for which it is established and/or the Rules of the Society.

21.2 The proposition for any alteration or extension to the

objectives of the Society and/ or the Rules must be circulated to all the

Members of the Governing Body and must be included in the written

agenda of the ensuing meeting of the Governing Body or a special

meeting of the Governing Body.

21.3 No amendments shall be effective unless the proposals in

this regard have been endorsed by 3/5th of the Members of the

Governing Body provided that such proposals have been endorsed in

writing by the ESI Corporation either during the meeting of the Governing

Body or through a written communication.

21.4 Any amendment in the Memorandum of Society or Rules

will be carried out in accordance with the procedure laid down under

Section 12 and 12A of the Societies Registration Act, 1860.

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22. Miscellaneous.— 22.1 Contracts.— (i) All contracts and

other instruments for and on behalf of the Society shall be subject

to the provisions of the ESI Act, 1948 and Societies Registration

Act, 1860, be expressed to be made in the name of the Society and

shall be executed by the persons authorized by the Governing Body.

(ii) No contracts for the sale, purchase or supply of any goods

and material shall be made for and on behalf of the Society with

any Member of the Society or his relative or firm in which such

Member or his relative is a partner or shareholder or any other

partner or share holder of a firm or a private company in which the

said Member is a partner or Director.

(iii) All contracts and other instruments for and on behalf of

the Society shall be subject to the provisions of the Act and be

expressed to be made in the name of the Society and shall be

executed by the person authorized by the Governing Body.

22.2 Government's Power to Review.— Notwithstanding

anything to the contrary contained in these Rules, the Department

of Health/Labour of the Government may appoint one or more

persons to review the work and progress of the Society and hold

inquiries into the affairs thereof and report thereon and issue

directions as deemed appropriate to the Society. The Society shall

be bound to promptly comply with such directives.

The Chairman of the Governing Body shall have the right to

nominate one or more persons to be part of the review/inquiries.

23. Interpretation.— In case of any dispute arising out of the

Memorandum of Association and/or regarding interpretation of these

Rules and Regulations, the matter shall be referred to the ESIC to decide,

and the decision of the ESIC shall be final and binding.

————

online publication at “https://styandptg.py.gov.in”

Published by the Director, Government Press, Puducherry.