Rules 29-30 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 29 tells you who can start proceedings before the Employees' Insurance Court, where they must be filed and how a matter can be moved from one Court to another. Rule 30 lays down how money flowing into the Employees' State Insurance Fund is received, banked, paid out and budgeted.
Proceedings before an Employees' Insurance Court start on application by the Corporation, the aggrieved person or the employer, and must be instituted in the Court for the local area where the Insured Person was working when the question or dispute arose (rule 29(1) and (2)). Under rule 30, all moneys payable to the ESI Fund are received by officers authorised by the Corporation, acknowledged by receipt and deposited in the Reserve Bank of India or approved banks. Payments above one thousand rupees go electronically or by signed cheque unless specially authorised (rule 30(3)(c)).
Rule 29: proceedings before the Employees' Insurance Court
The Court's jurisdiction comes from the Code: see our article on sections 48 and 49. Rule 29 adds procedure. Keep in mind that the Central Rules operate where the Central Government is the appropriate Government, and rule 29(2) itself says the filing is subject to Chapter IV and any rules made by the State Government. If you face a dispute with the Corporation, our legal dispute resolution team can help you plan the filing.
| Sub-rule | What it provides |
|---|---|
| (1) | Proceedings begin on application by the Corporation, the aggrieved person or the employer of an establishment, as the case may be |
| (2) | Subject to Chapter IV and State Government rules, proceedings are instituted in the Court appointed for the local area in which the Insured Person was working at the time the question or dispute arose |
| (3) | If the Court is satisfied that a matter can be more conveniently dealt with by another Court in the same State, it may, subject to State rules, order transfer and forthwith send the records |
| (4) | The State Government may transfer a pending matter to a Court in another State, with the consent of that State Government |
| (5) | The receiving Court continues from the stage at which the matter was transferred, as if the proceedings had originally been instituted in it |
What this means in practice
- Right forum first. A filing in the wrong local area invites objection. Note where the employee was working when the question arose, not where the head office sits.
- Three possible applicants. The Corporation, the aggrieved person (for example an insured person or dependant) and the employer can each start a proceeding.
- No restart after transfer. Sub-rule (5) protects the parties from repeating steps already completed.
- Form and time limits are elsewhere. This rule does not set a limitation period for filing; for appeals from medical decisions see rules 23 and 24.
Rule 30: administration of the Fund
Rule 30 has seven sub-rules on handling the Employees' State Insurance Fund.
Receipts and banking (sub-rules (1) and (2))
- All moneys accruing or payable to the Fund are received by officers of the Corporation authorised for the purpose.
- The amount received is acknowledged by a receipt, electronically or otherwise, in the form specified in the regulations under section 157, as soon as practicable.
- It is deposited in the Reserve Bank of India or banks approved by the Central Government, and the proviso requires those banks to be a nationalised bank or a scheduled bank authorised for Government agency business. The Explanation defines these terms by reference to the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980, the Reserve Bank of India Act, 1934, and a Department of Expenditure office memorandum of 7 December 2016, as amended.
- Moneys payable to the Corporation are credited to approved banks and not used directly for any purpose.
- At the end of every calendar month the bank gives the Corporation a statement of deposits and withdrawals, which the Director General must examine before the expiry of two months after the period to which it relates.
Operating the accounts (sub-rules (3) and (4))
| Point | Rule |
|---|---|
| Who operates | Officers authorised by the Standing Committee, with the Corporation's approval |
| How payments are made | Only on a cheque signed by authorised officers |
| Amounts over one thousand rupees | Electronically or by signed cheque, and in no other way unless the Standing Committee or the Corporation specifically authorises |
| Budget cover | No payment unless covered by a current budget grant; the Corporation may authorise payments without one, generally or for a case |
| Benefits and staff | Benefits to Insured Persons and pay and allowances of sanctioned posts are not withheld for want of a sanctioned budget grant |
| Before signing | The signatory must be satisfied that the sum is for a specifically sanctioned purpose covered by a current grant, and for a payment referred to in section 26 |
Budget estimates (sub-rules (5) to (7))
The budget estimates for the year running 1 April to 31 March follow this calendar:
- The Financial Commissioner prepares them; the Director General submits them with recommendations to the Standing Committee, at a meeting before 1 February of the preceding year.
- A copy goes to each member at least seven clear days before the meeting.
- The estimates approved by the Standing Committee go to a meeting of the Corporation before 20 February of the preceding year.
- As passed, they are authenticated by the Corporation's common seal and submitted to the Central Government under section 117 not later than 1 March.
- The Central Government may alter them before approval, and the administrative Ministry places the final estimates before Parliament in March preceding the financial year.
A supplementary estimate may be prepared and must reach the Central Government not later than 15 February of the financial year concerned (sub-rule (6)). If expenditure under a head is likely to exceed the sanctioned estimate, the Director General must look for savings under other heads and may sanction re-appropriation, but funds cannot go to a new service not contemplated in the budget without the Central Government's prior approval, and no re-appropriation is allowed between the grant for administrative expenses, two thirds of which the Central Government meets, and any other grant (sub-rule (7)). For the budget provisions in the Code see our article on sections 117 and 118.
Example
A State office of the Corporation receives an employer's contribution. An authorised officer receipts it, and it is credited to an approved nationalised or scheduled bank account of the Fund. Later, a payment of Rs 5,000 from the Fund to a supplier must be made electronically or by cheque signed by an authorised officer, and only if a current budget head covers it. (Illustrative.)
Need help with an ESI dispute or an Insurance Court matter?
Choosing the right Court, preparing the record and meeting timelines all affect the outcome. Our legal dispute resolution practice can assist you in preparing an application and appearing before the Employees' Insurance Court.
Key takeaways
- Court proceedings start on application by the Corporation, the aggrieved person or the employer (rule 29(1)).
- File in the Court for the local area where the Insured Person was working when the dispute arose (rule 29(2)).
- A Court can transfer a matter within the State; the State Government can transfer it to another State with consent (rule 29(3) and (4)).
- ESI Fund receipts are acknowledged and banked in the RBI or approved banks (rule 30(1)).
- Payments above Rs 1,000 are electronic or by signed cheque unless specially authorised (rule 30(3)(c)).
- Benefits are not withheld for want of a budget grant (rule 30(3)(d)).
Read next
- Rules 23 and 24: Medical Appeal Tribunal and second appeal
- Sections 48 and 49: Employees' Insurance Court
- Sections 50, 51 and 52: Powers, proceedings and appeals from the Court
- Rules 15, 16 and 17: ESI fund investment, expenditure and property
Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.