SBIL Answer Writing CS Executive 2026: Format, Tips & Practice Session

SBIL Answer Writing CS Executive 2026: This session focuses on writing answers for Part B questions in academic examinations, particularly for legal case studies within Setting up Business Entities and Closure (SBIEL). 

The objective is to demonstrate how to present answers effectively by understanding question types, including those involving case laws, and meeting examiner expectations for clear, well-structured responses.

Internal Complaints Committee (ICC) under the Sexual Harassment of Women at Workplace Act, 2013

Case Study: Flavors of Delhi Private Limited

Ramesh Kumar Gupta, a director of Flavors of Delhi Private Limited (a prominent restaurant with 20 male staff), sought an opinion on two points:

1. Whether the company must establish an Internal Complaints Committee (ICC) under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

2. If so, what would be the composition of the ICC, given no female employees are present.

1. Requirement to Establish ICC

As per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, an Internal Complaints Committee (ICC) shall be constituted by the employer if there are 10 or more employees in the organization. This applies irrespective of whether there are any female employees, as the Act does not make their presence a prerequisite for ICC formation. The rationale is that potential harassment can involve customers, vendors, or suppliers, who may be female.

Conclusion: Flavors of Delhi Private Limited must form an ICC because it employs 20 staff members, which is 10 or more.

2. Composition of ICC (Especially without Female Employees)

The standard composition of an ICC includes:

• One Presiding Officer: A senior-level woman employee from the workplace.

• Two Members: Employees committed to social work or having experience in the field.

• One External Member: From a Non-Governmental Organization (NGO) or an association committed to women's causes.

In a special circumstance where there is no female employee in the organization, the Presiding Officer shall be nominated from any other workplace or organization of the employer. For example, if an employer has multiple entities, a female employee from one entity can serve as the Presiding Officer for another that lacks female staff. Generally, at least one-half (1/2) of the total ICC members shall be women.

Conclusion: The ICC for Flavors of Delhi Private Limited must follow this standard composition, with the Presiding Officer potentially nominated from another entity of the employer if no suitable female employee is available internally.

ESI Act Applicability and "Once Covered, Always Covered" Principle

Case Study: Newly Incorporated Company and ESI Compliance

A newly incorporated company obtained ESI registration with 25 workers. Two years later, the workforce reduced to 20 employees. 

The company received a notice from the ESI Department for not filing ESI returns, arguing that returns were not filed because the number of workers fell below the initial threshold.

1. Applicability of the Employees' State Insurance Act, 1948 (ESI Act)

The Employees' State Insurance Act, 1948 (ESI Act) applies to all non-seasonal factories, shops, hotels, restaurants, cinemas, transport establishments, and other specified establishments.

Thresholds for Applicability:

• Where the State Government is the Appropriate Government: Applicable to establishments employing 10 or more employees.

• Where the Central Government is the Appropriate Government: Applicable to establishments employing 20 or more employees.

2. Principle of "Once Covered, Always Covered"

Under the ESI Act, if an organization or establishment initially becomes covered under the Act, it will always remain applicable, irrespective of any subsequent reduction in the number of employees below the initial applicability threshold. This is formally known as the "Once Covered, Always Covered" principle.

3. Application to the Case

The company initially employed 25 employees and obtained ESI registration, making the ESI Act applicable. Even though the number of employees later reduced to 20, the "Once Covered, Always Covered" principle dictates that the Act continues to apply. 

Thus, the company remains liable to comply with all ESI Act provisions, including filing ESI returns.

Conclusion: The company's argument that it is not required to file ESI returns due to reduced employee numbers is not valid under the ESI Act, 1948.

EPF Withdrawal: Personal Loan vs. Permitted Grounds

Case Study: Ravi Kumar and EPF Withdrawal for Personal Loan Repayment

Ravi Kumar, an EPF member employed at XYZ Private Limited for 12 years, wishes to withdraw a portion of his EPF balance to repay a ₹5 lakh personal loan, which he took due to financial difficulties.

1. Permissibility of EPF Withdrawal for Personal Loan Repayment

According to the provisions of the Employees' Provident Funds Scheme, 1952, an amount from the EPF account is not permissible to be withdrawn for the purpose of paying off a personal loan. Withdrawals are allowed only in specific, defined cases.

Conclusion: Ravi Kumar cannot withdraw his EPF balance to repay a personal loan.

2. Circumstances for EPF Advance Withdrawal Before Retirement

Advance withdrawals from an EPF account are permitted before retirement under the following specific circumstances:

• Marriage: For the marriage of self, son, daughter, brother, or sister.

• Life Insurance Premium: For the payment of Life Insurance Corporation (LIC) premiums.

• Purchase or Construction of a House: For acquiring or building a residential property.

• Hospitalization: For self or family members, where the hospitalization lasts for 2 months or more.

• Temporary Factory Closure: In cases of temporary closure of the factory where the employee works.

• Electricity/Power Supply Cut: Due to a cut in electricity or power supply.

• Damage to Property by Natural Calamity: If the member's property is damaged due to a natural calamity.

Payment of Gratuity Act, 1972: Key Provisions

Scenario: TNSOF Solutions, a software company operating for over a decade with 150 employees. Rajesh, a senior software engineer, decides to resign after completing five years of continuous service.

1. Circumstances for Gratuity Payment

Gratuity is payable to an employee who has rendered continuous service of five years or more upon the termination of their services.

The termination can be due to:

• Superannuation

• Retirement

• Resignation

• Death

• Disablement

Exception to 5-year Rule: The requirement of five years of continuous service is not necessary in cases of death or disablement. In these instances, gratuity is payable irrespective of the service period.

2. Recipient of Gratuity

Gratuity is primarily payable to the employee. If the employee dies, the gratuity is paid to their legal heir or nominee. If the legal heir or nominee is a minor, the amount is deposited with the Controlling Authority, which will invest it. The amount will be paid to the minor upon attaining majority.

Application to the Case: Rajesh is eligible for gratuity as he has completed five years of continuous service and is resigning.