IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 24:-at DAY OF nEcEMEER":éO ikgf, N
BEFORE M M 1' V
THE HON'BLE MR. JUSTICE
MISCELLANEOUS FIRST APPEAL NO;4_é44'ONE~2O»o:i (ESI3x
M /s.AchaJ Industries,
190, Industrial Area,
Bajkalnpady, = I
MANGALORE --~ 575 011,... _ V
Re1)resOntSd*'Aby it,S "
Mr.G.Giriid11ar_P13bII_11._ _ _' .. APPELLANT.
[By Sfi,K .R.A1I_PiII:{1;
AND:
E81 wCO1"pO'rat.iOII,j. V " -- .
560 023. _. RESPONDENT.
(By’*S’I:I:;t.M.P.Geethadevi, Adv.)
*i=*****
f.)
This Appeal is filed under Section 82(1) of the 1381 Act,
against the Order dated 02.12.2008 passed in ES! Application
No.15/1993 on the file of the Presiding Officer, _4..1$~I,_gC_t1n1
Labour Court, D.K., Mangalore, rejecting the
filed under Section 75 of ESI for validity of
Corporation.
This Appeal having been
Judgment, this day, the Court pr*o:riou11cec}.
LBJ) G… Mahler,»
Applicarit in ES! Apgsiicgxtiomggo,1’54/1993 before the E81
Court has come upijh the .JudgI11eI1t dated
02.12.20(36 passetlrhijiltlipeaitzresaid matter under Section 75
of the Employees» i’n:sjura11ce Act, 1948 (for short. “the
to this appeal are as under:
“I’his,.__a’ppea1 is second round of litigation by appellant.
l””‘.v.Ap'”pe]Vlant a cashew processing unit having its office at
, Industrial Area, Baikampady, Maligajotge’, having
c:c)I1i.ra<:t.()'r and the ssa.i.(.i. c:()1'1i.a:a{:l()r by e1:npl<)yi__1'1g 111:5 awn
\vrkers caz*:’i(~.<l out {he wmk a.:r1(i tl'1e said wads: i:~:~._:(':ar;iiC(i
0uts'1(l<:é 'i'..lI}.€ p1'e;:1ises, VVlE€£'C '{.l'1€ }1)1'€S(':'I'1l". unit _.was A"(5Xl_is3tii'v1.g,'.
'l'l'1er€t'()r(:, t:l'1.C appellam, <:2m1'mt 'xfia .1:r£:ai'.'€:(l V' priy.4I:'1.(V:ip_21l
employer in rcspt-tot: of me af01'esaid "ax'1.(l'~.i_{' .r;()'i'l_l"'lia§;él<é
to pay corltriibution on the said 21z;jli<31.mt.. "
4. Insp’1tr1(1l::1?1{~–._pas«:5¢(l an order ur1dcr
Section -i.i»5AA 0ftl1:r;}tfil)11ti0’r1 payable
by appellant. ‘lfh33 ()r(i::rYw21s_ ..fi:’i1alléf1’gé(i in an appli(:a.tior1
under S€CiiO’f’l.’~?£5ij’Of Ac.t.’l)eibi”‘c~*z;l*£é ESI Court. Initially the
ES} C01.11*i;.A é1(_:(:€:;)tC’€.1″”l«.t.l:¢V’=,g§{>{‘1*;exltion raised in the said
21pplicaii0_n t)y”-.app.clia:i«:_ l’1_~<§r<éiz'1 and the same was allowed.
Ag.'«.i1i.r1::i lwlgl-i.A(:l;»l. f€S})€)1'i'{i'(E'£ll C’rp(>rat.it:)’r: pr<:fe'rrec,i an appeal in
ll/El-ffxfi (ESE) on tl:1e file oi"t1'1i.s Cou_ri.. This £301,111.
l aim?'A3.»2§te:l1*"i:":g:{lt:l.1»é (:<31.1;1s<-11 for a%;3p<%ll:3lr1i_ and :'csp<)1'1c1c':'1t4 in tile
~ j;f~$2ia.':i(i: pr<)k:{:__%'}(imgs, by its order 05 parti_a,1ly
“–all:)we:(.lu.–‘ lllf}€ appeal filed by (‘.Z{}rpo1’ail’1(:>I_1_ and rc2r11.i_t;1,r’1si<.i<:rat:'i()r1 10 exa:'n.i.::1e,
UV'
thc c()uira(:'ma_1 rc1ati()nshi:p 'i')('f*é.W€i("fI'1 t11<-7 p:'in('tipz2.1 eIn–;_)10y€r
and the COI1.'{'!'éi(':EOI', M/s.E"a.i B1'0t1'1ers.
5. Th(‘.1’€2’dff(-31″, the £381 Ciourt. 0:1; fresh Cd:1ssi:.i¢f:1.i._i0n 0:t’a V
pleadings and evidence 3.\rai1a’x)¥e (311 i?(f(£()f(i;._ 1)fi)(?(§(E:C1’i7(§’ij_i;O
frame the following, issues:
1. Whethtzr H16′ §ig3:_}1ic::é711’1f[:VA .1iL’2’x¥.’..)1<-.', "to" pay
'Rs.45,085/~ 'V __._ "–éQ.fit:fib11ti<)r1
t0war_ s;: '()v:r_1it.t;_(id 7
2. “Hiat Q’1f,r.i{:f? . 2
and answézjed._t11e_ Safrrge’i.t’i”:T;»1{:__aflir11’1at.ive for the reason that
in terms of E}§:s.A–T1. 17,0 A~Z3..-‘iN11.i(:h were c:r1*{e.rc:d into bet.we€r1
éifzpctlii-fi§:{ :_aAI1<i._ its {iii}:-t:–:–*«2=1'ctt0r, M/s.Pai_ B'r()i:hers, which. deals
v§fi.t__h" {:(i1:.s'fE;t:;i(;»i','i'(::j " 91" new 't'3t1i}<1ir1g on P101, N0.19(}, Vvherczirl it
' was Aagre?:c:(:1.i1'§-}_di<:1' "the: ;1f<)r<:sai<i :;1.0(:=;i1'nc:'I"ai:s; £11211 the e.1'1tire
~ 1:1:-xterial 'Ei'c)19'1~C0r1struci':ion will have to be p'roVid(:d by appellant
'"h{:¥f(iLiI1 _§3;z1(i the c()m:ra(:i()r by u.f;,i.1i$i.r'1g his own Workmari Shall
c(;);r_,fpl<éte i_'r1<? ci:()nsi.rt.1(:ti()r': work u1"ld€I' c()r1tract()r's
gL»-
6
s1..1perviSi(m.. In the said d0ea1mer1t’s it was also provided for
periodical supervision by 21ppe,1Eant’. herein to 2193255; the
progress 2’iI’1(ii qua1i'{.y ofwork <:zm'ied on by {he (3{):1.i.ra.f_(;:*.; ”
6. A’ppe11am’, Ixerein, who is app_1iear’;’t””‘”%_1ri’_- , ‘tVIh.e”_ :~s21i<"iaV
proceedings, examined two witzles-i;ses'.;'"riariiely _"iA.V'.?";e–1' file
proprietor of appellant and A.V'Uf._i5~._t}1t: COIIi1'£1(if';O1"~«:.(:§fvl.gEE1.g;{C(i by?'
him and also got :I1a.1'k(:d__ in E}.11A,2=in"(71('}(Z1,lII1€1'I'iiE-3.V§;SH_EXS.A.~1 to
A-2}. On behalf resportdeitm aim}¢.{1":e:e;-.,¢:" _c:01.*porati()r1 was
examined RW1.:Var1<i 13:1 9;II- _<}i'<«):(:-1_,:_z1*1e1<?,1'ié were marked as
Exs.R} to"'I'{3–.. _ ;"T£1_1e'fiE${"-Coz;1r1f "M1'appreeiatiiofn of oral ami
doetlmentalfy .eVidc€n:('":'e. a.v_é;i1g1i§_1(: on record, ar1sWe;"ed issue
No.1 ir:__ t11e'.. 21;fi'1If}:;:121Atie_\»}éé~.–a;r1(i accordingly rejected the
'Vé1*3I)IiC~éfi10:1.e.0f«..a 3 )e:E1an{–«hereiI1. Bein a ?ri.:’rc§t:fz}.fu:sfi :31″ iilzjlcz Ju<.1grn.en_t d:;}.ted €)i?,J2.2(}{)£3 passed by ESE
-. :jV«_C{§.11’I’T,, c)r1._ifs 21._p’p1ie21T;fi.(;ra.
Mex
7. in this appeal, the gaid order was (t’r1e1,11<-mge,("1 on. the
grmmci that t'hc:r<-2 was; an error in app1"<~:(:i23.f..i0I1 of (1v'i.(_iT'géi';(te to
the czfitzct that appeHa:z'1t I1ereir1 was s1;1pe;m:-'-i.sf§;:j1_g _§'.Ai'1e
c()r1stru(:t'1oI1 of new i)ui1i”tt;”éxfiy 1:0 tim,
eviclerute a”va:i.1aI>1é: cm 1′(:(:():.'(i. ‘I’hé: [SSE Cy:>.:.1A1fi i’ai1c;t_(i’—-i'(§’Caixasjdérr
the factual. position as also i.h’_(:..__Iega.Iap'(‘)sit.i(:11 ‘ w§for’1g1_y”.
c:0nc1uded in holding §:_hai ” irfiolvcrd in
supervisiorl of building fjT’k1c E81 Court. did
not frame proper of appelismt
with fCfbF€E1C(:_ V’ contractor and the
evidcénce Ztliai; xvAé1’é-,.”ax{é2iE21i3.1Vé”-in this be’na1i”was i;0i,a_11y ignored
and also bywr:1’ies1’e21<iii:'1g'iI*'i&=:–._§§zi1nc:, ihc. ESE ctourt. has wr0r1g1y
come t".(;-{ the <:0:r}.I1 ithat 1:i’1c:rc: is an admissior1 on the part
~::)f ,appe11ai1t._ :»1S’«-11¢ was s:.1pc’rvisi.11g the work ciarricd out by
t)1.1i1~c.ii1’1,g;« <§(3§i_tj2faLé*§L)'i', which is .fa<:tuaI1y' in(:()r'reci: and the {CS1
£";1’1rt a1é_s'(3 not ()bservc:(.1 the 11i.9t. and the fi1.1<£i._:T1g_{ of this C0u1't in MFA
'-N:é’.’=gi2’€§/2(){)1. (iaied 2{).’§€_).’20{}S= The ()i”(i(‘il’.’ ‘i1I1p11g’I.’1ed is
“”<:():'1i_.rz_1ry to g'I1eI:.:(::mI:{Mira <_§2;:m<ii 21.{)4.éE}94 32ss~;uc-:<'i by
Wm
\
l'€.'5'pO1'1d(',I1"{ C()rp03fat%0r1 VVh.C'I'("fi1} the g§1.1i(i<é1i:1c:s \-Vere issumi
not to i.nsi_st./ de1I1_a,;1d F181 c_:()mri':'m'ti0:1 in .r<:sp<_:(:t of h.a,i'i1(iir1g
work if t:.'z.1e saint: r101: or wit}"1iI'1_ ;)r(-30%;":(:t's;"'offVy€%:x_iéét;i}a.g
pr(~':mi.ses. Appeliagrtlt. her(~:ir1 has p.rese1at.C(1 1113. ,2i'p;")V(i~:-1:1 on thii
following su_bst,antia.i questi0r1s of 121w:
“‘sté£:,’:.:’rC(i*.i “I’here21’ft,er co1.u’1s<:l {Or a.pp<:11ant_ and r(:spom1c:'r1t
w§:_:*.€;3, heard. in appreciat.im'1 of the said 21rg':_,1rr1cnts, in the
Whether the 'c1{)[)(I'l:1€iI}t s:t1_t){:r\;'isc§d'f_:t~hg§
work of building (:(Vi"n_tVi*'ac_.tor,"
engaged by it ‘,t() vv’cV>’rk'”V()t’
con stnmtiora attrttd’ ‘ sh . V:cL)”1’:_ dayvto~
day batsisV__ 1111 tea” “(:o§{‘i:13§1’t2.ti(_)_f1 Kt) faCt:01*y
Whczth-‘cg Wpcrr f t..1;>.e (:0nt.ractu.a1
‘1’§7.Iati0t*:s_hi;£)~. li{:.tfi}v:?ér1 the appellant and
M/”s.I’ai._I3r()t;hc>:;t4$; {I’-3ui1(iing C0.m:ract()r),
t:h§: a;’)*pe,.1__}__aJ)vt: 1’i_ahIc=: to pay ESI
A{:.<3Iit:'i:iVbut;io:3. in respect of the fa.(:t:0ry
1 v..V41:2.::.£i1r.ii;t1.§;,§ <:0.r.'2st.r1,1ci.e(3 otherwise than in
V.tiie:-_pi'e1I1.isets GE t:h<:: ctxistirxg factory"?
Ir'1"this pro<:e<:ciir1g, (*,I'E'i'ii§'€.': 'i":'i21I C()urt:'ss record was
I /§.\V_x!
9
1’igE1t of gro’z,1r1ds 01″ appez-1}. the iiTir1_c.1_i_1igs of t:_i’1_c Court below
wiiflli 1’€:fc:re.1:1(:e to oral arid ri()(tm:I1cI’1r.a.ry cvi(_1s::nco a\!23jsi2s_ft’51:”j on
re(:0rd, this Court zmswer flit: ai.'(>1″esziid s1iE)st2i11i.iI_sf(;:’1c.g;}:is.;)ris_
of law in $116 negaiive, for {I163 i’c)i1()wi11g;»V 9
Rsasomsi”
9. Adnlittedly appeiiarit: iicéi-:,e;§i’r:r.V_ is hi:.__()ElSEi€fW’1.;}3’I'<J(;€?tSSiI1gV
unit, the proprietor of Q-;';;)c21i;:.2':_t–. 'not 3;' qi1e3,.:iii.{::i’V§.*’31iii1,’41 g’~».b”Liilfilz’ Adxiriittc-idly the
coristructiiori”whirsll taken. tipsi-s”41:eit}1er within the same
premises v”vh€:r._e the’ afppcéilgiiatf is czirryizlg on business nor it is
an ext.er1_si0ri Cf e’xistvir1gbiaiidirig. The (3011-structzion work is
:,f”3Li~::a.0 <v§1:iii'n;;–s%;<;{§ to Hzm ——– iii:«;_i(épsr:<'ic§.'}.i {:?cmt',ra,('.mr in i:er:':1s of
(.i"(1:'('».:1ilV.E':E1<';V§Vlgr}t,:V"i:;§';,._'V.'E:§{S'.:A'j1 to AA3 prsduccd and ma.rke(.i_ in the
' C€)i2ri..__l5e10w.'7–_Rs21rii.ng 0? said d(::uH1ems Clearly dis{:.§_osc_t:s
* jjv*,t_IV1i:1′[. the E-;:v1__1;A3:i.re (:<3r1st.ru(:ti<m work is c:r':.t:r11si.e<i. by appeliarlt to
VA "Mf_s'.VI?ai'.–'E3rotlrlers (I31iii(ii:r1gf (3<)r1i.'raCi()r}.
10. In terms 0f'{1’1C $a1’d (l()(‘:u1.ner1ts, app€13a’r1t 1’1ere’1n wouid
supply all “the. bui}(‘i1.I1gg’ 1I1ai<é1'iaIs dllfl the cos1si:.ru<:ti01"1.._wi1} be
taken up by (3or1t.ra(tt.0r 11:'1d(-tr his .=sa.1p<-:.Wisi()11 21'S =;'.)"(:3j ".t_1':1e
spe<.:ii'icat:ior1 of a.pp<«:11am. by usirlg his e;z1'pE–:.5y(2<:*:s3- ibf fi i'1cé'»
amrctsaici work. The oral es: mi d()(:z.2r11'éiit.2:n::y (2"\;'i(1(3IAK1'(?'E'j 21vei.i1ahle '
on record does not disc:1c)se ihaf i}__1(§"_fc()I'1i.19§;;rt0~:'.2
Brothers are the age.m;.s of p11'i14::Vi'1–m3 en1–;)1<)y;(f{‘)’:f'(1L-.’§:1¢’ar1y d.iSb;10Se that the
appellant herei.n. has absoiutiily 1?j:’c) ifOI?1f,;I'()1;'{)fji*SLIp(EI’ViSiOIl. over
m,1mber of c31T:1f;iOy駀s <~fr_'1g:Lgé<i – "1.':1_<:___T 'Co11tract0r for the
co'r1structi.0r1_wink…__VT'm3._ isa_Ia_ri{:s are not directly paid by
appe1I_an'r, zstrui' appellant, not supervising the work of
_thc-: ernpiciyzzes. f'[Q_W€iV€)f. in 1:h b€i;\vcc:.;’1 the §’)E1I’f.1iCS, it is tn:;1(ie clear
théit vi2§;_);)<§}'l:%I;1_i;_ 'vk(i'L1iervisi_ng the pmgrcztss of work
pCI’i{)(‘i..i”C’c1fi}v.5’ . ‘
_2’\ ‘pE:1’i()<1' 3211 s'up(:rv.is.s§Cm by i'..'i'}<'3. a.pp{:i12:z.r1t' to inspecttt: the
—- fi.r()g11’e.ss of work dot-is zrmf, am<)u.r1t. to Sl1p(iI"ViSi()fl of work
Wk,
H
(:a.1'1'i€c1 (mi: by w()1'k<:rs on 'the s.sit'_<=: of (:()nstr1.1(tt..i.()r1, by no
st.rc:i:.(:1'1 of i.magi11z;»ui()1'1 it. <::an be (.:onst.rz.1e(i as p::.rfs()I'3a1
supervision of the (:<mstru(:t:i()n work on file sjHt_(;– fei;r'1f('1. "i'l:1.€
workers engageci in (:0ns;t,1'1.1cti011 work (:ar111ot"h_e .tj r:v:2itréd.,{§1s".
enlployees of appcliam Elcreiri as (16-%i5'vi..'m:(1' *mi1(i.c2r~:ftS<:L3t§on"i?.(9)('§i)
of the Act. i.;%1.fact', c0ur1s»}>¢ari.r1’ggA [Cr appc3l1§§.r1t” c()1ii,»mi(1L
that the Apex Couri in the 11123.tiE:zC_bf T11<:V"3\/{éi'1'1:i1gi:"ig Director,
I*I3.ssan (1c)*()p<:rat.ive Mi'11§"'~?r()«,ii1.1Q¢1":a5_ S0<jiet_y I.jI1iOI1 I,m1it€d
Vs. The Assistant R€g.§Q_1'}.{'c1{V ;E':r11)1()yetéS' Sielte
Insurance C0r;)%§ora}f:ion .fs;;)£T).:'2§e(i4"if1" iZ()-LO LLR 561, under
similar (;tirc:\:rIi;s*{21,n..§:ésM "ht-jzld how and uncier what
C'ircL11'11stan«(:<:s the 'w()i'kc;'é*;'fifiggezgfid by C()mract0r {immediate
VeI'np.1oy¢1")" S'I1()u1d..bt–§ t'rcé:-xi:-tci an c':.m.p1oy€:e in c0n13<=-tcticm
A'~Wi?:;}i' \_3%Q1f1i(>yc3r. The §’€..’:](3VE1£1’€i portion of
the} J _:_re§1d.s as t,13:1.dc2’r:
°”18. Xxxx xxxx xxxx xxxx xxxx xxxxx
_ £1 n.121it<:1' of fact:, the ihr1.1st. of t.h(:': 2-xrgurnents
* ._ .–'(:era_t:ere.(i round (.',1a'usc (ii) of Sc:c:t..i0n. 2(9). This
(:I2:1.us(.:, reqe.1i..1fc:s-3 <*:it.he-.ér (2.1) mai. i:%1<-it pcrscm to be
'va
an employee should be employed on tthep
premises of the iaetory or estabiishment;
that the work is done by the peraon .;.
under the supervision of the p}’iI1Cip2;3—-€fii§)IO.j§€f
or his agent on work whichfis o3*diha_riIy–p.art.ot”‘ ”
the factory or estabV1ishI1aen:t-_VA.or
preEin1;i3:1a;ry to the earned _ on 1:?”
incidental to the p11rpoSe:_ the .. or
establishment. ‘V’onV the
premises of the .f;S{Et?3liShH1€ntfl
comprehentie_ tpefisons on the
pretriiaee ‘:.’faetorysc of 1,110 1f11p1c)yr;2{$.'(*>.1Vj1′
prernisaes of the app.Hant.s’ ¢v§st.aijii:;1ime:rV1fI’ ‘
and in the j11dg.m(:I1i., the _(iC(:is§0_11″17§:1’1(ig
Court in the Inatter of (.3.I*3.S.C. I§i’:f11£’c%<i a'z'ix:.i_V():I?s:%'; Via, S11b1121s1i
Chandra Bose and ()rs.,v 'in:~:}:~._)r’!_:’c:’:i i’1’1′:.i{1 }L-392) I 5~’5C:C 441] with
reiérence to the supervis=;(3’r;_ 1,1I1(i€i.’ Section
2(9](ij) of the EESE is 521181: é.xpi2ii¥iE>.d.._.¥’;§”it11 refhrence to the
facts o:t’t1 1C ca’s'<V:.!; _If $ai.fii _j11ci_gih€::1at is read with reference
to the i}1ctSava'1Eab1_é' it is dearly seen that there is
force i111.-the gf€):1:i1(iVss ' u14gc:{i" by a,pp6:1IaI1't. to the (~:ffec'r. that ii
" cé.:t':I.1V<:$1';' 1)é§ "fI:'(*.)9,¢1"{{*.(1 21$; primtipai e'r11p10ycr to 1':1i1e w0rke.r$
:.id (:{)r1sf..m(:t.ic>r1 .=:m(i with
V V’ reibremic WE}.g€?S paid 2:0 %:E’:e:.I1, ht: atelrmot. Ix: sacitiieci to
A ” ” p;iy.. the c:c’mi:riEmt.ioI’a.
I–1()w<:ve1', <:o141nse1_ app<2ari..r1_g for :'c3spc)n(;ie1"1t (3()r1)()raI.i()r1_
'w0u.1<.i c()m:e,11.d that t':If'1<: Act being so<:ia.1 arm} l)enc:i:'1(:ia1I
M,'
legislature 1111.15-Sf. be co1'1s1'rueé(i liixrraily so as to b1'i..1:'1g; -'~:e_1l1 the
€I1{lp10y€CS eI1.gage(i wiih the work of appc11a11t__éefiybiéiifiiwhet
brougllt within the m<:a11i.r1.g of the ez'I1p10y€e 'i:s;'i(ir:}*.. S(§V(:yti'(j)1'1".
2(9)(ii) of the Act and the 21p'pe1Ia:1t.:v'$§fidt,:}<»3l'1;.2.I_i'. E11 'S11pp()1f11;"t:h£i: 's3.i'dy
(:0:1te1'1t:i.on, '1'csp011deI1{ (3()1’z;1{fe:£’:T.i~a’c-f:1ie<.i" lajfii
down by thez: Apex (3011-%'1'yy,,,,_i,;-1 of ' 'I.'a1ki<f:s,
Hyderabad and Qt.11.<2rs 'State Insurance
C01'I301'?lUOI'1 H11} Fort Road,
Hyderabad, V §up're:n<m2 Court 1478,
wherein mus:
” and the social
A. –:n.issi(§h of the: ‘Act: {‘)I.lC€ pr0je(:ted, the
V :’:~rQ’s.@>”i:.<:tioIi'{)ffv*.:,}:; COI1fl.i(",'*{ sf §I11€?1'}')I'(3'§I':1.t.iO'I'i ra.§.sed
n:.l_v't!1'i.ss_ 1:as<% s§._.mpk:. A1'ih.oug11, 1ccii1_r1ic:za1]y,
a pr<':w('3c).r1sl.i£:.1i.ir1 one, it is a post:
A I.r1_’:1′(:;§é*1i(i«e:r1ca mca.<;1.;:'r€ and shages 1,1119 passicnl
'(";'i'"_i.11<1: Const:.itutir1 f’0.1f s<3<:ia1j1.1st:i(tI’tI%1e (3()n_st,i{u1:i0n
AA Show Concern for w01’k<~':rs and their welfare.
XXXXXX XXX XXXX XXX XXXX XXXX XXX XXXX XXXX
‘”””‘\
In short, the s()Cia} ()rier1ta.i:i()’n. p_r'()tect.ive
purp(3se and 1’11m’12m (:()ve1’ag;{e of me Act,
i1np:1s in the st2111;aj¥:<).fy._"'-,
co1'1stI"11cti_0:1, morc weigllty t.'.z1.zm.–§V__ 111<3{Ife: 1-
1()g()II1ac,hy or gra;:'11.rI1a.1_i(T:aI ni(f:ety."
and 3350 the ratio iaid down inv'-._t.i'1<1§"T:{121,ft»§ 1,, :5;""§§g;.g1z;1;;-gal
Director, Employees' St.at:e Ir1;i:§_L;'1-=:1;r1(:éA'(?§)1';3Qr*éfié©.:i;;…
vs. South India Fiour M2115 (_E§]_….I:td,.'=.1fepdi'ted_i:1_EAIR 1986
Supreme Court 1686, w1i'<=:;*e§.:'1'-1;_h}..§ .,C'()_L'lI"E has 0l)s<3rved
thus:
“”” 215?-1 this nature, the
c-:v.11–1ci6a’v01Vi rV'{ji’.A%:t1’§¢«..{:'()urtI .<_~:.h0uld be to i'nterprct'.
thé 'p149ovisiV(mS.1'i1:){é'i=2§:1.£:§} in favour 0f the persons
gf1’_ ‘vE3e1’i'(%l?f{ 1:116 er1act.n:1er;t has ‘been
°Infg-1.dc~:~..’f
13, _7I’h<? for the respondmzt, c0I'p()ratio11 c0I1.ter1d
' that Ai=;.1a_ti1c:-}i,gi'1'iIT0i' tlhit 21i'Or<*:s~s2~2.§d. raiiog ihc <tvi(ie1'1.ce 21.v21§Ia.b1e
"~51;-[ma :*eC<)rd.v_S.h011'E(1 be ii_1:)<:raI1y c":0z"1.si',r'u€<i so as ':0 brirzg the
"'s:§1'r:.piy_e{:s <3r1gaged. by the {'3(3r.:t:'a1c:t'.()r W§t}1;iz'1 the t'I::(:a'r'1ir1g§ of
{*3§E,().'fi()'I'] '2(9)(ii) of the Act. 'I"1":is; (fm1:"f;; is 110%. §1'1_«:':E§I'1{:<:1 10 2-accctpt
""""\
the aforesaid argument canvassed by the counsel for
respondent. In the guise of interpreting tk1e..__'4pfox§i;siot3s
liberally in favour of the persons for T'
enactment has been made, &p}}Cfl;flI1tb:tf$fLQl}ld'14A£1§§i'.§;!§'"li{1§ld.6 :4
liable to pay the ()OfltI'i'D1lEiOI1Vi1'1 £"€Sf)€At3f~()f
workers who are not 2 –.V'the:';§facts
circumstances of the light tlle decision
of the Apex Court 111 the :il{a;eeatij!-C'o–operative Milk
Producers' the Apex Court
has loetween the employees
under .'pttinc1pal employer and also
the servicesalof the engaged by independent
_coI1trac.ftoi'wI1ere't.llelpI'laci.pal employer will have absolutely
31:10,' control .Acox.ze?1'-._s11ol1 employees and would not have any
krlucxzvledgét :°"_gt;ex.l':;'"humber of persons engaged by the
Contractors, "their names, amount payable to each of them
" the work that is executed by them. 'Therefore, in the light
—t)?f Said decisions, the impugned judgment passed by ESI
‘ * holding the empieyees engaged by M/e.Pai Brothers for
“”1
§
-. f’_j:..«.._t(;..c0sts. ” _
(:(>I1stru(:tior1 of building of é1p1)C3121I1f. hcreirl as e:r11p1()y€es of
a;:>pc1i21.z1t tlnder Seci:i.().:1 2(9](£.i) (>ft.1’a<;'. Act t'(:(i.
F’r1rt.11e:* pe1*.iod1′(:a} i.nspectim1 01′ work to inspect ;i’1=’1«éj ;).if(i§:;fé:ss
d(.><3s "r101 a.mo1.1nt to SL2 pcwisi’r1 of work of §§’1.rr§_ _:3I_<:t:s' on
day–t0~c1ay basis. 'I'herei'c3re, ihereflis no jiz.:§'stifiCat:io11._L_in{he '
order passed by r<:spndem t1<%r<:3;I'1 11fi.d_e I' Scr1:»i(3’n. ,45~A:’;0f
Act demarldirlg c01’1iributio11 1’r(::Lf1-. _t .}’1:~ app’e3i_¢Lt1’i in 3. sum Of
RS.45,085/W.
14. For the ibregfijing answer both the
s1.:bst22Lr1_t’.i,a}q1.1éstiGfi;:3. si”‘-law’ i.n”°I1<:gativ and €I’1ereby set
aside thtvéa, ;Ji..1(1gn 1{{1-:.fM_’ {}2.1f2.?2()06 passed in E81
(
App1i(3ati0r’: V2%lQV;1.5/’i.E}S%;3″ v;1._”1’1(1 c.()1V1sequem.Iy aliow the said
~.21ppficai§011L”set:ting”-Vsxsgiqe 1,110 demand mz«>.dc>, by I’€Sp()I1.(i1€:{1i —
V'{§0:*{)o–rai,i()n«.I:)3r_fis__ n0’£:’i(:c: datcti 13.1 1.E9S%)2.
‘.At:c:ordirigE§ the appc:2?s.E 2’.11]()wCd, without any ()r’de:r as
Sd/5
Iud§§
4%g;m;%.