IN 'I"§'EI_i IIIGII COURT O19 K[\RNf\Tf\Kr"\ AT B/\NG1\I.,-(.)RI'C
I')a1.(-ad: Tins the 24" day of I-'crb1'11a1'y 20
BEFORE """'
THE H(7)N'BLE MR.J[_JS"1'E('2E v.lJA(}ANNA'§iHT2§f-E'
M:.F.A.No.9404/zgidbéfigs}; r
BE'FWI£EN: A' '
M/S CRi%1A'I'IV1i w1«:A1!,Js'1'12m E, A
BANGA1,0R1~:-5.6.0 095:" --. "
BYITS 1)1RE.cV'T:fQ'I'2 '_
SR1 SURENDRA 'Agakwm. '
E81 C0R'i:>0PA'r1'(3N§
_ I3Il\:'NY"I1I'21«:(:'1'()R.
_ '~.f1;-:33,/Is:9i"'-§s12\;"i3xSs'1M1aA 1~1o1.LA. Am.)
"~ j:'I~'1'i'S MFA 1~'IL£«:1) U/SI£Ci.82(2} 01:" 151$; ACT. 1948.
AA gxcr./t\mE=,'1' 'I'E~II£ oR.1.)1~_:R I)'I':22/()7/20()6 1-->Ass1.«:1.) IN ESE
._;i1'3A::)1,1(:;x'1'10N N089/2002 ON '1':-:}..:: 1'~'I1.,I:«': 01:' THE
.jij1_)c;1«:. 1:231 COLER'I'. 1_s;\Nc;;A_1..()1z1%:. I")IS2\/EISSENG '1'1-»-11::
' A1>1">1_,1GMEN1f ' iv i
This appeal is by
Limited who was t.hve,---- fcippli'g'ie'ii'i'1. Court:
in an application filed" i;.r._T;'1'clc3érVf§3«:'<'rI_i&d;-'i'*Z?5 -of the E381 AC1.
(?}1E1l1€i'lgiI1g":.lhé:3:§¥}TdE.1f'pE1SS€(1~~~lillldfifl' Sec-t.i01'1 45A of
the E381 C0rp0re11'i0n. The
P381 C()l'1I'~', di.sn:iSs:csd'..."ithe appli(:21t.ion filed by lhe
arici"'ifi-e--:fi(i'€ Ellie appellant is bcl'0rc this
V =(l;'>£;1ii".'--»,_"
'":'I'he gisi" of the ()1'der'passed by the ES]
"C(1f}3()I:E1ii0I'1 antler S{-'.'.("?ii()I'l 4E3~A of 1,hc=.- Am that". the
"'--af)pe1l21Iit is liable to pay ('.()I'li',i'ib1.:'[.i(.}IE in res}_3ec1 of
' 1'h.C""i' labour ('il'lEiI'g(3S imi'tui'recl while p1..tt.tin§g up the
(T(.)l'lSlI"l,l(.'li(J1l in ivspect of E5('.'('T(")1l(l mm zmcl .~;e(:on(ily
the appc==.l.l:2uii also lialalv to pay ('()l'}1.I"il_")1Ell(')£l in
je/
'J5
respect: of firssi. uxlit. as wci_.] 1.ow2::1'ds the ia.__bour
(1I%'1e11*g{(=%s involx-'c->d in puttilig up Hm (torlslru(.r1.io.1'I*»rj1'«..1 he
first urm. '['hu$._ for the e1'1t.ire perioci f'1*0m':{._)eL:ér:§'i"3rj'f"" -T '
"£995 to March 1998 the (:.11yl »v;3s..': iI'2.c.%'t31.*pr.)Vr_;'gVtt3d in the year
E993;"%"iTt.-.T_i's cfa...~;_s'e- ('.-f"""'r}'1't"§' appeilarlt that the
me11'1zVi'i';1(:t't,.1ring"%«E-1.(*1.i_y%1iTy" Cc)z1m1enced oniy ;from
i)e(.1_er11bc¥i"-. 3 995 'V.='lf"IAL'_l' V(2bE.e1i1'1i11;_,g, 11(?(.rt.%ssa1:"y ]i(".'t'~-.r1('*c etc...
21-£1.61' {.1-1<~3~appeIia11'i:' s-;c)ug}'1E (r<')\-'ez'a;§c:' of its first unii
'fr_r1t,1'ibu1'i()n was paid by the appeliam.
from' .1_ 'iL12. 1995.
4. E1: the-2 case <:)f1'.i.'1c appellant i:i'1af' with the
__inte=:n1.io1'1 E0 stxart 100'-'/ E.'Xp()i'i. ()1'i(:i'1i'(;%d Lmii. {E05}
and af€€t1' 0b1aiI'1i1"1g 1T1c.r(%cs:s211'y a;1pprova} from 11110
2;11,.1t'h()ri1.i<:.*s (?()11(".('fl'I'1()t',.i. 21 st*pa.1";'11'.€: E)11iidi11;;' was pué.
%
3, §
4
up in P101' No.82. Koifariieuzgellzii I:"1(:lus11'i211 Area.
Ba1'1gal()re ant} the (T()l'1S{.l'll('1i()l1 of t1'1mt':1em;:e_:c1'--_V~_fi*'(3i'1f1
1.1.1997 OI1W'c1i'dS and iliie ap=;)ei§a1'1l_ a'i.s;r.>:' Staiftkfd 2
paying c0m"1*ibuti0n even i'1"'b._'I'CSp(?('i.'-HfVS€('T()Ii'1d unit.
(_
from the c()m1'rie:.1é'c>naeiit. . vO['..V"'iV'T:S.' mam.1.fa(?iuring
a(:t.ivit.ies. AHc)weV.e.r._._'--Vt.he_ V2:-i.1--t',h(')1*ities zlfizcr
i11S}3.V€(.'.fii'EgVVifiriiff-1") 'fi\l'S\*<._ At:-11ii-- Sit.uat:céd in P101 No.80 and
SC('.O1'1CI"~.LIl1~iI 53'i--iL£ai.e.(1'"'ii1' Plot No.82. xvem ('if the View
i".hjai' E116: c:(.im_.i9ibLitioil was payabic by Exile apiaeiiaiit
W€i?\/CtI'1_'il'.} ..19£+spe('ti. of the labour (%I'1e11'ges i11c21ir1*ed for
~. second unit. of the biiiiciii-ig and aiiso in
1"é'ssp6 based on the repo1'1. of
ilhc? iI1sp€.(:E',()r. orclei' Ll/S 45»«A was passed on
24.9.2002 (ie%1"r12.1i'1cii1'i;; a1 1'0i.2~1I ('~01iE'rib11i.i01"I of
£-
4.;
'.J9
Rs.2.02.597/n out'. of wl'1é.eh 1' he e()\»'erz1ge in respect oi'
labour charges i1'1eurred in respect of the f'i1's1___Lmi1
was Rs.73,229.8E plus Rs_27.752.68. The
t'herefo1*e 21gg1'ie\.reci by Eht' said order. (1:.;'§';s1i()hL§d* '
before the E381 Court andV-IC()'I!I€I"1-fifiidéa'Aiéhéif
Corporation could not hé.L«\/e'--._ A'den1';1.1.m}t_éc!. 9'
eor1tribuI'_i()11 in respect. of tvhe=.:fi1's1 u;'1i't=fo'1j t}1vev"'p'e'ri()d
from 199395 whe:<"1~._no méi1'111faoL1,;ri1e1g'amivity was
Carried on and the first: 'ur.'i§i'.;i:is€?1,f'-lfiaéi 1101'. come into
existence oxiiy "«f'1«'o1'5r_'1- 1995 141121: the
firstl L1n_i'£ i'{.':?~3_'V1§1E1lT1LifEl(7E.l11'i}'1g a'1(7t1ivity and as
such. the e()1'1'i':--_1'i1*'j',l:'ii.oi'1--dememded for Eihe period prior
togcoz*11n1e:11E:i.;ijg of maI1L1f'21(ttL1ri11g zlctivity ea1'mo1 be
' «s;L1es1,ai11e.ci"'i~ze1 law.
far as the C(')I'"Jf.l'ibU1,i(')l"l dememded in
fie-spe«.,e1. '+f; labour e.harges incurred while putting up
n ?;}1}~':° b"ui1di1'1g for second unit is eo11(rer1'1ed. it was
'WVeof1I:e1'1ded before the E81 court. that neither the
9 :e.1ppei1a.m had 2111},-* eontrol or supervision over the
('.0I'1S1E'l,1("ti(.)1'l work nor the seeoml unit i'):.1iEdér1;___>j was
fie
3'
.
(1
c:o11st.ru(t1ed 21:-‘5 pc:-.1″ the dire(:t’io1’|s of the appe-?lla1″1t e11’1d
it was all 1.c)g€%t’}1t?1′ tilrlat of i1’r1dept-:11(ic1’1t vontiractor–.;11’1c1
having rege11*ct to the dt:fi1’1i.t’1’on of ‘c%n1pi(;j.ré(A’.:’*.;ts..
contained in secttion 2{9){ii) of the ES! ‘{:’h’L;.”””V
quc:s;–3tio1’1 of covering the 121b()Ltro1*s”ot’the 1rise’., V’
6. On the other }1_an’d_. ‘}_¢a1’r1ec’i«,(:cr)urisei for
the C()1’pore1tioh sttptpaaiftietiothcf. ().ji’=c:ifc*
.rhp’;tssed by it by
contending that t.he”oolifriljufiotI V~d§j1″f1e111ded was in
fact [3E1’y’E1’hl:€f’ by’::fit.t’1e-?’appcIiéi’11’t”‘and pe1*s(‘)1’1s e.mp1oyt:d
by tom? tCont;,.ré1a:_i’t’:-:)r”phi;-:1j’¢_. within the giefini11ion of
‘en1p1c)ye€§”‘-.213 .<.~.VcV)'n1:é1.–.jnet! in se("t.ion 2{9){ii) of the ES}
and .st.1(3.h'.j""i:}'1e questi(.)1'1 of set'1i1'1g aside the
'"o1f_d'c..rT / S 45uA does not arise.
7. “V’f’j__14ea.1’r1c:d Presiding Offitter of the E81 crourt
in tihe ‘E*;?g}r1t of the evide1″1 Apex Court in
lht’? (“.af:§t? of Rc>g:'(“n121l E”‘)i:*c>(rt'(“)r. ESIC Vs South India:
,9;/»»
.n§
“I
Fitimr Mitts (P) Limited 1’L.’})()!’E(‘d in AIR 1986 SC 1686
is 2-1p])}i(*.ablc-* to title: Exppollzutts (78.86? and tl’1cref()rc the
00nt.1’ibut:i(.)11 scntgllt. by the C01*pc:)re”-1t_i0n pI’!’J}’)t’,t’__E1I'”1d
havillg, I’eg,a1″d to the (fefi1’1it.i01’1 of ‘c>rI1pic)yafG;’.t_:”filth-£3
labourers c”:1g.’–;1g(%(i by the (*(mtrac1101′ are.–u’t§()V’t;*f£E’E;'(3(_E(){-1(:l ‘},.;l r\l”i.t: wa§«.:1i=.
connection with the ‘wiirk ($i7._ x22§;56lte11’1t.
establishment &111d ;’:1.$ 311;:-th’; =t_h’eV’a.pp1ic:at’1m’1A”filed by
the appeilzmt. was dismi’ss211’m:~ci <:01.n'1sc-3} Sri.
Nۤ'IaSil'i1hE1 H0lta____t_"Qr the resp0nde1'at: Co1'p0:'at.i_01'1 and
' §5{%I'E3'SéC1 ..r_3nti1'e ntaterial on record as wail as the
'.rc§as(:)11s' *}1_ss§ig1'1ttc1 by the it-a1'1'1e.d Presiding ()'t't'ice:- of
the C0t.11't..
9. Le.21r:’1ed c’ou11se=! Sn’. Kanike11’a’j for the
_5appe1iant; (*()1’11encied that the qu<3s1ior1 of payi1:1g
(',()I1[1'ibL11i()1'1 in 1*espec:1 of {"110 ernpit. of t.1″is ‘c:«onsti”u(:tioii ‘i.L.11’rCl”‘1.:V”‘-A”.’V’VaVS.~:I)1.-it.
up by the COI’1tl’E1CT.()I’ at P1oii’i”v«?_\;i'(;._82 ‘c”1I.’i’d.’VV:1’Lh:€I’é:{‘()i’€ the
q11est’iioi’1. o’f”t’h.<–:_ "iab'o.'ii'i1si':ii eiigziged by the (T()I1tl'a()tOI'
comiiiga within .fii,.e"—_aii"abi1. of the dc=:fiiiit'ioii of
Kfiijhpioyee' éiogfs not arise. In this <':oiii'iect.'ioi'i. 1€d_l'I'1€d
'n(_:(iui_isel ..13é:fe1'red to t.h_e €VidE?I'1CTf3 on l'(.'(',()I'd and iii
p'-:<1i_i*'i'.i'"(':i,iu'.!"f'c'ul_' "t;._f)"i1'.iie evidence of tlie appIi(taiii'_ w'it.iiess
AV'v'§ coifitended t.1s':at' the two units are iimaiiy
A' 'ir-2.giepeiiider1t_ of one a1'i()i;hei' in all respec:i;s and the
is also admitied by the official of {line BS1
(.'.O!'p0Tdti()l'1 who was E.'X-':1I}']iI'}€(.i I'.)€f()I"€.' the E81 (.'(')L1l't.
. . W1: . I
Ii. is argued that i;1iei'C is ('.'()H'!I'l1(.)l1 b(.'.tIW'fi?€I'}
the two miits arid the ('.()l'1StI'1l(?1i(')I'} was t2:i.kc?ii up by 2.1
k
u:
[)€(‘CmbeI’ 1998 to 1995 d()(‘i’S not .21.ri5<-* E11'lC1 as V.s~'~-a-.._1_(?E'1.
i'}'1("' (.'omr.ibL1t'.i01"1 d('fi1&1}1€1(,Td 0u1’ (.*h211*ges paid whiie pt1Hi11g7._ :,,:k !. 11[c. ‘
c:0nsl1*uci’.ion of the fir$1 111[1it;’Ji1.séEf’_21–1s().;'<t§i'11.a_1Qt"be"'.
suslailied in Iaw. '£'11e:"efo1"e. t'h»s-.-' i ET1{)L.l'£gI:I§i_?_d 'or'de;-f U!"
the E381 court has to be S"e1 "V22sidcr"'by °2:_lVE()\A'r'*,'=_1'1l__g_f this
appeal.
11. On__th<3 (')_HTlC. 1"–,lTé,1_I1d. "I"c'%31Vr'z'it;m1I
I.)i1jer¢;tt(‘):'{ E:11;)IoyL?S’ $t:ate Il1SL.li’:;’11”}(?(‘ Corpo1″a£i01’1 Vs
Aso:}t1a'”=Inruga F1§L::¥”M_:11s {P} I.im:’1ed [AIR 1986 SC
lihai” a Carefui reading of the
d'(“;?fiI1iV.’!”i(.)l71,~'()f’€i]1p1()yfi?(;” as (‘:0n1.ai;[1ed in S€(.’.IZi0I’1 2(9) of
.’ .. 111163 AC1. would go to .i1’1dicate that even t.h<:é work
Vwhitth is i11cidem..2'-1} or p;'eIimi_1'1a1*y or ('f(')l1I'l(",CI€d with
" the work of the fact.01'y or c:sl::g1bIisi'111'1em. also c.~.(Jmc;:
within the ambit of the said Se(*1.i<:m 2(9) of the E81
Act. 'l'i'1('?1'@f()}'C.. 1'cIyé1'15_{ on t"E":<-r af'()rc'~.~s;.1id (Ec<*§$i<'):1 of the
3:»
',3
Apex Court". 1e.z;11'n(-éd ('()111'1se1 for the C()1*p()m«1;_ic)1.'1_
a1'g_{L,1ecJ I'.h'c.1t. the (;r(.)verage of the 1abo1.1re1's f;,'.I'1§_';,"'£-1._'.¢.V{"t:".'i'w,.l.I!"1A.
pu1.1'i11g___{ up the se(:ond unit bui]di1'1g 1s4._1:;us__,¢_"a11cs._f
proper and so aiso the c?c)xre:r:e:1g"e."of'_iabouh"e.i_1aj'ges
incurred while putting up the limit. buh1'iAd'iI"1g'. V
Co1'pora1.io1'1 has rightly 1'evh¢:{'.I:1_.eEi'eon law
laid down by the Case
and as such, ho e1'ro;f i.mpug11ed
order it;-W-…..At,1'er1t.ic)11 of this
court W(:1:E~.3_V(ZL':_';"1VWi'1 to 1f_e"ie-'xrafgl Vobser"va1hi(_)1'1s of the
Apex;C()u1'1V."inV.t_hee afo'fe.:s_;1-id case and it was further
oom'_e11ei'ed -t1'1a"é' of the building in the
SC'(".i')I"jLi'zLlI"li1.Vi1'1._tI7}C ar:1ja(_re1'1i, Plot 110.82 will have to be
. 'e()n:-:1._19L:ec}, as work i.e. im_:idenI',a] to the work of the
'~appeHé1:it;-._f'"aei()1y and moreover both the umts are
sitfiajecj .u?i1;hi11 the same premises though the plot:
A'I1'u-rnbers are dii'i'eren1':. As such. the empioyees of the
".j:()11tra(2mr do come within the ambit. of sec1'.ion 2(9)(ii}
of the. E381 Act. Therefore. the qu.es1.i()n of
asvault'
"*1"
(:o1’11’ribu1;ion being pa_\_-Fable ~11] respeet of Civil
(:<')1hh for first
Ex
1 .1'
unit and se(_:(.)11::1 u1'1ii._ d(')es not dl'iSC anid f'u–;*ii.l'1<;~r
submi.<ssion made is that £"'he1*c~ is om: (?(i)l}1[.'1)_(4)'1')V'V(f?f)rZ1t?~
g_;"ive11 by the ES}. C01'porat,i01'1 for t.he.;Vf' (jfj
coI1trib1.1t:i0n and as sucrh. this:'i'21c.tf_)'1h' £11'S()-I\_1v'–i.1_1 'hg3y9é?"i:()
be iaken into c(msiderat.i0n ar1ci"h<§nc'e I'.h»c-é'.jilfxiphugileti
order does not require any iht_éz"i'e1*eI1("1e., –
12. In the f.igh*it .0i:.Lt.1é,é:, a”i’1h. (>’f”ii}’f’1g<?, (*iiirj1 n dc>ma11ded in
_..i’espe(%th of the (:i\»-1} work 1.z.1’1c1m’1_.akc1’1 for Elm: SC’.(.’.()l’]d
unit c_:()1″1c’:er1’1<3d._ it is not in disspute b:=é{.wee1'1 the
,9/«
Q!'
ii
[ii] who is enipioyod by or ihroiiggh am
immczdizue employer on the p1'<;*r1'1ises_s.._
of the facjttory or establishment
Lirider the sL1po1'visio1'1 of the pz*i_r;i('t'i*pfal.,._:' 5 ~ '
employer or his agent. on wc)rR"wI'1i:fh in
'is o1'di::ia–1rily pal'! <)f"fi1~e.ywo1'k_..o'f~vEL}1é£1
factoiy or estiab1is1i"meifi't:ior iwh'icj{h
preliminary t'().»i,E1_¢ wori<_ (]*,;:i_rr.ic:'d"on_in
or iracidenlal t.o":_};1c pLir'p0S'e;–'oi' "ghe
factory or' ::.xstab'ii'iéhr1}i'r:rii.-2. or
(iii) whose “s§31y_icre§s -“a1Vr’e-.f_i;s:i.*n porariiy
_1.r:’ri{;_¢ ‘or Eel’ :.(.\;§_.: h.1ffe”_j{()’1iic principal
iy§iimpl”(3y’e19″~b;y T,'[1t:’?W”}3vE’FS()11 with whom
tihé’ services are so lent
orV’1r3t”@or1y”‘hire has Cl1f,(-?1’€-Ed info a
V L.?-f)A’1’1V'{“l”V£!;1(‘I ()f S@1’\/l(‘,(;’.I ”
~__It. is not 3 II1E}.i’I,Ci’ of c:on1.1’ove1’sy bei:wee.1’1
tths Aip~’aiftAi,és ff.aS–~”1′.() the persons empioyed in puliliing up
(toi<1st1j'L1'c:1ii.«–o11 in second unit being not directtiy
.' ..er1f.1p1oyLi:d by the appeliamf. In other words. {he said
"'._i:«;i'u'oL1re1*s were engziged by the c_:z’iI’I’aci.(>1′ to whom
“ihe appellant”. had ei’1t.1’Lisie(i the work of putting up
Ehe (%oii.s:str1:(.:i’iz”n”i oi 1.11:3 seccmd unit. Whc:i.hei” S1.I.(‘.h
$7
if’:
He may 1101″. do a.1’1ytl”1ir1g_{ cglirecttiy for ihc:
cs1ab1ishme111′: he may not do 21iiyi.1’1iiig
staiu1:o1’iiy ob1iga1(‘)1y in the
establishment: he may not even
anything which is primary or nc:c.%c3s;sé1*ryV’~…_::
for the surviva} or smooth rtiiming oi; in
esirablishment or iI]VI’t-3§7_:I’t1:3. “.4i()_.. j”‘i:h_r:3V V A
adve11i,ure. It is en()ugh’gif cmp1’r.’)y:?g§
does some work7v.:1ii(:liK_ié 211′:(‘:’ii1ary.
incidental or has re1eu\}ah(ée_ to \’\;l;:fo}]
the object of ‘t.h_¢ es’1″é.’b’iio.éji3iiie_nI:.. «’S”L11″(:’iiy.
an amezmiy c)’ i’a§.ci1i1yé’» V1:i.)l’2 (31.1 sto me rs
who f_rAeq_ue1i:t..~’~ has
COl’1’ii’ii§:Cv7.Vt1.OYE3.” with i.11o work of the
E’.CSl.E;1b1iSh’ffiCi’iL_.E”–JTEIE? qLies;-;1.io1″1 not
\y}’;«eioIi1.(:1″*.Nii.}ioi1j..’i’ that amenity or facility
{lie eEs£.2;b1ishz11(21’11’ <:2=11'moi be ('.al'l'i€?d on
'b1,ifA~\2vhei:.her such amenity or facility. ever}
« _:"'p_ei'_§phé:3.'a1 may be. has 1101 a link. with {he
\.
es5i::3.bi’ishni<3:1_t ……….. .. { Para: 14. Page:
*394)395)
"The primary test: in the E-§1.lbS1..'dl'1i.iVG(.
(ii1dLESt', being thus wide. the empioyees of
the ca1'1ie<:i'1 and the cycle s'~3E.aI1d nmy be
(tor1"eci1y cies(.~.ri_bed as emp1(')yed in
(?(i)l'1I'1C('.U()I'} Wiih the work of i'.1'1t=;'
est'abiishmenl. A i'1;';21'1'()w<-2:' con:str11('ii(m
fiw
VA9
:7
may be possible but lE1l'gt,'.l' a11'1b.ii' Clearly
imported by a purpose. oriented
interpretation. The whole goal of the
statiie is to inake the principal employer
primarily liable for the insur'c1r1Ce '~
k_indrecE kinds of employees on
premises, whether they are i.here"__iifi'~–..1lief
work or are merely in (é()1firle(i'I:ioi_1l.wit.h_ltlie V '
work. of the esi.ablisl1.mei1t."El:l("':Pcira_t7'
Page: 395 )
"Merely being… 1'"-_e'mploye'Cl—_
connection _ '._lh«:{j' 1 "wl(;«iijl{* of an
vi'E'S'ljj&b£li$l]IfifljlitiIiii"ilSCll7."'di)€S not entitle 21
lpersoii VaIi'–*ie'inployee". He must not
only be e–m'p.lAoyetl._ in (?()l'll1C("l,l()l] with the
worl<.l ol:"'tl'ie lesiiablislinieiil. but also be
;_sliow'n to b"e""eV111p_loyecl in one or other of
~1_'jh~e'i;h"ree categories ment;ioz'1ed in 82(9)."
A ll" Page: 395 }
"Seet.ion 2(9](i] (..'()Vf;'.l'S only
employees who are clireeily employed by
the pl'lI"}.('.ip'c1l employer. Even here. tlzere
are expressions wliieh take in a wider
groiip of employees ll'}d.l1 l".l'E'1Clll.i(,)l'lally' so
regarded, but it is iinperal;ive 1"'l1e.1t any
employee who is not' di1'e(_'i'ly' employed lay
$1
55
the principal emp1(:)yer Cannot be }t?§_§ib](‘j”
L111der S.2(9}(i}. In the present case, tl’1_’eWt””‘– ”
employees (.*.01’1eemed are ad1″mtt.edly.§V_’1it)t5.’
di1″e(‘.t.ly employed by the
p1’c)p1*iet.01’s”. (Para: I7. Page’.'”395t} .3 V’
“‘I’herefore, \2sre,__ n’1cjV+;_§ ci(>\t*-;»1’i” {Q
S.2{9)(ii}. Here agaitif-»t:AEie IangLzztggee-3t.1s§eti
is extensive and ci’1’..i’f”1′;1.~:3ieye V”;’_m21gi1’1 mixrcfly
embracing aI1″”‘}.)()ssi_bige} éi.}1:e:”1.1h2t14i\res of
employment. ,by_ or ‘t.’h1’t3″L:.1g’h an
indepc5’1id’~:I-‘R. er”:1p1€0y”e1*.”” I.V1V1’—$t1r_?.1.”..: eases. the
“p1*ti:icr1p:311″””‘E111’p.1t’t)yérf’ ‘ V. ‘he1:~:§ no direct
~e’r’1″‘1’p!_(:)’_\;7m c3’1*;i;t”‘– –:re’l:~1t:i0h”si’1 since the
V3.fA’i11’m’1edia{‘e,_enip1t5’ye1″” of the employee
(Yt’)i1(.’G.l”[1€(1 Stimeh one else. Even so,
«..sL1(:’h”:1n ’emplhoyeie. if he works (21) on the
2;:-remises”‘0f*”t.he establish11’1er1t_ or (b)
»:_1r3det1’«”‘vthe st.1pervisi(;>n of the p1’§n(:ipa.l
“eni;p1c>3;’ei~ of his agent “on work which is
Q1*dJrfa1″ily part of the work of the
” _e_s-i~i4ablisl1111e.11t. or which is p1’e!iminary to
the work (ta1″z’ied on in or i1’1()ic1ent’,a.1 to the
purpose of the establishment”, qttz-z1iI’ie,.sf
under S.2(9)(ii). The plttrality of persons
engaged in various aCtivi1’ies who are
brought into t’1’1e ciefi1’1:’1″it_)11a.11 net is wide
a1’1::i considerable: and all that is;
12)
r’1e(:t:sSa.1’y that the cr11pl()yce be on {.110
pmmises or be under the s1.1pe1’visi0n of’
the prillcipal cmpl()yc-?1″ or his agclit.
AsSL.11I1iI1g that the last’ part of
qL1a1ifi_es both these ca.E’e.gories, all t:I<; $t
needed to satisfy that req3.1.i,r¢_n1e1j:t',"i's*–.i§}';::ii-'~~.
the work done by the <=2r:1,j;)1c:)yJ(:§§:
(21) s1,1cl1 as is ()rc1i1'»1Ta_1"iiy 4{'r<1 ()'i.–..1'1ecéo$sa'j"i'1y
nonwstatutorily) '
est,ab1ishmer1t.;__ or
p1'elimi_nd1y _ t;'Ef1e; of the
eStiabIishmer1t:. 0r"{.g;) jus3'i=. lnéjiidksntal to
the pgrgvcyse of§_t:h(:, …….
PCira.5 18. )
In ._(:)«’e.’;.LljV'(.%.’_..’1?Vtit4;3_:j:””2Ele(:t1’i(‘: Supply C(‘)1″p()1’e.1i.i()1’1
Li1j:1–it.£-:d Vs .. S”Lj1b.h21::§h E:1m1cn~a Bose (1992 (80) EUR
.301.) E*{if1r:f:’!.pex while cIe211i1*1g with section 2(9)
V “Th6 immediatie empl()yer. insi.211T1t.ly._
ele0i’:1’i(:a1 (‘r0m.1″21ct.o1’s. (.”c11l’1 by
statL1.t01’y Compulsion 1’1s:~ver be the agent’.
of the principal employer. If SLl(“.h a
1″eIati()r1ship is pe1*n1i1″ted to be establ1’sI”1cd
N would not only .sult.. An ‘c1g(i’.l’1l._ though bound to
exercise his 2-1utl1(‘)a’ii,y in dC(“.()I’da.I1(‘.(.’ with
Gall lawful i11st;ructions which
givexi to him from time 10 time
principal. is not subject, i;A».i1_.s
the direct coniirol and s:LiipL«r3f\»’.isii()4il’1..”O-fl
principal”. (Para: I4; )
16. It is ihr:«re.i'()rtf..~'(%lc{;1r VVf.’__'()1’I} ‘tins. aforeésziid
iiit.e1’pretaE.ion given bylli.h€7’Ap¢X’-.C,Q’L:rt (:()1icemi11g
the C1f3fi’I1lt.i§)il'()li’7€I’£”l:piO5}=l€l§3′. ()’V.:”d:fSl’ to fall within
secttgion ‘{9}_V(ii}.iV’§.’ii. ‘iio establish that the
work L1’1’1.d(erl:zil{c:_1j”~2mc1 U16′ eniployee coricernezd
wzgxs c§11g2iged’iici’ walk: at the pre.mis<-gs and secondly
' «_L:"i1dé,if' lT,1:LC_SLI§)€}'\-'iSl0I'l of tlie prii"1(:ip21l employer. in
"l:._l_1(_':"'v('é1vS:(i.t"v£i'l' persons eiwgaged by iiidepeiidem
(5'ui1t.i"£1'(::€¢:i'i*. lhe said iiidependeni c()iii.i'a.c.:tor
A .*!3L1til:(§1y iiidependem of any Control or imerference
laiid merel_\,-' unciei't:akc:s in pr<3clL1(te a specified result.
by (?ni1i)l03ri1ig his own means {.0 p1'(,)dL1CE:' l.l"1dl' result.
'b
-u
’31
17. ‘Furt.he1′, 2’1 Division Berieli of this C()u1’t
also while dealing with cEefii’1it.ion oi “e1npI(“)y(:<;." uiidel'
Section 2(9) of the ESE Act in MFA No.2s46'/'9s7%%«sang
other cases has held by referring to tjfie :;1i'(ii*esaiiVfi£e
decisions that for 21t.t1'a1eting 2[9}{i'i}"1*he pre:ia oi
the condition preeedeiit is tha4t.__1’.’he c:1,.i”i_»_t 1misi:_ii-::1ci~_
that the job work e2m1*1.1s{‘edVt() the._e(:>ni=i~g1iit'()fs was
being executed by hi’s~~.e_rr1p’1Vyeesfs’ 1,;i*i~de1′ t,h€V SLip€I’V1’Si0I1
of the principal emp10iyAe1” .-ai’iie.f;.ffiferring to the
Apex (.Tc)i.11*i.”‘s?1 V-..:;’_*isiim 2:11;’ CESC’iv1.4iIi1itt7d Vs Subhash
C11&1i1}Ci1’£_1.’i’E3fC”E1″‘G’d eairlier. the I.)ivisi<)1'1 Bench
ultimately» 11e£d"".VA't.I*17a;–!,_ééif an outside agetiity/job
('tgn§1t:'i'e1r'?t.c)rs'"is._br()ugl1t to carry out the work. it eamiol
"be nzaiefi. i–Ifi€i~1,. ihere is an act' of supervision on the part
2 (ji7.4t.'heV p'rm<_:;p'ai empioye 1'.
If the aforesaid principles are applied to
‘ base on hand. no evidemre is f()rth(:<)ming before
the ES! court'. 10 show that the <etont,ra<:1.or to whom
the appeliam. hacl em.i*i.1stec} the wmk of pm'.1.i:'1g up
the (',OI'}S{.1'1.1('UOH oi' buiIdir1;_§ (?a1*1'ied the work under
/5%,»
,_,./
24
Linlitecf 111eret'(i)1*c was e*r1″<)1'1e('):.1..s h£1ViI'}§__{ If-:_:',{a1'd to the
1'":;:1ms and (.:irc1.1I11star1ces 0ft'.11e (2159.
19. As far as the Co1’1t:ribut:i0n ,i1″1._
respect: ()ft.I’1e (Y()1′}StI’Li(‘.’I.i()I’1 work t.akeI1..L1{_5 ‘f()1*–._pu4tt.in’g
up the first unit building (to1’1AcCr1i*;§ci’.4_21$’–a1»r:§éLdyf
s1:21t:ed._ there is no dispnlge t:11at_ the rn»21Vm:,fé1(rt:L£;ri1ig ‘*
eictivity c()mme1’1Ced oniy fi=0_n’1_I)ec’€m_bc:1* 1995 and
the coverage was ‘§’1.j(3’m 1’_.12._I’9£g’5″‘iAn respect of first
unit. ‘i’he1’6E’0_1_’e. t1’1e_q.u €.st:1o1’1.VQ{‘(Et)Vé’fi»n’g the fnslx urlit
L1nder ‘t’1<:.(}»_V _"}").§ft. does not as no
I1'}(i1I]UfE1(?1L1.11'iI1Vg""W218 ca1'ried on during the
yczxr 1993-95' as ('§'z411'izng that p§1"i()d the faC1':0ry itself
A ivas E"-n<)1V"¥.i¢1&'1 (;'.XiS1.€I'1('.(:' and tI'1c1'cfo1'L= the question of
'zany ~né:'e..1;'i1n1fa.Cvi*uring activity being Carrie-rd on does not
a'ris€.._"' -.¥3'L1t: }'1()weve.r Iearnecl counsel for the ESI
.' . C0rpt:n'ati01'1 Sri. Nmasimha Holla p()ime(i 01.11 that
in1pugI1_ed order pztssed 1.:/sa 45–A also ccJ\»'_A1vvi§;w ‘t=hva117’g
the impL1g1’1 “1116 set.’2j21si’d.r3’. E11 ‘i’1r.3″
entirety but at the same i.’ivz]’1″021s t’1’1–eE.S_”I_= (rt:.>1.1r1’ has
not gone into th19a1:Li'()n 10- i;é1″1.4;t.. steps if it is foLmd_ p1=6pe’r
()1);’\}c:1ti;1″i(;:211’io:1V of he reco1’ds n1e1im”.amed by the
,1 ‘app!-:11ai1’1t’A’i;h21I. there was civil 00nst,.1″u(.:ti()I1 put: up
‘”si;’i_*1a:5€~.§1’11e11t to 1.12.95. The appellam is at
1’ 1:Ju4_1fpo$e.
lib4″ert,.yAt:0 p1″0du(:e 1’eleve:111t. reco1’ds for the af’0I*esa1’cf
x}
1-!
ff:
In the 1*esu1i’._ the appeal i$ a1_1l<_)\w(:1 21.l'.1'(i'~_ih_c-.*
impugned orcier of the ES} C<')rp1*at’.i<_)n is 'c'{5§i=fijj(1 _
Sdfi;
Dvr: