{"id":180509,"date":"2010-02-24T00:00:00","date_gmt":"2010-02-23T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-creative-wear-pvt-ltd-vs-esi-corporation-on-24-february-2010"},"modified":"2015-02-27T15:46:09","modified_gmt":"2015-02-27T10:16:09","slug":"ms-creative-wear-pvt-ltd-vs-esi-corporation-on-24-february-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-creative-wear-pvt-ltd-vs-esi-corporation-on-24-february-2010","title":{"rendered":"M\/S Creative Wear Pvt Ltd vs Esi Corporation on 24 February, 2010"},"content":{"rendered":"
Karnataka High Court<\/div>\n
M\/S Creative Wear Pvt Ltd vs Esi Corporation on 24 February, 2010<\/div>\n
Author: V.Jagannathan<\/div>\n
IN 'I\"\u00a7'EI_i IIIGII COURT O19 K[\\RNf\\Tf\\Kr\"\\ AT B\/\\NG1\\I.,-(.)RI'C\n\nI')a1.(-ad: Tins the 24\" day of I-'crb1'11a1'y 20 \nBEFORE \"\"\"'\n\nTHE H(7)N'BLE MR.J[_JS\"1'E('2E v.lJA(}ANNA'\u00a7iHT2\u00a7f-E'  \n\nM:.F.A.No.9404\/zgidb\u00e9\ufb01gs}; r  \nBE'FWI\u00a3EN:   A'  '\n\nM\/S CRi%1A'I'IV1i w1\u00ab:A1!,Js'1'12m E, A\nBANGA1,0R1~:-5.6.0 095:\" --. \" \nBYITS 1)1RE.cV'T:fQ'I'2 '_  \nSR1 SURENDRA 'Agakwm.   '\n\nE81 C0R'i:>0PA'r1'(3N\u00a7\n_ I3Il\\:'NY\"I1I'21\u00ab:(:'1'()R.\n\n _ '~.f1;-:33,\/Is:9i\"'-\u00a7s12\\;\"i3xSs'1M1aA 1~1o1.LA. Am.)\n\n\"~ j:'I~'1'i'S MFA 1~'IL\u00a3\u00ab:1) U\/SI\u00a3Ci.82(2} 01:\" 151$; ACT. 1948.\n\n AA gxcr.\/t\\mE=,'1' 'I'E~II\u00a3 oR.1.)1~_:R I)'I':22\/()7\/20()6 1-->Ass1.\u00ab:1.) IN ESE\n ._;i1'3A::)1,1(:;x'1'10N N089\/2002 ON '1':-:}..:: 1'~'I1.,I:\u00ab': 01:' THE\n .jij1_)c;1\u00ab:. 1:231 COLER'I'. 1_s;\\Nc;;A_1..()1z1%:. I\")IS2\\\/EISSENG '1'1-\u00bb-11::\n' A1>1\">1_,1GMEN1f  ' iv  i\n\nThis appeal is by  \n\nLimited who was t.hve,---- fcippli'g'ie'ii'i'1.   Court:\n\nin an application filed\" i;.r._T;'1'clc3\u00e9rVf\u00a73\u00ab:'<'rI_i&d;-'i'*Z?5 -of the E381 AC1.\n(?}1E1l1\u20aci'lgiI1g":.lh\u00e9:3:\u00a7\u00a5}TdE.1f'pE1SS\u20ac(1~~~lillld\ufb01fl' Sec-t.i01'1 45A of\n\nthe     E381 C0rp0re11'i0n. The\n\nP381 C()l'1I'~', di.sn:iSs:csd'..."ithe appli(:21t.ion filed by lhe\n\n  arici"'i\ufb01-e--:fi(i'\u20ac Ellie appellant is bcl'0rc this\n\nV =(l;'>\u00a3;1ii\".'--\u00bb,_\" \n\n  '\":'I'he gisi\" of the ()1'der'passed by the ES]\n\n  \"C(1f}3()I:E1ii0I'1 antler S{-'.'.(\"?ii()I'l 4E3~A of 1,hc=.- Am  that\". the\n\n\"'--af)pe1l21Iit is liable to pay ('.()I'li',i'ib1.:'[.i(.}IE in res}_3ec1 of\n\n' 1'h.C\"\"i' labour ('il'lEiI'g(3S imi'tui'recl while p1..tt.tin\u00a7g up the\n\n(T(.)l'lSlI\"l,l(.'li(J1l in ivspect of E5('.'('T(\")1l(l mm zmcl .~;e(:on(ily\n\nthe appc==.l.l:2uii  also lialalv to pay ('()l'}1.I\"il_\")1Ell(')\u00a3l in\n\nje\/\n\n'J5\n\n\n\nrespect: of firssi. uxlit. as wci_.] 1.ow2::1'ds the ia.__bour\n\n(1I%'1e11*g{(=%s involx-'c->d in puttilig up Hm (torlslru(.r1.io.1'I*\u00bbrj1'\u00ab..1 he\n\nfirst urm. '['hu$._ for the e1'1t.ire perioci f'1*0m':{._)eL:\u00e9r:\u00a7'i\"3rj'f\"\" -T '\n\n\"\u00a3995 to March 1998 the (:.11yl  \u00bbv;3s..': iI'2.c.%'t31.*pr.)Vr_;'gVtt3d in the year\n\nE993;\"%\"iTt.-.T_i's  cfa...~;_s'e- ('.-f\"\"\"'r}'1't\"\u00a7' appeilarlt that the\nme11'1zVi'i';1(:t't,.1ring\"%\u00abE-1.(*1.i_y%1iTy\" Cc)z1m1enced oniy ;from\n\ni)e(.1_er11bc\u00a5i\"-. 3 995 'V.='lf\"IAL'_l' V(2bE.e1i1'1i11;_,g, 11(?(.rt.%ssa1:\"y ]i(\".'t'~-.r1('*c etc...\n\n 21-\u00a31.61' {.1-1<~3~appeIia11'i:' s-;c)ug}'1E (r<')\\-'ez'a;\u00a7c:' of its first unii\n\n'fr_r1t,1'ibu1'i()n was paid by the appeliam.\n\n from' .1_ 'iL12. 1995.\n\n4. E1:  the-2 case <:)f1'.i.'1c appellant i:i'1af' with the\n\n__inte=:n1.io1'1 E0 stxart 100'-'\/ E.'Xp()i'i. ()1'i(:i'1i'(;%d Lmii. {E05}\n\nand af\u20ac\u20act1' 0b1aiI'1i1\"1g 1T1c.r(%cs:s211'y a;1pprova} from 11110\n\n2;11,.1t'h()ri1.i<:.*s (?()11(".('fl'I'1()t',.i. 21 st*pa.1";'11'.\u20ac: E)11iidi11;;' was pu\u00e9.\n\n%\n\n3, \u00a7\n\n\n\n4\nup in P101' No.82. Koifariieuzgellzii I:"1(:lus11'i211 Area.\n\nBa1'1gal()re ant} the (T()l'1S{.l'll('1i()l1 of t1'1mt':1em;:e_:c1'--_V~_fi*'(3i'1f1\n\n1.1.1997 OI1W'c1i'dS and iliie ap=;)ei\u00a7a1'1l_ a'i.s;r.>:' Staiftkfd 2\n\npaying c0m\"1*ibuti0n even i'1\"'b._'I'CSp(?('i.'-HfVS\u20ac('T()Ii'1d unit.\n(_\n\nfrom the c()m1'rie:.1\u00e9'c>naeiit. . vO['..V\"'iV'T:S.' mam.1.fa(?iuring\n\na(:t.ivit.ies. AHc)weV.e.r._._'--Vt.he_  V2:-i.1--t',h(')1*ities zl\ufb01zcr\n\ni11S}3.V\u20ac(.'.fii'EgVVi\ufb01riiff-1\") 'fi\\l'S\\*<._ At:-11ii-- Sit.uat:c\u00e9d in P101 No.80 and\nSC('.O1'1CI"~.LIl1~iI 53'i--iL\u00a3ai.e.(1'"'ii1' Plot No.82. xvem ('if the View\n\ni".hjai' E116: c:(.im_.i9ibLitioil was payabic by Exile apiaeiiaiit\n\nW\u20aci?\\\/CtI'1_'il'.} ..19\u00a3+spe('ti. of the labour (%I'1e11'ges i11c21ir1*ed for\n\n ~.  second unit. of the biiiiciii-ig and aiiso in\n\n1"\u00e9'ssp6 based on the repo1'1. of\n\nilhc? iI1sp\u20ac.(:E',()r. orclei' Ll\/S 45\u00bb\u00abA was passed on\n\n24.9.2002 (ie%1\"r12.1i'1cii1'i;; a1 1'0i.2~1I ('~01iE'rib11i.i01\"I of\n\n\u00a3-\n\n4.;\n\n\n\n'.J9\n\nRs.2.02.597\/n out'. of wl'1\u00e9.eh 1' he e()\\\u00bb'erz1ge in respect oi'\n\nlabour charges i1'1eurred in respect of the f'i1's1___Lmi1\n\nwas Rs.73,229.8E plus Rs_27.752.68. The \n\nt'herefo1*e 21gg1'ie\\.reci by Eht' said order. (1:.;'\u00a7';s1i()hL\u00a7d*  '\n\nbefore the E381 Court andV-IC()'I!I\u20acI\"1-\ufb01\ufb01id\u00e9a'Ai\u00e9h\u00e9if \n\nCorporation could not h\u00e9.L\u00ab\\\/e'--._ A'den1';1.1.m}t_\u00e9c!. 9'\n\neor1tribuI'_i()11 in respect. of tvhe=.:fi1's1 u;'1i't=fo'1j t}1vev\"'p'e'ri()d\n\nfrom 199395 whe:<"1~._no m\u00e9i1'111faoL1,;ri1e1g'amivity was\n\nCarried on and the first: 'ur.'i\u00a7i'.;i:is\u20ac?1,f'-lfia\u00e9i 1101'. come into\n\nexistence   oxiiy "\u00abf'1\u00ab'o1'5r_'1- 1995 141121: the\n\nfirstl L1n_i'\u00a3  i'{.':?~3_'V1\u00a71E1lT1LifEl(7E.l11'i}'1g a'1(7t1ivity and as\nsuch. the e()1'1'i':--_1'i1*'j',l:'ii.oi'1--dememded for Eihe period prior\n\ntogcoz*11n1e:11E:i.;ijg of maI1L1f'21(ttL1ri11g zlctivity ea1'mo1 be\n\n' \u00abs;L1es1,ai11e.ci"'i~ze1 law.\n\n   far as the C(')I'"Jf.l'ibU1,i(')l"l dememded in\n\n\ufb01e-spe\u00ab.,e1. '+f; labour e.harges incurred while putting up\n\nn ?;}1}~':\u00b0 b\"ui1di1'1g for second unit is eo11(rer1'1ed. it was\n\n'WVeof1I:e1'1ded before the E81 court. that neither the\n\n9 :e.1ppei1a.m had 2111},-* eontrol or supervision over the\n\n('.0I'1S1E'l,1(\"ti(.)1'l work nor the seeoml unit i'):.1iEd\u00e9r1;___>j was\n\n\ufb01e\n\n3'\n\n.\n<\/pre>\n
(1<\/p>\n
c:o11st.ru(t1ed 21:-‘5 pc:-.1″ the dire(:t’io1’|s of the appe-?lla1″1t e11’1d<\/p>\n
it was all 1.c)g\u20ac%t’}1t?1′ tilrlat of i1’r1dept-:11(ic1’1t vontiractor–.;11’1c1<\/p>\n
having rege11*ct to the dt:fi1’1i.t’1’on of ‘c%n1pi(;j.r\u00e9(A’.:’*.;ts..<\/p>\n
contained in secttion 2{9){ii) of the ES! ‘{:’h’L;.”””V<\/p>\n
quc:s;–3tio1’1 of covering the 121b()Ltro1*s”ot’the 1rise’., V’<\/p>\n
6. On the other }1_an’d_. ‘}_\u00a2a1’r1ec’i\u00ab,(:cr)urisei for
\nthe C()1’pore1tioh sttptpaaiftietiothcf. ().ji’=c:ifc*<\/p>\n
.rhp’;tssed by it by
\ncontending that t.he”oolifriljufiotI V~d\u00a7j1″f1e111ded was in<\/p>\n
fact [3E1’y’E1’hl:\u20acf’ by’::fit.t’1e-?’appcIi\u00e9i’11’t”‘and pe1*s(‘)1’1s e.mp1oyt:d<\/p>\n
by tom? tCont;,.r\u00e91a:_i’t’:-:)r”phi;-:1j’\u00a2_. within the giefini11ion of<\/p>\n
‘en1p1c)ye\u20ac\u00a7”‘-.213 .<.~.VcV)'n1:\u00e91.–.jnet! in se("t.ion 2{9){ii) of the ES}<\/p>\n
 and  .st.1(3.h'.j""i:}'1e questi(.)1'1 of set'1i1'1g aside the<\/p>\n
'"o1f_d'c..rT  \/ S 45uA does not arise.\n<\/p>\n
7. “V’f’j__14ea.1’r1c:d Presiding Offitter of the E81 crourt<\/p>\n
in tihe ‘E*;?g}r1t of the evide1″1 Apex Court in<\/p>\n
lht’? (“.af:\u00a7t? of Rc>g:'(“n121l E”‘)i:*c>(rt'(“)r. ESIC Vs South India:<\/p>\n
,9;\/\u00bb\u00bb<\/p>\n
.n\u00a7<\/p>\n
“I<\/p>\n
Fitimr Mitts (P) Limited 1’L.’})()!’E(‘d in AIR 1986 SC 1686
\nis 2-1p])}i(*.ablc-* to title: Exppollzutts (78.86? and tl’1cref()rc the
\n00nt.1’ibut:i(.)11 scntgllt. by the C01*pc:)re”-1t_i0n  pI’!’J}’)t’,t’__E1I'”1d<\/p>\n
havillg, I’eg,a1″d to the (fefi1’1it.i01’1 of ‘c>rI1pic)yafG;’.t_:”\ufb01lth-\u00a33<\/p>\n
labourers c”:1g.’–;1g(%(i by the (*(mtrac1101′ are.–u’t\u00a7()V’t;*f\u00a3E’E;'(3(_E(){-1(:l ‘},.;l r\\l”i.t: wa\u00a7\u00ab.:1i=.<\/p>\n
connection with the ‘wiirk ($i7._  x22\u00a7;56lte11’1t.
\nestablishment &111d ;’:1.$ 311;:-th’; =t_h’eV’a.pp1ic:at’1m’1A”filed by<\/p>\n
the appeilzmt. was dismi’ss211’m:~ci <:01.n'1sc-3} Sri.<\/p>\n
N\u20ac\u00a7'IaSil'i1hE1 H0lta____t_"Qr the resp0nde1'at: Co1'p0:'at.i_01'1 and<\/p>\n
'  \u00a75{%I'E3'S\u00e9C1  ..r_3nti1'e ntaterial on record as wail as the<\/p>\n
'.rc\u00a7as(:)11s' *}1_ss\u00a7ig1'1ttc1 by the it-a1'1'1e.d Presiding ()'t't'ice:- of<\/p>\n
the  C0t.11't..\n<\/p>\n
9. Le.21r:’1ed c’ou11se=! Sn’. Kanike11’a’j for the<\/p>\n
_5appe1iant; (*()1’11encied that the qu<3s1ior1 of payi1:1g<\/p>\n
(',()I1[1'ibL11i()1'1 in 1*espec:1 of {"110 ernpit. of t.1″is ‘c:\u00abonsti”u(:tioii ‘i.L.11’rCl”‘1.:V”‘-A”.’V’VaVS.~:I)1.-it.<\/p>\n
up by the COI’1tl’E1CT.()I’ at P1oii’i”v\u00ab?_\\;i'(;._82 ‘c”1I.’i’d.’VV:1’Lh:\u20acI’\u00e9:{‘()i’\u20ac the<\/p>\n
q11est’iioi’1. o’f”t’h.<–:_ "iab'o.'ii'i1si':ii eiigziged by the (T()I1tl'a()tOI'
\ncomiiiga within .fii,.e"—_aii"abi1. of the dc=:fiiiit'ioii of<\/p>\n
K\ufb01ijhpioyee' \u00e9iogfs not arise. In this <':oiii'iect.'ioi'i. 1\u20acd_l'I'1\u20acd<\/p>\n
'n(_:(iui_isel ..13\u00e9:fe1'red to t.h_e \u20acVidE?I'1CTf3 on l'(.'(',()I'd and iii<\/p>\n
 p'-:<1i_i*'i'.i'"(':i,iu'.!"f'c'ul_' "t;._f)"i1'.iie evidence of tlie appIi(taiii'_ w'it.iiess<\/p>\n
AV'v'\u00a7 coifitended t.1s':at' the two units are iimaiiy<\/p>\n
A' 'ir-2.giepeiiider1t_ of one a1'i()i;hei' in all respec:i;s and the<\/p>\n
 is also admitied by the official of {line BS1<\/p>\n
(.'.O!'p0Tdti()l'1 who was E.'X-':1I}']iI'}\u20ac(.i I'.)\u20acf()I"\u20ac.' the E81 (.'(')L1l't.
\n. . W1: . I
\nIi. is argued that i;1iei'C is  ('.'()H'!I'l1(.)l1 b(.'.tIW'fi?\u20acI'}<\/p>\n
the two miits arid the ('.()l'1StI'1l(?1i(')I'} was t2:i.kc?ii up by 2.1<\/p>\n
k<\/p>\n
u:\n<\/p>\n
[)\u20ac(‘CmbeI’ 1998 to 1995 d()(‘i’S not .21.ri5<-* E11'lC1 as V.s~'~-a-.._1_(?E'1.<\/p>\n
i'}'1("' (.'omr.ibL1t'.i01"1 d('\ufb011&1}1\u20ac1(,Td 0u1’ (.*h211*ges paid whiie pt1Hi11g7._  :,,:k !. 11[c. ‘<\/p>\n
c:0nsl1*uci’.ion of the fir$1 111[1it;’Ji1.s\u00e9Ef’_21–1s().;'<t\u00a7i'11.a_1Qt"be"'.<\/p>\n
suslailied in Iaw. '\u00a3'11e:"efo1"e. t'h\u00bbs-.-' i ET1{)L.l'\u00a3gI:I\u00a7i_?_d  'or'de;-f U!"<\/p>\n
the E381 court has to be S"e1 "V22sidcr"'by \u00b02:_lVE()\\A'r'*,'=_1'1l__g_f this
\nappeal.\n<\/p>\n
11. On__th<3 (')_HTlC. 1"–,lT\u00e9,1_I1d. "I"c'%31Vr'z'it;m1I<\/p>\n
I.)i1jer\u00a2;tt(‘):'{ E:11;)IoyL?S’ $t:ate Il1SL.li’:;’11”}(?(‘ Corpo1″a\u00a3i01’1 Vs<\/p>\n
 Aso:}t1a'”=Inruga F1\u00a7L::\u00a5”M_:11s {P} I.im:’1ed [AIR 1986 SC<\/p>\n
    lihai” a Carefui reading of the<\/p>\n
d'(“;?fiI1iV.’!”i(.)l71,~'()f’\u20aci]1p1()y\ufb01?(;” as (‘:0n1.ai;[1ed in S\u20ac(.’.IZi0I’1 2(9) of<\/p>\n
.’ .. 111163  AC1. would go to .i1’1dicate that even t.h<:\u00e9 work<\/p>\n
Vwhitth is i11cidem..2'-1} or p;'eIimi_1'1a1*y or ('f(')l1I'l(",CI\u20acd with<\/p>\n
" the work of the fact.01'y or c:sl::g1bIisi'111'1em. also c.~.(Jmc;:<\/p>\n
within the ambit of the said Se(*1.i<:m 2(9) of the E81
\nAct. 'l'i'1('?1'@f()}'C.. 1'cIy\u00e91'15_{ on t"E":<-r af'()rc'~.~s;.1id (Ec<*\u00a7$i<'):1 of the<\/p>\n
3:\u00bb<\/p>\n
',3<\/p>\n
Apex Court". 1e.z;11'n(-\u00e9d ('()111'1se1 for the C()1*p()m\u00ab1;_ic)1.'1_<\/p>\n
a1'g_{L,1ecJ I'.h'c.1t. the (;r(.)verage of the 1abo1.1re1's f;,'.I'1\u00a7_';,"'\u00a3-1._'.\u00a2.V{"t:".'i'w,.l.I!"1A.<\/p>\n
pu1.1'i11g___{ up the se(:ond unit bui]di1'1g 1s4._1:;us__,\u00a2_"a11cs._f<\/p>\n
proper and so aiso the c?c)xre:r:e:1g"e."of'_iabouh"e.i_1aj'ges<\/p>\n
incurred while putting up the  limit. buh1'iAd'iI"1g'.  V<\/p>\n
Co1'pora1.io1'1 has rightly  1'evh\u00a2:{'.I:1_.eEi'eon law
\nlaid down by the    Case
\nand as such, ho e1'ro;f  i.mpug11ed
\norder it;-W-…..At,1'er1t.ic)11 of this<\/p>\n
court W(:1:E~.3_V(ZL':_';"1VWi'1 to 1f_e"ie-'xrafgl Vobser"va1hi(_)1'1s of the<\/p>\n
Apex;C()u1'1V."inV.t_hee afo'fe.:s_;1-id case and it was further<\/p>\n
oom'_e11ei'ed -t1'1a"\u00e9'  of the building in the<\/p>\n
SC'(".i')I"jLi'zLlI"li1.Vi1'1._tI7}C ar:1ja(_re1'1i, Plot 110.82 will have to be<\/p>\n
. 'e()n:-:1._19L:ec}, as work i.e. im_:idenI',a] to the work of the<\/p>\n
'~appeH\u00e91:it;-._f'"aei()1y and moreover both the umts are<\/p>\n
sit\ufb01ajecj .u?i1;hi11 the same premises though the plot:<\/p>\n
 A'I1'u-rnbers are dii'i'eren1':. As such. the empioyees of the<\/p>\n
".j:()11tra(2mr do come within the ambit. of sec1'.ion 2(9)(ii}<\/p>\n
of the. E381 Act. Therefore. the qu.es1.i()n of<\/p>\n
asvault'<\/p>\n
"*1"\n<\/p>\n
(:o1’11’ribu1;ion being pa_\\_-Fable ~11] respeet of Civil
\n(:<')1hh for first<\/p>\n
Ex<\/p>\n
1 .1'<\/p>\n
unit and se(_:(.)11::1 u1'1ii._ d(')es not dl'iSC anid f'u–;*ii.l'1<;~r<\/p>\n
submi.<ssion made is that \u00a3"'he1*c~ is om: (?(i)l}1[.'1)_(4)'1')V'V(f?f)rZ1t?~<\/p>\n
g_;"ive11 by the ES}. C01'porat,i01'1 for t.he.;Vf' (jfj<\/p>\n
coI1trib1.1t:i0n and as sucrh. this:'i'21c.tf_)'1h' \u00a311'S()-I\\_1v'–i.1_1 'hg3y9\u00e9?"i:() <\/p>\n
be iaken into c(msiderat.i0n ar1ci"h<\u00a7nc'e I'.h\u00bbc-\u00e9'.jilfxiphugileti<\/p>\n
order does not require any iht_\u00e9z"i'e1*eI1("1e.,  – <\/p>\n
12. In the f.igh*it .0i:.Lt.1\u00e9,\u00e9:, a”i’1h. (>’f”ii}’f’1g<?, (*iiirj1 n dc>ma11ded in<\/p>\n
_..i’espe(%th of the (:i\\\u00bb-1} work 1.z.1’1c1m’1_.akc1’1 for Elm: SC’.(.’.()l’]d<\/p>\n
unit  c_:()1″1c’:er1’1<3d._ it is not in disspute b:=\u00e9{.wee1'1 the<\/p>\n
,9\/\u00ab<\/p>\n
Q!'<\/p>\n
ii
\n[ii] who is enipioyod by or ihroiiggh am
\nimmczdizue employer on the p1'<;*r1'1ises_s.._<\/p>\n
of the facjttory or establishment<\/p>\n
Lirider the sL1po1'visio1'1 of the pz*i_r;i('t'i*pfal.,._:' 5 ~ '<\/p>\n
employer or his agent. on wc)rR"wI'1i:fh in<\/p>\n
'is o1'di::ia–1rily pal'! <)f"fi1~e.ywo1'k_..o'f~vEL}1\u00e9\u00a31<\/p>\n
factoiy or estiab1is1i"meifi't:ior iwh'icj{h <\/p>\n
preliminary t'().\u00bbi,E1_\u00a2 wori<_ (]*,;:i_rr.ic:'d"on_in
\nor iracidenlal t.o":_};1c pLir'p0S'e;–'oi' "ghe<\/p>\n
factory or' ::.xstab'ii'i\u00e9hr1}i'r:rii.-2. or<\/p>\n
(iii) whose “s\u00a731y_icre\u00a7s -“a1Vr’e-.f_i;s:i.*n porariiy<\/p>\n
_1.r:’ri{;_\u00a2 ‘or Eel’ :.(.\\;\u00a7_.: h.1ffe”_j{()’1iic principal<\/p>\n
iy\u00a7iimpl”(3y’e19″~b;y T,'[1t:’?W”}3vE’FS()11 with whom
\ntih\u00e9’  services are so lent
\norV’1r3t”@or1y”‘hire has Cl1f,(-?1’\u20ac-Ed info a<\/p>\n
V L.?-f)A’1’1V'{“l”V\u00a3!;1(‘I ()f S@1’\\\/l(‘,(;’.I ”<\/p>\n
  ~__It. is not 3 II1E}.i’I,Ci’ of c:on1.1’ove1’sy bei:wee.1’1<\/p>\n
 tths Aip~’aiftAi,\u00e9s ff.aS–~”1′.() the persons empioyed in puliliing up<\/p>\n
(toi<1st1j'L1'c:1ii.\u00ab–o11 in second unit being not directtiy<\/p>\n
.' ..er1f.1p1oyLi:d by the appeliamf. In other words. {he said<\/p>\n
"'._i:\u00ab;i'u'oL1re1*s were engziged by the c_:z’iI’I’aci.(>1′ to whom<\/p>\n
“ihe appellant”. had ei’1t.1’Lisie(i the work of putting up<\/p>\n
Ehe (%oii.s:str1:(.:i’iz”n”i oi 1.11:3 seccmd unit. Whc:i.hei” S1.I.(‘.h<\/p>\n
$7<\/p>\n
if’:\n<\/p>\n
He may 1101″. do a.1’1ytl”1ir1g_{ cglirecttiy for ihc:<\/p>\n
cs1ab1ishme111′: he may not do 21iiyi.1’1iiig<\/p>\n
staiu1:o1’iiy ob1iga1(‘)1y in the <\/p>\n
establishment: he may not even <\/p>\n
anything which is primary or nc:c.%c3s;s\u00e91*ryV’~…_:: <\/p>\n
for the surviva} or smooth rtiiming oi;  in<\/p>\n
esirablishment or iI]VI’t-3\u00a77_:I’t1:3. “.4i()_.. j”‘i:h_r:3V V A<\/p>\n
adve11i,ure. It is en()ugh’gif cmp1’r.’)y:?g\u00a7 <\/p>\n
does some work7v.:1ii(:liK_i\u00e9 211′:(‘:’ii1ary. <\/p>\n
incidental or has re1eu\\}ah(\u00e9e_ to  \\’\\;l;:fo}]
\nthe object of ‘t.h_\u00a2 es’1″\u00e9.’b’iio.\u00e9ji3iiie_nI:.. \u00ab’S”L11″(:’iiy.
\nan amezmiy c)’ i’a\u00a7.ci1i1y\u00e9’\u00bb V1:i.)l’2   (31.1 sto me rs
\nwho f_rAeq_ue1i:t..~’~   has<\/p>\n
 COl’1’ii’ii\u00a7:Cv7.Vt1.OYE3.” with i.11o work of the<\/p>\n
E’.CSl.E;1b1iSh’f\ufb01Ci’iL_.E”–JTEIE? qLies;-;1.io1″1  not<\/p>\n
\\y}’;\u00abeioIi1.(:1″*.Nii.}ioi1j..’i’ that amenity or facility<\/p>\n
{lie eEs\u00a3.2;b1ishz11(21’11’ <:2=11'moi be ('.al'l'i\u20ac?d on<\/p>\n
'b1,ifA~\\2vhei:.her such amenity or facility. ever}<\/p>\n
 \u00ab _:"'p_ei'_\u00a7ph\u00e9:3.'a1 may be. has 1101 a link. with {he<\/p>\n
\\.\n<\/p>\n
es5i::3.bi’ishni<3:1_t ……….. .. { Para: 14. Page:<\/p>\n
*394)395)<\/p>\n
"The primary test: in the E-\u00a71.lbS1..'dl'1i.iVG(.
\n(ii1dLESt', being thus wide. the empioyees of
\nthe ca1'1ie<:i'1 and the cycle s'~3E.aI1d nmy be
\n(tor1"eci1y cies(.~.ri_bed as emp1(')yed in
\n(?(i)l'1I'1C('.U()I'} Wiih the work of i'.1'1t=;'<\/p>\n
est'abiishmenl. A i'1;';21'1'()w<-2:' con:str11('ii(m<\/p>\n
\ufb01w<\/p>\n
VA9<\/p>\n
:7
\nmay be possible but lE1l'gt,'.l' a11'1b.ii'  Clearly
\nimported by a purpose. oriented<\/p>\n
interpretation. The whole goal of the<\/p>\n
statiie is to inake the principal employer <\/p>\n
primarily liable for the insur'c1r1Ce  '~<\/p>\n
k_indrecE kinds of employees on<\/p>\n
premises, whether they are i.here"__iifi'~–..1lief<\/p>\n
work or are merely in (\u00e9()1firle(i'I:ioi_1l.wit.h_ltlie V '<\/p>\n
work. of the esi.ablisl1.mei1t."El:l("':Pcira_t7' <\/p>\n
Page: 395 )
\n"Merely  being… 1'"-_e'mploye'Cl—_
\nconnection  _ '._lh\u00ab:{j' 1 "wl(;\u00abiijl{*  of an<\/p>\n
vi'E'S'ljj&b\u00a3li$l]I\ufb01fljlitiIiii"ilSCll7."'di)\u20acS not entitle 21<\/p>\n
lpersoii VaIi'–*ie'inployee". He must not<\/p>\n
only be e–m'p.lAoyetl._ in (?()l'll1C("l,l()l] with the<\/p>\n
worl<.l ol:"'tl'ie lesiiablislinieiil. but also be<\/p>\n
;_sliow'n to b"e""eV111p_loyecl in one or other of<\/p>\n
~1_'jh~e'i;h"ree categories ment;ioz'1ed in 82(9)."<\/p>\n
A ll"  Page: 395 }<\/p>\n
"Seet.ion 2(9](i] (..'()Vf;'.l'S only
\nemployees who are clireeily employed by
\nthe pl'lI"}.('.ip'c1l employer. Even here. tlzere
\nare expressions wliieh take in a wider
\ngroiip of employees ll'}d.l1 l".l'E'1Clll.i(,)l'lally' so
\nregarded, but it is iinperal;ive 1"'l1e.1t any
\nemployee who is not' di1'e(_'i'ly' employed lay<\/p>\n
$1<\/p>\n
55<\/span><\/p>\n
the principal emp1(:)yer Cannot be }t?\u00a7_\u00a7ib](‘j”<\/p>\n
L111der S.2(9}(i}. In the present case, tl’1_’eWt””‘– ”<\/p>\n
employees (.*.01’1eemed are ad1″mtt.edly.\u00a7V_’1it)t5.’<\/p>\n
di1″e(‘.t.ly employed by the <\/p>\n
p1’c)p1*iet.01’s”. (Para: I7. Page’.'”395t} .3   V’<\/p>\n
“‘I’herefore, \\2sre,__ n’1cjV+;_\u00a7  ci(>\\t*-;\u00bb1’i”  {Q <\/p>\n
S.2{9)(ii}. Here agaitif-\u00bbt:AEie IangLzztggee-3t.1s\u00a7eti<\/p>\n
is extensive and ci’1’..i’f”1′;1.~:3ieye V”;’_m21gi1’1 mixrcfly<\/p>\n
embracing aI1″”‘}.)()ssi_bige} \u00e9i.}1:e:”1.1h2t14i\\res of<\/p>\n
employment. ,by_  or  ‘t.’h1’t3″L:.1g’h an
\nindepc5’1id’~:I-‘R. er”:1p1\u20ac0y”e1*.”” I.V1V1’—$t1r_?.1.”..: eases. the<\/p>\n
“p1*ti:icr1p:311″””‘E111’p.1t’t)y\u00e9rf’ ‘ V. ‘he1:~:\u00a7 no direct<\/p>\n
~e’r’1″‘1’p!_(:)’_\\;7m c3’1*;i;t”‘–  –:re’l:~1t:i0h”si’1 since the<\/p>\n
V3.fA’i11’m’1edia{‘e,_enip1t5’ye1″” of the employee<\/p>\n
(Yt’)i1(.’G.l”[1\u20ac(1  Stimeh one else. Even so,<\/p>\n
\u00ab..sL1(:’h”:1n ’emplhoyeie. if he works (21) on the<\/p>\n
2;:-remises”‘0f*”t.he establish11’1er1t_ or (b)<\/p>\n
\u00bb:_1r3det1’\u00ab”‘vthe st.1pervisi(;>n of the p1’\u00a7n(:ipa.l<\/p>\n
“eni;p1c>3;’ei~ of his agent “on work which is<\/p>\n
Q1*dJrfa1″ily part of the work of the<\/p>\n
” _e_s-i~i4ablisl1111e.11t. or which is p1’e!iminary to<\/p>\n
the work (ta1″z’ied on in or i1’1()ic1ent’,a.1 to the
\npurpose of the establishment”, qttz-z1iI’ie,.sf
\nunder S.2(9)(ii). The plttrality of persons
\nengaged in various aCtivi1’ies who are
\nbrought into t’1’1e ciefi1’1:’1″it_)11a.11 net is wide<\/p>\n
a1’1::i considerable: and all that is;\n<\/p>\n<\/p>\n
12)
\nr’1e(:t:sSa.1’y  that the cr11pl()yce be on {.110
\npmmises or be under the s1.1pe1’visi0n of’
\nthe prillcipal cmpl()yc-?1″ or his agclit.
\nAsSL.11I1iI1g that the last’ part of
\nqL1a1ifi_es both these ca.E’e.gories, all t:I<; $t
\nneeded to satisfy that req3.1.i,r\u00a2_n1e1j:t',"i's*–.i\u00a7}';::ii-'~~.
\nthe work done by the <=2r:1,j;)1c:)yJ(:\u00a7\u00a7: <\/p>\n
(21) s1,1cl1 as is ()rc1i1'\u00bb1Ta_1"iiy 4{'r<1 ()'i.–..1'1ec\u00e9o$sa'j"i'1y
\nnonwstatutorily)     '
\nest,ab1ishmer1t.;__ or  <\/p>\n
p1'elimi_nd1y  _ t;'Ef1e;   of the<\/p>\n
eStiabIishmer1t:. 0r"{.g;)  jus3'i=. ln\u00e9jiidksntal to<\/p>\n
the pgrgvcyse of\u00a7_t:h(:,  …….\n<\/p>\n
 PCira.5 18. )
\n In ._(:)\u00ab’e.’;.LljV'(.%.’_..’1?Vtit4;3_:j:””2Ele(:t1’i(‘: Supply C(‘)1″p()1’e.1i.i()1’1<\/p>\n
Li1j:1–it.\u00a3-:d Vs .. S”Lj1b.h21::\u00a7h  E:1m1cn~a Bose (1992 (80) EUR<\/p>\n
  .301.) E*{if1r:f:’!.pex  while cIe211i1*1g with section 2(9)<\/p>\n
V  “Th6 immediatie empl()yer. insi.211T1t.ly._
\n ele0i’:1’i(:a1 (‘r0m.1″21ct.o1’s. (.”c11l’1 by
\nstatL1.t01’y Compulsion 1’1s:~ver be the agent’.
\nof the principal employer. If SLl(“.h a
\n1″eIati()r1ship is pe1*n1i1″ted to be establ1’sI”1cd<\/p>\n
N would not only .sult.. An ‘c1g(i’.l’1l._ though bound to
\nexercise his 2-1utl1(‘)a’ii,y in dC(“.()I’da.I1(‘.(.’ with
\nGall lawful i11st;ructions which
\ngivexi to him from time 10 time
\nprincipal. is not subject, i;A\u00bb.i1_.s <\/p>\n
the direct coniirol and s:LiipL\u00abr3f\\\u00bb’.isii()4il’1..”O-fl <\/p>\n
principal”. (Para: I4;  )<\/p>\n
16. It is ihr:\u00abre.i'()rtf..~'(%lc{;1r VVf.’__'()1’I} ‘tins. afore\u00e9sziid
\niiit.e1’pretaE.ion given bylli.h\u20ac7’Ap\u00a2X’-.C,Q’L:rt (:()1icemi11g<\/p>\n
the C1f3fi’I1lt.i\u00a7)il'()li’7\u20acI’\u00a3”l:piO5}=l\u20acl\u00a73′.  ()’V.:”d:fSl’ to fall within<\/p>\n
secttgion ‘{9}_V(ii}.iV’\u00a7.’ii.  ‘iio establish that the<\/p>\n
work  L1’1’1.d(erl:zil{c:_1j”~2mc1 U16′ eniployee coricernezd<\/p>\n
wzgxs c\u00a711g2iged’iici’ walk: at the pre.mis<-gs and secondly<\/p>\n
' \u00ab_L:"i1d\u00e9,if' lT,1:LC_SLI\u00a7)\u20ac}'\\-'iSl0I'l of tlie prii"1(:ip21l employer. in<\/p>\n
"l:._l_1(_':"'v('\u00e91vS:(i.t"v\u00a3i'l' persons eiwgaged by iiidepeiidem<\/p>\n
(5'ui1t.i"\u00a31'(::\u20ac\u00a2:i'i*. lhe said iiidependeni c()iii.i'a.c.:tor <\/p>\n
A .*!3L1til:(\u00a71y iiidependem of any Control or imerference<\/p>\n
laiid merel_\\,-' unciei't:akc:s in pr<3clL1(te a specified result.<\/p>\n
by (?ni1i)l03ri1ig his own means {.0 p1'(,)dL1CE:' l.l"1dl' result.<\/p>\n
'b<\/p>\n
-u<\/p>\n
’31<\/p>\n
17. ‘Furt.he1′, 2’1 Division Berieli of this C()u1’t<\/p>\n
also while dealing with cEefii’1it.ion oi “e1npI(“)y(:<;." uiidel'<\/p>\n
Section 2(9) of the ESE Act in MFA No.2s46'\/'9s7%%\u00absang<\/p>\n
other cases has held by referring to tj\ufb01e :;1i'(ii*esaiiV\ufb01\u00a3e <\/p>\n
decisions that for 21t.t1'a1eting 2[9}{i'i}"1*he pre:ia oi<\/p>\n
the condition preeedeiit is tha4t.__1’.’he c:1,.i”i_\u00bb_t 1misi:_ii-::1ci~_<\/p>\n
that the job work e2m1*1.1s{‘edVt() the._e(:>ni=i~g1iit'()fs was
\nbeing executed by hi’s~~.e_rr1p’1Vyeesfs’ 1,;i*i~de1′ t,h\u20acV SLip\u20acI’V1’Si0I1<\/p>\n
of the principal emp10iyAe1” .-ai’iie.f;.f\ufb01ferring to the<\/p>\n
Apex (.Tc)i.11*i.”‘s?1 V-..:;’_*isiim 2:11;’ CESC’iv1.4iIi1itt7d Vs Subhash<\/p>\n
C11&1i1}Ci1’\u00a3_1.’i’E3fC”E1″‘G’d eairlier. the I.)ivisi<)1'1 Bench
\nultimately\u00bb 11e\u00a3d"".VA't.I*17a;–!,_\u00e9\u00e9if an outside agetiity\/job<\/p>\n
('tgn\u00a71t:'i'e1r'?t.c)rs'"is._br()ugl1t to carry out the work. it eamiol<\/p>\n
"be nzaie\ufb01. i–Ifi\u20aci~1,. ihere is an act' of supervision on the part<\/p>\n
2 (ji7.4t.'heV p'rm<_:;p'ai empioye 1'.\n<\/p>\n
 If the aforesaid principles are applied to<\/p>\n
‘  base on hand. no evidemre is f()rth(:<)ming before<\/p>\n
 the ES! court'. 10 show that the <etont,ra<:1.or to whom<\/p>\n
the appeliam. hacl em.i*i.1stec} the wmk of pm'.1.i:'1g up<\/p>\n
the (',OI'}S{.1'1.1('UOH oi' buiIdir1;_\u00a7 (?a1*1'ied the work under<\/p>\n
\/5%,\u00bb<\/p>\n
,_,.\/<\/p>\n
24<\/span>
\nLinlitecf 111eret'(i)1*c was e*r1″<)1'1e('):.1..s h\u00a31ViI'}\u00a7__{ If-:_:',{a1'd to the
\n1'":;:1ms and (.:irc1.1I11star1ces 0ft'.11e (2159.<\/p>\n
19. As far as the Co1’1t:ribut:i0n  ,i1″1._<\/p>\n
respect: ()ft.I’1e (Y()1′}StI’Li(‘.’I.i()I’1 work t.akeI1..L1{_5 ‘f()1*–._pu4tt.in’g <\/p>\n
up the first unit building  (to1’1AcCr1i*;\u00a7ci’.4_21$’–a1\u00bbr:\u00a7\u00e9Ldyf<\/p>\n
s1:21t:ed._ there is no dispnlge t:11at_ the rn\u00bb21Vm:,f\u00e91(rt:L\u00a3;ri1ig ‘*<\/p>\n
eictivity c()mme1’1Ced oniy \ufb01=0_n’1_I)ec’\u20acm_bc:1* 1995 and
\nthe coverage was ‘\u00a7’1.j(3’m 1’_.12._I’9\u00a3g’5″‘iAn respect of first
\nunit. ‘i’he1’6E’0_1_’e. t1’1e_q.u \u20ac.st:1o1’1.VQ{‘(Et)V\u00e9’fi\u00bbn’g the fnslx urlit<\/p>\n
L1nder ‘t’1<:.(}\u00bb_V  _"}").\u00a7ft. does not  as no<\/p>\n
I1'}(i1I]UfE1(?1L1.11'iI1Vg""W218 ca1'ried on during the<\/p>\n
yczxr 1993-95' as ('\u00a7'z411'izng that p\u00a71"i()d the faC1':0ry itself<\/p>\n
 A ivas E"-n<)1V"\u00a5.i\u00a21&'1 (;'.XiS1.\u20acI'1('.(:' and tI'1c1'cfo1'L= the question of<\/p>\n
'zany ~n\u00e9:'e..1;'i1n1fa.Cvi*uring activity being Carrie-rd on does not<\/p>\n
a'ris\u20ac.._"' -.\u00a53'L1t: }'1()weve.r Iearnecl counsel for the ESI<\/p>\n
.' . C0rpt:n'ati01'1 Sri. Nmasimha Holla p()ime(i 01.11 that<\/p>\n
 in1pugI1_ed order pztssed 1.:\/sa 45–A also ccJ\\\u00bb'_A1vvi\u00a7;w ‘t=hva117’g<\/p>\n
the impL1g1’1 “1116 set.’2j21si’d.r3’. E11 ‘i’1r.3″<\/p>\n
entirety but at the same i.’ivz]’1″021s t’1’1–eE.S_”I_= (rt:.>1.1r1’ has
\nnot gone into th19a1:Li'()n 10- i;\u00e91″1.4;t.. steps if it is foLmd_ p1=6pe’r<\/p>\n
()1);’\\}c:1ti;1″i(;:211’io:1V of he reco1’ds n1e1im”.amed by the<\/p>\n
,1 ‘app!-:11ai1’1t’A’i;h21I. there was civil 00nst,.1″u(.:ti()I1 put: up<\/p>\n
‘”si;’i_*1a:5\u20ac~.\u00a71’11e11t to 1.12.95. The appellam is at<\/p>\n
1’ 1:Ju4_1fpo$e.\n<\/p>\n
lib4″ert,.yAt:0 p1″0du(:e 1’eleve:111t. reco1’ds for the af’0I*esa1’cf<\/p>\n
x}<\/p>\n
1-!<\/p>\n
ff:\n<\/p>\n
In the 1*esu1i’._ the appeal i$ a1_1l<_)\\w(:1 21.l'.1'(i'~_ih_c-.*<\/p>\n
impugned orcier of the ES} C<')rp1*at’.i<_)n is  'c'{5\u00a7i=fijj(1   _<\/p>\n
Sd\ufb01;\n<\/p>\n
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Karnataka High Court M\/S Creative Wear Pvt Ltd vs Esi Corporation on 24 February, 2010 Author: V.Jagannathan IN ‘I”\u00a7’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’\u00a7iHT2\u00a7f-E’ M:.F.A.No.9404\/zgidb\u00e9\ufb01gs}; r BE’FWI\u00a3EN: A’ ‘ M\/S CRi%1A’I’IV1i w1\u00ab:A1!,Js’1’12m E, A BANGA1,0R1~:-5.6.0 095:” –. ” BYITS 1)1RE.cV’T:fQ’I’2 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,20],"tags":[],"class_list":["post-180509","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"\nM\/S Creative Wear Pvt Ltd vs Esi Corporation on 24 February, 2010 - 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