{"id":22824,"date":"2008-07-25T00:00:00","date_gmt":"2008-07-24T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/vs-mr-km-patel-for-on-25-july-2008"},"modified":"2017-06-25T10:35:53","modified_gmt":"2017-06-25T05:05:53","slug":"vs-mr-km-patel-for-on-25-july-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/vs-mr-km-patel-for-on-25-july-2008","title":{"rendered":"====================================== vs Mr Km Patel For on 25 July, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">====================================== vs Mr Km Patel For on 25 July, 2008<\/div>\n<div class=\"doc_author\">Author: Ks Jhaveri,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nFA\/2941\/2007\t 11\/ 13\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nFIRST\nAPPEAL No. 2941 of 2007\n \n\n \n======================================\n\n\n \n\nREGIONAL\nDIRECTOR \n\n \n\nVersus\n \n\nSHRI\nANANG A. LALBHAI MANAGING DIRECTOR AND OTHERS\n \n\n====================================== \nAppearance\n: \nMR HEMANT S SHAH for\nAppellant. \nMR KM PATEL for Respondents.\n \n====================================== \n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE KS JHAVERI\n\t\t\n\t\n\n \n\nDate\n: 25\/07\/2008 \n\n \n\nORAL\nORDER<\/pre>\n<p>1.\tThe<br \/>\nappellant Corporation has challenged judgment and order of the<br \/>\nEmployees State Insurance Court, Ahmedabad, dated 20th<br \/>\nSeptember 2005, whereby the notice issued by the Corporation dated<br \/>\n26th October 1995 was declared to be illegal and contrary<br \/>\nto law.\n<\/p>\n<p>2.\tThe<br \/>\nfacts in brief, as emerging from record, are as under:\n<\/p>\n<p>3.\tThe<br \/>\nrespondents herein are the original applicants, who have filed an<br \/>\napplication before Employees State Insurance Court and stated that<br \/>\nAshok Spintex is a division of Arvind Mills Limited and that<br \/>\napplicant is an undertaking registered under the Bombay Industrial<br \/>\nRelations Act and provisions of Employees State Insurance Act are<br \/>\nalso applicable to the applicant.  Therefore, all the employees of<br \/>\nthe applicant respondent herein have been covered under Employees<br \/>\nState Insurance Scheme.  It is also the case of the respondents<br \/>\nherein in that application that its employees have been classified<br \/>\ninto different categories, which includes apprentice appointed under<br \/>\nthe Apprentice Act and Standing Orders.   It is also the case of the<br \/>\noriginal applicant that inspector of State Insurance Corporation<br \/>\ninspected the applicant company on 23-11-1994 and found that<br \/>\n&#8216;apprentices&#8217; have not been included as employees under Section 2 (9)<br \/>\nof the Act and, therefore, from the date of joining their<br \/>\ncontribution may be sent immediately.  Therefore, Deputy Regional<br \/>\nDirector gave a notice dated 25-8-1995 to the original applicant,<br \/>\nwhich was replied on 25-9-1995 and it is stated that the original<br \/>\napplicant is not responsible to make contribution on behalf of the<br \/>\napprentices because they are not the employees, who are included in<br \/>\nthe provisions of Section 2 (9) of the Employees State Insurance Act<br \/>\nand as they are trainees, there is no relationship of employer and<br \/>\nemployee between the applicant and such employees.  It is also stated<br \/>\nthat the amount paid to them is stipend, which cannot be considered<br \/>\nas &#8216;wages&#8217;.  It is also the case of the applicant therein that<br \/>\nwithout considering said reply or the documentary evidence produced<br \/>\nby it, notice dated 26-10-1995 was issued to the applicant.  Against<br \/>\nthis notice, the respondents herein &#8211; original applicants have filed<br \/>\nESI Application No.41 of 1995.\n<\/p>\n<p>4.\tThe<br \/>\napplication was resisted by the appellant Corporation by filing<br \/>\nreply at Exh.14, whereby the averments made in the application were<br \/>\ndenied.  It is also stated by the Corporation that as per the<br \/>\ndefinition of &#8216;apprentice&#8217;, there should be an agreement between the<br \/>\nparties and it should have been sent to apprenticeship registrar,<br \/>\nhowever, since the original applicant has not complied with this<br \/>\nprovision, it is liable to make contribution towards such employees<br \/>\nand the application filed by it is required to be dismissed.  After<br \/>\nframing issues and after hearing both the sides and considering the<br \/>\nmaterial on record, it is found by ESI Court that notice dated<br \/>\n26-10-1995 is illegal and the Corporation is not entitled to ask for<br \/>\ncontribution on the amount of stipend which is paid to the trainees.<br \/>\nAccordingly, notice dated 26-10-1995 was quashed and the application<br \/>\nfiled by the original applicant was allowed.  Being aggrieved by it,<br \/>\nthe appellant has filed present appeal.\n<\/p>\n<p>5.\tI<br \/>\nhave heard learned advocates appearing for both the sides.\n<\/p>\n<p>6.\tThe<br \/>\nlearned advocate for the appellant has relied upon provisions of<br \/>\nEmployees State Insurance Act and particularly, Section 2 Sub-section<br \/>\n(9) thereof, which reads as under:\n<\/p>\n<p>?S2<br \/>\n(9). \t?Semployee?? means any person employed for wages in or in<br \/>\nconnection with the work of a factory or establishment to which this<br \/>\nAct applies and &#8211;\n<\/p>\n<p>(i)\twho<br \/>\nis directly employed by the principal employer on any work of, or<br \/>\nincidental or preliminary to or connected with the work of, the<br \/>\nfactory or establishment, whether such work is done by the employee<br \/>\nin the factory or establishment or elsewhere, or <\/p>\n<p>(ii)\twho<br \/>\nis employed by or through an immediate employer on the premises of<br \/>\nthe factory or establishment or which is preliminary to the work<br \/>\ncarried on in or incidental to the purpose of the factory or<br \/>\nestablishment; or<\/p>\n<p>(iii)\twhose<br \/>\nservices are temporarily lent or let on hire to the principal<br \/>\nemployer by the person with whom the person whose services are so<br \/>\nlent or lent on hire has entered into a contract of service.\n<\/p>\n<p>and<br \/>\nincludes any person employed for wages on any work connected with the<br \/>\nadministration of the factory or establishment or any part,<br \/>\ndepartment or branch thereof or with the purchase of raw materials<br \/>\nfor, or the distribution or sale of the products of the factory or<br \/>\nestablishment or any person engaged as an apprentice, not being an<br \/>\napprentice engaged under the Apprentices Act, 1961 (Act No.52 of<br \/>\n1961), or under the standing orders of the establishment; but does<br \/>\nnot include:\n<\/p>\n<p>a)\tany<br \/>\nmember of the Indian naval, military or air forces; or<\/p>\n<p>b)\tany<br \/>\nperson so employed whose wages (excluding remuneration for overtime<br \/>\nwork) exceed (such wages as may be prescribed by the Central<br \/>\nGovernment) a month;\n<\/p>\n<p>\tProvided<br \/>\nthat an employee whose wages (excluding remuneration for overtime<br \/>\nwork) exceed (such wages as may be prescribed by the Central<br \/>\nGovernment a month at any time after and not before the beginning of<br \/>\nthe contribution period, shall continue to be an employee until the<br \/>\nend of that period)??.\n<\/p>\n<p>6.1\tHe<br \/>\nhas also relied upon Section 2 Sub-section (22) of said Act,  which<br \/>\nreads as under:\n<\/p>\n<p>2(22)<br \/>\n?S wages?? means all remuneration paid or payable in cash to an<br \/>\nemployee, if the terms of the contract of employment, express or<br \/>\nimplied, were fulfilled and includes [any payment to an employee in<br \/>\nrespect of any period of authorized leave, lock ?  out, strike which<br \/>\nis not illegal or lay-off and] other additional remuneration, if any<br \/>\n[paid at intervals nor exceeding two months] but does not include-\n<\/p>\n<p>any<br \/>\n\tcontribution paid by the employer to any pension fund or provident<br \/>\n\tfund, or under this Act;\n<\/p>\n<p>any<br \/>\n\ttravelling allowances or the value of any travelling concession;\n<\/p>\n<p>any<br \/>\n\tsum paid to the person employed to defray special expenses entailed<br \/>\n\ton him by the nature of his employment; or<\/p>\n<p>any<br \/>\n\tgratuity payable on discharge.\n<\/p>\n<p>6.2\tIn<br \/>\nview of above provision, learned advocate for the appellant submitted<br \/>\nthat the apprentices are covered under the Employees State Insurance<br \/>\nAct unless respondent herein proves that by an agreement with the<br \/>\nemployees under the Apprentice Act, they are not covered under the<br \/>\nAct.\n<\/p>\n<p>7.\tLearned<br \/>\nadvocate for the appellant submitted that the agreement under the<br \/>\nApprentice Act, which is at Exh.42, 43 and 44 is wrongly relied by<br \/>\nthe ESI Court and the agreement is entered under Standing Order and<br \/>\nthe same is not under the Apprentice Act.  Counsel for the appellant<br \/>\nhas stated that the respondent company is not paying contribution<br \/>\neven for its regular employees.  However, this statement runs<br \/>\ncontrary to the notice dated 25th August 1995 inasmuch as<br \/>\nthe Deputy Regional Director himself has observed that the<br \/>\ncontribution paid for employees do not include vehicle and leave<br \/>\ntravel allowance.  In that view of the matter, submission of the<br \/>\nlearned advocate is devoid of any merits.\n<\/p>\n<p>8.\tLearned<br \/>\nadvocate for the appellant has placed reliance on paragraph 5 of<br \/>\ncross-examination of Jaymalbhai, who is representative of management<br \/>\nof the respondent mill, wherein it has been stated that though he is<br \/>\nprepared to produce agreement with apprentice, he has not produced it<br \/>\non record and, therefore, adverse inference is required to be drawn<br \/>\nagainst the concerned employer.  Learned advocate for the appellant<br \/>\nhas also contended that since the agreement was not produced pursuant<br \/>\nto notice at Exh.30, action taken by the appellant ?  corporation is<br \/>\njust and proper.\n<\/p>\n<p>8.1\tThe<br \/>\nargument for the appellant that adverse inference is required to be<br \/>\ndrawn against respondent ?  employer for not providing agreement of<br \/>\nappointment of apprentices under the Standing Orders cannot be<br \/>\naccepted because the impugned show-cause notice dated 26-10-1995,<br \/>\nExh.32, issued by appellant Corporation was for non-payment of<br \/>\ncontribution only in respect of apprentices engaged as per the<br \/>\nStanding Orders.  When the notice itself proceeds on the basis that<br \/>\napprentices are engaged under Standing Orders, there was no necessity<br \/>\nto produce agreements of engagement of apprentices under the Standing<br \/>\nOrders.  Moreover, the record shows that said agreements are provided<br \/>\nat Exh.42,43 and 44.  Thus, the argument for drawing adverse<br \/>\ninference cannot be accepted.\n<\/p>\n<p>9.<br \/>\n\tOn the other hand, learned advocate,  Mr.Patel, appearing for the<br \/>\nrespondent has drawn my attention to notice at Exh.32, which reads as<br \/>\nunder :\n<\/p>\n<p>?SI<br \/>\nam directed to inform you that the factory\/establishment known as<br \/>\nM\/s. The Ashoka Mills Ltd., A&#8217;bad failed to comply with the<br \/>\nprovisions of the EST Act, in respect of the following items inspite<br \/>\nof several letters from this office.\n<\/p>\n<p>1.\tSubmissions<br \/>\nof Declaration Forms under EST (General) Regulation No.11, 12 &amp;<br \/>\n14 in respect of some of the employees. &#8211; all apprentice engaged<br \/>\nunder Standing Order.\n<\/p>\n<p>2.\tSubmission<br \/>\nof return of contribution for the wage period from ________ to<br \/>\n_________ included in the<br \/>\ncontribution period ended on,   since their dtd. Appointment<br \/>\nin r\/o apprentice under S.Ord.\n<\/p>\n<p>as<br \/>\nrequired under Regulation 26 of the ESI (General) Regulation, 1950.\n<\/p>\n<p>3.\tPayment<br \/>\nof contribution for the wage period from since their dts. Of<br \/>\nappointment in apprentices as required under Regulation 31 of the<br \/>\nESI (General) Regulation, 1950.\n<\/p>\n<p>4.\tSubmission<br \/>\nof particulars in Form-01 as required under section 2-A read with<br \/>\nRegulation, 1950.\n<\/p>\n<p>5.\tProduction<br \/>\nof records for inspection as required under section 45 of the Act<br \/>\n under S for the wage period from _____ to _______ inspite of<br \/>\nInsurance Inspector&#8217;s request on ____________ this office request in<br \/>\nregistered letter dated _____ for inspection.??\n<\/p>\n<p>9.1\tHe<br \/>\nsubmitted that it is clear from said notice that it was only for the<br \/>\napprentice under Standing Orders and there was no notice under the<br \/>\nApprentice Act or for non-payment of contribution of regular<br \/>\nemployee.\n<\/p>\n<p>10.<br \/>\n\tMr.Patel also submitted that Jaymalbhai, who is representative of<br \/>\nmanagement of the respondent mill, in paragraph 7 of his<br \/>\ncross-examination has clearly stated that if the persons appointed<br \/>\nunder the Apprentice Act meet with an accident then they are paying<br \/>\nthem compensation, for which a separate insurance is taken with New<br \/>\nIndia Insurance Company. It is also stated by him that for the<br \/>\napprentices also, who are appointed under the Standing Orders, they<br \/>\nhave taken insurance.  Thus no claim is made for apprentices from<br \/>\nappellant.\n<\/p>\n<p>11.\tMr.Patel,<br \/>\nhas relied upon various judgments of Supreme Court and different High<br \/>\nCourts.  He stated that as per the decision of the Supreme Court in<br \/>\nthe case of  <a href=\"\/doc\/1095697\/\">Mukesh K. Tripathi &amp; Ors. v. Sr. Divisional<br \/>\nManager, LIC,<\/a> reported<br \/>\nin 2004 III LLJ 740, the apprentice, which are appointed<br \/>\nunder the Apprentice Act or under a private scheme are not workmen.<br \/>\nHe has relied upon paragraphs 24, 27, 28, 36, 39  and 42 of the said<br \/>\njudgment, which are as under:\n<\/p>\n<p>?S24.\tFrom<br \/>\na perusal of the award dated 28-5-1996 of the Tribunal, it does not<br \/>\nappear that the Appellant herein had adduced any evidence whatsoever<br \/>\nas regard the nature of his duties so as to establish that he had<br \/>\nperformed any skilled, unskilled, manual, technical or operational<br \/>\nduties. The offer of appointment dated 16-7-1987 read with the Scheme<br \/>\nclearly proved that he was appointed as an apprentice and not to do<br \/>\nany skilled, unskilled, manual, technical or operational job. The<br \/>\nonus was on the Appellant to prove that he is a workman. He failed to<br \/>\nprove the same. Furthermore, the duties and obligations of a<br \/>\nDevelopment Officer of the Corporation by no stretch of imagination<br \/>\ncan be held to be performed by an apprentice.\n<\/p>\n<p>27.<br \/>\nThe expression &#8216;Apprentice&#8217; has been included in the definition of<br \/>\n&#8216;workman&#8217; contained in Section 2(s) of the Industrial Disputes Act,<br \/>\n1947 but by reason of a subsequent Parliamentary legislation, namely,<br \/>\nApprentices Act, 1961 (the 1961 Act), the term &#8216;apprentice&#8217; has been<br \/>\ndefined in Section 2(aa) to mean &#8216;a person who is undergoing<br \/>\napprenticeship training in a designated trade in pursuance of a<br \/>\ncontract of apprenticeship. Section 18 of the 1961 Act provides that<br \/>\napprentices are trainees and not workers save as otherwise provided<br \/>\nin the Act. Clauses (a) and (b) of Section 18 of the 1961 Act read<br \/>\nthus:\n<\/p>\n<p>&#8220;(a)<br \/>\nevery apprentice undergoing apprenticeship training in a designated<br \/>\ntrade in an establishment shall be a trainee and not a worker; and<\/p>\n<p>(b)<br \/>\nthe provisions of any law with respect to labour shall not apply to<br \/>\nor in relation to such apprentice.&#8221;\n<\/p>\n<p>28.\tThe<br \/>\nterm &#8217;employee&#8217; under various labour laws has been defined by<br \/>\ndifferent expressions but Section 18 of the 1961 Act carves out an<br \/>\nexception to the applicability of labour laws in the event the<br \/>\nconcerned person is an apprentice as contra-distinguished from the<br \/>\nexpressions &#8216;worker&#8217;, &#8217;employee&#8217; and &#8216;workman&#8217;, used in different<br \/>\nstatutes.\n<\/p>\n<p>36.<br \/>\nA &#8216;workman&#8217; within the meaning of Section 2(s) of the Industrial<br \/>\nDisputes Act, 1947 must not only establish that he is not covered by<br \/>\nthe provisions of the Apprenticeship Act but must further establish<br \/>\nthat he is employed in the establishment for the purpose of doing any<br \/>\nwork contemplated in the definition. Even in a case where a period of<br \/>\napprenticeship is extended, a further written contract carrying out<br \/>\nsuch intention need not be executed. But in a case where a person is<br \/>\nallowed to continue without extending the period of apprenticeship<br \/>\neither expressly or by necessary implication and regular work is<br \/>\ntaken from him, he may become a workman. A person who claims himself<br \/>\nto be an apprentice has certain rights and obligations under the<br \/>\nstatute.\n<\/p>\n<p>39.<br \/>\nThe interpretation clause contained in a statute although may deserve<br \/>\na broader meaning having employed the word &#8216;includes&#8217; but therefor<br \/>\nalso it is necessary to keep in view the scheme of the object and<br \/>\npurport of the statute which takes him out of the said definition.<br \/>\nFurthermore, the interpretation section begins with the words &#8216;unless<br \/>\nthe context otherwise requires.\n<\/p>\n<p>42.\tThe<br \/>\nquestion as to who would answer the description of the term &#8216;workman&#8217;<br \/>\nfell for consideration before this Court in <a href=\"\/doc\/1996477\/\">Dharangadhra Chemical<br \/>\nWorks Ltd. v. State of Saurashtra and others<\/a>, AIR 1957 SC<br \/>\n264:1957-I-LLJ-477,  wherein this Court held at p.480 of LLJ :\n<\/p>\n<p>&#8220;The<br \/>\nessential condition of a person being a workman within the terms of<br \/>\nthis definition is that he should be employed to do the work in that<br \/>\nindustry, that there should be, in other words, an employment of his<br \/>\nby the employer and that there should be the relationship between the<br \/>\nemployer and him as between the employer and employee or master and<br \/>\nservant. Unless a person is thus employed there can be no question of<br \/>\nhis being a workman within the definition of the term as contained in<br \/>\nthe Act.&#8221;&#8221;\n<\/p>\n<p>12.\tMr.Patel<br \/>\nhas relied on the decision of Supreme Court in the case of  The<br \/>\nEmployees&#8217; State Insurance Corporation and another v. The Tata<br \/>\nEngineering &amp; Co., Locomotive Co. Ltd. and another<br \/>\nreported in AIR 1976 SC 66 wherein<br \/>\nit is held as under in paragraphs 11, 12 and 13 :\n<\/p>\n<p>?S11.\n<\/p>\n<p>From the terms of the agreement it is clear that apprentices are mere<br \/>\ntrainees for a particular period for a distinct purpose and the<br \/>\nemployer is not bound to employ them in their works after the period<br \/>\nof training is over. During the apprenticeship they cannot be said to<br \/>\nbe employed in the work of the company or in connection with the work<br \/>\nof the company. That would have been so if they were employed in a<br \/>\nregular way by the company. On the other hand the purpose of the<br \/>\nengagement under the particular scheme is only to offer training<br \/>\nunder certain terms and conditions. Besides, the apprentices are not<br \/>\ngiven wages within the meaning of that term under the Act. If they<br \/>\nwere regular employees under the Act, they would have been entitled<br \/>\nto additional remuneration such as daily allowance and other<br \/>\nallowances, which are available to the regular employees. We are,<br \/>\ntherefore, unable to hold that the apprentice is an employee within<br \/>\nthe meaning of Section 2 (9) of the Act.\n<\/p>\n<p>12.<br \/>\nIncidentally we may note that Section 18 of the Apprentices Act,<br \/>\n1961, provides that-\n<\/p>\n<p>&#8220;Save<br \/>\nas otherwise provided in this Act, every apprentice undergoing<br \/>\napprenticeship training in a designated trade in an establishment<br \/>\nshall be a trainee and not a worker&#8230;&#8230;&#8221;\n<\/p>\n<p>13.<br \/>\nThe concept of apprenticeship is, therefore, fairly known and has now<br \/>\nbeen clearly recognised in the Apprentices Act. Apart from that, as<br \/>\nwe have noticed earlier, the terms and conditions under which those<br \/>\napprentices are engaged do not give any scope for holding that they<br \/>\nare employed in the work of the company or in connection with its<br \/>\nwork for wages within the meaning of Section 2 (9) of the Act. The<br \/>\nappeal, therefore, fails and is dismissed. There will be, however, no<br \/>\norder as to costs.??\n<\/p>\n<p>13.\tMr.Patel<br \/>\nhas also relied on the decision of Employees&#8217; Insurance Court, Bombay<br \/>\nin the case of  <a href=\"\/doc\/519533\/\">Employees&#8217; State Insurance Corporation, Bombay<br \/>\nv. Indian Hume Pipe Company Ltd., Bombay<\/a><br \/>\nreported in 1963 II LLJ 104 wherein<br \/>\nafter referring to various provisions of the Employees&#8217; State<br \/>\nInsurance Act and various decisions of different Courts, it is held<br \/>\nthat apprentice is not an employee within the meaning of the Act and<br \/>\nstipend or allowance paid to him are not wages as per the provisions<br \/>\nof the Act.  It is also held that merely because stipend or allowance<br \/>\nis received by an apprentice, he does not become an employee as per<br \/>\nthe provisions of the Act and no contribution is payable in respect<br \/>\nof such apprentices.\n<\/p>\n<p>14.\tMr.Patel<br \/>\nhas also relied on the decision of Andhra Pradesh High Court in the<br \/>\ncase of  <a href=\"\/doc\/3297102\/\">Employees&#8217; State Insurance Corporation, Hyderabad v.<br \/>\nAndhra Prabha Pvt. Ltd., Vijaynagar<\/a><br \/>\nreported in 2000 II LLJ 709 wherein<br \/>\nthe Court has held that stipend paid to the trainees could not answer<br \/>\nthe definition of wages as per Section 2 (22) of the ESI Act.\n<\/p>\n<p>15.\tHe<br \/>\nalso relied on the decision of Madhya Pradesh High Court in the case<br \/>\nof  <a href=\"\/doc\/262989\/\">Bharat Commerce and Industries Ltd., Birlagam Nagda v.<br \/>\nRegional Director, Employees&#8217; State Insurance Corporation, Indore<\/a><br \/>\nreported<br \/>\nin 2005 I LLJ 482 wherein<br \/>\nthe Court has held that apprentice is not an employee within the<br \/>\nmeaning of Section 2 (9) of the Act and, therefore, they cannot be<br \/>\nequated with employees working in the company for the purpose of Act<br \/>\nin question.  It is also held that overtime amount paid by employer<br \/>\nwas part of &#8216;wages&#8217; as defined in Section 2  (22) of the Employees&#8217;<br \/>\nState Insurance Act.\n<\/p>\n<p>16.\tMr.Patel<br \/>\nhas also relied on the decision of Andhra Pradesh High Court in the<br \/>\ncase of  <a href=\"\/doc\/459803\/\">Employees&#8217; State Insurance Corporation and Ors. v.<br \/>\nChirala Co-operative Spinning Mills Ltd.<\/a><br \/>\nreported in 2005 II CLR 501 wherein<br \/>\nit is held that trainees cannot be treated as employees of the<br \/>\nestablishment where they are undergoing training.  A similar view is<br \/>\nalso taken by High Court of Karnataka in the case of  Regional<br \/>\nDirector, ESI Corporation v. M\/s. F.Fibre Mangalore (P) Ltd.<br \/>\nreported in 1985 I LLJ 247<br \/>\nupon which reliance is also placed by Mr.Patel.\n<\/p>\n<p>17.\tMr.Patel<br \/>\nhas further relied on the decision of Himachal Pradesh High Court in<br \/>\nthe case of  Mohan Meakin Ltd. v. Employees&#8217; State Insurance<br \/>\nCorporation and Ors.\n<\/p>\n<p>reported in 2006 I CLR 359 wherein<br \/>\nalso it is held that the appellant is not liable to pay ESI<br \/>\ncontribution on the stipend paid to the apprentices.\n<\/p>\n<p>18.\tIt<br \/>\nis also required to be noted that on facts it is established that by<br \/>\nagreement under Standing Orders employees are protected by insurance<br \/>\ncompany.\n<\/p>\n<p>19.\tI<br \/>\nhave considered the submissions made on behalf of the appellants and<br \/>\nalso gone through the judgment of the trial Court and other relevant<br \/>\ndocuments.   As held in the case of Mukesh K. Tripathi (Supra) the<br \/>\ninterpretation clause contained in a statute although may deserve a<br \/>\nbroader meaning having employed the word &#8216;includes&#8217; but it is<br \/>\nnecessary to keep in view the scheme of the object and purport of the<br \/>\nstatute which takes him out of the said definition.  The<br \/>\ninterpretation of the section in question begins with the words<br \/>\n?Sunless the context otherwise requires??.  After considering the<br \/>\nevidence on record and after considering the judgments of different<br \/>\nHigh Court and Supreme Court, the Court below came to the conclusion<br \/>\nthat apprentice under the Apprentice Act or under the Standing<br \/>\nOrders are not included within the definition of &#8216;workmen&#8217; and their<br \/>\nstipend or training expenses are not included within the meaning of<br \/>\n&#8216;wages&#8217;, more particularly when they have taken insurance for the<br \/>\nemployee who are covered under the Apprentice Act under the<br \/>\nagreement.  I am in complete<br \/>\nagreement with the reasonings adopted and finding arrived at the<br \/>\ntrial Court and no evidence is shown to me to take a contrary view of<br \/>\nthe matter.  Apart from that learned Advocate for the appellant is<br \/>\nnot able to point out any question of law much less substantial<br \/>\nquestion of law involved in the appeal.  Therefore, I do not find any<br \/>\nreason to interfere with the impugned judgment.\n<\/p>\n<p>20.\tIn<br \/>\nthe premises aforesaid, the appeal is dismissed.  No order as to<br \/>\ncosts.\n<\/p>\n<p>(K.S.Jhaveri,<br \/>\nJ.)<\/p>\n<p>*malek<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court ====================================== vs Mr Km Patel For on 25 July, 2008 Author: Ks Jhaveri,&amp;Nbsp; Gujarat High Court Case Information System Print FA\/2941\/2007 11\/ 13 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD FIRST APPEAL No. 2941 of 2007 ====================================== REGIONAL DIRECTOR Versus SHRI ANANG A. LALBHAI MANAGING DIRECTOR AND OTHERS ====================================== Appearance [&hellip;]<\/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":[16,8],"tags":[],"class_list":["post-22824","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>====================================== vs Mr Km Patel For on 25 July, 2008 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/vs-mr-km-patel-for-on-25-july-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"====================================== vs Mr Km Patel For on 25 July, 2008 - Free Judgements of Supreme Court &amp; 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