{"id":3293,"date":"2008-11-14T00:00:00","date_gmt":"2008-11-13T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/employees-state-insurance-vs-city-centre-builders-and-on-14-november-2008"},"modified":"2019-01-07T23:57:50","modified_gmt":"2019-01-07T18:27:50","slug":"employees-state-insurance-vs-city-centre-builders-and-on-14-november-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/employees-state-insurance-vs-city-centre-builders-and-on-14-november-2008","title":{"rendered":"Employees State Insurance &#8230; vs City Centre Builders And &#8230; on 14 November, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">Employees State Insurance &#8230; vs City Centre Builders And &#8230; on 14 November, 2008<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nIns.APP.No. 39 of 2005()\n\n\n1. EMPLOYEES STATE INSURANCE CORPORATION,\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. CITY CENTRE BUILDERS AND DEVELOPERS,\n                       ...       Respondent\n\n                For Petitioner  :SMT.T.D.RAJALAKSHMY, SC, ESI CORPN.\n\n                For Respondent  :SRI.DENIZEN KOMATH\n\nThe Hon'ble MR. Justice M.N.KRISHNAN\n\n Dated :14\/11\/2008\n\n O R D E R\n                            M.N.KRISHNAN, J\n                        =====================\n                           INAP No.39 OF 2005\n                        =====================\n\n               Dated this the 14th day of November 2008\n\n                                JUDGMENT\n<\/pre>\n<p>      This appeal is preferred against the order of the Employees&#8217; Insurance<\/p>\n<p>Court, Palakkad in I.C.No.84 of 2002.           The point that arose for<\/p>\n<p>consideration was whether the applicant before the said court was an<\/p>\n<p>establishment coming under the provisions of Section 1(5) of the ESI Act<\/p>\n<p>and the relevant notification thereunder. It is contended by the applicant<\/p>\n<p>before the court below that various portions of the building along with<\/p>\n<p>undivided shares of the landed property have been assigned to different<\/p>\n<p>persons and it will not come under the scope of Section 1(5) of the Act. On<\/p>\n<p>the other hand, the contention of the Corporation is that there are 7<\/p>\n<p>labourers, 11 cleaners, 7 security guards and therefore it will come under<\/p>\n<p>Section 1(5). It has to be stated that by a notification dated 27.5.1976, the<\/p>\n<p>Government of Kerala has extended the ESI Act to the classes of<\/p>\n<p>establishment and areas as specified in the schedule. From the description<\/p>\n<p>of the establishment attached to the schedule, learned counsel for the<\/p>\n<p>Corporation would contend that paragraph 3(iii) shops will take in this and<\/p>\n<p><span class=\"hidden_text\">INAP 39\/2005                         -:2:-<\/span><\/p>\n<p>as the number of employees exceeds 20 it is liable to be covered under the<\/p>\n<p>ESI Act. Shop means any premises where any trade or business is carried on<\/p>\n<p>or where services are rendered to customers and includes offices, store<\/p>\n<p>rooms, go-downs or warehouses were in the same premises or otherwise<\/p>\n<p>such trade or business, but does not include a commercial establishment or a<\/p>\n<p>shop attached to a factory where the persons employed in the shop are<\/p>\n<p>allowed to the benefits provided under the Factories Act. Now what is the<\/p>\n<p>scope of the work done by the so called employees are (1) the builder has<\/p>\n<p>constructed so many rooms and flats and it is either occupied for personal<\/p>\n<p>purpose or commercial purpose as owners of undivided share or on a lease<\/p>\n<p>basis by so many persons. There is common area available and it belongs to<\/p>\n<p>all and the upkeep and maintenance of that area is looked after by the<\/p>\n<p>person, who has constructed the building. There is also an office in the very<\/p>\n<p>same building. In other words, there are occupants who have got absolute<\/p>\n<p>right. There are occupants who are lessees and admittedly the applicant-<\/p>\n<p>establishment cannot have any control over their occupation or business.<\/p>\n<p>Just because all of them have decided together and thereafter engaged<\/p>\n<p>persons for sweeping and cleaning of the entire premises for which also the<\/p>\n<p>payment is not made by one individual but it is collected proportionally and<\/p>\n<p>handed over to the employees. So what is really done is the upkeep,<\/p>\n<p><span class=\"hidden_text\">INAP 39\/2005                         -:3:-<\/span><\/p>\n<p>maintenance and safety of the building. I feel when such is the work<\/p>\n<p>entrusted and done collectively by a group of persons, who have no<\/p>\n<p>common interest other than for the purpose of upkeep and security of the<\/p>\n<p>building one cannot call them as an employer under whom all of these<\/p>\n<p>buildings will come and thereby attract the definition of a shop. It has also<\/p>\n<p>to be stated that shop in the ordinary parlance means any trade or business.<\/p>\n<p>The word &#8216;customer&#8217; as per the Dictionary meaning is only a person who<\/p>\n<p>buys goods or services from a shop or business.\n<\/p>\n<p>      So from these discussions I hold it cannot be correct to give an<\/p>\n<p>interpretation that these type of services rendered amounts to the activities<\/p>\n<p>of a shop as defined under the Shops and Commercial Establishment Act<\/p>\n<p>and so I decline to interfere with the decision rendered by the E.I.Court.<\/p>\n<p>Therefore the appeal fails and the same is dismissed.\n<\/p>\n<\/p>\n<p>                                                M.N.KRISHNAN, JUDGE<\/p>\n<p>Cdp\/-<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court Employees State Insurance &#8230; vs City Centre Builders And &#8230; on 14 November, 2008 IN THE HIGH COURT OF KERALA AT ERNAKULAM Ins.APP.No. 39 of 2005() 1. EMPLOYEES STATE INSURANCE CORPORATION, &#8230; Petitioner Vs 1. CITY CENTRE BUILDERS AND DEVELOPERS, &#8230; Respondent For Petitioner :SMT.T.D.RAJALAKSHMY, SC, ESI CORPN. For Respondent :SRI.DENIZEN KOMATH [&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":[8,21],"tags":[],"class_list":["post-3293","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Employees State Insurance ... vs City Centre Builders And ... on 14 November, 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\/employees-state-insurance-vs-city-centre-builders-and-on-14-november-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Employees State Insurance ... vs City Centre Builders And ... on 14 November, 2008 - Free Judgements of Supreme Court &amp; 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