{"id":46004,"date":"2010-06-28T00:00:00","date_gmt":"2010-06-27T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-regional-director-vs-ms-n-m-stores-on-28-june-2010"},"modified":"2014-05-11T05:31:01","modified_gmt":"2014-05-11T00:01:01","slug":"the-regional-director-vs-ms-n-m-stores-on-28-june-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-regional-director-vs-ms-n-m-stores-on-28-june-2010","title":{"rendered":"The Regional Director vs M\/S.N.M.Stores on 28 June, 2010"},"content":{"rendered":"
Kerala High Court<\/div>\n
The Regional Director vs M\/S.N.M.Stores on 28 June, 2010<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nIns.APP.No. 49 of 2009()\n\n\n1. THE REGIONAL DIRECTOR,\n                      ...  Petitioner\n2. THE INSURANCE INSPECTOR,\n\n                        Vs\n\n\n\n1. M\/S.N.M.STORES, A PARTNERSHIP FIRM\n                       ...       Respondent\n\n                For Petitioner  :SMT.T.D.RAJALAKSHMY, SC, ESI CORPN.\n\n                For Respondent  :SRI.JOSEPH FRANKLIN\n\nThe Hon'ble MR. Justice M.N.KRISHNAN\n\n Dated :28\/06\/2010\n\n O R D E R\n                        M.N. KRISHNAN,J\n                        ----------------------\n                   Ins.Appeal No.49 OF 2009\n                    -----------------------------------\n              Dated this the 28th day of June, 2010\n\n                         J U D G M E N T\n<\/pre>\n
     This is an appeal preferred against the order of Employees<\/p>\n
Insurance Court, Alapuzha in IC.No.19\/2006. The case before the<\/p>\n
court was challenging the correctness of clubbing of two units and<\/p>\n
the court below after consideration allowed the petitions and held<\/p>\n
that two units cannot be clubbed together. It is against this the<\/p>\n
Employees State Insurance Corporation has come up in appeal.<\/p>\n
     2. The learned counsel for the appellant vehemently and<\/p>\n
persuasively had argued before me that the court below had<\/p>\n
missed the principle to be followed and therefore wanted the<\/p>\n
indulgence of this court to rectify the mistake committed by the<\/p>\n
court below. The learned counsel had very strongly contended<\/p>\n
before me that there are 25 employees working under the same<\/p>\n
roof and they are the part and parcel of one unit and therefore<\/p>\n
the Insurance Court should not have allowed the case. On the<\/p>\n
other hand the learned counsel for the respondent would contend<\/p>\n
that  two units are independent and separate units having<\/p>\n
separate existence and therefore it cannot be clubbed together.<\/p>\n
INAP. No.49\/09                    2<\/span><\/p>\n
      3. The principles to be followed are succinctly laid down in<\/p>\n
very many decisions and I may refer to one of the decisions<\/p>\n
where the facts are almost similar. In Evans Food Corporation<\/p>\n
Vs. Union of India and another reported in 1994 (2)<\/p>\n
Labour Law Journal 646 the learned judge exhaustively<\/p>\n
considered the materials. The first principle is whether there are<\/p>\n
two establishments, branches or units, the true relationship<\/p>\n
between them must be such that they constitute one integrated<\/p>\n
whole. The question of unity of the two        establishments must<\/p>\n
therefore be decided on the touchstone of its total functional<\/p>\n
unity. The broad tests are unity of ownership, management and<\/p>\n
control, functional integrity, general unit and unit of employment.<\/p>\n
      4. Now to the facts of this case, NM Stores is a partnership<\/p>\n
concern and NM Textiles is yet another partnership concern. In<\/p>\n
NM Stores partners are brothers and in NM Textiles, partners are<\/p>\n
wives of brothers.      NM Stores is dealing with ready made<\/p>\n
garments where as NM Textiles dealing with textile. So it has to<\/p>\n
be stated that both of them are dealing with clothes. NM Stores<\/p>\n
is having a separate account, separate wage register, separate<\/p>\n
muster roll, separate financial control and separate management.<\/p>\n
The unity of facts are that both the partnership concerns are<\/p>\n
INAP. No.49\/09                   3<\/span><\/p>\n
situated in one and the same building and there is a common stair<\/p>\n
case. PW1 had deposed before this court that except these there<\/p>\n
is absolutely no business connection between the two.<\/p>\n
      5. The learned counsel for the Corp[oration would contend<\/p>\n
before me that when the officer inspected the business premises<\/p>\n
he was able to see 25 persons doing the work.         Learned trial<\/p>\n
judge held that Insurance     inspection team proceeded on the<\/p>\n
assumption that two shops constitute a single establishment. He<\/p>\n
did not ascertain the status of both the shops. The learned trial<\/p>\n
judge also held that except the fact that both the        units are<\/p>\n
located in same building, and are engaged in textile items, no<\/p>\n
other common factors could be collected by the inspection team.<\/p>\n
The inspection team did not elicit any information. It has not<\/p>\n
verified the employment records and whether there was any<\/p>\n
supervision and control over the employees.        It has also not<\/p>\n
collected    any  information   whether     there   was    financial<\/p>\n
interdependence between two units. So the materials collected<\/p>\n
which is in favour of ESI Corporation is only some basic facts like<\/p>\n
building and family relation. But the real aspect is with respect to<\/p>\n
business. Absolutely no materials are collected to show that the<\/p>\n
business is in any way interconnected.       The learned counsel<\/p>\n
INAP. No.49\/09                   4<\/span><\/p>\n
submitted before me further opportunity may be given to<\/p>\n
substantiate it. It was the fundamental duty of the Corporation<\/p>\n
employees and later at the time of trial to produce the evidence<\/p>\n
to establish the fact.    Apex court has cautioned that remand<\/p>\n
should be avoided to fill up the lacuna in the case which will<\/p>\n
detrimentally affect the right of the other party. So I am not<\/p>\n
inclined to grant the request of remand as well.       From these<\/p>\n
discussions I find that there are no materials in the appeal which<\/p>\n
warrants consideration. Therefore it lacks merit and dismissed<\/p>\n
but without costs.\n<\/p>\n<\/p>\n
                                      M.N. KRISHNAN, JUDGE.\n<\/p>\n
Sou.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court The Regional Director vs M\/S.N.M.Stores on 28 June, 2010 IN THE HIGH COURT OF KERALA AT ERNAKULAM Ins.APP.No. 49 of 2009() 1. THE REGIONAL DIRECTOR, … Petitioner 2. THE INSURANCE INSPECTOR, Vs 1. M\/S.N.M.STORES, A PARTNERSHIP FIRM … Respondent For Petitioner :SMT.T.D.RAJALAKSHMY, SC, ESI CORPN. For Respondent :SRI.JOSEPH FRANKLIN The Hon’ble MR. […]<\/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-46004","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nThe Regional Director vs M\/S.N.M.Stores on 28 June, 2010 - Free Judgements of Supreme Court & 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\/the-regional-director-vs-ms-n-m-stores-on-28-june-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Regional Director vs M\/S.N.M.Stores on 28 June, 2010 - 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