S.R.Singh, J. - (1.) This appeal under Section 82 of the Employees State Insurance Act, 1948 (in short the Act) is directed against the order dated July 4,1980 passed under Section 75 of the Act by the City Magistrate/Judge, Employees Insurance Court, Allahabad in case No. 2 of 1980, Scientific Instrument Company v. Director General, Employees State Insurance Corporation and Anr.
(2.) The application under Section 75 of the Act was moved by the Scientific Instrument Company Ltd. Allahabad, a public Limited Company registered under the provisions of the Companies Act, 1956, which, it is alleged, mainly carries on the business of selling and distributing Scientific instruments of Foreign and Indian Manufacturers. It is alleged that though its registered head office is situated at 6 T.B. Sapru Marg, Allahabad, the company has its branch sales office at Delhi, Bombay, Calcutta and Madras as well as in Allahabad itself and its employees in the above mentioned branch sales offices are mainly and primarily engaged in the sale and distribution of the products manufactured by Foreign Companies and other Indian Manufacturers and further that the percentage of sale of the company's own products at branch sales offices is only marginal.
(3.) The learned Judge, Employees' Insurance Court, Allahabad posed a question as to whether the employees of the company working outside Allahabad should be covered by the Act or not? and answered the question in negative. The order reads as under : "This is an application under Section 75 of the E.S.I. Act on the ground that the workers working outside Allahabad should not be covered under the E.S.I. Act. The question to decide is whether the employees working outside Allahabad should be covered under the E.S.I. Act or not. I have heard the learned counsel for the parties and have gone through the records of the case. The Learned Counsel for the applicant argued that the employees of the company are doing the work of sales and distribution of products manufactured by other Indian and Foreign Manufacturers and therefore, they are not covered by the E.S.I. Act. I agree with the learned counsel for the applicant that the workers dealing in sales and distribution of products of other Indian and Foreign companies' manufactured goods are not covered by the Employees State Insurance Act. I, therefore, hold that in the present case the employees of the Scientific Instrument Company, Allahabad are not covered under the E.S.I. Act.";