- (1.) THE petitioners, who arc engaged in the business of Rice Shelling, have challenged the validity of letter No. S-38014 (17)/90-SSI, dated August 26, 1991, issued by the Under Secretary to Government of India, conveying the Government's decision regarding grant of exemption under Section 88 of the Employees' State Insurance Act, 1948 (for short, the Act) to the employees of the factories/establishments engaged in seasonal processes, viz,, re-drying unmanufactured leaf tobacco, salt manufacture, wool pressing either with or without cotton pressing and ginning, ice manufacture, for a further period of three years form July 1, 1989 to June 30, 1992, and letter No. Pb. l2/19485/c-733/93/113, dated July 6, 1993, issued by the Deputy Regional Director, Employees' State Insurance Corporation, Chandigarh to M/s. Sansari Pal Joginder Paul Rice and General Mills, Jalandhar, to deposit the contributions as are required to be paid in terms of Regulations 29, 3! and 33 of the Employees' State Insurance (General) Regulations, 3950. in this petition under Articles 226/227 of the Constitution of India.
(2.) LEARNED counsel for the petitioners says that after making enquiries from the concerned quarters he had come to know that no notification either by the Central Government or by the State Government had been issued applying the provisions of the Act to Rice Shelters/factories. Without applying the provisions of the Act, notice has been issued by the Employees' State Insurance Corporation, Chandigarh (for short, the Corporation) to the petitioners to get their factories/ establishments registered under the Act and deposit arrears towards contribution as mentioned in the notice. It is further stated that the Punjab Government had been issuing notifications exempting the Rice Shelters from the purview of the Act and under the last notification exemption under Section 88 of the Act had been granted from 1 July 1, 1988 to June 30, 1989.
(3.) WRITTEN statement by way of affidavit has been filed on behalf of respondents No. 2 and 3 by Sh. S. S. Abrol, Regional Director of the Corporation. It is stated there that the Punjab' Government issued notification under Section 1 (5) of the Act extending the provisions of the Act to the factories working with power and having 10 or more employees with effect from March 30, 1975. Rice Shellers, who were covered under the Act were granted exemption from the operation of the Act. On the expiry of the period of exemption they became liable to comply with the provisions of the Act and to make contributions. The definition of 'seasonal factory' as given under the Electricity (Supply) Act, 1948 (for short, the Electricity Act) is entirely different from that under Section 2 ( 19-A) of the Employees' State Insurance Act. Under the Electricity Act, every factory working for not more than 8-1/2 months in a year is a seasonal factory, whereas under the Employees' State Insurance Act they are not seasonal factories unless they are working for a period exceeding 7 months in a year and at the same time are engaged in manufacturing processes; mentioned in Section 2 ( 19-A) of the Act.;