RAJESH BALIA, J. - (1.) Heard learned counsel appearing for the parties.
(2.) These appeals are directed against the judgment, dated May 5, 1999 passed by the learned single judge dismissing the writ petition filed by All India I.T.D.C. Employees Union challenging the notification issued by Laxmi Vilas Palace Hotel on January 30, 1997 (Annexure P7) informing its employees that in terms of the amendment made in the provisions of the Employees' State Insurance Act vide notification, dated December 23, 1996 which became effective from January 1, 1997, its provisions shall be made applicable to those employees with effect from January 1, 1997 who were drawing monthly salary up to Rs. 6500.00 which limit was earlier up to Rs. 3,000 and deduction on account of employee's contribution towards the Employees' State Insurance was increased from 1.5 per cent to 1.75 per cent. So also, the employer's contribution was increased from 4 per cent to 4.75 per cent. With this notification, it was required of those employees who were drawing salary up to Rs. 6,500 to secure new insurance cards after fulfilling the requisite declaration.
(3.) The principal-objection on behalf of the employees union to the said notification is that in view of the proviso to Section 1(4), the provisions of the Act are not applicable to the respondent-employer company. However, the term used by the petitioner in the writ petition is to claim exemption. It is the case of the appellant/petitioner-union that the hotel in question is a Government of India undertaking and is State within the meaning of Article 12. Therefore, it being a State Hotel, the provisions of Section 1 (4) are not attracted so as to extend the applicability of the Act of 1948, to the employees of the said establishment, therefore, the contribution demanded from the employees to be deducted from the salary of the employees of the said establishment is not warranted.;