SHAKTI ENTERPRISES Vs. EMPLOYEES STATE INSURANCE
LAWS(RAJ)-1985-3-13
HIGH COURT OF RAJASTHAN
Decided on March 11,1985

Shakti Enterprises Appellant
VERSUS
EMPLOYEES STATE INSURANCE Respondents

JUDGEMENT

DINKER LAL MEHTA,J. - (1.) THE miscellaneous appeal has been preferred by M/s Shakti Enterprises against the decision of the Employees State Insurance Court, Ajmer dated 7th April, 1983, in ESI Case No. 6 of 1978, under Section 75 of the Employees State Insurance Act.
(2.) THE petition so preferred before the ESI Court is against the demand which was raised against the appellant by the Regional Director, ESI, Jaipur. The first point in dispute was whether the canteen and cycle stand is covered under Section 2(9) of the ESI Act or not ? The second point in dispute was whether the labourers engaged for the construction work of the building or other ancillary parts are covered by the provisions of Section 2(9) of the Act. Mr. Bafna, counsel for the appellant, has vehemently submitted with full force at his command that Section 2(9), which reads as under, does not apply to the labourers engaged for the purpose of construction: 2(9) 'employee' means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies and (i) who is directly employed by the principal employer on any work of or incidental or preliminary to or connected with the work of, the factory or establishment, whether such work is done by the employee in the factory or establishment or elsewhere: or (ii) who is employed by or through an immediate employer on the premises of the factory or establishment or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the factory or establishment or which is preliminary to the work carried on in or incidental to the purpose of the factory or establishment; or (iii) whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service; (and includes any person employed for wages on any work connected with the administration of the factory or establishment or any part, department or branch thereof or with the purpose of raw materials for, or the distribution or sale of the products of, the factory or establishment; but does not include) (a) any member of (the Indian) naval, military or air forces; or (b) any person so employed whose wages (excluding remuneration for over time work) exceed (one thousand rupees) amount; Provided that an employee whose wages (excluding remuneration for over time work exceeds one thousand rupees) a month at any time after (and not before) the beginning of the contribution period, shall continue to be an employee until the end of that period.
(3.) MR . Bafna with all fairness has conceded that after the decision of the Supreme Court in Royal Talkies, Hyderabad v. E.S.I. Corporation : (1978)IILLJ390SC , the question stands finally determined against him and the persons who are working in canteen and cycle stand are covered under the definition of employee given in Section 2(9) of the Act.;


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