BIRLA COTTON SPINNING AND WEAVING MILLS LIMITED Vs. EMPLOYEES STATE INSURANCE CORPORATION

JUDGEMENT

(1.) Biria Cotton Spinning and Weaving Mills Limited (hereinafter called the Company) is engaged in the manufacture of cotton textiles. As shown by the plan filed in the Court below, the premises of the Company are enclosed by a compound wall. Inside this compound, there is the main factory building shown inside the red border. Separated from the main factory building by open spaces or roads are other buildings such as godowns, offices, etc. The Company applied to the Employees' Insurance Court under section 75(1) (a) of the Em ployee's State Insurance Act. 1948 (hereinafter called the Act) for the determination of the question, whether the employees enumerated in the statement at the end of the record of this appeal are covered by the definition of an "employee" in section 2(9) of the Act. The Company had pleaded that these persons were not working in the factory nor were they doing work connected with the work of the factory and, therefore, they were not "employees" under the Act. The claim of the Company was resisted by the Employee's State Insurance Corporation and by certain employees. The Employees Insurance Court held that these persons were employees under the Act. Hence this appeal.

(2.) The sole question for decision, therefore, is whether these persons are "employees" under the Act.

(3.) None of these employees is working in the main factory building. They are working either in the administrative offices or on other work of the company outside the main factory building and sometimes outside the premises of the Company enclosed by the compound wall. The Unit of production is the Birla Cotton Spinning and Weaving Mills. It has two main divisions. The vast majority of its employees numbering about 5000 are working inside the factory where the manufacturing process is carried on. The minority of the workers with whom we are concerned numbering about 178 are working outside the factory, but in close connection with the work carried on in the factory. Most of these 178 persons are working in administrative offices of the Company, the work of which together with the manufacturing process constitutes the work of production in which the Company is engaged. The office work consists of keeping accounts, preparing bills, maintaining record of attendance, correspondence etc., while the outdoor work consists of the watch and ward department, taking delivery of goods from the Railway station and despatching goods to the Railway Station, sweepers, drivers, cleaners and peons. The: manufacturing process carried on in the factory cannot in itself result in the production of goods without the help of these 178 persons. The factory workers and the outsiders together produce the goods.