EMPLOYEES STATE INSURANCE CORPORATION Vs. GNANAMBIKAI MILLS LIMITED

JUDGEMENT

(1.) THIS is an appeal from an order of Ramamurti, J. , dismissing a civil miscellaneous appeal under the provisions of the Employees' State Insurance Act, 1948. The learned Judge was of the view that causal employees were not within the purview of the Act. The correctness of this view is the only question in the appeal. The respondent is a limited liability company carrying on business in the manufacture and sale of cotton yarn. In the course of infection of its books the Insurance Inspector fund a large debit of about Rs. 0,000 which represented wages paid to certain employees. It is not in dispute-and it has never been at any stage that these employees were casual employees engaged for whitewashing and effecting repairs to the factory buildings. The Regional Director issued a demand on the respondent on March 19, 1962 that the employer's contribution in respect of these workers should be paid. Those arc all the facts which we know from the record.

(2.) THE term "employee" as defined by Section 2 (9) read by itself appears to us to be wide enough to cover casual employees as well. A person will be an employee, if he is employed for wages in or in connection with the work of a factory or establishment which is governed by the Act, or if he 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, or if he is employed by or through an immediate employer on the premises of the factory or establishment or if his 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. The term also includes any person employed for wages connected with the administration of the factory or establishment or any part, department or branch thereof or with the purchase of raw materials for or the distribution or sale of the products of the factory or establishment, The definition also expressly excludes certain categories of persons. The meaning of "factory" has also been set out in the Act. The two expressions "employee" and "factory" read together and in the light of each other, lend themselves to the view which is urged for the appellant the Employees' State Insurance Corporation, that casual employees too would be within the purview of the term "employee".

(3.) BUT, having regard to the purpose of the Act and the other specific provisions therein, we are inclined to think that the Act is not intended to apply to casual employees. The Act provides for certain benefits to employees in case of sickness, maternity and employment injury and certain other matters. The provisions in Chapter II deal with setting up of Employees' State Insurance Corporation and its administration and Chapter III, with finance and audit of the Corporation.