JUDGMENT

Shivaraj V. Patil, J.-The appellants were contractors in respect of today shops during the given period. Toddy shops were run on the basis of yearly auction conducted by the Excise Department of the Government of Kerala. Various guidelines were issued by the Board of Revenue and the State Government from time to time for running toddy shops. The employees working in the toddy shops during the period in question were not brought under the coverage of the ESI Scheme mainly on the ground that the provisions of ESI Scheme were not applicable to the toddy shops according to the appellants: assuming that the Employees State Insurance Act, 1948 (for short the Act ) was applicable to the toddy shops in the previous years, that did not create any continuing liability of the appellants. On the basis of the inspection conducted by the officers of the respondent Corporation, respondents took up the position that the toddy shops were covered under the Act and assessed to the contribution; recovery proceedings also were initiated for collection of contribution amount. At that stage the appellants approached the Employees Insurance Court (EI Court) seeking declaration that the toddy s