Judgment

GOSWAMI, J. :- The appellant and his brother, Srinivasamurthy are partners of a firm carrying on the business of manufacturing and exporting of polish granite memorial stones in the name and style of Messrs Narayanswami & Sons. The firm is admittedly a factory both under the Factories Act as well as under the Employees State Insurance Act (briefly the Act). The appellant claims to directly employ about 35 persons in his factory and has been paying contribution under the Act on their account. It is stated that adjacent to his own factory there in another factory situated on the appellant s land leased out by him to two persons, Chidambarchari and Shankarasubbachari (hereinafter referred to as the contractors). The contractors employ about 50 workers in their factory for purposes of cutting and dressing the grantie stones. The lorry drivers bring granite from the surrounding areas and unload them outside the factory. The contractors get these to their portion of the leased land for cutting them. After cutting these are sent back to the appellant s factory where these are designed and polished and thereafter exported.

2. The Employees s State Corporation (briefly the Corporati