Judgment

RANGANATH MISRA, J. :- The short point which arises for determination in this appeal by special leave is as to whether a partner of a firm is an "employee" within the meaning of Section 2(9) of the Employees State Insurance Act, 1948 (hereinafter called the Act). Respondent Ramanuja Match industries which is a firm engaged in manufacturing of matches within the Trichur area of Kerala State and the question as to whether it is covered under, the provisions of the Act fell for consideration. The Inspector found that there were 18 regular employees and three of the partners who worked regularly for wages were to be put together. Thus the number of 20 employees as required by the Act was satisfied and the respondent did incur liability for contribution. The respondent challenged its liability before the Employees Insurance Court at Calicut by contending that partners were not employees and when the three partners were excluded, the total number of employees did not exceed the statutory minimum. The Insurance Court found in favour of the respondent and an appeal under the Act was carried to the High Court by the appellant and a Division Bench of that Court following its earlier