ORDER

C.A. Nos. 1144-45, 1147-48 of 1982

1. The point involved in all these appeals is whether the hotels run by the appellants are factories within the meaning of the provisions of Section 2(12) of the Employees State Insurance Act, 1948 (hereinafter referred to as the Act) and, therefore, covered by Section 1(4) of the Act.

2. The State Insurance Corporation had raised a demand for contribution from the appellant-hotels for different periods between 1970 till November 11, 1978 treating them as factories within the meaning of the Act. It may be noted here that there is no dispute with regard to the contribution payable on and from November 12, 1978 since a notification has been issued treating the hotels as "establishments" from that date and, therefore, they are since covered by Section 1 (5) of the Act.

3. The main contention of the appellants before us was that the entire premises of a hotel cannot be treated as a "factory" within the meaning of the said section merely because the process of cooking food is carried on in its kitchen which forms only a part of the said premises. It was not disputed before us, though it appears it was vehemently argued before the High Court, that kit