JUDGMENT

Aftab Alam, J.—

1. In an inspection held on May 7, 1991, the officers of the Employees’ State Insurance Corporation found that there were 15 persons working as employees in the appellant-establishment, called M/s. Hotel New Nalanda. They also found a refrigerator and an electric grinder in use there in the ‘manufacturing process’. On the basis of the inspection the officers of the Corporation took the view that the appellant-establishment was a factory within the meaning of section 2(12) of the Employees’ State Insurance Act, 1948 and it came within the purview of the Act. They, accordingly, asked the Managing Director of the establishment to comply with the provisions of the Act provisionally with effect from May 7, 1991, the date of the inspection.

2. The appellant did not accept the findings recorded in course of the inspection and filed an application under section 75 read with section 77 of the Act (E.I.C. 55/91) before the Employees’ Insurance Court, Kozhikode, seeking a declaration that the establishment in question was not covered by the Act and that the applicant/appellant was not bound to observe the provisions of the Act. According to the applicant/appellant, th