JUDGEMENT

R.M. Lodha, J. —

Leave granted.

2.These two appeals, by special leave, are concerned with the liability of the appellants to pay ESI contribution in respect of the workers employed by the contractors in performance of the contract awarded to them for transportation of milk.

3.The two appeals arise out of different proceedings. Brief narration of facts in relation to each of the appellants may be set out first. Hassan Cooperative Milk Producer’s Society Union Limited (for short, ‘HCMPSU Ltd.’).

4.HCMPSU Ltd. is a federal society. Its main business is purchasing milk and pasteurization of the same. The milk procured by member societies is transported in lorries/vans to the appellant’s dairy. For that purpose, contract is awarded on the basis of rate per kilometer to the lowest bidder. The contractor collects the milk from the various societies in cans on specified routes and transports to the appellant’s dairy. The empty cans are retransported and returned to the respective member societies. On September 23, 1994, a show cause notice was issued by the Assistant Regional Director, Employees’ State Insurance Corporation, Bangalore to the HCMPSU Ltd. calling upon them to furnish ex