The interpretation of statutory notifications and the principle of giving full effect to every word in the notification were central to the judgment.

JUDGMENT :

Hrishikesh Roy, J.

Leave granted.

2. Heard Mr. Santosh Krishnan, the learned counsel appearing for the appellants. The respondent is represented by Mr. Parthiv K. Goswami, the learned counsel.

3. The challenge in this appeal is to the judgment and order dated 1.12.2016 in the RFA No. 82/2006 whereby the Guwahati High Court has allowed the appeal of the respondent and set aside the order dated 28.4.2006 passed in favour of the appellants by the Employees Insurance Court. Under the impugned judgment, it has been held that Village Tarapur, where the factory of the respondent is located, falls outside the municipal limits of Silchar and is therefore not covered under the notification dated 21.7.1999 (Annexure P-I) issued by the appellants under sub-Section (3) of Section 1 of the Employees’ State Insurance Act, 1948 (hereinafter referred to as the “ESI Act”). The other finding of the High Court to the effect that the business of cold storage run by the respondent is covered within the meaning of ‘manufacturing process’ as defined under Section 2(14AA,) is however not challenged in this appeal by the appellants.

4. The issue to be decided here is whether the High Court was correct in its interpretation of the notification dated 21.7.1999 and holding that the notification covers only the areas within the Silchar Municipal Board, although the notification additionally mentions names of other areas/villages including the Village of Tarapur, where the respondent’s factory is located.

5. The Village Tarapur is subdivided into many segments and part of the village area falls within the Silchar Municipal Corporation and other parts, within the Silchar Revenue Circle. The respondent company set up its cold storage factory at Ramnagar, Village Tarapur.

6. On 21.7.1999, the notification was issued under sub-section (3) of Section 1 of the ESI Act, notifying 1.8.1999 as the date on which certain provisions of the ESI Act shall come into operation in the following areas in the State of Assam namely :-

“Areas under Silchar Municipal Corporation falling within Silchar Revenue Circles including the Revenue Village – Silchar Town, Ambicapur, Uttar Krishnapur, Kanakpur, Ukilbazar, Tarapur, Rangpur, Durganagar, Gosaipur, Srikona, Under Mouza-Barakpur, Tarapur, Ph-Barakpur, Rang Ph-Barakpur, Udharbond, Rajnagar.”

7. Thereafter, the Regional Director of the Employees State Insurance Corporation informed the respondent about the notification and that the provisions of the ESI Act are now made applicable, to all factories situated within the notified areas and as such, the respondent’s factory at Ramnagar, Village Tarapur would be covered under the ESI Act, with effect from 1.8.1999. Since the respondent failed to take necessary steps for registration under the ESI Act and to pay the requisite contribution for the employees in their establishment, a show cause notice was issued to the respondent to remit contribution for the months of April to September, 2000, on ad hoc basis. This was followed by a notice by the competent authority for recovery of Rs. 17,068 from the respondent.

8. The respondent then moved the Employees Insurance Court, Guwahati (hereinafter referred to as the “EI Court”) to challenge the show cause notice and the consequent steps for recovery of contribution. The say of the respondent was that the area in which their factory is located is not covered by the 21.7.1999 notification. The Regional Director of the ESI Corporation however contended that the 21.7.1999 notification, extending the provisions of the ESI Act, also covers the area where the factory of the respondent is located. The EI Court considered the testimony of the witnesses and the documents relied upon by the parties and concluded that the notification extends to Tarapur and therefore, the factory of the respondent, located in Tarapur, is brought under the coverage of the ESI Act. Accordingly, the respondent is required, under the ESI Act, to make the contribution, an