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RAVI NATH TILHARI, CHALLA GUNARANJAN
Regional Director, ESI Corporation – Appellant
Versus
K. S. R. Cotton Mills Pvt. Ltd. – Respondent
JUDGMENT :
RAVI NATH TILHARI, J :
Heard Sri Venna Kalyan Chakravarthi, learned Counsel representing Sri U.R.P. Srinivas, learned Standing Counsel for the appellant-ESI Corporation.
2. No representation for the respondents.
3. This appeal under Section 82 of the Employees’ State Insurance Act, 1948 (in short ‘ESI Act’) has been filed by the Regional Director of ESI Corporation challenging the order dated 29.03.2007 in ESI OP No.7 of 1998 passed by the Presiding Officer, Labour Court, Guntur.
4. The respondent No.1-K.S.R. Cotton Mills Private Limited filed petition being ESI OP No.7 of 1998 under Section 75 of ESI Act with the prayer to declare it as seasonal factory and not covered under the ESI Act. The respondent No.1 is a company incorporated under the Indian Companies Act situated at Etukur Road. The case set up was that it dealt in pressing the lint into bales which is exclusively a seasonal one and it used to function hardly for 2 to 3 months in a year. It was depending upon the availability of ginned cotton. It was a seasonal factory within the meaning of Section 2 (19-A) of ESI Act. The respondent No.1 in ESI/the present appellant issued a letter dated 15.10.1997 stating as i
A factory is classified as seasonal under the ESI Act if its predominant activity is seasonal, and it is exempt from ESI applicability if it employs fewer than ten workers.
The applicability of the Employees’ State Insurance Act is contingent upon the establishment being classified as a 'factory' with at least 10 employees, as defined under Section 2(12).
The applicability of the Employees’ State Insurance Act is contingent on the factory having the requisite number of employees, and Section 1(6) only applies to those already covered, not to new appli....
Cold storage facilities are classified as 'factories' under the Employees State Insurance Act, as they involve a manufacturing process, necessitating ESI contributions regardless of the number of emp....
The central legal point established in the judgment is the interpretation of the term 'seasonal factory' under Section 2 (19-A) of the ESI Act, particularly in relation to the manufacturing processes....
(1) ESI Act should be given liberal interpretation and should be interpreted in such a manner so that social security can be given to employees.(2) ESI contributions – For demand notices for period a....
Point of Law : Supreme Court considered the scope of notification of establishments under section 1(5) of the 'ESI Act'.
The Sale Depot of the corporation is not covered under the Employees’ State Insurance Act due to the absence of manufacturing activities and failure to meet employee thresholds.
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