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RAJA BASU CHOWDHURY
Ela Designer Pvt. Ltd. – Appellant
Versus
Employees State Insurance Corporation – Respondent
JUDGMENT :
Raja Basu Chowdhury, J.
1. The petitioner no.1 is engaged in the business of trading of embroidery on sarees. The petitioner no.2 is one of the directors of the petitioner no.1. According to the petitioners, the job of embroidery is carried out by independent traders/artisans in their respective premise or through engagement of unidentified persons, on whom your petitioners do not have any control. Once the finished products are brought to the premise of the petitioners, the management decides as to whether the products can be accepted on payment of consideration or the same would be rejected.
2. On acceptance of the products in the manner indicated above, the petitioners pay the cost for the job charges inclusive of all materials used. On the contrary, if ultimately, the products are rejected, the artisans and traders pay the cost price of the clothing to the petitioners and take away the garments. The petitioners claim that the aforesaid arrangement is on principal to principal basis.
3. In usual course, the petitioners have taken on leave and licence a portion of the first floor of premises no. 25/1 Shakespeare Sarani, Kolkata-700017, admeasuring 1700 sq.ft., super bui
The central legal point established in the judgment is the direct employment of artisans/karigars by the petitioners for work connected with the establishment, as interpreted under the Employees' Sta....
The court affirmed that non-compliance with contractor licensing does not negate the employer-employee relationship, emphasizing control and direct employment evidence.
[The judgment establishes that for contract workers to claim rights under employment law, they must prove an employer-employee relationship with the principal employer, which includes satisfying spec....
it is difficult to extend minimum time scale to the petitioners as they were not engaged by respondent Nos. 4 to 11 either on contract basis or outsourcing basis.
The main legal point established in the judgment is the application of the test to determine direct employment of employees by the principal employer, focusing on the payment of salary and the contro....
The determination of employment relationships and the validity of contracts lies within the jurisdiction of the industrial adjudicator, particularly when claims of sham contracts are raised.
A judgment contrary to the evidence or without evidence is perverse. Concession of counsel on such facts and law does not bind the party.Master-servant relationship.
The court emphasized the importance of proving the existence of an employer-employee relationship and highlighted the limited jurisdiction of the court in examining the award passed by the Industrial....
Workers engaged under sham contracts may still be deemed direct employees, entitled to statutory benefits as per labor laws.
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