This appeal, at the instance of Employees State Insurance Corporation, filed under Section 82 (2) of the Employees State Insurance Act, 1948, was admitted by this Court on 16/01/2017 on following two substantial question of law –

“(i) Whether the Employees' State Insurance Court/the Labour Court was justified in entertaining challenge to the demand notice without the Principal employer complying with the provisions contained under Section 75 (2B) of the Employees' State Insurance Act, 1948 (for short 'the ESI Act, 1948')?

(ii) Whether the ESI Court/Labour Court was justified in holding that provisions of ESI Act, 1948 was not applicable to the applicant i.e. Singh Engineering Works and in consequence setting aside the demand notice ? ”

2. The respondent/establishment carries out industrial activities and involved in engineering work in its factory/establishment. It is said that inspection was carried out in the establishment of the respondent by the officers of ESI on 19/09/1989 and in all, 21 workers were found working in the factory premises. The inspection note records that there were six staffs and labour, two watchmen and 13 contractual employees, in all 21 in number. Acce