Usha J.

This is an appeal at the instance of the E.S.I. Corporation challenging the judgment of Employees Insurance Court, Alleppey in I.C. No. 68/91. Substantial question of law raised in this appeal is whether persons employed for consultancy service will come under the definition of employee in the E.S.I. Act. The Employees Insurance Court took the view that they would not. It is contended on behalf of the appellant that those who are engaged for consultancy service also would come within the term 'employee as defined under the E.S.I. Act.

2. The short facts relevant for consideration of the above question are as follows:

The respondent is a private limited company engaged in clearing and forwarding business. According to the respondent, even though its establishment was covered by Employees State Insurance Act from May 1977 onwards, the employment strength dropped below 20 as on 1-4-1987. Intimation regarding the reduction in the strength of employees below the required minimum was sent to the E.S.I. Corporation only on 23-11-1988. By letter dated 7-2-89 respondent was directed to produce all records' before the E.S.I. Inspector for verification. The direction was com