1. This appeal by special leave is directed against the judgment of the High Court of Kerala in M.F.A.No.800/90 dated 18-12-1990. The short facts leading to this appeal arc as under:

2. The respondent-Hotel is situated in Kaloor, Cochin-17. It is a commercial establishment. In July 1985 this establishment obtained a Bar licence whereupon a Bar was started. After running the business for some time it was closed down with effect from 31-3-1988.

3. The Insurance Inspectors of the appellant verified the records of the respondent-establishment on 29-9-87, 9-10-87 and 19-10-87. It was reported that the employment strength of the respondent-establishment including Chembaka Restaurant and Mayuri Bar was more than 19 as on 17-7-85. Therefore, it was treated as covered under the Employees' State Insurance Act, 1948 (hereinafter referred to as the Act) with effect from 11-7-85 provisionally. The fact of coverage was intimated to the respondent by notice dated 21-3-88. Since the final date of coverage could be decided only after verifying all the records pertaining to the date of functioning of the establishment, the respondent was requested to produce all the records such as attenda