The main legal point established in the judgment is that apprentices, though working in the factory, are not considered employed for wages as in the case of a workman in the factory, and therefore, the employer is not liable to be covered under the Employees' State Insurance Act.

Headnote:
employee - apprentices - Employees' State Insurance Act, 1948, Factories Act, 1948, Industrial Disputes Act, 1947 - The court discussed the definition of 'employee' in S.2(9) of the Employees' State Insurance Act, the definition of 'factory' in S.2(12) of the Factories Act, and the definition of 'workman' in S.2(s) of the Industrial Disputes Act. The court analyzed the concept of 'employment' and 'engagement', the nature of apprenticeship, and the legislative intent behind the exclusion of apprentices from the definition of 'workman' in the Industrial Disputes Act. The court concluded that apprentices, though working in the factory, are not employed for wages as in the case of a workman in the factory, and therefore, the employer is not liable to be covered under the Employees' State Insurance Act.
Fact of the Case:

The case involved a dispute regarding whether an 'apprentice' is considered an 'employee' within the meaning of S.2(9) of the Employees' State Insurance Act, 1948.
Finding of the Court:

The court found that apprentices, though working in the factory, are not employed for wages as in the case of a workman in the factory, and therefore, the employer is not liable to be covered under the Employees' State Insurance Act.
Issues: The main issue was whether the term 'employee' in S.2(9) of the Employees' State Insurance Act is wide enough to include apprentices who work in the factory.
Ratio Decidendi: The court analyzed the concept of 'employment' and 'engagement', the nature of apprenticeship, and the legislative intent behind the exclusion of apprentices from the definition of 'workman' in the Industrial Disputes Act.
Final Decision: The court held that the employer is not liable to be covered under the Employees' State Insurance Act for the relevant period.

Judgment :-

1. The short question arising in this case is whether an 'apprentice' is an 'employee' within the meaning of that term in S.2 (9) of the Employees' State Insurance Act, 1948, (hereinafter referred to as the 'Act'). An employee is defined in that section as follows:

"'employee' means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies and

(i) who is directly employed by the principal employer on any work of, or incidental or preliminary to or connected with the work of the, factory or establishment, whether such work is done by the employee in the factory or establishment or elsewhere; or,

(ii) who is employed by or through an immediate employer on the premises of the factory or establishment or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the factory or establishment or which is preliminary to the work carried on in or incidental to the purpose of the factory or establishment; or

(iii) whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service; but does not include

(a) any member of the Indian Naval, Military or Air Forces; or

(b) any person employed on a remuneration which in the aggregate exceeds four hundred rupees a month;"

Factory' has been defined in S.2 (12) as follows:

"'Factory' means any premises including the precincts thereof whereon twenty or more persons are employed or were employed for wages on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so carried on but does not include a mine subject to the operation of the Indian Mines Act, 1923 (IV of 1923) or a railway running shed;"

It may be noticed here that the definition as it now appears in the statute book is as amended by Act 44 of 1966. Prior to such amendment in the place of the words "are employed or were employed for wages" the words "are working or were working" found a place. The definition of 'factory' in S.2 (m) of the Factories Act, 1948 runs:

"'Factory' means any premises including the precincts thereof

(i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or

(ii) whereon twenty or more workers are working or were working on any day of the preceding twelve months, and in any part, of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on

but does not include a mine subject to the operation of the Mines Act, 1952 (XXXV of 1952) or a railway running shed."

It may be noticed that the definition is more or less the same as the definition of the term in the Employees' State Insurance Act prior to its amendment by Act 44 of 1966 in so far as it referred to persons who were working and not persons who were employed. The term 'workman' is defined in S.2 (s) of the Industrial Disputes Act, 1947 to read:

"2 (s) 'workman' means any person (including an apprentice) employed in any industry to do any skilled or unskilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute or whose dismissal, discharge or retrenchment has led to that dispute; but does not include any such person

(i) who is subject to the Army Act. XLVI of 1950, or the Air Force Act, XLV of 1950, or the Navy (Discipline) Act, XXXIV of 1934; or

(ii) who is employed in the Police Service or as an officer or other employee of a prison; o

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