P.N. Ravindran, J.

The order passed by the Employees Insurance Court, Alappuzha on 29.2.2008 in I.C.No.160 of 2001 is under challenge in this appeal filed by the Regional Director, Employees State Insurance Corporation, Thrissur. The brief facts of the case are as follows:

2. M/s. Jaymat Hotel Resorts Ltd., a company incorporated under the Companies Act, 1956, entered into an agreement with M/s. International Housing Complex to construct buildings and other structures in a parcel of land belonging to it. As per the terms of the agreement, the work was to be executed in two phases. In the first phase, a club building with 22 cottage rooms and in the second phase, another building with 100 rooms were to be constructed. The agreement between M/s. Jaymat Hotel Resorts Ltd. and M/s. International Housing Complex was entered into on 14.9.1991. The first phase of the construction was completed by September 1994 and the business of the company commenced thereafter. The employees working in the establishment, 20 in number, were covered.

3. When the second phase of the construction started, DW-2, an insurance inspector in the service of the Employees State Insurance Corporation inspec