The Employees' State Insurance Act is a comprehensive legislation providing a basic level of benefits to employees, and it cannot be overridden by a Special Act providing similar benefits.

Govardhan, J

1. This appeal is against the order passed by the E. S. I. Judge, Tirunelveli dismissing the E. S. I. O. P. No. 3 of 1983 filed under Section75 of the Employees' State Insurance Act.

2. The appellant's case is briefly as follows : There were never more than 20 persons employed in the applicants' establishment. The applicant cannot be stated as a 'factory' under any law. The Employees' State insurance Act is not applicable to the applicant. As per the Beedi Workers' Welfare Fund Act, 10 paise per 1,000 beedies is being paid to help the beedi workers. Therefore directing the applicant to pay contribution under any other Act is not valid. While so, the Regional Director, Employees' State Insurance Corporation has written several letters commencing from 23-7-1981 demanding contribution of Rs. 19,485.50 by the applicant. On the explanation given by the applicant, it was reduced to Rs. 9,725. The application is for declaration that the said amount should not be collected from the applicant.

3. The respondent in their objections, have stated that there were more than 20 employees in the applicant factory and therefore contribution was demanded after issuing necessary notice. After enquiry the learned District Judge (E. S. I. Judge) dismissed the application holding that the applicant has employed more than 20 persons and is liable to pay contribution and they cannot claim any exemption under any other Act.

4. Aggrieved over the same, the applicant has come forward with this appeal.

5. The learned counsel appearing for the appellant would argue that the order passed by the E. S. I. Judge is liable to be set aside on the ground that there was no notice to produce records before passing an order under Section 45-A of the Employees' State Insurance act and that the applicant is making payment for the welfare of the workers under him under the Beedi Workers Welfare Benefit Fund which is a Special Act and therefore no contribution could be demanded under the Employees' State Insurance Act which is the General Act since benefits contemplated under the Employees' State Insurance Act are already made available to the workers and the learned District Judge has committed an error in holding that there are more than 20 workers employed by drawing and adverse inference and the error committed by him is drawing an adverse inference with regard to the number of persons.6. The learned counsel appearing for the respondent would argue that there are mire than 20 workers which is admitted even by P. W. 1. The only witness examined on behalf of the applicant and therefore the contention of the appellant that the applicant does not come under the definition of 'factory' is not tenable. P. W. 1 has stated in chief, that there were never 20 employees employed under their institution. During cross-examination, he would say that if the Salary Register of the applicant is perused how many persons were working in the applicant-institution can be found out and that the Salary Registers were periodically inspected by the Labour Inspectors. But P. W. 1 admits that those Registers are not produced by him. It is also Stated by P. W. 1 that there is an Attendance Register in their institution and would claim that four persons by name Vaithilingam, Muthaliff, Perumal and Joseph are not their employees. If it were so, there is no reason as to why the Attendance Register has not been produced to show that these four persons were not their employees. Admittedly by P. W. 1, when the inspector from the Employees' State Insurance Corporation inspected their institution, he was there and the Inspector had perused the Ledger, Vouchers for payment of salary which are produced by him. But, he would say that he does not know whether the report has been made on the basis of these Registers produced by him. The evidence of P. W. 1 itself thus shows that there should be more than 20 persons. P. W. 1 the Manager of the Employees' State Insurance Corporation who