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2007 Supreme(Mad) 2286

P.JYOTHIMANI, A.P.SHAH, PRABHA SRIDEVAN
E. S. I. Corporation, rep. by its Regional Director, Madras – Appellant
Versus
Bethall Engineering Company, rep. by Mrs. S. V. Umayal, Madras – Respondent


Advocates:
For the Appellant:R. Vaigai, assisted, S. Vaithyanathan, G. Desappan, Advocate. For the Respondent: A.L. Somayaji, SC, asstd, S. Ravindran,
T.S. Gopalan & Co, Advocate.

Judgment :-

The learned single Judge has made this reference to the Larger Bench as he felt that there is an apparent conflict between the two Division Bench Judgments of this Court as regards the issue whether the right of the principal employer to reject or accept work on completion, on scrutinizing compliance with job requirements, as accomplished by a contractor, the immediate employer, through his employees, is in itself an effective and meaningful supervision as envisaged under Section 2(9) of the Employees State Insurance Act, 1948 (for brevitys sake, hereinafter will be referred to as the Act).

.2. The facts leading to this reference may be stated shortly. The Southern Railway

.placed orders in respect of certain engineering works with the respondent and for execution of the works, the respondent used to assign some job work to outside parties by supply of materials. The outside parties were having their own establishment and employees. According to the respondent, the work was done on the specifications provided by the respondent at the premises of the third parties under their own supervision and control and the parties were paid on the basis of job works done by them a























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