This is an appeal against the Order of the learned District Judge of Coimbatore in Proceedings No. 1 of 1955 under the Employees’ State Insurance Act (XXXIV of 1948).

The respondents in this appeal who are employees of the Lotus Mills, Ltd. Podanur, made an application under section 75 and Regulation 40 of the Employees’ State Insurance Act for a declaration that the applicants-respondents were not employees liable to pay any contribution under the provisions of the Employees’ State Insurance Act. They also prayed for an order directing the Employees’ Mate Insurance Corporation to refund the contributions till now erroneously collected from the applicants till the date of the application. The first of the opposite parties was the Lotus Mills, Ltd. and the second was the Employees’ State Insurance Corporation. The Lotus Mills seem to have remained ex parte, while the Employees’ State Insurance Corporation filed a written statement raising various contentions as to the untenability of the application filed by the employees.

The learned District Judge framed three issues. The first one related to the question as to whether the applicants were the employees of the Lotus Mills Ltd