* THE HONOURABLE SRI JUSTICE RAVI NATH TILHARI

*THE HONOURABLE SRI JUSTICE CHALLA GUNARANJAN

CIVIL MISCELLANEOUS APPEAL No. 498 of 2008

% 09.05.2025

# The Regional Director, ESI Corporation

……Petitioner

And:

$1. K.S.R.Cotton Mills Pvt.Ltd., &

another

….Respondents.

!Counsel for the petitioner : Sri Venna Kalyan Chakravarhi

rep. Sri U.R.P.Srinivas

^Counsel for the respondent :

>Head Note:

? Cases referred:

1. 1980 SCC OnLine AP 45

2. 2014 AIR SCW 6214

3. AIR 2015 Hyderabad 134

4. AIR 2008 Himachal Pradesh 53

5. 2004 AIR SCW 4326

6. AIR Online 2023 SC 52

7. FAO No.1112 of 1988 and batch decided on 06.11.2024

By High Court of Punjab and Haryana at Chandigarh.

8. 2025 SCC OnLine AP 1313

HIGH COURT OF ANDHRA PRADESH AT AMARAVATI * * * *

CIVIL MISCELLANEOUS APPEAL No. 498 of 2008 DATE OF JUDGMENT PRONOUNCED: 09.05.2025 SUBMITTED FOR APPROVAL:

THE HON'BLE SRI JUSTICE RAVI NATH TILHARI &

THE HONOURABLE SRI JUSTICE CHALLA GUNARANJAN 1. Whether Reporters of Local newspapers Yes/No may be allowed to see the Judgments?

2. Whether the copies of judgment may be Yes/No marked to Law Reporters/Journals

3. Whether Your Lordships wish to see the fair Yes/No copy of the Judgment?

____________________

RAVI NATH TILHARI,J _______________________

CHALLA GUNARANJAN,J THE HONOURABLE SRI JUSTICE RAVI NATH TILHARI THE HONOURABLE SRI JUSTICE CHALLA GUNARANJAN CIVIL MISCELLANEOUS APPEAL NO: 498/2008 JUDGMENT:- (per Hon’ble Sri Justice Ravi Nath Tilhari)

Heard Sri Venna kalyan Chakravarthi, learned counsel representing Sri U.R.P.Srinivas, learned Standing Counsel for the appellant-ESI Corporation.

2. No representation for the respondents.

3. This appeal under Section 82 of the Employees‟ State Insurance Act, 1948 (in short „ESI Act‟)has been filed by the Regional Director of ESI Corporation challenging the order dated 29.03.2007 in ESI O.P.No.7 of 1998 passed by the Presiding Officer, Labour Court, Guntur.

4. The respondent No.1 – K.S.R Cotton Mills Private Limited filed petition being ESI O.P.No.7 of 1998 under Section 75 of ESI Act with the prayer to declare it as seasonal factory and not covered under the ESI Act. The respondent No.1 is a company incorporated under Indian Company‟s Act situated at Etukur Road. The case set up was that it dealt in pressing the lint into bales which is exclusively a seasonal one and it used to function hardly for 2 to 3 months in a year. It was depending upon the availability of ginned cotton. It was a seasonal factory within the meaning of Section 2(19A) of ESI Act. The respondent No.1 in ESI/the present appellant issued a letter dated 15.10.1997 stating as if it was factory covered under ESI Act. The respondent No.1 herein was not given any opportunity. After sometime, the appellant also sent a letter dated 08.01.1998 demanding for production of records, which was duly replied by respondent No.1 on 14.02.1998 submitting interalia that respondent No.1 factory was seasonal factory and was exempted from the purview of ESI Act.

5. The appellant/respondent No.1 in ESI OP filed counter. The case set up was that the inspector of the Regional Director, ESI Corporation visited the establishment on 10.02.1997 and verified Form-01 submitted by the factory. It was found that there were more than 10 workers employed from 07.01.1995 to February, 1997. Respondent No.1 was also engaged in a commercial activity of purchase and sale of ginned cotton and seeds. The establishment was covered under Section 2(12) of ESI Act but the respondent No.1 did not comply with the provisions of the ESI Act. Consequently the notice dated 12-02-1999 was issued. 6. The learned Presiding Officer, Labour Court, Guntur framed the following points for consideration:

“i) Whether the petitioner is a seasonal factory within the meaning of Section 2(19A) or shop within the meaning of Section 1(5) read with G.O.Ms.No.187, dated 02.03.1978?

ii) To what relief the petitioner is entitled to?”

7. On behalf of petitioner in ESI OP (respondent No.1 herein), D.Sivaram Prasad was examined as PW1 and on behal