EMPLOYEES OF NATIONAL TEXTILE CORPORATION APKK AND M LTD Vs. REGIONAL DIRECTOR ESI CORPORATION BANGALORE

JUDGEMENT

(1.) having regard to the nature of the points arising for our decision in this appeal, we heard the learned counsel appearing for both the parties on the merits of (his appeal and are proceeding to decide the appeal at the slagc of admission itself.

(2.) this is an appeal filed by the employees' union of the employees employed in the office of the national textile corporation (apkk & m) limited, Bangalore (for short 'the employees' union'), under Section 82(2) of the Employees' State Insurance Act, 1948 (for short 'the esi act'), against the order dated 6-1-1991 made by the employees state insurance court (for short 'the insurance court') rejecting their esi application No. 3/1985 in which (hey had sought for a declaration that no contribution was liable to be paid to the employees' state insurance corporation (for short 'the esi corporation') under the esi act for the employees employed in the office of the national textile corporation (apkk & m) ltd., at Bangalore (for short 'the ntc (apkk & m) ltd'.).

(3.) the material facts, which have given rise to the filing of this appeal, may brieflybe staled as follows: the ntc (apkk & m) ltd., has to be regarded as a subsidiary corporation of national textile corporation by operation of Section 6(1) of the sick textile under- takings (nationalisation) Act, 1974 (for short 'the act'), is not disputed. The employees of the ntc (apkk & m) ltd., evcntbougb were erstwhile employees of the sick textiles undertakings in the areas of andhra pradesh, Karnataka and maharashtra, became the employees of the subsidiary corporation ntc (apkk . & m) ltd., by operation of Section 16 of the Act, is also not disputed. The ntc (apkk & m) ltd., is a corporation respecting which the esi act is operating eversince 1-2-1975, is, as well, not disputed. The esi contribution respecting the employees of the office of ntc (apkk & m) ltd., was collected by the esi corporation along wilh such contribution collected respecting the employees of the ntc (apkk & m) ltd., in its factories or mills till the year 1985, is admitted. Application respecting which the order under appeal is made, is said to have been tiled by the employees union in the year 1985, when its application for claiming exemption 'under sections 88,90 and 91-a of the esi act respecting the office employees of the ntc (apkk & m) ltd., made to the state government through the esi corporation, was rejected by the latter itself. The prayers made in that application were: