LAWS(DLH)-2001-2-21

REGIONAL DIRECTOR EMPLOYEES STATE INSURANCE CORPORATION Vs. CAPITAL CO OPERATIVE INDUSTRIES SOCIETY LIMITED

Decided On February 02, 2001
REGIONAL DIRECTOR EMPLOYIS STATE INSURANCE CORPORATION Appellant
V/S
CAPITAL CO-OPERATIVE INDUSTRIES SOCIETY LIMITED Respondents

JUDGEMENT

(1.) These Appeals involving identical questions of law are being disposed of by this common order

(2.) Appellant raised a demand against respondent No. 1 for contribution under Employees' State Insurance Act. Respondent No. 1 resisted this by filing a Civil Writ petition for quashment of the demand on the ground that its members did not fall within the definition of "Employees" under Section 2(9) of the Act. The Writ Court formulated the question whether members of the producers Co-operative Society could be treated as "Employees" under the Act and after elaborate analysis and discussion of the relevant provisions of the Act and the Bye-laws of the society answered it in the negative. While doing so it concluded that they were neither employed, nor did they receive any wages and nor did the relationship of employer and employee existed between the Society and them.

(3.) Appellant feels aggrieved of this and has filed these appeals. Its counsel Mr. N.S. Bajwa submitted once the members of the Society were engaged in a commercial venture in an organised manner and were admittedly on probation that by itself prove that they were employees of the society attracting provisions of ESIA in the process. No other factor was pressed in service to show that these members were employed by someone and were paid any wages or that any relationship of an employer and employee existed between them and the society.