AYOOR KSHEERA VYAVASAYA CO-OPERATIVE Vs. INSURANCE INSPECTOR

JUDGEMENT

(1.) A Co -operative Society registered under the Kerala Co - operative Societies' Act, has been running a factory, which according to the Employees State Insurance Corporation (for short 'E.S.I. Corporation') is covered under the Employees State Insurance Act (for short 'E.S.I. Act'). The said Co -operative Society challenged the coverage through I.C. No.21 of 1999 before the Employees Insurance Court, Kollam. The I.C. was dismissed and consequently the establishment filed Insurance Appeal No.51 of 2006 before this court, contending that the said establishment is one under the control of the Government of Kerala and therefore, it cannot be covered within the meaning of Section 1(4) of E.S.I. Act. It was also contended that the Secretary of the said Co -operative Society was drawing a higher salary than the prescribed limit for coverage, and therefore, he could not be considered as an employee within the meaning of the E.S.I. Act. The Insurance Appeal No.51 of 2006 was allowed in part and the matter was remitted to the E.I. Court, Kollam for deciding the aforesaid question afresh. Again, the E.I. Court, vide judgment dated 10.2.2011 dismissed the I.C. by finding that the Co -operative Society in question is not an establishment under the control of the Government of Kerala and further that the Secretary of the said Co -operative Society is an employee within the meaning of the E.S.I. Act. The applicant has come up in appeal.

(2.) HEARD the learned counsel, Shri.R.Kishore, for the appellant and the learned standing counsel, Shri.R. Sandesh K. Raja, for the the E.S. I. Corporation.

(3.) THERE is absolutely nothing to show that the Co -operative Society which is a separate entity is under the control of the Government of Kerala. Of course, it is true that there is supervision by the Registrar of co -operative societies in the case of a Co -operative Society. It is true that the Registrar of Co -operative Societies can control the functioning of a Co -operative Society. The Registrar of Co -operative Society is not the Government of Kerala. Therefore, it cannot be said that a Co -operative Society on which the Registrar of Co -operative Society has supervisory control, is an establishment under the control of the Government of Kerala. As far as the employees are concerned, the Government of Kerala has no say in the appointment to the Co -operative Society. The appointments are at the will and pleasure of the Management of the concerned Co -operative Society; of course, under the minimal control of the Registrar of the co -operative societies. Merely because of the fact that certain guidelines are there for the functioning of the Co -operative Society, or some welfare measures are prescribed for the employees of the Co -operative Society, it cannot be said that the Government has control over the Co - operative Society. The co -operative societies are not under the control of the Government within the meaning of Section 1(4) of the E.S.I. Act.