ESIC Vs. POOPPALLY FOODS

JUDGEMENT

(1.) The Regional Director, ESI. Corporation, Trichur is the appellant. This appeal is filed against the order of the Employees' Insurance Court, Alleppey dated 3-11-1978 rendered in Insurance Case No. 34 of 1977. The respondent herein filed an application under S.76 and 77 read with S.75 of the Employees' State Insurance Act 1948 (Act 34 of 1948) before the Employees' Insurance Court. Alleppey and contended that it has no legal liability to pay the sums demanded by the appellant by letter dated 7-4-1977 towards contribution. The Employees' Insurance Court held that the respondent is not liable to pay any contribution to the ESI. Corporation. The Regional Director, ESI. Corporation, Trichur has come up in appeal. A resume of short facts essential for determining the points raised in this appeal are:

(2.) In the written-objection filed by the Regional Director, E.S.I. Corporation, Trichur, amongst others, it was stated that the Insurance Inspector who inspected the firm on 1-9-1975 found that the employees for peeling work were employed under Shri Joseph John, contractor of the firm; that the amount paid was debited as peeling charges; that the employees engaged by Joseph John were working at the premises of the firm and so they should be treated as employees of the firm and the applicant was the principal employer. It was contended that there is employer-employee relationship between the firm and the "peeling" workers.

(3.) The Employees' Insurance Court, exhaustively adverted to the evidence of Pw.1, Accountant of the respondent firm and Dw 1, Office Manager of the E. S. I. Corporation, Local Office, Chalakudy and held as follows: