GUJARAT NARMADA VALLEY FERTILIZERS CO. LTD. Vs. C. V. JOSEPH, JT. DIRECTOR, SUB-REGIONAL OFFICE, EMPLOYEES STA

JUDGEMENT

(1.) This is a wholly misconceived petition filed by the Gujarat Narmada Valley Fertilizers Company Limited (in short as "GNVFCL"), seeking to challenge the notice dtd. 23/1/2008 issued by the Employees' State Insurance Corporation (in short as "ESI Corporation"), asking the petitioner company to comply with the provisions of the Employees' State Insurance Act, 1948 ("ESI Act" in short), with respect to the contract workers engaged by the petitioner through the labour contractors.

(2.) A bare perusal of the notice itself indicates that there is a reference of a Government of India Notification dtd. 23/12/1993, whereunder it was provided that "Areas within the Municipal limits of City Bharuch, Taluka and District Bharuch and within the revenue and Panchayat limits of villages Bholav, Zadeshwar, Vadadla, Nandelav including Industrial Estate and GIDC Estate Bholav, Taluka and District Bharuch", came under the ESI Scheme with effect from 16/1/1994 and the said Notification clearly covers "Industrial Estates" and as such ESI Notified Areas are inclusive of Notified Centers of State Government of Gujarat.

(3.) The notice further states that ESI Scheme is applicable to the area in which the petitioner company, namely GNVFCL and M/s. Narmada Chematur Petrochemicals Limited (in short as "NCPL") are situated. It further clarifies that the exemption granted by the State Government is applicable only to regular employees of the petitioner company and the said exemption is not applicable to a large number of contract labourers engaged by the petitioner company. There is a reference of Sec. 40(1) of the ESI Act to assert that the Principal Employer is liable to pay contributions in respect of all contract employees. It was advised that in order to avoid any liability afterwards, the petitioner company shall take the following steps:-