PONDICHERRY STATE WEAVERS CO OPERATIVE SOCIETY Vs. REGIONAL DIRECTOR EMPLOYEES STATE INSURANCE CORPORATION MADRAS

JUDGEMENT

(1.) This appeal is directed against the order of the Employees' State Insurance Court at Pondicherry in E.S.I. O.P. No. 2 of 1978.

(2.) The appellant filed an application under S. 75(1)(g) of the Employees' State Insurance Act of 1948 for a declaration, that the said Act is not applicable to it. Its contention was that if was a registered co-operative society of weavers, that though weavers come and work in the factory owned by the Society, the payment made to them for the work done cannot be taken to be "wages" and that they cannot be taken as "employees", whatever is paid to them should be taken to be dividend and not wages. Thus, the contention of the appellant-society on the basis of which the relief set out above was claimed, was that all the alleged employees are the members of the Society and whatever was paid to them towards the work done by them has to be taken as dividend and not as wages.

(3.) The application was opposed by the Employees' State Insurance Corporation on the ground that the Act is intended to cover all persons who receive wages for the work done by them, that merely because the workers happen to be shareholders of the Society they do not cease to be workers and that the wages paid to them cannot be taken to be dividends.