E S I C Vs. MADRAS CRICKET CLUB

JUDGEMENT

(1.) The Employees' State Insurance Corporation has preferred the present appeal against the order dated April 12, 1989, passed by the E.S.I. Court (First Additional Judge, City Civil Court, Madras) in E.S.I.O.P. No. 35 of 1986.

(2.) The respondent viz., Madras Cricket Club has been established to provide for its members pastimes and games like cricket, hockey, lawn-tennis, etc. It was not established with any profit motive. Whatever amount collected by way of subscriptions or otherwise was applied solely towards the promotion of objects of the club and no portion of it was paid or transferred by way of dividend, bonus or otherwise to the members of the club. In order to provide refreshment to the members of the club during sports and games, the club was having the canteen inside the premises. The canteen is not open to the public, but restricted to the members of the club. The canteen or the work done by the employees of any canteen was only incidental to the primary objects for which the club is constituted, viz., for providing recreation and entertainment purposes. About 44 to 47 persons are employed in the canteen. The appellant herein, by notice dated March 25, 1985, informed the respondent that the club comes under the Employees' State Insurance Act with effect from January 1, 1985, for which the respondent sent a reply on May 2, 1985. After exchange of notices, the appellant issued a notice on December 27, 1985, in Form No. C-18 calling upon the respondent to pay Rs. 54,295 as contribution for the period from January 1, 1985 to September 30, 1985. The respondent sent a reply on January 1, 1986, and denied its liability. Thereafter, the appellant passed an order under Section 45-A of the Employees' State Insurance Act on March 25, 1986, calling upon the respondent to pay a sum of Rs. 54,295.24 as contribution for the period from January 1, 1985 to September 30, 1985. As against the same, the respondent filed an application under Section 75 of the Employees' State Insurance Act before the Employees' Insurance Court, Madras, in E.S.I.O.P. No. 35 of 1986.

(3.) The appellant, in its written statement, has stated that as per the preliminary inspection conducted by the Inspector of the appellant on February 7, 1985 and February 15, 1985, it was ascertained that 98 persons were employed for wages in the respondent's establishment. The club has catering department, including kitchen, using power for preparation and preservation of food items with 32 employees as their staff. The club has also shop which sells sports articles, etc. Section 2(12) of the Employees' State Insurance Act defines the term " factory" which runs as follows: