S.P. VERMA Vs. REGIONAL DIRECTOR

JUDGEMENT

(1.) The Employees State Insurance Act, 1948 applies to all factories. The question in this appeal is whether the Appellant firm maintains a factory within the meaning of this Act and if so, where its factory is located. The learned Single Judge felt that the question has aroused divergence of judicial opinion in this country. There being no decision of this Court on the point the appeal was referred to a larger bench. That is how the appeal has been laid before this Bench.

(2.) The Appellant is the managing proprietor of Verma Electric Co., Aligarh. This firm manufactures table lamps and brackets. The offices of the firm are situate in Mamu Bhanja, Aligarh. At this place the Appellant employs thirteen to fourteen persons. Hence the table lamps and brackets are manufactured. The Appellant maintains another establishment at Madar Gate, Aligarh where seven persons are employed. At this place the lamps and brackets manufactured at Mamu Bhanja are polished up before being sent to the market.

(3.) The ESI Corporation, being of the opinion that the Appellant was maintaining a factory to which the ESI Act was applicable, demanded a contribution of Rs. 600/ - for the period from 18 -10 -1965 to 17 -10 -1966. The Appellant moved an application before the Employees Insurance Court, Aligarh praying for a declaration that its firm was not a factory within meaning of the Act and was not liable to pay the contribution. The Corporation contested the application.