DATTARAM ADVERTISING PRIVATE LIMITED Vs. REGIONAL DIRECTOR MAHARASHTRA EMPLOYEES STATE INSURANCE CORPORATION BOMBAY

JUDGEMENT

(1.) The Employees State Insurance Act, 1948 (the Act) is a welfare legislation designed to provide for certain benefits to employees in case of sickness, maternity and employment injury. Sub-section (3) of section 1 of the Act which deals with the commencement and territorial application provisions enables the Central Government by a notification in the Official Gazette to bring the Act into force for different States or for different parts thereof. The Act applied in the first instance to all factories but sub-section (5) of section 1 enables the State and Central Government to extend the provision of the Act to any other establishment or class of establishments by notification in the Official Gazette.

(2.) In exercise of powers conferred by sub-section (5) of section 1 of the Act the Government of Maharashtra issued a notification on 18-9-1978 extending with effect from 12-11-1978 all the provisions of the Act to classes of establishments given in the Schedule. Item 3 of para 3 of the schedule speaks of "shops" as a class of establishment to which the Act shall apply.

(3.) M/s. Dattaram Advertising Private Limited (the Company) of Ready money Mansion, Veer Nariman Road, Bombay purport to act as advertising consultants. They have been registered under the Bombay Shops and Establishment Act, 1948 and employ more than 20 workers. The Regional Director of Maharashtra Employees State Insurance Corporation (Corporation) held that the company is a shop within the meaning of notification dated 18-9-1978 issued by the Government of Maharashtra and as such the Employees State Insurance Act, 1948 applies to it. On this basis the Corporation claimed the employers special contribution and employees contribution together with interest as envisaged by the Act. An application under section 75 of the Act before the Employees State Insurance Court at Bombay having been dismissed the Company files the present appeal.