ESI CORPORATION HYDERABAD Vs. D NARASIAH

JUDGEMENT

(1.) This appeal is presented under Section 82 of the Employees' State Insurance Act (for short 'the Act'). The appellant initiated proceedings under the Act, against the respondent, stating that the latter was supplying labour to various agencies, including Medwin Hospital, Hyderabad, (for short 'the Hospital'), and though the number of persons engaged by the respondent was more than 20, he did not make any contribution under the Act. The respondent, in turn, opposed the claim, by stating that the principal employer is the hospital, and except that he arranged for employment of persons, there did not exist any relationship of employer and employee between him and the persons working in the hospital. Since that did not find favour with the appellant, the respondent approached the ESI Court- curn- Chairman, Industrial Tribunal-I, Hyderabad, by filing EI Case No.8 of 1998. The Tribunal allowed the case on 26.4.1999, and held that the respondent is not liable to pay any contribution. It was, however, left open to the appellant to demand the contribution from the principal employer, or to issue revised proceedings, in case it is found that the respondent has engaged any employees by himself .The said order is challenged in this appeal.

(2.) Heard the learned Counsel for the appellant and learned Counsel for the respondent.

(3.) Even from the description of the respondent, it is evident that he is only an individual, handling a manpower supply agency, in a way, he can be compared with, or equated to, an employment exchange. His principal activity is to supply the qualified persons to various hospitals, which, in turn, would employ them. It is but natural that he would be paid some amount as commission, or other charges.