REGIONAL DIRECTOR EMPLOYEES STATE INSURANCE CORPORATION Vs. PEERLESS GENERAL FINANCE AND INVESTMENT COMPANY LTD

JUDGEMENT

(1.) The respondent No. 1 in this appeal is an existing company within the meaning of the Companies Act, 1956 and claims to be carrying on business of promoting schemes for savings by small investors. The petitioner No. 2 claims to be a shareholder and also the Chairman and Managing Director of the Company.

(2.) On January 20, 1983 the State Government issued a Notification in exercise of the powers conferred under Section 1 (5) of the Employees State Insurance Act, 1948, hereinafter referred to in short as the "E.S.I. Act" extending the applicability of the said Act to 'shops' in the areas specified in the Schedule to the notification wherein twenty or more persons are employed or were employed for wages on any day of the preceding twelve months.

(3.) The said Notification was challenged by the respondents Nos. 1 and 2 in this appeal by way of a writ petition which was allowed by the learned Single Judge by his judgment and order dated February 15, 1991 upon holding that the impugned Notification did not apply to the respondent No. 1 Company and the appellants were directed not to take any further steps pursuant to the said Notification as far as the respondent No. 1 Company was concerned.