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FACTORY-DEFINITION-NUMBER OF WORKMEN(Coverage under the Act). - The Employees’ State Insurance Act, 1948

An inspection was carried out on 30.3.89 at the establishment of respondents and it was found that there were more than 10 employees working with the respondent. It was found by the Authority under the Act that the establishment was covered under the Act. On challenge, the ESI Court held that for the period under assessment i.e. from October 1989 to June 1991, number of employees were less than 10 and therefore the respondent was not covered under the definition of 'Factory'. The ESIC has challenged the said order of ESI Court in the. Present petition. The Court examined the issue whether the respondent is a factory and covered under the provisions of the Act.

The Court held that Respondent had more than requisite number of employees in a period of 12 months prior to alleged date. In view of amendment of S.2(12) w.e.f. 20.10.1981, respondent would be covered under the definition of 'factory' as laid out in section 2(12). Respondent would continue to be eligible to same even if number of employees fell below 10 for any subsequent years in view of S.16 of the Act. Appeal allowed and impugned order set aside. 

-H.C.P.&H., ESIC v. Preet Mohinder Singh, Prop Roxy Bar and Restaurant. 

THE EMPLOYEES' STATE INSURANCE ACT, 1948

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