CLUBBING OF ESTABLISHMENTS

When and what circumstances two or more establishments at different places will constitute, one establishment to attract the applicability of E.S.I.?

 

Where a firm' manufactured its products in a workshop employing 13 person in one workshop and seven persons for polish­ing the products at a different place. The two workshops together constituted a factory to which E.S.I. Act was held to be applicable. Separate buildings, even though located as some distance when used for one continuous manufacturing process will constitute a single factory under E.S.1. Act. In another case it has been held by Madras High Court that though the work was being done at two different premises but the entire work has been one process hence the strength of both the units will be counted for the applicability of the Act.²

1.S.P. Varma vs. E.S.I Corporation, (1973) (44) FJR17 (All.H.C). Also see Agents and Manufacturers, Delhi vs. The Employees Slate Insurance Corporation, New Delhi and others, 1973(9) DLT 500 (Delhi HC).

2.A-I Plastic Firm Vs. Regional Director Employees State Insurance Corporation, Madras, 1993 LLR 156.