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(i) APPLICABILITY OF THE ACT










• Factory - Hotel-Kitchen manufacturing process - Whether hotel falls within the purview of definition of factory?









Yes.









G.L. Hotels Ltd. v. T.E. Sarin, (1993) 4 SCC 363: 1994 SCC (L&S) 3: 1993 LLR 945 (SC).















• Applicability of provisions of the Act - Non-applicability of the provisions of the Act to an establishment in the cities of Calcutta and Bombay - Whether it can be contended that provisions of the Act cannot be made applicable to similar establishment in Madras? No. Such a contention has no legal foundation.









Employees' State Insurance Corporation v. Oxford University Press, 1993 LLR 450 (Mad HC).















• A club having kitchen will be treated as a factory and its employees will be covered under ESI Act.



Cricket Club of India v. Employees' State Insurance Corporation, (1994) 69 FLR 19: (1994) 1 LLN 644: 1994 LLR 333: 1993-1 LLJ 642 (Bom HC).















• A company providing air-cooling facilities to the tenants of a building by engaging more than 10 employees will attract applicability of ESI Act.









Employees' State Insurance Corporation v. Tiecicon Pvt. Ltd, Bombay, (1996) 1 LL) 504: 1995 LLR 768 (Bom HC).















• ESI Act will be applicable to a co-operative society having more than 20 employees.



Sindhi Sehiti M.P. Transport Coop. Society Ltd., Bhopal v. Regional Director, Employees' State Insurance Corporation, Indore, 1997 LLR 543 (MP HC).















• A god own away from the factory will come within the expression 'premises of the factory' for applicability and coverage under the ESI Act. .









Narashimha Mills Ltd., Coimbatore v. Regional Director, Employees' State Insurance Corporation, Madras, 2000 LLR 784 (Mad HC).















• A notification issued by a State Government under the ESI Act will extend to all branches of the said establishment situated even outside the State.









Transport Corporation of India v. Employees' State Insurance Corporation, 2000 LIC 203: AIR 2000 SC 238: (2000) 1 SCC 332: (2000) 1 LLJ 1: 2000 LLR 113 (SC).















• Three concerns will be clubbed together for ESI purposes when there is geographical unity and functional integrity.









Madona Textiles v. Employees' State Insurance Corporation. (2000) 1 SCC 332: 2000 SCC (L&S) 121: AIR 2000 SC 238: 2000 LIC 203: (2000) 1 LLN 70: 2000 LLR 1036 (Ker HC).















• Use of LPG for manufacture of sweets will be treated as power for applicability of ESI Act.



Employees' State Insurance Corporation, Bangalore v. Bhagatram & Sons, Bangalore, (2001) 4 Kant LJ 384: (2001) 11 LLJ 973: (2001) 111 CLR 189: 2001 LLR 1131 (Karn HC).















• ESI Act will apply on all branches of an establishment when total number exceeds 20.



Duvent Fans (Pvt.) Ltd. v. Regional Director, Employees' State Insurance Corporation, Bangalore, (2001) 3 LLN 1084: (2001) 11 LLJ 581: 2001 LLR 783 (Karn HC).















• Different sales and service outlets will be clubbed for applicability of ESI Act even when none employed 10 or more employees.



Southern Agencies v. Andhra Pradesh Employees' State Insurance Corporation, (2001) 1 LLN 633: (2001) 1 sec 411: AIR 2000 SC 3718: 2000 LIC 387: 2001 LLR 191 (SC).















• ESI Act will be applicable upon the employees working in sales depots and offices of Bata India since its factory is covered the Act.



Bata India Ltd., Calcutta v. Employees' State Insurance Corporation, 2003 LLR 1018: 2003-111 LLN 1069: 2003-III LLJ 716 (Cal HC).















• When there was no employer and employee relation between the steamer agent association and steamer watchman, the full bench of the High Court has set aside the order of the Employees' Insurance Court holding that the association was liable to get itself covered and registered under the ESI Act.



Eachin Steamer Agents Association v. Employees' State Insurance Corporation, 2004 (I) LL] 617 (Ker HC).















• A hotel, engaging more than 10 workers during the relevant period, will be covered under the ESI Act and as such the High Court has upheld the findings of the Employees' Insurance Court.



Udipi Sri Anand Bhavan v. Regional Director, Employees' State Insurance Corporation, 2004 (I) LLJ 647 (AP HC).















• Storing milk in the cold storage, collected by a cooperative society, will be the 'manufacturing process' for coverage under the ESI Act.



Vellipalaym Co-operative Milk Supply Society v. Regional Director, Employees' State Insurance Corporation, Madras, (2004) 2 CTC 494: (2004) 3 Mah LJ 315: (2004) II LLJ 885: 2004 LLR 887 (Mad HC).















• When a person provided with some space was running the canteen not under the Factories Act, there will be no liability for making payment of ESI contributions for such person(s).



Employees' State Insurance Corporation v. Chirala Cooperative Spinning Mills Ltd., 2005 LLR 591 (AP HC).















• A pathological tests carried on by a laboratory, attached to a hospital, would not come within the purview of 'manufacturing process' to attract its coverage under ESI Act.



Employees' State Insurance Corporation v. Duncan Gleneagles Hospital Ltd., (2005) 3 CHN 116: 2005 LLR (SN) 1071 (Cal HC).















• When ESI Act is not applicable to the Head Office, it could not be made applicable to branch offices.



H. Fillunger & Company Pvt. Ltd. Pune v. Employees' State Insurance Corporation, Pune, 2005 LLR 1165 (Bom HC).















• A petrol pump will be a factory to be covered under the Employees' State Insurance Act if ten or more persons are employed.



Choisons v. Employees' State Insurance Corporation, 2005 LLR 1119 (Ker HC).















• The coverage of a cinema theatre under the ESI Act was not justified when there was no evidence that 20 or more were employed therein.



Sitamahalakshmi Enterprises v. Regional Director, Employees State Insurance Corporation, Hyderabad, 2006 LLR 304 (AP HC).















• A restaurant, employing over 10 employees and using LPG cylinders, will be covered under the ESI Act.



Employees' State Insurance Corporation v. M/s. Volga Restaurant, 2006 LLR 476 (MP HC).















• ESI Act will not be applicable upon canteen worker of recreation club of employees.



Regional Director, Employees' State Insurance Corporation, Madras v. Godrej Soaps (Pvt.) Ltd. Madras, 2006 LLR 1191 (Mad HC).















• A hotel, with 11 employees, will be covered under the ESI Act when a fridge and water pump is used with power.



Hotel Chandra Mahal v. The Regional Director, ESI Corporation, 2007 LLR 877 (Raj HC).















• In the absence of functional integrality, two hotels cannot be clubbed for coverage under ESI Act.



Deputy Regional Director, Employees State Insurance Corporation, Bangalore v. Hotel Vijay, Mysore, 2007 LLR 895 (SN) (Karn HC).















• Non deposit of ESI contributions since Code Number was not allotted will not be justified.



Employees' State Insurance Corporation v. M/s. Jaiswal Rolling Mill, 2008 LLR 606 (Cal HC).















• ESI Act when extended by the State Government can be extended upon educational institutions even having minority status.



Maharishi Shiksha Sansthan v. State of U.P., 2009 LLR 98 (All HC).