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M/S. QAZI NOORUL H.H.H. PETROL PUMP & ANR. versus DY. DIRECTOR, ESI CORPORATION

Citation: [2009] 11 S.C.R. 705 · Decided: 29-07-2009 · Supreme Court of India · Bench: MARKANDEY KATJU, H.L. DATTU · Disposal: Dismissed

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Judgment (excerpt)

(2009] 11 S.C.R. 705 
~ 
MIS. QAZI NOORUL H.H.H. PETROL PUMP & ANR. 
A 
V. 
DY. DIRECTOR, ESf CORPORATIO~ 
(Civil Appeal No. 5840 of 2004) 
JULY 29, 2009 
B 
[MARKANDEY KAT JU AND H.L. DATIU, JJ.] 
Employees' State lnsilrtmce Act, 1948: 
->I 
ss. 1(4), 2(12), 2(14-AA), 2(15-C), 45-C and 45-G -
c 
'Factory' - "Manufacturing process" - "Power" - Petrol Pump 
- Received order requiring it to make contribution under the 
Act - Plea that Petrol Pump was not 'factory' within the 
meaning of ss.1(4) 'and 2(12) of the Act - HELD: In view of 
ss.2(14-AA) and 2(15-C) of the Ac):, 'manufacturing process' 
D 
and 'power' are given the same meaning as under the 
, .... - .. 
Factories Act - Pumping the oil is a manufacturing process 
under s. 2(k) of the Factories Act - Petrol Pump does the work 
of pumping the oil -
Therefore, the Employees' State 
Insurance Act applies to it - Claim of Petrol Pump dismis~ed E 
- Factories Act, 1948 - s.2(k) - Interpretation of Statutes -
Uteral rule of interpretation. 
Interpretation of Statutes: 
ยท~ยท 
Literal rule of interpretation - HELD: Once the statute is 
F 
-.l 
clear, the literal rule of interpretation applies and there is no 
need to go into the object and intention of statute - Language 
used in s.2(k)(ii) of Factories Act is clear- Factories Act, 1948 
- s.2(k)(ii). 
Words and Phrases: 
G 
i 
Expression 'manufacturing process' - Occurring in s.2 
_,. 
~ 
(14-AA) of Employees' State lnsuranc& Act and s.2 (k) of 
Factories Act - Connotation of 
705 
H 
706 
SUPREME COURT REPORTS 
[2009] 11 S.C.R. 
A 
Word 'factory' occurring in s.2(12) of Employees' State 
~ 
Insurance Act - Connotation of. 
)o 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
5840 of 2004. 
B 
From the Judgment & Order dated 24.1.2003 of the High 
Court of Judicature at Allahabad in Civil Misc. Petition No. 
53564 of 2002. 
Dinesh Dwivedi, Prateek Dwivedi, Vandana Mishra 
lo. 
c Manish Kumar, Ashutosh Kr. Sharma (for Shail Kumar Dwivedi) 
for the' Appellants. 
V.J. Francis for the Respondents. 
The following Order of the Court was delivered 
D 
ORDER 
1. Heard learned counsel for the parties. 
"' 
~ 
2. This Appeal has been filed against the impugned 
E judgment of the Allahabad High Court dated 24th January, 2003 
passed in Civil Misc. Writ Petition No.53564 of 2002. By the 
impugned judgment, the High Court has dismissed the writ 
petition filed by the appellant herein. 
F 
3. The appellant is running a petrol pump (public retail 
outlet) for dispensing petrol/diesel. He filed the aforesaid Writ 
.. 
Petition No. 53564 of 2002 in the High Court of Allahabad 
challenging an order dated 17th October, 2002 issued by the 
Deputy Director, Employees State Insurance Corporation, 
G 
Regional Office, Kanpur directing the appellant to make 
contribution under the Employees' State Insurance Act, 1948 
(for short 'the Act') from August, 1993 to May, 2000 and interest 
on the aforesaid amount failing which recovery shall be issued 
" 
under Sections 45-C and 45-G of the Act. 
H 
4. The short question in this case is whether the appellant 
QAZI NOORUL H.H.H. PETROL PUMP & ANR. v. DY. 707 
DIRECTOR, ESI CORPORATION 
- ... 
is covered by the Act. Section 1 (4) of the Act states that the 
A 
Act, in the first instance, shall apply to all factories. Section 
2( 12) of the Act provides: 
"(12) "factory" means any premises including the precincts 
thereof~ 
B 
(a) whereon ten or more persons are employed or were 
employed for wages on any day of the preceding twelve 
months, and in any part of which a manufacturing process 
is being carried on with the aid of power er is ordinarily 
so carried on, or 
c 
(b) whereon twenty or more persons are employed or were 
employed for wages on any day of the preceding twelve 
months, and in any part of which a manufacturing process 
is being carried on without the aid of power or is ordinarily 
D 
- "' 
so carried on, but does not include a mine subject to the 
operation of the Mines Act, 1952 (35 of 1952) or a railway 
running shed;)" 
6. The expressions "manufacturing process'' as well as 
E 
"power" used in the Act have been given the same meaning 
as in the Factories Act, 1948, vide Sections 2(14-AA) and 
Section 2(15-C) of the Act. 
-
Section 2(k) of the Factories Act, 1948 defines 
~ 
"manufacturing process" as follows: 
F 
"(k) "manufacturing process" means process for-
(i) making, altering, repairing, ornamenting, finishing, 
packing, oiling, washing, cleaning, breaking up, 
demolishing,

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