MUNICIPAL COMMITIEE, ABOHAR
v.
REGIONAL COMMISSIONER, E.S.I. CORPN. AND ANR.
FEBRUARY 2, 1996
[K. RAMASWAMY AND G.B. PATIANAIK, JJ.]
Labour laws :
Employee's State Insurance Act, 1948 :
A
B
S.45-A-Employees of Municipal Corporati01t-Working in water works C
department-Provided with health schem~Eligible to medical facilities and
reimbursement of amounts spent-Therefore coverage of the employees under
the Act is per se illegal.
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 3508 of D
1996.
From the Judgment and Order dated 5.10.93 of the Punjab &
Haryana High Court in F.A.O. No. 589 of 1993.
P.N. Puri for the Appellant.
V.K. Mehta for the Respondents.
The following Order of the Court was delivered :
Leave granted.
E
F
This appeal by special leave arises from the order of the High Court
of Punjab and Haryana dated 5.10.1993 in F.A.O. No. 589/93 dismissing
the appeal as usual in limine. The admitted facts are that the appellant-
Municipal Committee has been running water works known as Patel Water
Works. The employees working in the Water Department are now sought
to be covered under the provisions of the Employees' State Insurance Act, G
1948 (for short 'the Act'). When notice was issued to the appellant, they
objected to the coverage of employees under the Act. Therefore, an order
has been passed under Section 45-A of the Act. Challenging thereto, an
appeal was filed under Section _75 of the Act. The insurance Court has
confirmed that the employees are covered under the Act. Accordingly, H
83
84
SUPREME COURT REPORTS
(1996) 2S;C.R. I
A · when challenged, the high Court in the first appeal dismissed the same.
- B
c
Thus this appeal by special leave.
The question is whether the employees of the Municipal Corporation
are also covered under the Act? The employees of the Corporation are
governed by the statutory rules made under the Act and in some cases in
other States the benefits of the Govt. scales of pay etc. have been extended.
However, the fact remains that they are provided with the health scheme
and also eligible to medical facilities and reimbursement of the ·amounts
spent by the
1 concerned employees. Under these circumstances, the
coverage of e_mployees under the Act per se illegal.
I
The appeal is accordingly allowed. No costs.
/
G.N.
Appeal allowed.
):
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Lex