LexaceLexace Ask the AI ›
⚖️ Ask the AI about your situation:🚗 Car Accident💼 Work / Job🏠 Housing / Eviction👪 Family / Divorce📋 Contract Dispute💰 Money Owed

NAGPUR ELECTRIC LIGHT & POWER CO., LTD. versus REGIONAL DIRECTOR EMPLOYEES STATE INSURANCE CORPORATION, ETC.

Citation: [1967] 3 S.C.R. 92 · Decided: 02-03-1967 · Supreme Court of India · Bench: K.N. WANCHOO · Disposal: Dismissed

Cited by 6 judgment(s) · see the full citation network in Lexace

Open in Lexace · Ask the AI about this case

Judgment (excerpt)

NAGPUR ELECTRIC LIGHT & POWER CO., LTD. 
A. 
v. 
REGIONAL DIRECTOR EMPLOYEES STATE INSURANCE 
CORPORATION, ETC. 
March 2, 1967 
(K. N. WANCHOO, R. S. BACHAWAT AND V. BHARGAVA, JJ.] 
Employees State Insurance Act (34 of 1948), ss. 2(9) and 2(12)-
Factory, area comprised in-Company trari'sferring and transmitting elec-
tricity-Workers doing non-manual work whether 'employees' within the 
meaning of s. 2(9), 
The appellant company carried on the work of transforming 
and 
transmitting electrical energy. There was dispute between the company 
and the respondent whether certain employees of the col1)pany like engi-
neers, draughtsmen, clerks, accountants, 
ete. mentioned in Appendices 
111, IV and V of the company's petition before the Employees' Insurance 
Court, were 'Employees' or not wi'hin the meaning of s. 2(9) of the 
Employees Insurance Ac', 1948. The Employees Insurance Court held 
the said workers to be employees under s. 2(9) and this finding was 
confirmed by the Single Judge as well as the Division Bench of the High 
Court. The company appealed to this Court by special leave. 
HELD : (i) The pre.mises of the company were a factory within the 
meaning of the Employees St.ate Imurance Act but the High Court was 
wrong in laying down the proposition that every inch of the area over 
which the transmission lines were spread was a factory w'.thin the mean-
ing of s. 2(12). The company's factory had a fixed s te and was located 
within the compound wall of its premises. (96 E, HJ 
(ii) All the employees of the disputed categories clerks or otherwise-
were employed in connection with the work of the factory, that is to 
'Say, in connectio11 with the work of transforming and tran~mitting elec-
trical power. 
Some of the employees were 
not engaged in manual 
labour. 
But a person doing: non-manual work can be an employee with-
in the meaning of s. 2(9) (i) if he is employed in connection with the 
work of the factory. 
The duties of the adm;nis•rn•ive staff are directly 
connected within the work of the factory. (99 C, OJ 
Even those employees who worked outside 
the factory but whose 
duties were connected with the work of the .- factory 
were 
employees 
within the meaning of s. 2(9)(i). Among 
such employees were to be 
included those att~nding to sub-stations of the factory. (100 Al 
Ardeshir H. Bhiwaniwala v. The State of Bomhay, [1961] 3 S.C.R. 
542, State of Uttm Pradesh v. M. P. Sin~h, [19601 2 S.C.R. 605 and 
Employee<' State ln.rurance Corporation, Bombay v. Raman, 
[19571 1 
L.L.J. 26.7. referrd to. 
CIVIL APPELLATE JuRISDICTIOK: 
Civil Appeals Nos. 491 
and 492 of 1965. 
Appeals by special leave from the orders dated September 
17, 1963 of the Bombay High Court Nagpur Bench in Letters 
Patent Appeals Nos. 14 and 15 of 1963. 
c 
D 
E 
F 
G 
H 
NAGPUR ELECTRIC co. v. E.S.I.C. (Bachawat, !.) 
93 
A 
S. V. Gupte, Solicitor-General and I. N. Shroff, for the appel· 
!ant (in C.A. No. 491 of 1965). 
A. G. Ratnaparkhi, for the appellants (in C.A. No. 492 of 
1965). 
Bishan Narain, M. L. Kapur and I. S. Saw/mey, for the res-
B 
pondents Nos.I and 2 (in C.As. Nos. 491 and 492 of 1965). 
c 
D 
E 
F 
G 
H 
I. N .. Shrofj, for respondent No. 1 (in C.A. No. 492 of 1965). 
The Judgment of the Court was delivered by 
l>achawat, J. 
The question in issue in these appeals is whether 
certain ernpio)'ces of che Nagpur Elcc;ric Light & Power Co. Ltd .. 
arc employees within the meaning of s. 2( 9) of the Employee," 
State h;ur.111cc Act, ! 9-~3 ( 34 o: 19+8). 
'lhc company a11d the 
employee; I.led two s~_parate applications before the Employees' 
Insurance Court unuer s. i5 of the Act for ,he determination of 
the que1tion. 
Their ca'.:e i> that out of the five categ,1ries of staff 
menLoncJ ia appendices 1 to 5 to the company's petition, th'"" 
connectcJ wit\1 the receiving stution and workshop ( appenuice< 
I and 2 l were employees "ithin the meaning o[ s. 2 ( 9). but \hos~ 
connccteJ \Vith th~ engineering, s~ore.s anJ outJoor \\·ork. n1cter. 
con:-1u111ers. and ,1llncation d..;par~n1enls and <.1Jn1ini~tralion ( appen-
dices 3, 4 and 5) 11erc not such employees. 
The Regiunal Direc-
tor, Employees State l nsurancc Corparation contested the applica 
tions. but he uJmitte'.l lhat the wmkcrs of the categories mentiond 
in items 5 _to 14 of arpcndix 4 and items I. 7 ai1u 8 of appendix 
5 were not employees within the me:rning oi s. 2(9). 
The Em-
ployees ln:;urancc Court found that those workers and also the 
worker, mentione

Excerpt shown. Read the full judgment & AI analysis in Lexace.