OSMANIA UNIVERSITY versus REGIONAL DIRECTOR, EMPLOYEES STATE INSURANCE CORPORATION, ANDHRA PRADESH AND ORS.

Citation: [1985] SUPP. 3 S.C.R. 589 · Decided: 08-10-1985 · Supreme Court of India · Bench: O. CHINNAPPA REDDY · Disposal: Dismissed
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Judgment (excerpt)

OSMANIA 1JNIVl!RSITY 
v. 
Rl!GIONAL DIRECTOR, l!MPLOlll!S 
STATE INSURANCE CORPOllATION; 
ANDHRA PRADESH AND ORS. 
OCTOBER 8, 1985 
589 
(O. CHINNAPPA REDDY, V. BALAKRISHNA ERADI AND V. KHALID, JJ.] 
Employees' State Insurance Act, 1948 Sections 1 (4) and 
2(12). 
PUblications and Press Department of University - Running 
printing press 
and printing of text books, 
journals and 
stationery items for University - Employees of such Department 
whether eligible for benefits of ESI Act. 
Words & Phrases 
'Factory'- 'Manufacturing process'- Meaning of - Employees' 
State Insurance Act, 1948, Section 2(12). 
A 
B 
c 
D 
The Department of PUblications and Ptess of the Osmani& 
E 
University (Appellant) I'Ull8 printing presses, where the work of 
printing of text books, journals and magazines as well u various 
items of stationery such as admission fol'llS to colleges, hostela 
and examinations, hall tickets, answer books etc. for the 
University are printed. About 100 persona are employed in 
connection with the said activity. 
On the question 1 whether the provisions of the Employees' 
State Insurance Act, 1948 are applicable in respect of the 
employees working in the Department of PUblications and Ptesses, 
a Division Bench of the High Court answered the question in the 
affirmative, set aside the judganent of a Single Judge, and 
F 
di8111issed the Writ Petition of the University. 
G 
Di8111issing the Appeal of the University, this Court, 
BEW: The Department of Pliblications and Pte1& of the 
University is engaged in carrying on a 'manufacturing procese' in 
the printing of text-books, journals, forms and other i teu of 
H 
A 
B 
c 
D 
E 
F 
G 
H 
590 
SUPREME COURT REPORTS 
[1985] SUPP.3 s.c.R. 
stationery. It is a 'factory' within the meaning of the said 
expression as defined in section 2(12) of the Employees' State 
Insurance Act, 1948. The employees are therefore eligible for the 
benefits under the said Act. [592 A] 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1079 of 
1973. 
From the Judgment and Order dated 16.11.1972 of the Andhra 
Pradesh High Court in Writ Appeal No. 345 of 1972, 
B.R.L, Iyengar, G.N. Rao, T.C. Gupta and Attar Singh for 
the Appellant. 
M.S. Gujral, C.V. Subba Rao, R,N, Poddar and T.C. Sharma 
for the Respondents. 
The Judgment of the Court was delivered by 
BALAKRISHNA ERADI, J, : The short question that arises for 
our determination in this appeal, which has been filed on the 
basis of a certificate granted by the High Court of Andhra 
Pradesh is whether the provisions of the Employees' State 
Insurance Act, 1948 are applicable in respect of the employees 
working in the Department of Publications and Press of the 
Osmania University, A llivision Bench of the High Court has 
answered the said question in the affirmative differing from the 
contrary view expressed by a learned Single Judge, who had 
allowed a Writ Petition filed by the University. In the light of 
the said conclusion, the Division Bench set aside the judgment of 
the learned Single Judge and dismissed the Writ Petition. Under 
clause ( 4) of Section l of the Employees' State Insurance Act, 
1948 (for short 'the act') the Act will apply to all 'factories' 
including factories belonging to the Government other than 
seasonal factories. The expression hfactory" has been defined in 
Section 2(12) of the Act in the following terms:-
"2(12) "factory" means any premises including the 
precincts thereof 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 with the aid 
of power or is ordinarily 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; 
OSMANIA UNIVERSITY v. E. S. I. CORPN. [BALAKRISllNA ERADI, J] 
591 
"seasonal factory" means a factory which is exclusive-
A 
ly engaged in one or more of the following manuf actur-
ing processes, namely cotton ginning, cotton or jute 
pressing, decortication of groundnuts, the manufacture 
of coffee, indigo, lac, rubber, sugar (including gur) 
or tea or any manufacturing process which is inci-
dental to or connected with any of the aforesaid 
B 
processes; 
(and includes a factory which is engaged for a period 
not exceeding seven months in a year -
(a) in any process of blending, packing, or repacking 
C 
of tea or coffee; or 
(b) in such other manufacturing process as th
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