ROYAL WESTERN INDIA TURF CLUB LTD. versus E.S.I. CORPORATION & ORS.

Citation: [2016] 1 S.C.R. 1045 · Decided: 29-02-2016 · Supreme Court of India · Bench: V. GOPALA GOWDA · Disposal: Appeal(s) allowed

Judgment (excerpt)

[2016] 1 S.C.R. I 045 
ROYAL WESTERN INDIA TURF CLUB LTD. 
v. 
E.S.I. CORPORATION & ORS. 
(Civil Appeal No. 49 of2006 etc.) 
FEBRUARY 29, 2016 
[V. GOPALA GOWDA AND ARUN MISHRA, JJ.] 
Employees' State Insurance Act, 1948 - s. 2(9) - Definition 
of 'employee' - Whether would cover 'casual workers' - Held: In 
view of ss. 2(22), 2(27) of the ES/ Act; r. 2(2A) of ES/ (Central) 
Rules; and Regulation 36 of ES/ (General) Regulations, 'Casual 
Workers' would be covered by the definition of 'employee' in s. 2(9) 
- Employees' State Insurance (Central) Rules, 1950 - r. 2(2A) -
employees' State Insurance (General) Regulations, 1950-:;: ~g. 33. 
Allowing the appeals preferred by ESI Corporation, the 
Court 
HELD: 1.1. The definition of "employee" under s. 2(9) of 
Employees State Insurance Act, 1948 is very wide. A person who 
is employed for wages in the factory or establishment on any work 
of, or incidental or preliminary to or connected with the work is 
covered. The definition brings various types of employees within 
its ken. The Act is a welfare legislation and '8 required to be 
interpreted so as to ensure extension of benefits to the 
employees and l.IOt to deprive them of the same which are available 
under the Act. [Para .5][1049-F; 1050-G-H] 
1.2 A bare reading of th~ aforesaid provisions makes it 
clear that it would cover the "casual employees" employed for a 
few days on a work of perennial nature and wages as defined in 
section 2(22) and wage period as defined in section 2(23) does 
not exclude the wages payable to casual workers. They ·cannot 
be deprived of the beneficial provisions of the Act. [Para 8] 
[1053-C] 
1.3 Section 39 deals with the contribution payable under 
the Act with respect to the employee in respect of each "wage 
period" shall ordinarily fall due on the last day of the wage period, 
and where an employee is employed for "part" of the wage period 
1045 
A 
B 
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D 
E 
F 
G 
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1046 
SUPREME COURT REPORTS 
(20 l 6] l S.C.R. 
A or is employed under two or more employers during the same 
wage period, the contributions shall fall due on such days as may 
be specified in the Regulations. It is apparent from section 39 of 
Employees State Insurance Act, 1948 that an employee who is 
employed for a part of the wage period is also covered for the 
B 
c 
purposes of contribution. It is also provided in section 39(5) that 
in case contribution is not paid, it shall carry 12% interest per 
annum or such higher rate as may be specified in the Regulations 
till the date of actual payment and the amount is recoverable as 
arrears of land revenue. S. 42 also does not prescribe that 
employee has to work for a particular period for availing benefit 
of the said provision. [Paras 6 and 7][1051-A-B; 1052-A-B, C-E] 
1.4 Rule 2(2A) of Employees' State Insurance (Central) 
Rules, 1950 provides period not exceeding six consecutive 
months as "contribution period", no minimum period has been 
prescribed. The Rule· 2(2A) cannot be interpreted to mean that if 
D an employee has worked for a lesser period he is not entitled for 
the coverage under the Act. [Para 9][1053-E] 
1.5 Regulation 36 of Employees' State Insurance (General) 
Regulations, 1950 also makes it clear that when an employee is 
employed by an employer for a part of the wage period, the 
E" contribution in respect of such wage period shall fall due on the 
last date of the employment in that wage period. The intendment 
of regulation is clear to cover work rendered in part of wage 
period. [Para 10][1053-G-H] 
1.6 It cannot be said that casual workers·are not covered 
F under the ambit of Employees' State Insurance Act. The 
employees' work for the day of racing which is perennial activity 
of Royal Turf Club and in view of the provisions of the Act, Rules, 
Regulations and notification dated 18.9.1978, there is no doubt 
that such employees are covered arid consequently are entitled 
G 
H 
for benefit of the Act. [Paras 11 and 12][1056-D-F] 
I. 7 The ESI Corporation cannot be held bound by the 
consent terms, in Application (ESI) No.16/1976 filed by the Turf 
Club. In the aforesaid case the period involved was as specified 
in the notification dated 26.2.1976 which w11s prior and not related 
to the period in question 1978-79 to 1982-83 involved in C.A. 
ROYAL WESTERN INDIA TURF CLUB LTD. v. E.S.I. 
CORPORATION & ORS. 
No.49/2006 and in other appeals also the period is subsequent 
thereto. After issuance of the notification dated 18.9.1978 by the 

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