Full Judgment Text
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PETITIONER:
MUNICIPAL COMMITTEE, ABOHAR.
Vs.
RESPONDENT:
REGIONAL COMMISSIONER, E.S.I. CORPN. & ANR.
DATE OF JUDGMENT: 02/02/1996
BENCH:
RAMASWAMY, K.
BENCH:
RAMASWAMY, K.
G.B. PATTANAIK (J)
CITATION:
JT 1996 (3) 51 1996 SCALE (2)381
ACT:
HEADNOTE:
JUDGMENT:
O R D E R
Leave granted.
This appeal by special leave arises from the order of
the High Court of Punjab & 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 Works Department are now
sought to be covered under the provisions of the Employees’
State Insurance Act, 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, when challenged, the High Court in the
first appeal dismissed the same. 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 concerned
employees. Under these circumstances, the coverage of
employees under the Act is Der se illegal.
The appeal is accordingly allowed. No costs.