Employees’ State Insurance Act, 1948 – Sections 75(1)(g) and 90- The Supreme Court ruled that Nagar Nigam’s workshop was a ‘factory’ under the Act of 1948, and that it was engaged in a manufacturing process with over 20 workers – The Corporation argued that the workshop was a ‘factory’ and should pay contributions under the Act – Nagar Nigam argued that their workshop was not a ‘factory’ and their employees were not engaged in a manufacturing process – The Supreme Court allowed the appeal, quashed the High Court’s order, and clarified that Nagar Nigam could seek exemption under Section 90 of the Act of 1948 – The Court relied on precedents and statutory provisions of the Act of 1948 to determine that the workshop was a ‘factory’ and subject to the Act’s provisions – The Supreme Court concluded that the High Court erred in its judgment and Nagar Nigam should have approached the Insurance Court instead of invoking writ jurisdiction.
(2024) INSC 441 SUPREME COURT OF INDIA DIVISION BENCH THE EMPLOYEES STATE INSURANCE CORPORATION LTD. — Appellant Vs. NAGAR NIGAM ALLAHABAD AND ANOTHER — Respondent ( Before : J.B. Pardiwala…