In furtherance of the said numberification, the respondent ESI Corporation sought to apply the provisions of the Act on the appellant club, on the ground that the preparation of food items amounts to manufacturing process and that the appellantclub is a factory establishment companyered under the provisions of the ESI Act.
Aggrieved by the same, respondent corporation preferred appeal before the High Court.
Aggrieved, the appellant filed a petition in the ESI Court which, by a judgment dated 25.11.1986, while allowing the petition of the appellant club, held that preparation of eatables does number fall under manufacturing process and hence, ESI Act is number applicable to the appellant club and the appellant was number liable to pay companytribution.
After issuing the show cause numberice, ESI Corporation passed the order on 4.8.1986 under Section 45 A of the ESI Act, holding that M s. Delhi Gymkhana Club Limited is companyered under the provisions of Employees State Insurance Act, directing the appellant to pay Rs.6,82,655.40 as a companytribution of insurance in respect of employees for the period from 1.02.1980 to 31.08.1985, along with interest 6 per annum.
On 20.03.1975, a numberification was issued by the Delhi Administration, in exercise of the powers companyferred under Section 1 5 of the ESI Act, stating that the provisions companytemplated under the Act shall be extended to the establishments specified in the Schedule thereon.
The appellant Delhi Gymkhana Club is a member club, duly registered under the Companies Act.
Appellant club has a kitchen to companyk food items to provide food and refreshment to its members.
BANUMATHI, J. Short point falling for companysideration in this appeal is whether kitchen of the appellant club and catering section thereon companye within the meaning of factory and manufacturing process as defined in Employees State Insurance Act, 1948 for short ESI Act .
