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Principal is not liable to pay ESI of workers of contractor

Raj Kumar Makkad ,
  18 May 2010       Share Bookmark

Court :
Supreme Court of India
Brief :
Liability of Employer to pay ESI contribution - Section 2(9)(ii) of Employees' State Insurance Act, 1948 - Whether Appellants liable to pay ESI contribution in respect of the workers employed by the contractors in performance of the contract awarded to them for transportation of milk?
Citation :
The Managing Director, Hassan Co-operative Milk Producer's Society Union Limited v. The Assistant Regional Director Employees State Insurance Corporation (Decided on 26.04.2010) MANU/SC/0293/2010

Held, the Appellant had awarded the contract for transportation of milk for specified period to contractors. Contractor neither the agent of the principal employer under Section 2(9)(ii) nor his employees worked under the supervision of Appellant. Contractors separately engaged workers for the work and workers were neither directly nor indirectly employees of the Appellant. Wages or salary of such workers were not paid by the appellant but by the contractor. Thus, in the present case and the persons employed by the contractor for loading and unloading of milk cans are not the persons employed on the premises of the Appellants' establishment. Appellants not liable to pay ESI contribution in respect of the workers employed by the contractors.

  

 
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Published in Labour & Service Law
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