Employees State Insurance Corp. vs Navchetan Press Pvt. Ltd.
2004 Latest Caselaw 714 Del

JUDGMENT

R.S. Sodhi, J.

1. This appeal is directed against the order dated 16th February, 1986 of the Employees State Insurance Court, Delhi in Suit No. 38/1986 whereby the learned Judge has held in the facts and circumstances of this case that the Directors are not workmen of the Company.

2. It is contended by Counsel for the appellant that as laid down by the Supreme Court in Employees State Insurance Corporation v. Apex Engineering Pvt. Ltd. , a Director who gets paid over and above the remuneration of a Director for performing any additional task would become an employee of the Company and, therefore, would fall within the purview of the Employees State Insurance Act, 1940.

3. I have heard Counsels for the parties and have also gone through the judgment under challenge. As per the record of this case, there is nothing on record to show that any of the Directors were receiving any additional amount over and above the remuneration as Directors being on the Board of the Company. That being the factual position the judgment relied upon by learned Counsel for the appellant does not come to his assistance.

4. In the facts and circumstances of this case, since the Directors are not drawing salary for doing any additional work, I hold that the Directors are not covered by the Employees State Insurance Act.

5. FAO 173/1987 is dismissed Accordingly.