M/S Singhvi Dev And Unni vs The Regional Director Esi Corporation on 1 December, 2009

[Cites 1, Cited by 1]

Karnataka High Court

M/S Singhvi Dev And Unni vs The Regional Director Esi Corporation on 1 December, 2009

Equivalent citations: 2010 LAB. I. C. 2605, 2010 (2) AIR KANT HCR 609, (2010) 125 FACLR 842, (2010) 4 LAB LN 652, (2010) 2 LAB LN 458, (2010) 5 KANT LJ 88, (2010) 2 KCCR 931, (2010) 3 CURLR 546

Bench: V.Jagannathan

-nu--- u-av--- Iuvv -u-uu-uruu-1-u- «navy: yuan: wan Iv-Iniirwuv-tiu-w iilvuv t._,\}\j|\I 'gr {ugﬁgﬁgggggp rug',-5 'ti

2

AP?LICA'1'IC3H msn ms. 75 OF 'i'HZE'. Es§%'%'A§::.§*%%
CH.ALLENG£{'TG Tm: Kansas mfrsn 3.11.2;{}£}'§'~.>£"&.uN:'I:¥f_. 
1c5;2c3.6.2mmssUEn EYTTE Es1cQRmRA*r::3x,   . 

TI-BS ma C:t:)Is.mIG cm Fm I-Eé'~xRIIJ7*.L".'.§V  

TTE CCIUI-'=Z"E' MAIIEE THE  2 3 A

Wiwthcr a clmxgerm 
within the ex:prmaioIV1 '  gxurposa of
Emgmym*    that has
mm in   _  %  %  1, A & 

2,    ﬁmctioning as 3.

 1982 am? in exam' to

V nary ' §.3if3; the  ;.'xf ﬁrm said ﬁrm sf E 

    ' parsszem wme empkeyw fmm tiitne ta

 t was issuazi with 3 notice by the

 .}E,S.§. "' eagpgram aam 3-1§.-2364 mfg;-am tim
%    the ﬁrm is wxmabie uxzéer the prmiaimm
  ﬁmpigym Stata Imuxazm act, 1943 {E.S.I. Act)
kj  eﬁéct. ﬁrm xwsama 3115 by axmther Izntixte dam

 x2GvE2-2GQ5 the appeﬁant was iizfarrmé; ta {say a sum of

Rs§53;&3fa 'rxeizg the amrztrihuﬁml for thy: wriaé ﬁ'-323:2

9

2:



 uvvnl ur nnmvnuazm man cc

gpo'm4

.3

56-2864 tn 31-3-26:35 an aasumsé wagm af A'
per exuphym far 29 anpbyam.  
W33 cxcmngc of mrraapendense    

ﬁrm and the E31. Ciorparatzinxzt 

1€>f20-6-2006 directing the' agmaant spa mmpaywith
the pxnvisians cf 'E113   7316
appeliant ta appreach    way cf an

applicatinn      

3.  Vwitnms and aim:
piamzi   5 ﬁecuments and afaer

mmumag  gggtm ,jj%~m " piemeé by the parﬁaas and

  sf  acivaancezci 021 the: &m::'micz::-as
 maﬁa; 'ihe E33, Saar': held that the

  ﬁrm rim W {Jim azppéiiani; is liabba

 % xtga be  the 3.33; Ant and in mm: 5; the
' V  "..:§e::fjsc::&s  by 'aim ﬁrm, Eé.S$L aentribatien was
  'w  arid with ﬁtemg mmciuaians the

'V V   :.'§§isﬁcatécn flcci by the apwllant was cliamisaw, giving

:*isetnt1'map&l§
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n-r-n\Ivr=-r1-Ir- -uwrv-I u-outs: \ul'l I\l'|I\I'f'|ll'\l\I"I Ill&II"l' \.\JI.Jl\l SJ!" RHKIVIQIRHI" "iv" LC

4. Lcarw Senior eomaaei Sri ,
appwritng far the appeilant csnterwded that   
Caurt: was in errnr in balcing the  'tixgt   V'

Tn mverahle uncier the E.S.I.     

error in arriﬁm at 1:11:   
Acsoountanfs ﬁrm mm    the
wcpmsicsn sf "amp".  .AA.';-§§é_;i:i;or counsel
argued that    the appellant
gamma: be   *élaﬁr1iti¢n at' the
     decimions were
citad bef;§1'=e§" Ehé  "in thia regard irmiuding

the dezfwien if  the case af Phiiﬁgm & C9,;

L~'i%V%w*s;¢*s._Saégzs-%;ve1:«d?teei*Vi::;%":1,R 193$'; Karnamlm 3135 arnci

 contcmi that ﬁrm of Lawye-.3-a er

:   '§     Firm cieaaa mt ﬁg izzm the
% gshsp" of mmxabie mtabamhma: as aefmm
    $ac:::.ia:1 2 $5) am gu; vi" the Kanmmka S&mpa ma
 Estabiishmmzts Act, yet am E.s.z. com
  3:23: sight of the principle laid down in tiwse aiemisionss

but went cm to mic: that in the face mi' 'izha aviclmm

pIa@byt§°me@ﬁmaz1diz1vim3ft1fm:ii:..:mberaf

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'""- '""'-'* --*--" -'- --W'-'-'H-r-avw -uvu wvwn-3 Ur IV-IKNAEAKA HIEH CC

peraarm engagexti by the app¢11ant'3 ﬁrm during ._
perinci, the appellant mamas w"ithm' the amhit  

a-cprmsiszan "Shsa pf".

53. it 33 argued that the aaid.__®ﬁ¢i®'£nn   .

the reasarxing ﬁver: by the  to
the weﬁ sawed p08itié1E2._..?§kf  an Hfégcta the
number cf employefzs  Court
had wrc:mg1y__   alga: as an
  reiiance on the
decisiexiést if:   Jae: band, Jaipur &

the   §aI]s.Hix1du Jea

 '.5:  {if Rajashtan amﬁ s-ztharsg ﬁgmia};

 ﬁE:fAl:Zi;?;3f,t}321}"'Hf}.3;7'4°3/ 198?}; Mfg, ﬁiiﬁwﬁﬁﬁﬂﬁi ﬁre

 "a "f§A':={§nciia} Pvt" mﬁ, vs, Em§:¢ym* Sﬁaié

  Césrpcraﬁazz repnrted in $988 Eﬁﬁiﬁg

%  y %%'k.i3§sgm:9as sc 79; arm Regixmal mmmr, Emplcvyem'
    Caszmraﬁsn V59 Ram Simxﬁer mparbani
 A    Lama. 336- AIR 1988 at 11:3; §%1E,M¢:*cExant

and Azmther an State rewrheé in AER 33368 Eambay 333;

V. Sasidfxaraa ''43; M13. Pctm ﬁg Ka  and otlw

X



Ivrr uvvnx VI nrunnwrsamuh Iruwavi uvunu Va nmnnvmunuvn rn\Jr'= uvunw I..Ir AMNIVHIHAP HIV" LL.

uSv'v' Vuhurnnvwuv \.v- -\r'u\:vr|~rul\r-

'V l'l\I' " V~\lﬁfV"" \I| "\P\I>\I'IPIIl'\I\l' I I

{C,A.B?o.202Q af 1%0 dateseii 23% Auguat, 

Phiﬂipos & mm. vs. Statse myorted $21 
Karnmaaka 3135; Emapioyees';' ""':§*Le.¢;g    'V

Coxjmraﬁnn w. M.M.Suri  {p) 'L .tgi..3 

Ns'3.564-{Bi EQQ7 datezi   
aenitar ceunael Sri. S.H.VMurtV   "'am:rg;' Lithat 
of bum ' the: Ghartem $ withm' the

ambit cf the aarprvgaagfian :§sh§j$"  arise,
6.  is _Ai5i::x-3&1   under the E.S.I.
AG': 139  pfévidmhi armi thcmfere one

has as   iftf 'rim mcprassimn

 $1:aI°1da1ﬁ ﬁictiezsnaries and alga:

 in momma }23&I'3ﬁ.I'lDE. '§'herefare§ the
    WV aaniandgﬁ tin: the ﬁltifﬁ
   E533. Court was swrm*ary* :9 the Ema?" iaﬁ

V K '   the Apw ﬁeuri: in 'aha afﬁmmentionaé
   ané  tn the Eixziséaan Bans}: ﬁacisian af

 Bambay 1% Cmzrt in {kg ezasaa sf E€.E.Iv!amhant

and aszmtlwr YE. Stalée (A3 EQE8 Bnmbay 283}, the

imam asniar wmiaei wguaé that it is new wall

Ea:



..--.. --.......uu 1-rl a\I"'II\l1.l"'ll!"Il\l'| nlun \_\J

'E

astabﬁsheci that the Char€ez*&d &.<':mu1'1tant'$ Act; A'
has  * a ma cmmm ] 
practicizzg pmfmasional Amzmmtajrxté      K V'
gmfawaﬁon 0? law and  

Chartamai mmuntanm am  %   

ixweneeivablaa.

'2'. It is  }%§;§¢:a%:ua¢, r::e£tai11
paerssns £153    ﬁm ass
  ﬁat-~.$;':tit% thc Charimed

Am3.s;z1'£;a:§:,£'$  a. "shay", As smash the

Qcurt b¢iew:Waa'v i=::x:V;:ri'1é§ii*'i;;i balding that the Cwtxarai

     witkzin the ambit af exprrmaicn

.  ::>?f_  :6 the dgeiaian sf this ﬁeurt in
    zwg gamma 3:33; it is argueﬁ
.    has: taken a vﬁm in tha aaﬁ awe iimi:
4    af' €  Amumazzt gr ﬁrm sf' ﬂmed

.   weuki nat mm: Withiﬂ the ﬁeﬁrxitisan af

    mﬁ an aim) 'Eim aaid &c:ﬁ*=.:ity waulci not fail with:rz'

the mgmaisn af ammiial mfabiiaimnt.  m§

rim Q¥.1£%ti$§l af Chammzi £%mzn':arx:'a fgm mrmiw

L

us W



iUN"" MKJIJNI MIT l\l"ll\iVP'|Ir'Ii\H| t'iI\,2'l"l \..\J!5.ﬂl\l 'kl!' !\l'\l\!'rIll-\I\l'I I"n\.1I"I \..\J\.Il\I \.rI nu-1.:\3V:-'Ir-|I\:-I Inna'! uwwulti Ina-I I\I"'\l\Iw!1Ir1I\:-I u-cw-' Vl\ﬂ'IuﬂI\« up-I -v-1uIwr-ur-uu- Inna-In

within {ha purvimw 91' the: 51.8.1. ﬁes: wiﬂ mt 
an facts it is mntentiaaé that the widence ef   
mums 0%' his Mess- ﬁca:"§"   
umuid ml-::e it clear that the   

empioyeé wme 1&3 than 20  'V V

wtciuﬁaeci and as such fgizgt  tfnﬁ §a"1::pié:11ant's
ﬁrm mming mam' the 22$ not ariae.
T1:3erefam, the   Vﬂuurt be set

asiﬁe by     

a.  sri I'1'ara$mha' 1-3;o11a§

 _V  far E.8.L Ccarporatien

'V tizafi: '£:'x"*c'a$* nf time ESE Caurt is not iiafble ta

 becausc tbs C9122': beiew fcund an

f&m     ﬁrm haﬁ mtzwgﬁ 23 gamma

 :%;;é:L mcsntha ef Jzme mm» 311:'. havizg mgeu-<2 m
%  %    gr ampkoyem atsgﬁati by the appellant ﬁrm.
V .   13% is time am! aka havirg ward at; 'slim gala:-S.'
  ts {base amploym, the ESE Court theaafom was

justiﬁaé $31 hnﬁéirg that tlw apwﬁant firzn ia iiaﬁbe ts: be

imwrw; Eiﬂdﬁf aka f3§'$V§3iGE3f}ﬁ 9? 222% 53: act' in thfm

~36



'I-Iv'-II: -wl I\l"\l\II.l'§il\I\l'\ 11!'??? Q"

mnnecﬁcn, }::-arméi counsel yointcd to the evideﬁ¢cé";9f'v._4

AW~§. and he the ahservatixsns ef ES! Clmxri  

arid 20 sf tm: impugled sre:ie::'.

9, Apart from this, it v:jas am   %

Sr*i.Na.rasimha Haﬁz: am the  the
appeliant ﬁrm alsm £11..-gi:'.:c1&e$§  meme tax
mmnm; salm   1-3%: 'the 
WWW 83¢   clients and
for a3   anﬁ tharefcxre,
isvhﬁn  sarvésm and rzxalﬁctcd

fees in  af éaexvﬁw, the appeilant ﬁrm

  :1mV &ts:;é1ig;a.io:m af 'sheep' and tkmcfnm, the
  myliant ﬁrm and the mntributixzn

 is i§i%j.:¢}t;§ér&am with Eaw' by the Court mew.

   :§. :53 aﬁamz the aeeisians refefmci 1:3 by 23m
A    mmmei afar the appeﬂanfg iearﬁ momma} ﬁat
.   ESE Cczrjparatlmn miiné. an the Qiﬁﬂifﬁiﬁﬂ cf rim Apwx

: Cc::ur1: in the maze sf Empbyma Strata fn.au:'arwe

ﬁsmxmratiasn V. R.E.'..SWamr anﬁ etlzm' {AR EQQ4 SC

3.35%} m aaxztezzd 'amt men 'him activzfiy mf '.-«T:-1:.

ﬁx

 



1«Ir" -nun-' \pIurparl*I- VI! IVl"lII.I'f'Iif'IIIJ'I IlI\iIII \-\IlJ!\* \Ji l\l'Il\lIJ"\il"I.l\I" iIl|JI" \y\I\I'\' \JI' l\l'\E\lIJ'IloP1!\I! TIIKITI \.,\JI.JIKl L)?' ﬂliﬁlﬁﬁﬁfﬂﬁﬂ f'|[',|Nl 

11$

agency' baa "awn hr;-:39} ta fa}l within time zvczré .4
in the said decisiun? the ﬁzpm Cuurt 3335    
deciaicsn rmdareﬁ in *Ragiam3.i'" P.m§a¢nVi%k%  

Camm:.'as%.9ner V' Shibu Metal  

107$) Wherain it was imlxé  
Fund Act being  "#3;
am com shcuid  help in
the af:3r¢sai;L91:  'zigzmz Ceurt, it is
   far the Cozwramn
thai:  'tiie  aiss, 1.211;: sewerage of the
apm=11.:fz..*1f'i:   5;; vieweé; mm the W13 af

   ﬁ by the ap};3ueI&t fmm.

 *  1:&d'?£:a;g§§:¢§ it is aﬁuaﬁ fim: thcugh Ch.a_:"£z5z'@§,

  ?a2;:"r1:aVr§m"' ._ "V  nature: :3? their wark mme w*it}'1111' " tim
_ '    §5f'§3mf$sim1, yet: ﬂaw. ti}; ampiayam azgla, the firm
   have to 'be weaﬁaﬁ as 'shag' as that thsa emplayees

  mark in him C  Aaeountants' ﬁrm arc mt

éepz-%veﬂ if {he bexwﬁw of the ES} Act. Axmthar gmizxt

put fagwaré is aim: the gmyleyew as 32.2321 aio mt carry
3%?



'"" '"'"' '-'-"-"H VI nnnavntnnn mun LU

11

an any profmaionai jab uniiktc she A'
Amuntaxzts but an the othw hand, the  
an than reruﬁne war}: and thgrteforg  fa}:   'V

aka the amaerage af the   

uphnld kmvirxg rmard. Is the   --1rI§_"«:a  
It ia also mntended   in
the (23.33 of Plrﬁllipos &   appeﬁant
tzxanxmel was   Shape amzi
cemmm  butmt undsr the E81
Act    535:3 carnmt be
prmzsati  iapgipnﬂanta. In the Eight 5f
the   harmed eeuxsaei Sri.

 V.§ﬁf5k3#    Cﬂrwraiiaﬂj saught: far the

 by m  the aréer of 'me

  Es:s'.:g;m~;; ~  '

 x _   3;f2§.;1%§5.;a*s?i1:1g $11113 hm me sisabmiﬁsimﬁ and taldng

*   aecsmns cited by bath sides, the pmirit Ear

' :"_4'<<:>@n:si§;¢rat§§n ia:

 &wa%Bm1t&"mmnbah£ﬁmE£
agsfaap" &rﬁw $fE$E act? "

3%



I-\r'I@I1' 'arr -u-uuvvv-u--1:':-I Iuuwrv \-\.l\on- 'all I\f"II\I'Il'lI!'|I\l'I Inna-it \..\.a\.:v\I \.ar I\r\l\|vr-III-\|\pI~I E!l\J"w*."\_,q,_;§;n| 'gr Mﬁ:'H'Hm 3-gig';-1 LL

12

'ﬁx amwar to the saiﬁ quwtien wcguld aim ,

as be whether the appeﬂant firm is liable tai 

mntributian in mspwt sf its ¢mp1¢§*'53m~.«. '_ 

1.

3, The basis apart}. whi:::I:_1'£}:;¢ aaught to crave: the: igazetta nratziﬁcatinn dated naﬁfzaatien pmwsm that cawgoma that are and at SI.I'Ic,.3 aéhapa» ather cfassas like rzmci mt:%%pr*- cizzema theaaﬁ-w {inciuéirxg zwwspaper astabiisfwnw .~ $1' mare parsang an any éay af Thmeramg we wax have 13:; {mi agtt dcﬁnitierz sf "sfwpﬁ 'T}:3.ia takes us 8 19%}: at srarxbus éefuiiﬁana tint are A a ix: swzi.-mt: 2 :31' am 33; ac: macs it cigar ' ﬁat dﬂ net any defizziﬁsan fer 'die waré k A Lwmpw. In the gamma of mm ESE ﬁat dgﬁnm aha Wmﬁ ﬁahap" what is heat mutants in be aéayteﬁ is 1:133 mt qzrgmtimx, £%/s

- ..----- .. an-»v_---_uu 1:--nw.ursII war: I'l1I'§'H"'"" 13

14. The de:fir1ih70z1 sf "amp" % aonsiticraticn bcfere 211$ Apex Court in tha:_.r.:as§ sf::::f:':'£9I;.§a. 1 " » Empioyees' Stats ixxsuratm ﬁarporaﬁéfi' L. "?9} anﬂ the Apex Court gave czf T315 Qmrci "shsp";

"-4. .. mg nggsa "gimp," in the Act m» in iasggd H by the state V1} ~ Bhertm' Oxford "aha?" means "a ijzgﬁge gaoda are maxi: act §:arepa:faa;_i fr}: 501$". It aim means It mgiaﬁﬁ 6? f'r3:1gi§1ai1e$ss"f'V'e:a'.."'p1.ace where am;-fa mdinary H' is arn".., ,, ._ atatuhe does mt daﬁne a wsré, the @:~:.z1¢ W61'ﬂ.WiI} Ems»: ta ha mxammd mm tha t A' éélme in whim}; the saizi werﬁ is 315%. "Fiﬁ; En taken by the Apex mm 5:; the case 9:' 'The T sf Izmame-Tax, Axzﬂhra Pmdmh 'gr. Mfg; é Taj Mahal Haiti, Smtmdefabad' {AR 19?'? SC'; 168}, ﬁwmkvantparayaphwkﬁmhwﬂhamm Esarefmrﬁat Er ..ov- -v.-ww.rII- \" nuﬁlsuil-In-1I\.r'I Illwli \..\I\Jl'|I Ml!" !\I'|l\lVl"|ll"\l\Il |'II\.¥i""i I..,\JIJKI LI!' KRKNAIAM M 2m junctL.1re 3 para 6, whcmin ths Apes: cam akwwd thus:

see. Now it is Wei} aettI:ae1:=.':tI1:a.t[AA. deﬁxxitissn of a word ﬁﬁm it mm: be cczrmnwxati in its a}2u;*}£m '§f a imrﬁ of evmy day. use, 'that 333153 whicii with the auhject matbar is dealing, ﬁ:. ii". "- prwent ease, s;1r;;5jfk% sf the :_by it the wards wi:{i¢h_ mentisne-:1 befare. 3139013 have 'Emil meiuagga %s2m«s thazkm meaning intended ts to is Wiﬁcs. The word V" .iér~._efm: used in interpretation enlarge the maafﬁ Bf the s in the had}: afthe _ . é '3i'}:m1 it i3 33 uaedy time wards mm: he aanamzgﬁ as _ mt zmly such thirw as they h aetsarding m tbaeir natum and impart V " but aka thase thing; Whiéh tins intwmtaﬁan siansa éswlarm tint they aha}: imiude. The Ward "ixaciaﬁe" is aha aazaaaptibie Qf atlfmr ﬁr ...-an uvvnn ur AHKNAIAKA HIGH CC 15 mnswnctiéns which it is mmacwaary ta hits."

16. Havirxg ﬁd to the by thac Apex Court, if we "shnp" in the pupular aexieaeg said. csf ehanm Amunsanm fits: "$215515; far as charterw mnwrncd, while Sham am: €iasmmua::'{;,i;s:;1:_" 1951, a zeamw Single & Ca. 1;. Stave' am 1989 }€_£2§R that thc chartaraa wit the pmfessﬁnn which requiram subject skilia, pzmfsssional and the performxme: sf tfw 2 CI*m%'mi' awaunzant and 1373 chztiw is ' the ﬁxmtkxm and éuﬁm nfa Lawyer mi 3. _ it was mm haid that the mqugrmem at' VT $511 and far carrying an of a 'gzacsfmsien weuki mine: it char that the cﬁm sf a ﬁ ﬁmuzitant as a ﬁrm ﬁf Q g/9ft' n-vr-----nr- -nu-sr uvun- VI Iv-Inivrnir-|I\rI I'n\.1rl hklvll Ll!" i\BﬂiVH|MhH WED" LLJUKI Q!' lé Aeaozmtants cannot be rwrdeﬁ as pramissm saxvw 5 am rerztdeﬁ me custamers. The (3£1ti§;t :

mm an tr) held that the dafmiﬁzargi *»:':;rf--":3}1€ﬁ3"'_:v§fiV'V:$:.*»{§ti%;%s'n L 2&1: me mm Eszabzishmants, 1951 would awsggg which is uadersmad as.::".z1§sts:c:V§»a'a';ise::ﬁ.*'3. f§r}V:iiil1_Ac:a:njﬁ« "gran the trade at mmtmwe wlmere ynzzfessionai hair! that th::: er of a ﬁrm sf axmmmg "Shep" within the meaning gfksacuegg 2(4) said am; . uf C A.amunt&x1m was 'jmsattcr af 5: clecimzian by aha Bsmbay was 31' 'N .EsMerchax1: 85 arzaﬁiar Y'. . . _:?a£;a£¢* mam Bembay 2833 wherairz. 3. Division Bemh '4 Bnmmy High Cami whiie deaiixg with tlw A Shops am: §¢ Eatabliaizmenm Act, that the oﬁicae sf a C Azznmuntant with articiai and miai aréizzary ckrkg is mt mm%racia.1 wtabiimhxt and it: aha mama af tbs: said &&cisi¢n, % ' "--- ---H -vvru '-If nnnnﬂlﬂnﬂ HIGH CC 1?

1:11: Cmirt aim'; mnsidemd tha wart}. "prsfesasiorf? "_' ha}ﬁfl1n;s: ' ' "Tm Charmmti Awountants Ac:;194~9 statutofiiy 1'*30°$112e:é' that thé:4Aﬁ3§i%*1tiéa_ ax c axzwuntant, a.re'11af;t 3. buzsiizesg ax' 'made, but 3 pmﬁesaixzn the various pa'ovisi::r25 that Act to lay sf qu.aI1ﬁ4ca' tziona fm: a:At:3".:#a:ft$:1.*e.*;35:'.L»a:E£::i,:13£;£%;:ai1t and standards séf at; a at:-hgent on him are ma rm: ahsuld be ammuntant in the pr§s:::tioe "'é;;f_ his gx-gfegaim and ail me hezpeeazserasidat whether the may of »A accaurrtant is a pmfwsian. A ._ of that Act is summarised), __ bf the iz:n§6§'tant alemmnts ts be when the qtmaaion whetha a man is V» a prcfmaﬁan is in me whether he is a mm" hex" afar: an-gmecz' preramonaz may with a s er ability enfnrcﬁ 'I:%m 1'mca.x1.enteri£&r3dar:%@7medatandar°dof aandwzt mzfam-3:1 while he is wacbisirzg it. A aﬁmnmnt is agprcacfﬁ by his ciiezxt far advice mid a in his ymbiems }:

.» ._».-.....'.._....¢»..ra.u-.y-_. .u-vu »- q.vwn- \u- IIsl"II'\I'af"\!f'I!\l'U" V1I\wr'I"\.-IJI.'iI£'l'VT"-NHKIIHIHBR f"l!§.'ﬂ'9 LEJUKI (Jr Kﬂﬂﬂﬂfﬂxﬁ 28 with mgarci in trada, 'mzairatzas and irzdtzsuy, and it is: axpeetued that the chart-arm . acscrauntzant, m tbs bat tzf his ability, wmxld « in 5. pacmitisrsn m idwipr yum" in nest betray the gsaanﬁxciezmcesﬁxat " T1255 :23 one (if the whicz; scsught whezn asmiderétg paman is pract.'mi;n§;"'a. {:37 is doirxgabusig. H I A him far farm an «, 75:: A [upor: the pmomi ggrmnm cf the narﬁcied cierks have rm £220»-awraﬁen with the :22;-ai1"E;:5sre&.V in chcclcixg remipts and A ns9£'i§3§¢ sort af mmpemﬁsn which _' is asscnﬁmﬂy a prafwaign to a }.&_ }ft1 is thgmfcre elear &am the afcrmaiﬁ §..§iz..*£3_i§':m that sizamrsaﬁ; amuzztantk ammﬁsn is 8. %% am: it has bean rmmzed by the zzzhaz-rm iﬁamuntanm' Act; 1969 that m aﬁuzitants are pracﬁcirg ﬁlm m-aﬁessisn, for the rquiatzicn 9f the grefasimi, it W33 ﬂ$$%$3;$ 'be ﬁszabiish an irmstituttz af E:

uuunl '\u\I\Jl\l vr RRKIVAIAKA $9 ¢ aceauntanm and thus it has tww~_"._ stamtarﬁy' d that the: activities ef aecountant am not a mam buﬁirzaaa. 9z'* _hi1't ja pumﬁmian which is also provisions 91' the Chartemﬁ Thmafcam, m czonceivse affghe %g£ acmuntant as coming tbs word «#133?» is net the fact that the "" has man ' the light of the «-Aim: Ccmrt 133 the mm "s}1op"'_iI: sf "":¥0mmuE3iunmr of imam-Tax, cfmrtezraﬁ amozmtazxt firm by the A zIat:$1%e5ian{_.it:§:v§1i.xcﬁan mxﬁmt be zmugm within the ism % " '''Ts{f1§§''';.... ' ' ﬁe» far :31; the t sf Sriﬁaraaunha' I-isﬂa : _ :fc';r' ESE Cerpomi:ior:1,' that thaugh thz avmzaiabn sf aﬁtzrxiazzm is 1% d%.aa<:1 ta be a yfﬁfﬁﬁibﬁ, yet frem. the gcsini: crf View cf am amplcayam, 3:."

nuuwll 'Iu\I|JI\l Ill"

21 ward "snap" in my spﬁﬁon is impermnksibia farf than $23!? reason.

29. The are: reason is amg% emgzlayew separately from the 'V éaﬁitgqt .

{if and as such when the ﬁrm itselfis net a 'shop' 30 ef the ES! Act, the queatign aft~§~.;?,a¢g to the empk;-yew Q17. Ts give an tn the ixmide of the Im1}:.§a._ % Similarly, when the " C Aﬂuntgants;

. 'is ' acscxmrlt sf the firm mt hm of 'shop', acoessibifity be the V amt'. ' an impeasibiiity' AA VL§1...-. 9i'he swam rma-2:21 far mt acssseptirng tfxa A * 2 3:' Sri.Ka1'a51m1?m' mm 55; that warm: in the sf 3 Lawyefs ﬁrm, apart from thg zmmbw sf ﬁersczm ezzgagaé in da xmrimua ancillary ja&§ yeti: tlw whcie activ§.ty ef thg lawyers' ﬁrm mines svitfﬁn the row. sf prsfmional aacﬁvity azﬁ as such thggh trim Err III:-1|01IIl'1Il'II'll"" -nun \.\J\II\' vI"' iu-nnavnu-=u\» l'H\.'JI'l \.\JU!(I U!' RAKNAIMKR HEDH CQURT OF KARNﬁTA1(ﬁ [v-ﬁg;-| C1 22 mnplayam werkzim in a lawyers' ﬁrm de not fa mnefzt 3f the 33! Act wide applicabkéftbv that itsﬁf £3 next. a youné ts tr6,=at:'i'iii3"fi!'ﬁ};'.<'&Gf V a shop far the pntrye cf the wapbyeﬁ mggeci in a lawyers separatsaly as ﬁx 1-'*!fﬂ£ws'§;bn;{ m um by 5.

daeisicn of the Iearmd Sr. munaef the tense of V.S4&SH°}3§iARA§§"'Vv§;. _?e1fs.,:.:_""?ETER & KARUHAKAR & mmag f(19:a%=.t::2)k L%;L§fL;.j:f;r;;gsMsk;. rm I-'kpex Caurt, while theaqﬁﬁgﬁgin as an wiwcher ﬁrm ef xasvya-s gmhcit of Kerala 81mm and Qo mm, Ems mm mm me mm csf tha ' af Eawyws is must 3 shsp wi.i:hm' the gr semen 2:15; Qf tha am; in quamon, ané ff} cﬁerw that whafbever may be the popular _ *g:,nr:§i1asg.:ticr1 GI' mismanecﬁtéen r the ml: 91' ?aad.ay's imwyera and the allmeé, xmrmﬁwnng ::f the gap batwmn the prnfwaian an me am ham ané a tzrackg or %

- --....- ,-..--.- up-V-an-nu an unrgnn-cg-u.g.|-ugpq rgngf-l QQQKI Ur 23 busixmss an the othm", it is trite that lawyers dz mat carry an a made 91' mmmmm. The mcneept am well aagttm V' the dﬁﬁﬁtnkan czf "shop" is £95" V , igawyers' cmee er trim oﬁoe of of 23$ Gbamvirg in Ccaurt aka mmidﬁ ctzvemge cf' tha enrzployﬁéaé ﬁrm agmzi abaerved , abéut the walfarc of "t;f:ii5 .}awyers' aﬁm But, ways in which their _ If the current trends and if 0M memrixas fail sf iawym' claim caxzzmt, in %* 2-ammam aompariszsn wit}: the ﬁf mpbysaw of wmmeaémhi " *&§ta §r1isE%ts, pmpark_s,=' ass aaﬁedﬁ Thug, "u;iml<:ub%sdIy war}: harad but they ﬁﬁ mt gen Wiftmut may mwaré, They mama sari}: in the marI2i@ax1e:.iga}a§ainIgI1t§butthatis impiicit in the very nature of the duﬁw whiz}:

thq am rmuireé ta mﬁzarm ané the ﬁm they amnd ia mt a grnﬁﬁess gmaﬁm." %

- - ---~ -uv-- -uvvrvv vi l\l"|l\E'l"'|ll"|I\I'| I'H\:l'! LUUKI Ur KAKNRIIAKA HIGH C' 24

24. As in the $3313 cf the iawyem' empgaycm engmed by the Lawyergﬁﬁrm '* saga cf :3. firm of chari logic 331': be wztmideci wan E-'$ v% in the charm as number (sf parsons 'Va chartawd wzmunmnm' £00m ta fake thee viaw V the employeesa, the ﬁrm c__f haw to: be ireated as a sfizgp. an t is aim :::ann~m=3«* dawn by the Ap-ac Court 4_ 211:}: .§j§.fafam t+i<3:1;:§{i_A€,a9;ss. For aha abovs-::: rcasens, the acmuntanm' fzxm aaxsrzat be bzﬁaigﬁt %a"1um esf thé ward. "amp" ac: aa is é apyﬁcabh to the appe2Ianf*'s ﬁrm.

Eetwitmtanﬁing the ahova mmiusien, $31: as V _ sha§ atmsidar the cizidarm from tbs paint cf mm' <31' of empbyaes engaged by the ﬁrm. It was mzfiwneiacti by ti'): Eearm gamma} for ﬁx: ESE ﬁazwratian that éurﬁ the mantim af Jazrg 2954 thwe $6

-r-u-nu-I I u\.'n'1 V-HIV!!! Ur 25 wag 34 ampioyaw and except em emp1oya§;», amployam were dramng' aalary 1&3 than pm. anci as such Bab}: to be mvmfﬁéii' I'1a.v1n§' zqard to the mvm'ageV ' {Em widarme mpisyea during Gchnize: 2OC34" less; than Ra.2,5GO/- p.111, excnployew durixzg the msgzﬁﬁgﬁf the salary af Ems than V Viraspéaﬁen rewrt subnﬁtted by the 3s1*::;gpacg;- p§.}zj%2g.;2~9 mmszam that am~mg* _ cf tizxmws ware 19 ssmpiayecs plus anti the evﬁenxze can rewxti alga aecx.:r:' 'ty gememwi was mt an ' §}$'.43r' %-"£. ghar'm~% amuzztants' ﬁrm Eu: was u tbs buiidizg swim ainsca a ﬂumhw emf arﬁwes in me said huikiing, and as such the % % §¢mn of them being 20 ampmym durm June 2094- daes not aﬁrne. Consaqumxtlyg the ciacisian refegﬁ us "by time icaxnad mmmel far E81 Carmraﬁsn 35$. 5:

-.n.:- ~wvn- urn l\l"!\l'l"'|lP"\I'\P' TIIIJFW LKJURI LII' AHKNHFHKH Hi(;7H COURV C4 26 'ﬁmpiayaw State Irmurarsea Cerpazzratison V: R_. and otlw' {AIR 1994 SC 1134) appiicabla in the caste on hand, wcﬁ 'V with a c4335 iI1va1Vn'1g' thug aeeeuntanm axxci not with hésfv. agency. Thus, ﬁmm 1353 than 20 esmpicsyws quﬁstion of the n1::tiﬁ<:a'£:inx;.. tn the amllanfs V 1 size feﬂowing is Impugnea many of the Es:

azﬁ an aim: the turn zmﬁﬁcathm apapefimt ﬁrm was scught in be was saught m ha ::~£=.-xmvezreﬁ « 1;;,;':%:;¢ éiﬁpeihnt. Sd/--

JUDGE maxim;

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