The Regional Director E.S.I. ... vs P.C. Kasliwal And Ors. on 2 January, 1981
In M/s. Bank Silver Co. Bombay (supra), which has been relied upon in Karnataka ease while dealing as to whether a partner working in a factory has to be included in the figure twenty to make an establishment as a factory under Section 2(12) of the Act, some observations have no doubt been made, which support the contention of Mr. Kala, but after having gone through the various provisions of the Act, more particularly the definition of 'employee' in Section 2(9) of the Act, 'principal employer' in Section 2(17) of the Act, and 'wages' in Section 2(17) of the Act, and looking to the objects of the Act, I am of the opinion that a partner who draws emoluments and actively works in the factory is an 'employee' within the meaning of Section 2(9) of the Act, and he can have different capacities as 'principal employer' and 'employee' and both capacities are not contradictory to each other. Employees' contribution as well as 'employer', special contribution' is payable in respect of such partner.