Skip to main content

24 years on, HC finds AC room is not cold storage

It took the judiciary 24 years to declare that an air conditioner makes a room cool and does not turn it into a cold storage.

This happened in a case pertaining to a city-based trading firm, Gokaldas Trading Co, which is a commission agent of chocolates, tomato ketchup and other food items. This firm had 10 employees and an AC was installed in the manager's room.

Employees State Insurance Corporation (ESIC) declared it a factory saying it had more than 10 employees and was carrying out manufacturing with the aid of power. It showed an AC as the instrument used in the manufacturing activity.

ESIC concluded that according to Section 2K(vi) of the Factories Act, by employing more than 10 persons and preserving and storing food articles in a cold storage, which is a manufacturing activity, the firm fell in the category of a factory. With this, ESIC sent a notice to the firm, asking it to pay Rs 68,278 as tax from 1983 and 1988.

After due communication with ESIC, the firm filed an application before an ESI court in 1991. This court dismissed the plea requesting that ESI Act should not be made applicable to it merely on the ground that an AC was installed in the manager's room. The firm moved the Gujarat high court in 1994 and argued that the AC was not meant to preserve food items, which were kept in a different room. The AC was used during office hours.

ESIC argued the manager was receiving a salary of just Rs 1,100 and no company would bother to provide AC facility to an employee with such a meager salary. It insisted that the AC was used to keep articles in cold storage.

After hearing the case, the HC said, "This court is of the opinion that the court below (ESI court) committed an error while giving the finding that chocolates, bournvita etc. are preserved in the AC room and the manager's AC chamber is a cold storage."

 Article referred: http://timesofindia.indiatimes.com/city/ahmedabad/24-years-on-HC-finds-AC-room-is-not-cold-storage/articleshow/49575100.cms

Comments

Post a Comment

Most viewed this month

Partition proceedings are vitiated even if single co-sharer is not made party or is not served in accordance with law

Cause Title :  Bhagwant Singh vs  Financial Commissioner (Appeals) Punjab, Chandigarh,  CWP-2132-2018 (O&M), High Court Of Punjab & Haryana At Chandigarh Date of Judgment/Order : 31.08.2022 Corum : Hon’ble Mr. Justice Sudhir Mittal Background A large parcel of land was owned by the Nagar Panchayat. Thereafter, some of the co-sharers sold their shares to third parties including the petitioners herein. On 22.11.1995, respondents No.3 to 5 filed an application for partition of the land. The petitioners were not impleaded as parties.  On completion of proceedings, sanad was issued on 28.08.1996. Vide two separate sale deeds dated 28.05.2008 respondents No.3 and 5 sold some portion in favour of respondent No.6 and 7. These respondents sought implementation of the sanad resulting in issuance of warrants of possession dated 05.06.2008. Allegedly, it was then that the petitioners realized that joint land had been partitioned and that proceedings h...
Post a Comment
Read more

Power of Attorney holder can also file cheque bounce cases: Supreme Court

The Supreme Court has held that a criminal complaint in a cheque bounce case can be filed and pursued by a person who holds a power of attorney (PoA) on behalf of the complainant. A three-judge bench headed by Chief Justice P Sathasivam gave the "authoritative" pronouncement on the issue, referred to it by a division bench in view of conflicting judgements of some high courts and the apex court. "We are of the view that the power of attorney holder may be allowed to file, appear and depose for the purpose of issue of process for the offence punishable under Section 138 of the Negotiable Instruments Act (which deals with cheque bounce cases)," the bench, also comprising justices Ranjana Prakash Desai and Ranjan Gogoi, said. The bench, in its judgement, said, "...we clarify the position and answer the questions in the following manner: "Filing of complaint petition under Section 138 of Negotiable Instruments Act through PoA holder is perfectly legal...
1 comment
Read more

Christian who reconverts as Hindu SC will get quota benefits

Amid the controversy over “ghar wapsi”, the Supreme Court on Thursday ruled that a person who “reconverts” from Christianity to Hinduism shall be entitled to reservation benefits if his forefathers belonged to a Scheduled Caste and the community accepts him after “reconversion”. Citing articles by B R Ambedkar and James Massey, and reports by Mandal Commission and Chinappa Commission, the court said: “There has been detailed study to indicate the Scheduled Caste persons belonging to Hindu religion, who had embraced Christianity with some kind of hope or aspiration, have remained socially, educationally and economically backward.” The bench of Justices Dipak Misra and V Gopala Gowda held that a person shall not be deprived of reservation benefits if he decides to “reconvert” to Hinduism and adopts the caste that his forefathers originally belonged to just because he was born to Christian parents or has a Christian spouse. Expanding the scope of a previous Constitution benc...
1 comment
Read more