Civil Appeals Nos
3296 67 of 1984
Appeals by special leave from the Judgment and Order dated the 23rd January 1981 of the Bombay High Court in FA Nos
35 of 1978  139 of 1973
B Kanta Rao and Vijay Phadke for the Appellants
Abaul Khader and RN Poddar for the Respondent
The Judgment of the Court was delivered by VENKATARAMIAN J
Shri Navakesari Prakashan Ltd and Nav Samaj Ltd Nagpur are the appellants in the above two appeals by special leave filed under Article 136 of the Constitution
The appellants respectively are printers and publishers of newspapers known as Tarun Bharat  and Nagpur Times 
Their case is that their employees working for wages in the administrative and editorial sections of their respective concerns were not employees  as defined in section 2 9 of the hereinafter referred to as the Act  prior to November 19 1976 on which date by a notification issued under section 1 5 of the Act the Government of the State of Maharashtra made the Act applicable to the said employees also and that therefore they were not liable to make any contributions under the Act in respect of the employees up to that date
They however admit their liability to make contributions during that period in respect of persons employed by them for wages in the printing presses belonging to them
The dispute regarding the liability of the appellants to make contributions under the Act in respect of the members of the administrative and editorial staff arose on the Assistant Regional Director of the Employees  State Insurance Corporation calling upon them by notice issued on October 1 1975 to make contributions in respect of the said members also with effect from January 28 1968 on which date the amended definition of the expression employee  in section 2 9 of the Act as per the Amending Act No 44 of 1966 came into force
After the above demands were made the appellants filed 965 applications before the Employees  Insurance Court Nagpur under section 75 of the Act questioning their liability to make contributions in respect of their employees working in the administrative and editorial sections of their presses during the period between January 28 1968 and November 19 1976
They however did not dispute their liability in respect of the period subsequent to November 19 1976 on which date the notification was issued under section 15 of the Act by the Maharashtra State Government
The applications were contested by the Employees  State Insurance Corporation The Employees Insurance Court allowed the applications holding that until the notification under section 5 of the Act was issued by the State Government making the Act applicable to the establishments of the appellants viz the administrative and editorial sections of their presses the employees working in those sections could not be considered as employees  as defined by section 29 of the Act
Aggrieved by the judgment of the Employees  Insurance Court the Employees  State Insurance Corporation filed appeals before the High Court of Bombay under section 82  of the Act
The High Court allowed the said appeals holding that the employees concerned came within the definition given in section 2 9 of the Act and therefore the appellants were liable to make contributions during the relevant period in respect of them also under the Act
The appellants have filed these appeals against the judgment of the High Court
Before dealing with the contentions raised by the appellants it has to be stated that the members of the administrative staff and the editorial staff of each of the printing presses are employed by the management concerned for the purpose of carrying on the business of printing and publishing the newspaper brought out by it
The correctness of this finding of fact recorded to the above effect by the High Court is not assailed before us
The main contention of the appellants however is that since during the relevant period they had maintained a distinction between the factory sections of their printing presses and the establishment sections which included the administrative and editorial sections of their presses the employees in the establishment sections could not be treated as employees to whom the Act was applicable until the notification issued under section 1 5 of the Act expressly brought the said establishment sections also within the scope of the Act
Section 2 9 of the Act which defines the expression employee  during the period in question read thus 966 29 employee means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies and i who is directly employed by the principal employer on any work of or incidental or preliminary to or connected with the work of the factory or establishment whether such work is done by the employee in the factory or establishment or elsewhere or ii who is employed by or through an immediate employer on the premises of the factory or establishment or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the factory or establishment or which is preliminary to the work carried on in or incidental to the purpose of the factory or establishment or iii whose service are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service and includes any person employed for wages on any work connected with the administration of the factory or establishment or any part department or branch thereof or with the purchase of law materials for or the distribution or sale of the products of the factory or establishment but does not include a any member of the Indian naval military or air forces or
b any person so employed whose wages excluding remuneration for overtime work exceed five hundred rupees a month Provided that an employee whose wages excluding remuneration for overtime work exceed five hundred rupees a month at any time after and not before the beginning of the contribution period shall continue to be an employee until the end of that period
 The object of the Act is to provide for certain benefits to 967 employees in case of sickness maternity and employment injury and to make provisions for certain other matters in relation thereto
Section 14 of the Act provides that it shall apply in the first instance to all factories including factories belonging to the Government other than seasonal factories
The expression factory  is defined by section 2 12 of the Act as any premises including the precincts thereof whereon twenty or more persons are employed or n were employed for wages on any day of the preceding twelve months and in any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so carried on but does not include a mine subject to the operation of the or a railway running shed
It is admitted as mentioned earlier that the printing presses owned by the managements where the newspapers are printed and published are factories and are governed by the Act
Section 1 5 of the Act however provides that the appropriate Government in consultation with the Employees  State Insurance Corporation and where the appropriate Government is a State Government with the approval of the Central Government after giving six months  notice of its intention of so doing by notification in the official Gazette extend the provisions of the Act or any of them to any other establishment or class of establishments industrial commercial agricultural or otherwise
The expression establishment is not defined in the Act
It may be any industrial commercial agricultural or any other establishment where employees are engaged in connection with the business of the establishment
Section 38 of the Act provides that subject to the provisions of the Act all employees in factories or establishments to which the Act applies shall be insured in the manner provided by the Act
Section 39 of the Act states that the contribution payable under it shall comprise contribution payable by the employer and contribution payable by the employee
The contributions have to be paid at the rates specified in the First Schedule to the Act except where the employees concerned are excluded from some of the benefits under the Act in which case the Corporation is authorised to fix the rates of the contributions
Now reverting to section 2 9 of the Act it is seen that the expression employee  means any person employed for wages in a factory or any person employed for wages in connection with the work of a factory it also means any person employed for wages in or in connection with the work of an establishment to which the 968 Act applies
If it is held in these cases that the employees in the administrative or editorial sections of the printing presses are employed in connection with the work of the printing presses which are admittedly factories then they have to be treated as employees under section 2 9 of the Act even though no notification is issued under section 1 5 of the Act making the Act applicable to those sections
The fact that such a notification has been issued either as a matter of abundant caution or on a wrong understanding of the true implication of the definition in section 2 9 becomes irrelevant
The members of the administrative and editorial staff of the appellants are no doubt not working in the printing presses
But the question is whether they are not working in connection with the work of the printing presses which are factories under section 2 12 of the Act
In Royal Talkies Aydraboe  Ors
vs Employees State Insurance Corp employees working in a canteen and at the cycle stand attached to a cinema theatre were held to be persons employed in connection with the work of the cinema theatre
The Court however observed that merely being employed in connection with the work of a factory or of an establishment in itself did not entitle a person to be an employee but it must be proved that he was not only employed in connection with the work k of the establishment but also be shown to be employed in one or other of the three categories mentioned in section 2 9 of the Act
At this stage two decisions of this Court are required to be considered
In Hydrabad Asbsets Cement Products Ltd vs The Employees Insurance Court  Anr the appellant company which had a factory at Sanatnagar where it was manufacturing asbestos sheets contained that the employes working in its zonal offices situated at various other places who were doing the work of canvassing for the sale of products manufactured by it at Sanatnagar were not employees within the definition of section 2 9 of the Act as the zonal offices were establishments and not factories
Negativing the above contention this Court held that any person employed for wages in the zonal offices for the purpose of purchase of raw materials or distribution or sale of the products of the factory or for 969 administrative purposes of the factory was a person employed in connection with the worker of the factory and hence was an employee as defined by section 2 9 of the Act
The Court in reaching the conclusion also relied on the amendment of section 2 9 of the Act by Act No 44 of 1966 which provided that the expression employee  included any person employed for wages on any work connected with the administration of the factory 
When the present appeals are considered in the light of the above decisions the members of the administrative staff and of the editorial staff in each of the printing presses in question have to be treated as employees under section 29 of the Act
These persons are directly employed by the management concerned on work incidental or preliminary or connected with the work of the factory
The work of the factory in each case being printing and publication of a newspaper its work cannot be carried on without the assistance of the members of the editorial staff who are engaged in preparing the material for printing the newspaper and of the administrative staff which is needed for managing the affairs of the factory
It is a matter of common knowledge that the members of the editorial staff work almost round the clock at the premises where the printing press is situated or at the precincts thereof
Their principal job is to pick up and select from out of the mass of information which flows in to the press messages which have news value trim them and make them fit for communication through newspaper
Even though they may not be actually engaged in operating the printing machines their presence at the spot is essential right upto the moment the strike order  is given for the printing of the newspaper
There are cases where changes in the matter to be printed are effected even a few minutes before the process of printing is begun and cases where even after a few copies of newspaper are printed they are withheld and destroyed on the last minute advice of a responsible members of the editorial staff are not unknown
The editors news editors sub editors reporters etc
who constitute the editorial staff at the press are the collectively referred to as the gate keepers  of news because they determine what should be published and what should not be published
A printing press established for the purpose of publishing a newspaper cannot effectively function at all without the services of the members of the editorial staff being made available almost till the time the newspaper comes out of the printing machine
They virtually constitute an integral part of the newspaper press and they are employed in connection with the work done at the printing press
The members of the editorial staff clearly fall under clause i 970 of section 29 of the Act
It is so even in the case of the administrative staff
They fall under the clause containing the words includes any person employed for wages on any work connected with the administration of the factory 
It may be stated here that even without the amendment made by Act No 44 of 1966 this Court in Nagpur Electric Light  Power Co Ltd vs Regional Director Employees State Insurance Corporation etc had taken the view that the clerical staff etc
of a factory whether they worked within the factory or outside its premises would be employees under section 29 of the Act as it stood before its amendment
The argument that since a person mainly employed in a managerial or administrative capacity cannot be treated as a working journalist under section 29 of the Working Journalists Conditions of Service and Miscellaneous Provisions Act 1955 the members employed in the administrative staff should not be treated as employees in a printing press is an extremely Jenuous argument and it is not worth probing further
The effect of on Act cannot be controlled by the provisions of another Act unless the provisions in one have bearing on the provisions of the other
No such provision is brought to our notice
The contention that since the Act is not expressly made applicable to newspaper establishments by the Working Journalists Conditions of Service Miscellaneous Provisions Act 1955 as it has made certain laws applicable by sections 3 14 and 15 thereof the Act should not be applied to the editorial staff has also no merit
We are satisfied that section 29 of the Act clearly brings them within the scope of the Act
On an examination of the provisions of the Act we are of the view that the persons employed for wages in the administrative section and the editorial section of each of the printing presses in question are employees as defined in section 29 of the Act and the demand made by the Employees  State Insurance Corporation is a justified one
In the result the appeals fail and they are dismissed with costs


Summary:
The appellants in the appeals were printers and publishers of newspapers
The Assistant Regional Director of the Employee s State Insurance Corporation issued a notice to the appellants on October 1 1975 calling upon them to make contributions in respect of the administrative and editorial staff of the newspapers with effect from January 28 1968 on the ground that the aforesaid staff came within the definition of the expression employee  in section 29 of the Employee  a State Insurance Act 1948 as amended by the Amending Act No 44 of 1966
After the aforesaid demands were made the appellants filed applications before the Employees  State Insurance Court under section 75 of the Act questioning the liability to make contribution in respect of the said employees during the period between January 28 1968 and November 19 1976
They however did not dispute their liability in respect of the period subsequent to November 19
1976 on which date the notification was issued under section 1 5 by the State Government
These applications were contested by the Employees  State Insurance Corporation
The Employees  Insurance Court allowed the applications holding that until the notification under section 15 of the Act was issued by the State Government making the Act applicable to the establishments of the appellants viz the administrative and editorial sections of the presses the said employees could not be considered as employees  as defined by section 29 of the Act
The Corporation thereupon filed appeals before the High Courts under section 32 of the Act which were allowed holding that the employees concerned came within the definition given in section 29 aud therefore the 963 appellants were liable to make contributions during the relevant period in respect of them also under the Act
Dismissing the Appeals to this Court  HELD 1 An examination of the provisions of the indicates that the persons employed for wages in the administrative section and the editorial section of each of the printing presses are employees as defined in section 29 of the Act and the demand made by the Employees  State Insurance Corporation is a justified one
970E 2
The object of the is to provide for certain benefits to employees in case of sickness maternity and employment injury and to make provisions for certain other matters in relation thereto
Section 14 of the Act provides that it shall apply in the first instance to all factories including factories belonging to the Government other than seasonal factories
Section 15 of the Act however provides that the appropriate Government in consultation with the Employees  State Insurance Corporation and where the appropriate Government is a State Government with the approval of the Central Government after giving six months  notice of its intention of so doing by a notification in the official Gazette extend the provisions of the Act or any of them to any other establishment or class of establishments industrial commercial agricultural or otherwise
The expression establishment  however was not defined in the Act
967A E 3
Section 29 of the Act defines the expression employee  to mean any person employed for wages in a factory or any person employed for wages in connection with the work of a factory
It also means any person employed for wages in or in connection with the work of an establishment to which the Act applies
967H In the instant cases the members of the administrative staff and of the editorial staff in each of the printing presses have to be treated as employees under section 29
They are directly employed by the management concerned on work incidental or preliminary or connected with the work of the factory
The work of the factory in each case being printing and publication of a newspaper its work cannot be carried on without the assistance of the members of the editorial staff who are engaged in preparing the material for printing the newspaper and of the administrative staff which is needed for managing the affairs of the factory
969C D Hyderabad Asbestos Cement Products Ltd vs The Employees Insurance Court and Anr   Royal Tulkies Hyderabad and Ors
vs Employees State Insurance Corp  and Nagpur Electric Light and Power Co Ltd vs Regional Director Employees State Insurance Corporation etc
  referred to
The members of the editorial staff clearly fall under clause i of section 29 of the Act
The administrative staff fall under the clause contain 964 ing the words includes any person employed for wages on any work connected with the administration of the factory 
969H 970A 5
The effect of an Act cannot be controlled by the provisions of another Act unless the provisions in one have bearing on the provisions of the other
970D