HON’BLE SRI JUSTICE A. GOPAL REDDY AND HON'BLE SRI JUSTICE B.CHANDRA KUMAR C.M.A. No.1383 OF 1998 DATED:10.09.2009 BETWEEN: The Regional Director, E.S.I.Corporation, Regional Office, 5-9-23, Hill Fort Road, Hyderabad. …Appellant and M/s.Rudramamba Filters, Rep.by its Commissioner, Warangal. …Respondent THIS COURT MADE THE FOLLOWING: HON’BLE SRI JUSTICE A. GOPAL REDDY AND HON'BLE SRI JUSTICE B.CHANDRA KUMAR C.M.A. No.1383 OF 1998 JUDGMENT: (Per Hon’ble Sri Justice A.Gopal Reddy) Employees State Insurance Corporation filed this appeal against the orders of the Employees’ Insurance Court and Chairman, Industrial Tribunal-I, Hyderabad dated 22.7.1997 whereby the petition filed by the respondent herein in E.I.C.No.13 of 1996 under Section 75 (1) (g) of the Employees State Insurance Act, 1948 (for short ‘Act’) to declare that the employees of the Filter Beds are not covered by the Act was allowed following the judgment of the Supreme Court reported in Municipal Committee Abohar v. Regional Commissioner, ESI Corporation (1996 (2) Supreme 363). Though the appeal is pending since 1998, the respondent could not be served. In the circumstances, there is no purpose in keeping the appeal pending indefinitely for service of respondent. We have heard Sri V.Ch.Naidu, learned counsel for the appellant and gone through the material available on record. M/s.Rudramamba Filters-the respondent herein filed E.I.C.No.13 of 1996 contending that it is a local body constituted under Act, 24 of 1994 r/w Hyderabad Municipal Corporation Act, and that it was established with the object to maintain and supply the drinking water to the public within the municipal limits of Warangal and for that purpose, it has employed persons as employees to carry out the functions of filtering chlorinating, purifying and pumping water for drinking purposes in Warangal Town. The employees employed by it are all permanent employees and are governed by the State Subordinate Service Rules, and that they are conferred all the benefits applicable under the rules framed under the Act. The benefits conferred to its employees are either similar or better than the benefits conferred under the provisions of the Act. The appellant herein filed a written statement admitting that the Municipal Corporation has been engaging 20 persons in the Rudramamba Filters-respondent company since 1.10.1988. According to the appellant, the said company is carrying on manufacturing process with the aid of power, and that it satisfies the definition of ‘factory’ as defined under Section 2(12) of the Act and therefore, it is liable to pay the contribution. Since the issue is no more res integra in view of the judgment delivered by the Apex Court referred to above, and once the employees of respondent company are governed by State Subordinate Service Rules and were engaged by the Municipal Corporation for the purpose as aforementioned, the lower Court rightly allowed the petition holding that the municipal employees are exempted from the provisions of the Act. The impugned order does not suffer from any manifest illegality warranting interference by this Court. The appeal is accordingly dismissed. There shall be no order as to costs. ____________________ A. GOPAL REDDY, J. _______________________ SEPTEMBER 10, 2009 B.CHANDRA KUMAR, J. Tsr.