IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE V.RAMKUMAR TUESDAY, THE 16TH JUNE 2009 / 26TH JYAISHTA 1931 Ins.APP.No. 15 of 2009() ------------------------ EIC.27/2004 of E.I.COURT, KOZHIKODE .................... APPELLANT/APPLICANT: ---------------------------- M/S.CITY PETROLS, BHARAT PETROLEUM CORPORATION, WEST HILL, KOZHIKODE. BY ADV. MR. E.K.NANDAKUMAR MR. A.K.JAYASANKAR NAMBIAR MR. K.JOHN MATHAI MR. P.BENNY THOMAS MR. ANIL D. NAIR RESPONDENT/RESPONDENT:- ---------------------------------- THE REGIONAL DIRECTOR, E.S.I CORPORATION, THRISSUR - 20. THIS INSURANCE APPEAL HAVING COME UP FOR ADMISSION ON 16/06/2009, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: V. RAMKUMAR , J. ========================== Insurance Appeal No. 15 of 2009 ========================== Dated this the 16th day of June, 2009. JUDGMENT The appellant namely M/s. City Petrols which is a petrol pump functioning as an authorised dealer of Bharat Petroleum Corporation, applied before the E.S.I Court, Kozhikode under Section 75 r/w Section 77 of the E.S.I Act, 1948 seeking a declaration that the appellant - establishment is not covered under the E.S.I. Act and therefore the appellant is not liable to pay any contribution as per the provisions of the said Act. 2. The court below refused to grant the declaration holding that the appellant was a “factory” covered under the E.S.I Act as it engaged 10 or more employees in the petrol pump which was running with the aid of power and thereby falling under Section 2 (12) of the said Act. 3. The dispute revolved around the question as to whether the appellant's petrol pump was a “factory” within the meaning of Section 2(12) of the Act and whether the four trainees engaged by the appellant on payment of Rs.50/- per day for each trainee Ins. Appeal No. 15 of 2009 : 2 : could be said to be “employees” within the meaning of Section 2 (9) of the Act. The court below held that the appellant's establishment is a “factory” as defined under Section 2(12) of the Act and that the disputed four trainees also were “employees” thus making up a total of 13 employees thereby attracting Section 2(12) of the Act. 4. In the light of the decision of a Division Bench of this Court in Choisons v. E.S.I Corporation (2005 (3) KLT 1038), it is not open to the appellant to contend that a petrol pump is not a “factory” if the other conditions under Section 2(12) of the Act are satisfied. What then survives for consideration is the status of the four persons employed as trainees who were paid a sum of Rs.50/- per day. Going by the definition of the employee under Section 2(9) of the Act, even a person engaged as an apprentice, not falling under the Apprentices Act, 1961 or under the standing orders of the establishment, is an employee. If so, there is no reason why persons employed as trainees on payment of Rs.50/- per day cannot be treated as “employees” within the meaning of Section 2(9) of the Act. It is true that the earlier part of the Ins. Appeal No. 15 of 2009 : 3 : definition of “employee” under Section 2(9) of the Act would cover only persons employed for wages. But in the case of an apprentice, there is no requirement that he should be engaged for wages. Admittedly, the appellant has been paying 50 rupees per trainee for the four disputed persons and the contention is that the said amount was paid only to defray the expenses. But then, the said payment is wide enough to fall under the expression 'remuneration' within the meaning of Section 2(22) of the Act which defines the expression 'wages'. If so, the court below was right in holding that the disputed persons employed as trainees were also employees within the meaning of Section 2(9) of the Act. The findings recorded by the court below are pure findings of fact from which no question of law arises, much less, any substantial question of law arises so as to justify the admission of this appeal. This appeal is, accordingly, dismissed in limine. Dated this the 16th day of June, 2009. V. RAMKUMAR, JUDGE. Ins. Appeal No. 15 of 2009 : 4 : rv