Sunday, October 4, 2009

Of course LPG is full of ‘power’!

In a recent case, the Supreme Court ruled that establishments using LPG by employer in the manufacturing process will be sufficient to attract the stipulation in the Employees State Insurance (ESI) Act for coverage. According to the Act, establishments using power for manufacturing process are included in the scope of the Act and must contribute to the ESI fund. It was argued that ‘power’ in the context of the Act meant electric power, and not LPG. Making a liberal interpretation, considering the social implication of the Act, the Supreme Court held that the use of LPG satisfied the definition of ‘power’.

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