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Important Case Studies
Milk Producer''S Society Union ... vs Employees State Insurance ... on 26 April, 2010

Bench: R M Lodha, R V Raveendran
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 3816 OF 2010
(Arising out of SLP(C) No. 746 of 2006)
The Managing Director, Hassan Co-operative Milk Producer's Society Union Limited ...Appellant
Versus
The Assistant Regional Director
Employees State Insurance Corporation ...Respondent
WITH
CIVIL APPEAL NO. 3817 OF 2010
(Arising out of SLP(C) No. 3455 of 2008)
JUDGEMENT

R.M. Lodha, J.
Leave granted.
2. These two appeals, by special leave, are concerned with the liability of the appellants to pay ESI contribution in respect of the workers employed by the contractors in performance of the contract awarded to them for transportation of milk.
3. The two appeals arise out of different proceedings. Brief narration of facts in relation to each of the appellants may be set out first.
Hassan Cooperative Milk Producer's Society Union Limited (for short, `HCMPSU Ltd.').
4. HCMPSU Ltd. is a federal society. Its main business is purchasing milk and pasteurization of the same. The milk procured by member societies is transported in lorries/vans to the appellant's dairy. For that purpose, contract is awarded on the basis of rate per kilometer to the lowest bidder. The contractor collects the milk from the various societies in cans on specified routes and transports to the appellant's dairy. The empty cans are retransported and returned to the respective member societies. On September 23, 1994, a show cause notice was issued by the Assistant Regional Director,
Employees' State Insurance Corporation, Bangalore to the HCMPSU Ltd. calling upon them to furnish explanation and show cause as to why action should not be taken against them for non-payment of contribution under the Employees' State Insurance Act, 1948 (for short, `1948 Act') in respect of the employees of the appellant. It is not in

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