OSMANIA UNIVERSITYversusREGIONAL DIRECTOR, EMPLOYEES STATE INSURANCE CORPORATION, ANDHRA PRADESH AND ORS.

                                                                  589


                                                                        A
                           OSMANIA 1JNIVl!RSITY
                                   v.
                     Rl!GIONAL DIRECTOR, l!MPLOlll!S
                     STATE INSURANCE CORPOllATION;
                        ANDHRA PRADESH AND ORS.
                                                                        B
                            OCTOBER 8, 1985

  (O. CHINNAPPA REDDY, V. BALAKRISHNA ERADI AND V. KHALID, JJ.]

         Employees' State Insurance Act, 1948 Sections 1 (4) and
2(12).                                                                  c
      PUblications and Press Department of University - Running
printing press and printing of text books, journals and
stationery items for University - Employees of such Department
whether eligible for benefits of ESI Act.
                                                                        D
         Words &Phrases

      'Factory'- 'Manufacturing process'- Meaning of - Employees'
State Insurance Act, 1948, Section 2(12).

      The Department of PUblications and Ptess of the Osmani&           E
University (Appellant) I'Ull8 printing presses, where the work of
printing of text books, journals and magazines as well u various
items of stationery such as admission fol'llS to colleges, hostela
and examinations, hall tickets, answer books etc. for the
University are printed. About 100 persona are employed in
connection with the said activity.
                                                                        F
         On the question 1 whether the provisions of the Employees'
State Insurance Act, 1948 are applicable in respect of the
employees working in the Department of PUblications and Ptesses,
a Division Bench of the High Court answered the question in the
affirmative, set aside the judganent of a Single Judge, and
di8111issed the Writ Petition of the University.                        G

         Di8111issing the Appeal of the University, this Court,

     BEW: The Department of Pliblications and Pte1& of the
University is engaged in carrying on a 'manufacturing procese' in
the printing of text-books, journals, forms and other i teu of
                                                                        H
    590                 SUPREME COURT REPORTS      [1985] SUPP.3 s.c.R.

A
    stationery. It is a 'factory' within the meaning of the said
    expression as defined in section 2(12) of the Employees' State
    Insurance Act, 1948. The employees are therefore eligible for the
    benefits under the said Act. [592 A]

            CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1079 of
B
    1973.

          From the Judgment and Order dated 16.11.1972 of the Andhra
    Pradesh High Court in Writ Appeal No. 345 of 1972,

         B.R.L, Iyengar, G.N. Rao, T.C. Gupta and        Attar Singh for
    the Appellant.
c
          M.S. Gujral, C.V. Subba Rao, R,N, Poddar and T.C. Sharma
    for the Respondents.

            The Judgment of the Court was delivered by

          BALAKRISHNA ERADI, J, : The short question that arises for
D
    our determination in this appeal, which has been filed on the
    basis of a certificate granted by the High Court of Andhra
    Pradesh is whether the provisions of the Employees' State
    Insurance Act, 1948 are applicable in respect of the employees
    working in the Department of Publications and Press of the
    Osmania University, A llivision Bench of the High Court has
E
    answered the said question in the affirmative differing from the
    contrary view expressed by a learned Single Judge, who had
    allowed a Writ Petition filed by the University. In the light of
    the said conclusion, the Division Bench set aside the judgment of
    the learned Single Judge and dismissed the Writ Petition. Under
    clause (4) of Section l of the Employees' State Insurance Act,
F
    1948 (for short 'the act') the Act will apply to all 'factories'
    including factories belonging to the Government other than
    seasonal factories. The expression hfactory" has been defined in
    Section 2(12) of the Act in the following terms:-

                 "2(12) "factory" means any premises including the
G
                precincts thereof whereon twenty or more persons are
                employed or 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 Mines
H
                Act, 1952 (35 of 1952) or a railway running shed;
 OSMANIA UNIVERSITY v. E. S. I. CORPN. [BALAKRISllNA ERADI, J]   591


           "seasonal factory" means a factory which is exclusive-      A
           ly engaged in one or more of the following manuf actur-
           ing processes, namely cotton ginning, cotton or jute
           pressing, decortication of groundnuts, the manufacture
           of coffee, indigo, lac, rubber, sugar (including gur)
           or tea or any manufacturing process which is inci-
           dental to or connected with any of the aforesaid            B
           processes;

           (and includes a factory which is engaged for a period
           not exceeding seven months in a year -

           (a) in any process of blending, packing, or repacking       C
           of tea or coffee; or

           (b) in such other manufacturing process as the Central
           Government may, by notification in the Official
           Gazette specify;)
                                                                       D
           The expression "manufacturing process" and "power"
           shall have the meaning respectively assigned to them
           in the Factories Act, 1948 (63 of 1948),"

     Clause (k) of Section 2 of the Factories Act defines the
expression 'Manufacturing process'. $or the purposes of this case      E
we need refer to only sub-clause (i) of the said definition
clause. That sub-clause states that Manufacturing Process means
any process for "making, altering, repairing, ornamenting,
finishing, packing, oiling, washing, cleaning, breaking up,
demolishing, or otherwise treating or. adapting any article or
substance with a view to its use,. sale, transport, delivery or
disposal".                                                             F

      In the connected appeal - C.A. No. 204 of 1973 filed by the
same appellant, ·we had occasion to consider whether the
Department of Publications and Press run by the University is
liable for coverage under the Employees' Provident Funds and
Miscellaneous Provisions Act, 1952 together with Schemes and           G
Notifications. In our judgment in that appeal we have taken the
view that the said department is engaged in carrying on a
'manufacturing process' in the printing of text books, journals,
forms and other items of stationery. The definition of
11
   manufacturing process" contained in Section 2(1-c) of the
Employees• Provident Funds and Miscellaneous Provisions Act is
identical in all respects with that contained in ·section 2(k)(i)      H
of the Factories Act.
                                                                 ,


    592                SUPREME COURT REPORTS      [1985] SUPP;) s.c.R.

A        In the light of the aforesaid conclusion recorded by us in
    C.A. No. 204 of 1973 it must be held that the department in
    question is a 'factory' within the meaning of the said expression
    as defined in Section 2 (12) of the Act. The judgment under
    appeal does not, therefore, call for any interference.
B
          This appeal is accordingly dismissed with costs.




    N.V.K.                                            Appeal dismissed.




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