Section 1(5) of The Employees’ State Insurance Act, 1948

Posted on by Rudrajyoti Nath Ray

Government of Maharashtra, on 18/09/1978, exercising power conferred under Section 1(5) of The Employees’ State Insurance Act, 1948, extended provisions of ESI to certain classes of establishment – hotels, restaurants, shops, cinemas et cetera.

Employees’ Insurance Court at Bombay, on 09/09/2021, declared, Board of Control for Cricket of India [BCCI/Board] is covered within meaning of ‘shop’.

BCCI, registered under provisions of The Tamil Nadu Societies Act, 1975 and constituted for permitting Cricket, carries out various systematic activities commercial in nature by providing entertainment.

Bangalore Turf Club Ltd. v. ESIC, (2014) 9 SCC 656 has referred to judicial meaning assigned to ‘shop’ and has held, ESI being a social welfare legislation deserves a liberal interpretation. There is no reason why test as laid down in Bangalore Turf Club shall not be applied to BCCI. I have no hesitancy to hold, nature of activities conducted by Board are commercial in nature and hence covered under ‘shop’.  

– Hon’ble Justice Bharati Dangre of Hon’ble High Court of Bombay, Board of Control for Cricket of India v. Employees State Insurance Corporation, [First Appeal ST No. 25980 of 2021] decided on 24.06.2022.

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