Cooking in club that serves food is manufacturing

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Dismissing an appeal in Delhi Gymkhana Club Ltd v Employees State Insurance Corporation, the Supreme Court held that the provisions of the Employees’ State Insurance Act, 1948, “must be construed along the lines of the objects of the act so that the benefits of welfare legislation are not curtailed”. The court said that Delhi High Court had rightly held that preparation of food items in the kitchen of a club amounts to a “manufacturing process” and that employees of the club fall within the purview of the act.

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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.

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