ROYAL TALKIES, HYDERABAD & ORS. vs EMPLOYEES STATE INSURANCE CORP.

The Supreme Court held that under Section 2(9) of the Employees State Insurance Act, 1948, the owners of theaters are considered 'principal employers' for the workers employed in canteens and cycle stands, even if those workers are hired by independent contractors. The Court emphasized that the primary liability for contribution lies with the principal employer, reflecting the Act's intent to provide comprehensive insurance coverage for employees. The appeal by the theater owners was dismissed, affirming the lower courts' rulings that they must contribute to the Employees State Insurance fund for these workers.