REGIONAL DIRECTOR, EMPLOYEES STATE INSURANCECORPORATION A vs RAM CHANDER

The Supreme Court upheld the decision of the Employees' State Insurance Court, affirming that the tailoring shop operated by the respondent, employing between 10 to 20 persons and utilizing electric power for stitching and ironing, falls under the Employees' State Insurance Act, 1948. The Court clarified that the process of stitching, which results in the creation of distinct goods, constitutes 'manufacture' as per the definition established in Empire Industries Limited & Ors. v. Union of India. The Court held that the establishment is covered by the relevant notification under Section 1(5) of the Act, thereby affirming the applicability of the Act to the respondent's business.