C.E.S.C. LTD. ETC. vs SUBHASH CHANDRA BOSE AND ORS.

The Supreme Court ruled that employees of contractors engaged in works contracts fall under the definition of 'employee' as per Section 2(9) of the Employees’ State Insurance Act, 1948. The Court held that the principal employer retains ultimate supervision over the work done by contractors, thereby making them liable for ESI contributions. The judgment affirmed the applicability of the Act to the contractors' employees, emphasizing the need for a broad interpretation to avoid unjust outcomes, aligning with Articles 21 and 39 of the Constitution regarding the right to health and social justice.