BANGALORE TURF CLUB LTD. vs REGIONAL DIRECTOR, ESI CORPORATION

The Supreme Court held that the term 'shop' is not defined in the Employees' State Insurance Act (ESI Act) or the relevant government notification under Section 1(5), and thus should be interpreted in common parlance. The Court found that a racing club does not qualify as a shop under the Act, and criticized the previous ruling in Employees State Insurance Corpn. Vs. Hyderabad Race Club for erroneously presuming that all establishments are covered by the Act. The Court referred the matter for reconsideration by a larger bench, staying any demands against the appellant-clubs in the interim.