Delhi Gymkhana Club Ltd vs Employees State Insurance Corporation

The Supreme Court held that the kitchen of the Delhi Gymkhana Club constitutes a 'factory' under Section 2(12) of the Employees' State Insurance Act, 1948, as the preparation of food items qualifies as a 'manufacturing process' under Section 2(14AA). The Court affirmed the High Court's ruling that the ESI Act applies to the club, emphasizing the importance of extending welfare benefits to employees. Consequently, the appeal by the club was dismissed, upholding the requirement to pay contributions under the ESI Act.