DELHI GYMKHANA CLUB LTD. vs EMPLOYEES STATE INSURANCE CORPORATION

The Supreme Court held that the kitchen of the Delhi Gymkhana Club qualifies as a 'factory' under Section 2(12) and the preparation of food constitutes a 'manufacturing process' as defined in Section 2(14AA) of the Employees' State Insurance Act, 1948. The Court overturned the High Court's decision, emphasizing that the ESI Act applies to the club despite its non-profit status, thereby affirming the liability of the club to pay contributions for its employees. The appeal by the club was dismissed, reinforcing the applicability of the ESI Act in this context.