EMPLOYEES STATE INSURANCE CORPORATION THR. REGIONAL DIRECTORS vs VENUS ALLOY PVT. LTD. THR. MANAGAING DIRECTOR

The Supreme Court addressed whether Directors of a company qualify as 'employees' under sub-section (9) of Section 2 of the Employees' State Insurance Act, 1948. The Court held that remuneration paid to Directors does not fall under the purview of the ESI Act, as established in the precedent case of Employees' State Insurance Corporation Vs. Apex Engineering Pvt. Ltd., which clarified that only those performing specific work may be considered employees. Consequently, the appeal by the Employees' State Insurance Corporation was dismissed, affirming the High Court's ruling that the order demanding contributions for Directors' remuneration was void.