THE ESI CORPORATION vs M/S RADHIKA THEATRE

The Supreme Court examined the validity of demand notices issued by the ESI Corporation to a cinema theatre that ceased paying contributions after 1989, arguing that prior to the insertion of Sub-section (6) of Section 1 of the ESI Act, 1948, it employed fewer than 20 employees and was not liable under the Act. The High Court had set aside the Employees Insurance Court's order dismissing the respondent's challenge, leading to the appeal by the ESI Corporation. The Court analyzed the scope of the ESI Act's applicability concerning the number of employees and the retrospective effect of amendments, ultimately upholding the demand notices and the earlier orders.