The Employees State Insurance ... vs Nagar Nigam Allahabad

The Supreme Court held that the employees of Nagar Nigam, Allahabad are covered under the Employees’ State Insurance Act, 1948, specifically under Section 40 which mandates contributions from the principal employer for employees in a factory. The Court overturned the High Court's decision that quashed the recovery notice issued for non-payment of contributions, emphasizing the obligation of the employer to comply with statutory requirements. The appeal was allowed, and the order of the High Court was set aside, reinstating the recovery of dues.