In the recent landmark judgement passed by the Supreme Court, in the matter of ESIC Vs. M/s Radhika Theatre, it is henceforth stated that Section 1(16) of the Employees’ State Insurance (ESI) Act is to be deemed applicable irrespective of the number of persons employed at any time that falls below the limit specified by or under the Act.
“Sub-section (6) of Section 1…shall be applicable even with respect to those establishments established prior to 31.03.1989/20.10.1989, and the ESI Act shall be applicable irrespective of the number of persons employed or notwithstanding that the number of persons employed at any time falls below the limit specified by or under the ESI Act.”