ESI applicable on Software development, sales and repairing of computers being ‘manufacturing process’: Bombay HC

ESI applicable on Software development, sales and repairing of computers being 'manufacturing process': Bombay HC

Bombay High Court in Academy of Computer Technology vs. The Deputy Director, Employees State Insurance Corporation First Appeal No.199 of 2009 examined the question as to whether an Institute of Computer Technology engaged in imparting computer education and does not manufacture software etc. can be said to be a factory within the meaning of sub-section (m) of Section 2 of the Factories Act, 1948, held that the provision of the Employees State Insurance Act, 1948 (“ESI Act“) are applicable on factories involved in manufacturing process as defined under the Factories Act, 1948 and the term “software development, sales services and repairing of the computer” are covered under the said definition and thus the provisions of the ESI Act will be applicable on the Academy of Computer Technology.

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November 2024

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