Supreme Court in ESIC vs. Radhika Theatre SLP No. 12520/2022, observed that prior to insertion of sub-section (6) of Section 1 of the Employees’ State Insurance Act, 1948 (“ESI Act“), only those establishments/factories engaging more than 20 (twenty) employees were governed by the ESI Act, however, thereafter, sub-section (6) of Section 1 of the ESI Act has been inserted on 20.10.1989, and after 20.10.1989, a factory or establishment to which ESI Act applies would be governed by the ESI Act notwithstanding that the number of persons employed therein at any time falls below the limit specified by or under the ESI Act.
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