Mere having common directors will not establish functional integrality of units under the ESI Act: Bombay High Court

Mere having common directors will not establish functional integrality of units under the ESI Act: Bombay High Court

Bombay High Court in Employees State Insurance Corporation vs. Orangecity Institute of Technology Pvt. Ltd. and Ors. FA No. 825/2006, on August 19, 2022 observed that all the 3 (three) units cannot be clubbed for coverage under the Employees State Insurance Act, 1948 (“ESI Act“) as all the said units are independently working and existing without support of another and therefore it is difficult to say that there is functional integrality or inter dependency only for the reasons that there are some common directors.

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November 2024

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