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Issues involved:
The liability of a partnership firm under the Employees' State Insurance Act, 1948 and the validity of the notification issued by the State Government under section 1(5) of the Act. Liability under the Employees' State Insurance Act: The petitioner, a partnership firm engaged in providing music services at events, challenged its liability to contribute under the Employees' State Insurance Act, primarily arguing that its business premises did not qualify as a 'shop' and that its business being seasonal, the Act should not apply. The Court held that the definition of a 'shop' includes places where services are sold, and as the petitioner provided music services for a fee, its premises qualified as a shop under the Act. Additionally, the intermittent nature of the services provided did not exempt the petitioner from the Act, as the definition of an 'employee' under the Act is broad and includes part-time and daily wage workers. The Court dismissed the petition, upholding the liability of the petitioner under the Act. Validity of the State Government's Notification: The petitioner also challenged the validity of the notification issued by the State Government under section 1(5) of the Act, arguing that it amounted to excessive delegation of legislative powers and violated constitutional provisions. The Court rejected these contentions, finding no merit in the argument that applying the Act to businesses operating seasonally was unconstitutional. The Writ Petition under Article 32 was dismissed, affirming the validity of the notification and the application of the Act to establishments like the petitioner's business. This judgment clarifies the scope of the Employees' State Insurance Act in relation to businesses such as the petitioner's and affirms the applicability of the Act to establishments providing services for a fee, even if the services are seasonal in nature. The Court's decision emphasizes the broad definition of 'employee' under the Act and upholds the validity of notifications issued by the State Government under the Act.
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