TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether a partner of a firm can be treated as an employee within the meaning of Section 2(9) of the Employees State Insurance Act, 1948 so as to be counted for the statutory minimum of twenty employees and attract liability for contribution.
Analysis: The definition of employee under the Act requires employment for wages, which presupposes a contract of service and the existence of a relationship of employer and employee. A partner stands in a position of mutual agency and co-ownership in the partnership business, not in the position of a servant subject to the control of another. The fact that a partner may receive remuneration or wages for work done for the firm does not alter his legal status into that of an employee. The scheme of the Act cannot be extended by liberal interpretation to include persons who do not satisfy the statutory definition, even though the legislation is beneficial in nature.
Conclusion: A partner of a firm is not an employee within Section 2(9) of the Employees State Insurance Act, 1948, and cannot be counted towards the minimum number of employees required for applicability of the Act.
Ratio Decidendi: For the purposes of the Employees State Insurance Act, a partner cannot simultaneously be the employer and the employee of the firm; remuneration paid to a partner does not create a contract of service or alter the partnership relationship into employment.
TaxTMI 
TaxTMI 
