Pumping oil as a manufacturing process brings a petrol pump within ESI coverage and sustains contribution liability.

A petrol pump that pumps petrol and diesel by use of power falls within the Employees' State Insurance Act, 1948 because the Act applies to factories where a manufacturing process is carried on, and pumping oil is expressly included as a manufacturing process under the Factories Act, 1948. On the clear statutory language, the literal rule applies and no other interpretive approach is needed. The activity therefore satisfies the definition of factory under the Act, so contribution and interest were upheld against the establishment.

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Issues: Whether a petrol pump engaged in pumping petrol and diesel is covered by the Employees' State Insurance Act, 1948, so as to require contribution and interest under the Act.

Analysis: The Act applies in the first instance to factories, and its definition of "factory" turns on whether a manufacturing process is carried on. The Act incorporates the meaning of "manufacturing process" from the Factories Act, 1948. Under section 2(k)(ii) of the Factories Act, pumping oil is expressly included as a manufacturing process. Since petrol and diesel are pumped by use of power at the outlet, the activity carried on falls within that definition. Where the statutory language is clear, the literal rule of interpretation governs and there is no occasion to resort to any other interpretive approach.

Conclusion: The petrol pump was held to be covered by the Act, and the demand for contribution and interest was upheld. The challenge failed.

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