Sunil Ambwani, J.
1. Petitioner, running a petrol pump (public retail outlet) for dispensing petrol/diesel has challenged an order dated October 17, 2002 issued by Deputy Director, Employees' State Insurance Corporation, Regional Office, Kanpur directing petitioner to make contribution under the Act from August, 1993 to May, 2000 and interest on the aforesaid amount failing which recovery shall be issued under Sections 45C and 45G of the Employees' State Insurance Act, 1948.
2. It was admitted by the counsel for petitioners that an Employees' State Insurance Court has been established under Section 75 of the Act at Etawah to decide any question or dispute, for the matters provided under Section 75, but since the issue relates to applicability of the Act, it was prayed that the matter be considered by this Court in the light of the decisions rendered by different High Courts.
3. I have heard Sri Ashok Khare, senior Advocate, assisted by Sri V.D. Chauhan for petitioner and Sri A.K. Srivastava for respondent Corporation.
4. An inspection was made on the business premises of the petitioner, on which it was found that there were sixteen employees named in the notice issued in pursuance of the inspection of which an information was given to the petitioner on November 7, 1993 covering the establishment under the Act. The matter appears to have rested without any further progress.
5. A notice dated June 29, 2000 was sent to the petitioner in pursuance of the aforesaid inspection demanding contribution from August, 1993 to May, 2000. Petitioner submitted his reply to the Regional Manager, Employees' State Insurance Corporation, Panchdeep Bhawan, Sarvodaya Nagar, Kanpur objecting the demand of contribution on the ground that the petitioner does not carry out any manufacturing operation and is engaged in dispensing petrol/diesel/mobil oil, that is, petroleum products in retail, as an agent of Bharat Petroleum Corporation under a licence issued for sale of its petroleum products. No notification was published covering the establishment under the Act in accordance with Section 1(5) of the Act and that the petitioner is not liable to pay contribution under Section 40 of the Act and Regulations 29 and 31 of the Employees' State Insurance (General) Regulations, 1950. An assessment has been made on ad-hoc basis merely to harass the petitioner. It is significant to note that the petitioner did not challenge the number of employees who were found to have been employed by the establishment during inspection made in the year 1993.
6. The objections have been decided by the Deputy Director of the Corporation by his impugned order dated October 17, 2002 issued under Section 45A of the Act authorising him to determine the contribution after giving reasonable opportunity of hearing to the principal or immediate employer or the person in charge of the factory or establishment. It has been found by him that the establishment employs more than ten employees in which a pumping machine is used by force of electric power to dispense petrol/diesel and thus the establishment is covered under the definition of 'factory' under Sub-section (12) of Section 2 of the Act in which manufacturing process is carried out with the aid of power employing more than ten persons.
7. Counsel for the petitioner contends that the Act applies to 'factory' which is defined under Sub-section (12) of Section 2 of the Act in which a manufacturing process is being carried on with the aid of power and in which ten or more persons are employed for wages. The words 'manufacturing process' has been defined under Sub-section (14-AA) of Section 2 of the Act to have the meaning assigned to it in the Factories Act, 1948. The Factories Act, 1948 defines 'manufacturing process' under Section 2(k) as follows:
'2(k) 'manufacturing process' means process for--
(i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal, or
(ii) pumping oil, water, sewage or any other substance, or -
(iii) generating, transforming or transmitting power, or
(iv) composing types for printing, printing by letter press, lithography, photogravure or other similar process or block binding or;
(v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or
(vi) preserving or storing any article in cold storage;'
8. According to Sri Ashok Khare, senior advocate, the words 'pumping oil, water, sewage or any other substance' should be used for the purpose of manufacturing and not for dispensing for retail purposes. According to him, the words 'pumping oil' can be referred only in respect of refineries for such activities whether oil is either processed or manufactured employing some manufacturing process. A retail petrol outlet is required under the conditions of licence to store petroleum products in underground tanks from which it is dispensed by using calibrating dispensing equipment by aid of power and that such an equipment cannot be said to be an equipment pumping oil for any manufacturing process. He has relied upon a judgment of Bombay High Court in Employees' State Insurance Corporation v. Vyankatesh Co-operative Processors Society Limited and Anr. 1993 (67) FLR 694 (Bom) in which while considering the activities of the society of bleaching, dyeing and mercerising of grey cloth, it was held by Bombay High Court that washing and cleaning has to have a nexus to the ultimate product. Water was used by the society for the purpose of bleaching, dyeing and mercerising of grey cloth not brought in by the 1 employment or power. Power was used for treating of the effluent before its discharge into the Krishna River Basin, The treatment of water was not a part of the manufacturing process. It was enjoined by the Society by the -provisions of the Pollution Act. Even without the operation of the motor used to work the plant which treated the effluent, the manufacturing process in which the Society was engaged could be carried out without hindrance. There was no nexus between the manufacturing activity and the treatment and eventual discharge of the effluent and thus the process was not found to be manufacturing process as defined under Section 2(k) of the Factories Act, 1948.
9. Counsel for the Corporation, on the other hand, submitted and relied upon a Full Bench decision of Punjab and Haryana High Court in Employees' State Insurance Corporation v. Bhag Singh 1989-II-LLJ-126 where the question involved was the same, as in the present case, namely whether selling of petrol/diesel by a petrol dealer by pumping petroleum products from under ground tanks amounts to manufacturing process. A learned Single Judge of the same Court has taken a view that the activity cannot be treated to be a 'manufacturing process'. The Full Bench of Punjab and Haryana High Court held in paragraph Nos. 12 and 13 as follows at p.p. 131 & 132 of LLJ:
'Petrol pump and service station is a work place where persons are employed and power is used in the process of its activities. It is not materially different from the other activities of a manufacturing place strictly so called. In the circumstances, we will not be justified in giving a very narrow construction to the definition of 'manufacturing process' so as to restrict its application only to a work place where by virtue of the manufacturing process, a commercially different article is produced.
Having regard to the scope of the provisions of the Act and the need for securing the conditions of employment conducive to the health, safety and welfare of the labour, we cannot restrict its applicability with such narrow and restricted approach. The definition of 'manufacturing process' is so widely worded in order to project the scope beyond the normal and natural meaning attributed to it in other enactments. Eyen understanding the words 'manufacturing process' in a narrow sense, if it brings about a particular result, not necessarily a commercially different product, then it should be understood that there is manufacturing process. In the case of a service station, washing, cleaning or oiling a car brings about a particular result in either as a lubricated or cleansed vehicle. That result itself shall, in our opinion, be treated as enough to bring the process within the meaning of the Act. We are also unable to agree with the learned single Judge that the words 'pumping oil, water, sewage, or any other substance' in Clause (ii) of Section 2(k) is to be read in any restricted way so as to make that provision confined to refer to pumping of oil from refineries and water from underground the earth and so on. Even giving a literal meaning, we cannot restrict the scope of it to pumping of oil from refineries. As normally understood, it would include pumping process involved in a petrol pump.'
10. The Employees' State Insurance Act, 1948 was enacted to introduce a Scheme of Health Insurance for industrial workers. In order to provide for certain benefits to the employees in case of sickness, maternity and employment injury and disablement and dependents' benefit the Act provides for establishment of a Corporation and sets up an Employees' State Insurance Fund. Subject to the provisions of the Act, Section 38 provides that all employees in factories, or establishments to which this Act applies shall be insured in the manner provided in the Act and for the purpose of benefits of the Act, Section 39 provides for contributions payable in respect of an employee to comprise of contribution payable by the employer and the contribution payable by the employee to be paid to the corporation at such rates as may be prescribed by the Central Government. The principal employer under Section 40 is required to pay in respect of every employee, whether directly employed by him or by or through an immediate employer, both the employer's contribution and the employee's contribution and to recover from the employee the employee's contribution by deducting from his wages and not otherwise. The sum deducted by the principal employer from wages shall be deemed to be entrusted to him by the employee for the purpose of paying the contribution. The Act has a relevant social purpose to achieve. It has been made applicable to the factories where ten or more persons are employed or were employed for wages on any day of the^ preceding twelve months, and in any part of which a manufacturing process is being carried on or where twenty or more persons are employed or were employed for wages on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power or is ordinarily so carried on, but does not include a mine, subject to the operation of the Mines Act, 1952 or a railway running shed.
11. After going through the aforesaid provisions of the Act, Regulations made thereunder and the judgments cited, I am in agreement with the Full Bench of the Punjab and Haryana High Court in Employees' State Insurance Corporation v. Bhag Singh (supra). Petrol pump is a work place where persons are employed and power is used in the process of its activities. The definition of 'manufacturing process' in the Factories Act does not depend upon and is not co-related with any end-product being manufactured out of a manufacturing process. It includes even repair, finishing, oiling or cleaning process with a view to its use, sale, transport, deliver or disposal. Pumping oil, water or sewage under Section 2(k)(ii) does not mean that it may result into outcome of any processed product for sale. The words 'manufacturing process' cannot be restricted to an activity which may [result into manufacturing something or production of a commercially different article. I am supported in this interpretation by the addition of Clause (vi) to the definition by Act No. 25 of 1954 where even preserving or storing any article in cold storage was included in the definition clause. The 'manufacturing process' cannot be interpreted in a narrow sense in respect of an act which is meant for the purposes connected with social welfare.
12. Counsel for the petitioner tried to distinguish the Full Bench judgment of the Punjab and Haryana High Court on the ground that in the said case, petrol pumping is also included in the service station. In my opinion, the judgment cannot be read in that way and the fact that a service station may not be run alongwith the petrol pump or within the premises of the petrol pump to bring it within the definition of the word 'factory' under the Act, the activity of pumping petroleum product by aid of power employing more than ten persons is sufficient to bring it within the definition of 'manufacturing process' under the Factories Act.
13. For the aforesaid reasons, I do not find any error of law in the impugned order. The writ petition is, accordingly, dismissed.