M.C. Jain, J.
1. This Is An Appeal By The Government Of Rajasthan Against The judgement and decree dated 1.6.1972, passed by the Employees' Insurance Court (Civil Judge), Jodhpur, whereby the Corporation's claim for the recovery of the amount of Rs. 1,929.52 was decreed.
2. Briefly the facts are that the employees' Insurance Corporation through its Manager submitted an application under Section 75(2) of the Employees' State Insurance Act, 1948 (hereinafter referred to as 'the Act'), against the Government of Rajasthan for recovery of employees' contribution amounting to Rs. 2,001/-. The Government of Rajasthan resisted the claim inter alia on the ground that the State Government had issued notifications under Section 87 of tie Act exempting the factories situated within the Jodhpur Municipality and Masuriya Industrial Area. In view of the notifications exempting the factories, the Government of Rajasthan is not liable for the payment of employees' contribution. On this plea of the Government of Rajasthan, issue No. 2 was struck, but this issue was decided by the Insurance Court against the Government on the ground that Section 87 has no application for exemption of Government factories. The only relevant Section 87 Section 90 of the Act and the view taken by the learned Judge is that the notification can be issued under Section 90 only by the Central Government. I need not refer to the respective cases of the parties in detail and the issues and the findings recorded by the learned Judge, as this appeal can be disposed of solely on the decision of issue No. 2.
3. Shri R. Balia, learned Dy. Government Advocate, on behalf of the appellant, submitted that the view taken by the learned Insurance Court with respect to the two provisions contained in Sections 87 and 90, is erroneous. Under Section 87 the appropriate Government is empowered to issue notification for exemption of any factory or establishment or class of factories or establishments in any specified area from the operation of the Act for a period not exceeding one year. In exercise of the powers conferred under Section 87 the State Government issued Notifications No. F. 7 (64)/Lab./60, dated 21.12.960, No. F. 7 (12) Lab/61, dated 29.9.1961, No. F. 7 (12)/Lab./61, dated 8.9.1962 and No. F. 7 (12)/Lab./61, dated 25.6.1963, exempting the factories situated within the specified areas and these four notifications covered the period from December '60 to September 30, 1964, that is, these notifications cover the period in respect of which claim has been made by the Corporation. Mr. Balia also submitted that Section 90 will not apply in the present case. Section 90 is attracted only when exemption is to be granted to factories or establishments belonging to Government or any local authority. As the notifications have been issued under Section 87, so such notifications would cover all factories or establishments or class of factories or establishments including that of the Government or of the local authority.
4. Shri Tatia, learned Counsel for the respondent, on the other hand, submitted that Section 90 is a special provision for Government factories and for exemption of Government factories, notification can only be issued under Section 90. As no notification has been issued under Section 90 of the Act, so the claim has been rightly decreed by the learned Insurance Court.
5. Having considered the rival submissions, I find force in the submission of Mr. Balia. Section 87 confers power on the appropriate Government to issue general notification in respect of all factories or establishments situated in any specified area; and if any such notification is issued, then it will cover private factories as well as the Government factories. Section 90 would apply only when the Government factories or factories owned by local authorities are to be exempted. But where general exemption is to be granted, then Section 87 will be attracted. The four notifications, referred to above, were issued under Section 87 of the Act exempting all factories situated within the areas specified in the notifications, so all factories situated in those areas, will be exempted from the operation of the Act and the Government factories would be covered under the notifications. Thus, in view of the notifications under Section 87 of the Act, there is no liability of the Government for payment of employees' contribution. In my opinion, issue No. 2 has not been correctly decided by the learned Insurance Court for the reasons considered above. Thus, this appeal succeeds on this ground alone.
6. The appeal is, therefore, accepted and the judgment and decree passed by the Insurance Court are set aside. In the circumstances of the case, the parties shal bear their own costs throughout.