In Brief
The Regional Director of the Employees' State Insurance Corporation challenged the High Court's order extending ESI Act coverage to a pathological laboratory from 2007, not 2002. The Supreme Court held that pathological laboratories are not 'shops' under the 1976 Notification and therefore were not covered then. The 2007 Notification specifically extended the Act to medical institutions, including pathological laboratories, with 20+ employees. The Court reasoned that the issuance of the 2007 Notification itself proves the Corporation understood pathological laboratories were not previously covered. The appeal was dismissed, confirming coverage from 06.09.2007."
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