In Brief
A municipality ran a water works factory that was covered under the Employees' State Insurance Act from 1965. After the municipality defaulted on contributions, the ESI Corporation issued assessments and the municipality sought exemption before the Employees' Insurance Court, claiming its employees received superior benefits. The High Court allowed the municipality's appeal, but the Supreme Court held that exemption power lies exclusively with the Government, not the Insurance Court. A local authority's factory is covered under the Act unless the Government grants exemption under Section 90 after consulting the Corporation. The Court set aside the High Court's judgment and allowed the appeal, without prejudice to the municipality's right to seek Government exemption."
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