In Brief
A municipality operating a water works factory sought exemption from the Employees' State Insurance Act through the Insurance Court, claiming it provided superior benefits to employees. The High Court allowed the municipality's appeal. The Supreme Court reversed this, holding that only the appropriate Government—not the Insurance Court—has statutory power to grant exemption under Section 90. The Court clarified that a factory operated by a local authority is automatically covered by the Act unless the Government exercises its exclusive exemption power after consulting the E.S.I. Corporation. The Insurance Court lacks jurisdiction to determine exemption matters; such disputes must follow the statutory procedure vested solely in the Government.
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