In Brief
The Employees' State Insurance Corporation sought to recover ESI contributions for remuneration paid to the Directors of Venus Alloy Pvt. Ltd. The company challenged the demand, arguing Directors do not qualify as 'employees' under the ESI Act. The Supreme Court held that a Director receiving remuneration for specific duties falls within the definition of 'employee' under Section 2(9) of the ESI Act, and such remuneration constitutes 'wages'. The Court applied Apex Engineering principles to conclude Directors can hold dual capacity as both principal employer and employee, making ESI contributions payable on their remuneration.
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