In Brief
The Supreme Court held that Directors of a private limited company who receive remuneration for performing assigned duties qualify as 'employees' under Section 2(9) of the Employees' State Insurance Act, 1948, and must be covered by ESI contributions. A Director can simultaneously hold the status of principal employer and employee. The Court rejected the High Court's reliance on outdated Bombay High Court decisions and upheld the Corporation's demand for ESI contributions on director remuneration, emphasizing the Act's comprehensive definition of 'employee' and 'wages'.
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