In Brief
Tamil Nadu Medical Services Corporation, a State-owned company, employed workmen on temporary basis. The workmen sought permanent status under the Tamil Nadu Industrial Establishments Act, 1981. The Corporation claimed the Act did not apply to it. The Supreme Court held that the Corporation is an industrial establishment engaged in commercial medicine distribution with profit motive, and therefore subject to the Act. Workmen completing 480 days of continuous service in 24 months qualify for permanent status. The exemption for construction workers does not apply to non-construction workers. The Court dismissed the Corporation's appeal and allowed the employees' appeal, directing compliance with the Inspector of Labour's earlier order granting permanent status to 53 workers.
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