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1998 (7) TMI 516 - SC - Companies LawWhether a director of a limited company can be considered as a principal employer liable to pay contributions under section 40? Held that:- Appeal dismissed. In the absence of any express provision in the Indian Penal Code incorporating the definition of "principal employer" in Explanation 2 to section 405, this definition cannot be held to apply to the term "employer" in Explanation 2. As the High Court has observed, the term "employer" in Explanation 2 must be understood as in ordinary parlance. In ordinary parlance it is the company which is the employer and not its directors either singly or collectively.
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