REGIONAL DIRECTOR ESIC Vs. FIBRE BANGALORE P LTD

JUDGEMENT

(1.) This appeal by the Regional Director, Employee's State Insurance Corporation (E.S.I.) is directed against the order dated 24-10-1980 passed by the E.S.I. Court, Bangalore in E.S.I. Application No. 25/72, on its file.

(2.) F. Fibre Bangalore (P) Ltd., approached the E.S.I. Court with an application presented on 6-12-1972 for declaration that their erstwhile establishment was not covered by the E.S.I. Act; that a sum of Rs. 97,819 37 as alleged did not constitute wages within the meaning of E.S.I. Act, 1948 and as such no E.S.I, contribution was payable by the applicant to the Respondent, namely, the Regional Director, E.S.I. Corporation, Bangalore on the said sum. Hence, the appplicant prayed that the demand made by the Respondent for payment of E.S.I, contribution on the said sum should be set aside.

(3.) The E.S.I. Corporation by its letter No. MYS INS.I. 53-1156-19 dated 26-10-1972 called upon the applicant to pay Employer's Special Contribution and Employees' Contribution Rs.97819-37 paise together with interest at 6% per annum alleging that the said sum constituted wages as defined in Section 2(22) of the E.S.I. Act, 1948. The applicant contended in the application that the said sum did not constitute wages. The said sum represented the fabrication charges paid by the applicant to several persons and firms.