M/S. BIRLA COTTON SPINNING AND WEAVING MILLS LTD. DELHI Vs. EMPLOYEES STATE INSURANCE CORPORATION, NEW DELHI

JUDGEMENT

(1.) This appeal under Cl. 10 of the Letters Patent is directed against the judgment of the learned single Judge of this Court in F.A.O. No. 65 of 1972: (1977 Lab IC 119). The facts of the case are not in dispute and are as under:-

(2.) The defence of the appellant-mills was that the overtime wages were not included within the definition of the term "wages" as given (in) S. 2 (22) of the Employee's State Insurance Act (hereinafter referred to as the Act). The appellant filed an application under Sec. 77 of the Act before the Employee's State Insurance Court, Delhi and prayed for declaration that State Employee's Corporation (hereinafter referred to as "the Corporation") was not entitled to claim contribution of overtime payments as also the interest on delayed payments of contribution. The Court framed the following three issues:-

(3.) Under issue No. 1 the court held that overtime payment is an implied term of the contract and as such it was covered by the definition of wages as given in Cl. (22) of Sec. 2 of the Act. The second issue was decided in favour of the appellant-Mills and it was held that since the Mills purchased the stamps within time the amount stood credited to the account of the Corporation and as such the Mill was not liable to pay any interest.