REGIONAL DIRECTOR Vs. VINOD

JUDGEMENT

(1.) The question which arises for consideration in this appeal by the Employees' State Insurance Corporation of India is whether (i) the payment of daily bhatta to the conductors of the buses and other staff described as "running staff" (ii) the incentive allowance paid to such staff and (iii) the payment to the labourers engaged for the maintenance and repairs of the building used by the establishment of the respondent employers are "wages" within the meaning of S.2(22) of the Employees State Insurance Act, 1948 (hereinafter referred to as the Act). The question arises out of the facts stated in Para.2 and 3 below:

(2.) The respondent is a company known as C.W.M.S.(P) Limited, engaged in the business of transport of passengers. The appellant is the Employees State Insurance Corporation, Trichur, created by the Act. Under the Act, the respondent is liable to pay contribution to the Employees' State Insurance Fund created under Chapter III of the Act. The employer is, under the Act, liable to contribute to the Employees' State Insurance Fund. The contribution depends upon and is related to the wages paid to the employees. The respondent made an application No. E.I.C. 32/1983 to the Employees State Insurance Court, Calicut for a declaration that it is not liable to contribute to the fund, as, according to the three categories of payment referred to in paragraph No. 1 are not "wages" as defined in S.2(22) of the Act.

(3.) The nature of the payment, the status of which is under our consideration may be briefly outlined.