(1.) The petitioners are licensees of toddy shops. They have approached this Court challenging Ext. P1. There arise two questions (1) Interest demanded at the enhanced rate is illegal. (2) The contribution assessed towards wages payable on surrendered leave is not in accordance with the Toddy Workers Welfare Fund Act and Scheme frame thereunder.
(2.) The first aspect is covered against the petitioners as per the decision reported in Vinod v. Chief Welfare Fund Inspector ( 2002 (1) KLT 177 ).
(3.) The workers concerned had work for all the 12 months. They were entitled for leave with wage. They did not avail of the leave. They surrendered the leave and obtained cash payment in lieu of the leave. In such circumstances no contribution shall be payable for the 13th months wages during an year. Assessment of contribution towards the amount paid on encashment of the leave is therefore illegal. On the other hand contribution is liable to be paid only if leave had been availed of and leave wages had been paid.