M/S HYDERABAD ASBASTOS CEMENT PRODUCTS., LTD. BALLABGARH Vs. THE REGIONAL DIRECTOR, E.S.I. CORPORATION, CHANDIGARH AND OTHERS

JUDGEMENT

(1.) Whether 'cycle allowance' and uniform washing allowance would fall within the definition of 'wages' as contained in Sec. 2(22) of the Employees State Insurance Act, 1948 (hereinafter called the Act) or would fall in the Exception, 1 clauses (b) and (c) appended to the definition, is the sole point for consideration in this appeal ?

(2.) The Employees State Insurance Corporation raised a demand against M/s Hyderabad Asbestos Cement Products Ltd. Ballabgarh, because the contributions made by the company were found to be short as while assessing the contribution, the company had not included 'cycle allowance' and uniform 'washing allowance' in the wages of the employees and the Corporation was of the opinion that 'cycle allowance' and uniform 'washing allowance' were part of the wages and on this basis made a demand for the difference of contributions and since there was delay in payment of that amount, interest was added there to. When the recoveries were enforced through the Collector, Gurgaon, the company filed a petition u/s 75 of the Act before the Court and challenged the recovery proceedings. It was pleaded that the 'cycle allowance' squarely comes within exception (b) and the uniform washing allowance fell within exception (c) contained in the definition of wages and therefore, could not be termed as wages for the purposes of calculation of contributions payable under the act. The stand was contested by the Corporation -respondent and it was pleaded that they come within the definition of 'wages'. The Court came to the conclusion that they fell within the definition of 'wages' and in the result dismissed the petition filed by the company. The company has come to this Court in appeal.

(3.) After hearing the the Learned Counsel for the parties I find that the appeal deserves to succeed. In order to appreciate the rival contentions raised, it will be useful to reproduce the definition of 'wages' which is as follows: - -