TMI Blog1984 (9) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Incentive Allowance. The definition, on its plain reading is clear and unambiguous. Even if any ambiguity could have been suggested, the expression must be given a liberal interpretation beneficial to the interests of the employees for whose benefit the Employees State Insurance Act has been passed. Appeal dismissed. - SLP(C) 9795 OF 1983 - - - Dated:- 4-9-1984 - O. CHINNAPPA REDDY AND AMARENDRA NATH SEN, JJ. JUDGMENT The question for consideration in this petition for special leave to appeal under Article 136 of the Constitution of India is whether the expression 'wages', defined by s.2(22) of the Employees State Insurance Act, includes 'House Rent Allowance', 'Night Shift Allowance, paid to those ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... implication becomes part of the contract of employment it is wages: second, whatever payment is made to an employee in respect of any period of authorised leave, lock out: strike which is not illegal or lay-off is wages; and third, other additional remuneration, if any paid at intervals not exceeding two months is also wages; this is unqualified by any requirement that it should be pursuant to any term of the contract of employment, express or implied. However, 'wages' does not include any contribution paid by the employer to any pension fund or provident fund, or under the Act, any travelling allowance or the value of any travelling concession, any sum paid to the person employed to defray special expenses entailed on him by the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... '. A Full Bench of the Karnataka High Court in N.G.E.F. Ltd. v. Deputy Regional Director, E.S.I.C., Bangalore considering the question at some length held that the amount paid by way of incentive under the scheme of settlement entered into between the Management and its workman was wages' within the meaning of s. 2(22) of Employees' State Insurance Act. It was observed by the Full Bench of the Karnataka High Court as follows:- It is true that the word 'remuneration' is found both in the first and second parts of the definition. But the condition attached to such payment in the first part cannot legitimately be extended to the second part. The other 'additional remuneration' referred to in the second part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present scheme is certainly additional remuneration. It must be emphasized at this stage that under the third part of the definition of 'wages' it is actual factum of payment which counts because the word used is 'paid' as distinguished from 'paid' or payable. The moment you get any additional remuneration other than the remuneration payable under the contract of employment and if this additional remuneration is paid at intervals not exceeding two months, it becomes wages by virtue of the third part of the definition of 'wages'. The learned judges of the Full Bench referred to the judgment of a learned Single judge of the Calcutta High Court in Bengal Potteries Ltd. v. Regional Director, W. Bengal Region, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med to be 'additional remuneration, if any, paid at intervals not exceeding two months' but claimed to be 'remuneration paid or payable to in cash to an employee if the terms of the contract of employment, express or implied was fulfilled' which the Court found it was not. The case has been sufficiently explained by the Full Bench of the Andhra Pradesh High Court in E.S.I. Corpn., Hyderabad v. A.P. Paper Mills Ltd. (supra) and by the Full Bench of the Karnataka High Court in N.G.E.F. Bangalore v. Deputy Regional Director, E.S.I.C., Bangalore. We do not think that it is necessary to say anything further in this matter. In this view, the special leave petition is dismissed. AMARENDRA NATH SEN,J. I have read the judgment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance Night Shift Allowance, Heat, Gas and Dust Allowance and Incentive Allowance. The definition, to my mind, on its plain reading is clear and unambiguous. Even if any ambiguity could have been suggested, the expression must be given a liberal interpretation beneficial to the interests of the employees for whose benefit the Employees State Insurance Act has been passed. All other aspects including the various decisions of the High Courts on this question have been considered by my learned brother in his judgment. I entirely agree with the views of my learned brother and I have nothing more to add. With these observations I agree with my learned brother that this Special Leave Petition has to be dismissed. N.V.K. Petition dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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