Judgment

SAWANT, J. :- Special leave granted.

The appellant-company filed an application before the Employees Insurance Court under Section 75 of the Employees State Insurance Act, 1948 (hereinafter referred to as the Act) against the Employees State Insurance Corporation (the Corporation) for a declaration that the demand of the Corporation of the employees contribution and the employers contribution on the payment made under the companys quarterly attendance bonus Scheme (the Bonus Scheme) was not valid. The Insurance Court allowed the said application and against that decision the Corporation preferred an appeal to the High Court. The learned single Judge reversed the decision of the Insurance Court holding that the attendance bonus was payable under the terms of the contract and, therefore, was "wages" within the meaning of Section 2(22) of the Act. In the Letters Patent Appeal preferred by the appellant, the Division Bench of the High Court confirmed the said decision. Hence the present appeal.

2. To appreciate the controversy between the parties, it is necessary to understand the salient features of the Bonus Scheme. The Bonus Scheme was a part of a settlement entered into betwe