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SUPREME COURT OF INDIA
M.R. Shah, B.V. Nagarathna, JJ.
Talema Electronic India Private Limited – Appellant
Versus
Regional Director, Esi Corporation & Anr. – Respondents
Civil Appeal No. 3175 of 2022 (Arising out of SLP (Civil) No. 3506 of 2022)
Decided On : 25-04-2022
conveyance allowance - ESI Court's decision on conveyance allowance - Employees State Insurance Act, Section 2(22)(d) - Summary: The court discussed the interpretation of Section 2(22)(d) of the ESI Act in light of the recent decision in Employees State Insurance Corporation v. Texmo Industries 2021 (7) SCALE 438, and held that conveyance allowance is equivalent to traveling allowance and is excluded from the definition of 'wages'. This interpretation influenced the court's decision to quash the impugned judgment and restore the ESI Court's order.
Fact of the Case:
The appellant was aggrieved by the High Court's judgment allowing the appeal by the respondent-ESI Corporation and setting aside the ESI Court's order on conveyance allowance.
Finding of the Court:
The court found the High Court's judgment unsustainable in light of the interpretation of Section 2(22)(d) of the ESI Act and the recent decision in Employees State Insurance Corporation v. Texmo Industries 2021 (7) SCALE 438.
Issues: Interpretation of Section 2(22)(d) of the ESI Act, validity of the High Court's judgment, exclusion of conveyance allowance from the definition of 'wages'.
Ratio Decidendi: The interpretation of Section 2(22)(d) of the ESI Act and the exclusion of conveyance allowance from the definition of 'wages' influenced the court's decision to quash the impugned judgment and restore the ESI Court's order.
Final Decision: The present appeal was allowed, the impugned judgment and order passed by the High Court were quashed and set aside, and the order dated 1st August, 2017 passed by the ESI Court was restored. No Costs.
ORDER
1. Leave granted.
2. We have heard learned counsel for the respective parties.
3. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 30th March, 2021 passed by the High Court of Judicature at Madras in CM.A.No.643/2020 by which the High court has allowed the said appeal preferred by the respondent-ESI Corporation and has set aside the order passed by the ESI Court dated 1st August, 2017 in ESIOP No.3 of 2007, by which the ESI Court held that the "conveyance allowance" paid to the employees by the appellant herein does not include the wages, the employer has preferred the present appeal.
4. Having heard the learned counsel appearing for the respective parties and taking into consideration the recent decision of this Court in the case of Employees State Insurance Corporation v. Texmo Industries 2021 (7) SCALE 438, by which on interpretation of Section 2(22)(d) of the ESI Act, it is observed and held that the "conveyance allowance" is equivalent to the traveling allowance and therefore any conveyance allowance/traveling allowance is excluded from the definition of "wages" in the above clause, the impugned judgment and order passed by the High Court is unsustainable and the same deserves to be quashed and set aside.
5. In view of the above and for the reasons stated above, the present appeal is allowed. The impugned judgment and order passed by the High Court is hereby quashed and set aside, and the order dated 1st August, 2017 passed by the ESI Court is hereby restored. No Costs.
The interpretation of Section 2(22)(d) of the ESI Act and the exclusion of conveyance allowance from the definition of 'wages' influenced the court's decision to quash the impugned judgment and resto....
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