R. JAYASIMHA BABU, J.

The appellant before us who is an employer filed an application before the E.S.I. Court for a declaration that the HRA and conveyance allowance are not 'wages' within the meaning of Section 2(22) of the Employees State Insurance Act, 1948, and that the claim made for contribution in respect of house rent assistance and conveyance allowance from July 1981 is illegal. The appellant is the owner of the Taj Coromandel Hotel which commenced its operation with effect from April 1, 1974. By a notification dated December 22, 1976, issued by the Government of Tamil Nadu, the application of the Employees' State Insurance Act was extended to wages and the contributions cannot be claimed in respect of those two items.

The appellants application was allowed by the E.I. Court. The order of the Court having been challenged by the Corporation, the appeal of the Corporation has been allowed by a learned single Judge. The appellant being aggrieved is now before us, in this appeal.

It was contended by the learned counsel for the appellant that the house rent allowance is not 'wages' as the workmen and the employer have agreed not to treat it as wages for the purpose of