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IN THE HIGH COURT OF JUDICATURE AT MADRAS
K.GOVINDARAJAN THILAKAVADI, J
The Deputy Director, Employees State Insurance Corporation, Regional Office (Tamil Nadu) – Appellant
Versus
M/s. Saravana Stores (Textiles), Rep. By its Partner Mrs. Y. Lakshmi – Respondent
| Table of Content |
|---|
| 1. disputes over wage classifications for esi contributions. (Para 2 , 3 , 5) |
| 2. determining employee status involves examining actual work relationships. (Para 4 , 8 , 10) |
| 3. relevant provisions of the esi act guide employee definition and application. (Para 7 , 9) |
COMMON JUDGMENT
These Appeals are preferred against the Order passed in E.I.O.P.Nos.38 & 39 of 2006 dated 31.07.2018 on the file of the Employees Insurance Court, Principal Labour Court, Chennai.
2. Ms.G.Narmatha, learned counsel for the appellant/ESIC, submits that the respondent is a partnership firm engaged in the business of Textile goods and is covered under ESI Act. During a routine inspection of the respondent firm by the officials of the ESI Corporation, it was observed that an expenditure of Rs.1,87,22,527/- had been incurred by the respondent towards payment of wages to sales representatives and has been booked under the head “Sales Commission” and “Sales Incentives” in the general ledger. No satisfactory explanation was offered by the respondent regarding this huge expenditure except reiterating that the same was paid to individuals engaged for the purpose of bringing the customers and thereby aid
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