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2000 Supreme(Online)(SC) 61

SUPREME COURT
, J
Whirlpool of India Ltd. v. ESI Corporation


1Leave granted.

2 The appellant under a "Production Incentive Scheme" pays to its workers production incentive at the rates specified in the Scheme besides normal wages. For the purpose of calculating contributions towards the Employees' State Insurance Fund, the payment of production incentive by the appellant to its workers is not treated by it as "wages" within the meaning of the term as defined in S.2(22) of the Employees' State Insurance Act, 1948 (for short "the Act"). The respondent Employees' State Insurance Corporation (for short "the Corporation") treating the said payment as "wages" issued a demand to the appellant for payment of contributions towards the Employees' State Insurance Fund. This led to filing of an application under S.75 of the Act by the appellant before the Employees' Insurance Court challenging the said demand. The said Court allowed the application and quashed the demand. It held that the payment was made quarterly and was not "wages" under the Act as it did not fall either under the first part of S.2(22) or under the third part thereof. The payment made by the appellant, it was held, did not fall under the first part of the definition of "wages" as th














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