- (1.) THIS appeal is by the Employees State insurance Corporation against the order dated september 18, 2001 passed on Employees insurance Application No. 70 of 1994 by the employees Insurance Court, Mangalore. The employees Insurance Court by the impugned order, has allowed the application of the respondent filed under Section 75 of the employees State Insurance Act, 1948 (hereinafter referred to as the Act) by setting aside the order dated June 26, 1989 passed by the Employees State Insurance corporation directing it to pay a contribution of Rs. 12,810. 00 in respect of payments made to its employees towards encashment of leave.
(2.) I have heard learned counsels appearing for the parties.
(3.) AS rightly submitted by the learned counsels for the parties, the moot (sic) question of law that falls for determination is as to whether the payments made towards "encashment of leave" would fall within the ambit of wages as defined under Section 2 (22)of the Act. It is relevant to notice the definition of wages as stated in Section 2 (22) of the Act: "2 (22) Wages means all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and includes any payment to an employee in respect of any period of authorised leave, lockout, strike which is not illegal or layoff and other additional remuneration, if any paid at intervals not exceeding two months, but does not include- (a) any contribution paid by the employer to any pension fund or provident fund, or under this Act; (b) any travelling allowance or the value of any travelling concession; (c) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment, or (d) any gratuity payable on discharge". (emphasis supplied);