{"id":196942,"date":"2009-12-17T00:00:00","date_gmt":"2009-12-16T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-regional-director-vs-ms-bhuwalka-steel-industrial-on-17-december-2009"},"modified":"2014-12-31T19:28:01","modified_gmt":"2014-12-31T13:58:01","slug":"the-regional-director-vs-ms-bhuwalka-steel-industrial-on-17-december-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-regional-director-vs-ms-bhuwalka-steel-industrial-on-17-december-2009","title":{"rendered":"The Regional Director vs M\/S Bhuwalka Steel Industrial … on 17 December, 2009"},"content":{"rendered":"
Karnataka High Court<\/div>\n
The Regional Director vs M\/S Bhuwalka Steel Industrial … on 17 December, 2009<\/div>\n
Author: V.Jagannathan<\/div>\n
 _R\"ep.;\"'1jy it~s_Genera1_ Manager [Persor1nel).\n\n1N \"rm: HIGH comm or KARNATAKA AT BANGALORE\n[)ate<:i the 17*" day of December 2009\n:BEFORE:\nTHE HONBLE MRJUSTICE : V.JAGAi\\\u00a5NA'i"}~I--\u00a3iN\nMISCELLANEOUS FIRST APPEAL No. 2962 \/411351)\n\nBETWEEN :\n\n1. The Regional Director, 1 \nE.S.I. Corporation, No.10,\n\nBirmy Fields, Bangaj]oreA5G,O:'{Jd23. . 2 V' K\n\n2. The Deputy Regional 'DvVi'rector,"' ._ '\nE.S.I. Corpo1~a_t.ior1. NVo..i'O,_ \nBinny Fiedls, iBanga'lore?5.\u00a33O O23.\n\n -A    it ...Appe11ar1tS\n\n{ B_y_:Sr__i V.1$J\u00e91i*aSi1n.h'a:fE{oiia;.i\/Sidxrocate. )\n\nM \/ S7--Bhuwal'k\u00e9{' -Stjeel\u00e9" -hidxzistzries Limited.\n{A con:p2iny 'in_c'orpor'ate'd"under\nCompar1i.eSvAct._ r95e}_\n\nRegistered Offi<;:'e No.71. 111 Cross.\n\u00a7<\u00e9:Sid_e12cy Ro'ad.3...Ber1g21Iore-560025.\n\n...Respor1dcr1t'\n\nA 'j_'[V..7BVy Sri Kama] 8: Bhanu. Advocates. )\n\n"..V__AMisce]1ar1eous First, Appeal. filed under Section\n\n _  of the E381 Act against. the order dated 15.1 1.200?\n p\u00e9issed in E.S.I. App1ica.tion No.1\/2006 on the file of the\n Judge, ESI Court, Baiigalore. allowing the app]i(tat.io1i\n\nfiled under Sections 75 and 77 of the E81. Act.\n\n\n\nI--J\n\nThis appeal coming on for heeiring.-pi this day. the\n\ncourt delivered the following 2\nJ U D G M E N "F\n\nThis appeal is by the Regional l)ire(:tv()r:,:ll'\u00bbtl.\u00a3.S.l.\n\nCorporation. calling in q_uest:ion the order \n\nl31.S.I. Court. allowing the app1icatisn--lijfilelrl \n\nSections 75 and 77 of the   S'\n\nand consequently settingdasiade tile \n\nappellant under Section the \n2. The main contfenltiori _ofthe'~aplpe1lants--Corporation\nbefore this court is;t'hat:'\u00a7e'ct.i:'on .\u00a3V.\u00a55'~--;..'l'AVl'V"(')]\/.d\u20ac]\/. was passed\n\nby the Co1*porat.i:o:1v4'("L:"L\u00a7\u20ac;z'3\\\u00a51} calling for the cohtributiori\nfrom the_vlhrespo_nde'nt:}~principal employer in a sum of\n\n period from 4\/1998 to 3\/2001\n\n'  for the said amount being sought as\n\nit  from the respondent. was that the ezegratia<\/pre>\n
amount said to have been paid by the principal<\/p>\n
 .Vel.r”r”ij\u00abploye1′ to the contractors was in fact. wages falling<\/p>\n
 Within the definition of Section 2{22) of the 13.8.1. Act<\/p>\n
and in arriving at: this conclusion. the authority who<\/p>\n
passed the impugned order under Section 45A also
\nobsewed that what was paid as exgggraitizi was reiatxzd to
\nthe production and, therefore. the ex-gratia payment
\nthat was paid was nothing ‘out, wages paid at th’e-end of<\/p>\n
the relevant. year. Another factor that <\/p>\n
being passed under Section 45-A was    <\/p>\n
by the authority concerned the is<\/p>\n
inspection held on various datesllduri11g.”‘.i,thve llmefnthllof
\n8\/2003 also i-Hdrieated th’a’tV.._l’pthe aggtatla paid to the
\nemployees was  J[W”_lAC\u20ac’i–f.I;lC,_’i1E).l’Hf1Ell wages that was<\/p>\n
paid during ,_the corr.eS.po–11de1’it’i.  and, therefore,<\/p>\n
takinlgllliiiott: of’\u00a7i:a11 ‘”thp”ese fact.ors, the contribution was
\ndemanded’ as afores4aid.,.4 it\n<\/p>\n
3. _ The said ‘ord–er”~was questioned by the respondent<\/p>\n
15_e’i:’oreA the E.S.’l’:~\u20acourt: and. after h_earir1g both sides and<\/p>\n
V “of the evidence let in by the parties. the<\/p>\n
  was of the View that the ex-gratia payment.<\/p>\n
 mad.eA’3=i:o the workers engaged by the labour contractors<\/p>\n
it *  not fail within the pU1’Vit’.\\?V of wages that. is defined<\/p>\n
 under Section 2622) of the 13.8.1. Act and consequently,<\/p>\n
the order passed under Section 45A by the appellants-<\/p>\n
3%:\n<\/p>\n
by the employer t,hr()i1gh the coi1t.1’aet,ors. Under these
\ncircumstances. the court. below was not justified in
\nsimply accepting the contention of the 1’espc)nciaei’;i,. that<\/p>\n
what was paid was exagratia and not t,he”‘v.:ages’ _\u00bb_7in<\/p>\n
support of the above submission.  Counse.1 <\/p>\n
referred to the inspection report\u00aband’aa,.to.”thefzieasehs ‘<\/p>\n
assigned while passing the’-.order~.urideriV 4i5\u00a7A <\/p>\n
the 13.8.1. Act as per Ex.\n<\/p>\n
6. On the other  counsel for the
\nrespondent   that the payment
\nthat was.  “nothing to do with the
\nwages  was paid pursuant. to an
\nagreeirxent.  between the respondent-<\/p>\n
exghployer anridthe contractors and the said incentive was<\/p>\n
\u00bb jegiveriviri.:order to boost. the production and after the<\/p>\n
H ‘- :\ufb02produ’c.ti0ri[;;.started to increase. the payment of eX–gratia<\/p>\n
xifas\ufb02stoipped subsequent to the year 2000-01.<\/p>\n
2   herefore. the question of treating the exegratia payment<\/p>\n
 as wages under Section 2{22) of the Act does not arise.<\/p>\n
The further submission made is that. if the amount is<\/p>\n
paid pursuant to a scheme or agreement and if the<\/p>\n
i\u00bb\u00bb<\/p>\n
:2<\/p>\n
(5<\/p>\n
payment of additional remuneration being paid at the
\nintervals of exceeding two months. then. the said<\/p>\n
payment cannot be brought within Section 24[22}:’of the<\/p>\n
Act to call it as wages. In this <\/p>\n
counsel placed reliance on the.,._iudgrne”nt–:’_of<\/p>\n
Court in the case of M\/s  ‘o’}.’_l .\n<\/p>\n
Employees State Insurc’m_ce..V Corporruion, ‘{revport.ed in<\/p>\n
A.I.R. 2000 SC. 1190.\n<\/p>\n
7. Having thus    tiaking note of
\nthe  _a’nd:: _”reavs:ons*”assigned in the 45–A
\norder of the Corporation. the
\n  examined as to whether the
\npaynieiaotpp   voluntary in nature and<\/p>\n
 ylvltetvheri each of the employee was paid his<\/p>\n
V 1″mVsnVth.ly’\u00ab;Wages on regular basis for the relevant period<\/p>\n
‘g.a–rid tliey:-.contractors concerned also ought to have been<\/p>\n
eixarnined so as to justify the claim made by the<\/p>\n
  ;re.spondent–employer. Apart from all these. the very<\/p>\n
 stand taken by the respondent–employer in the<\/p>\n
application \ufb01led under Sections 75 and 77 of the E.S.l.
\nAct before the E.S.i. Court and the relevant averments<\/p>\n
\ufb01g”\n<\/p>\n
made at paragraphA12 also ought” to have been taken
\nnote of by the 13.8.1. Court. The averments in the said<\/p>\n
paragraph–12 of the application read as under:<\/p>\n
“12. The e:><~grat'ia paid to the
\nemployed by the Cont:raeto.r
\nproduction \/ labour charges
\nContractor on month-1.y. basis and  3
\npayment Cont1'aetors<.,:.he1ve Vdi.sb'u~rse.d: the
\nsaid amount."'there.V*iis'  se~p_arat.'e"payn1ent<\/p>\n
by the Principle tothe ex–gratia<\/p>\n
8.,-I’1′}()”\/11\/i1’\\*QL’,’\u00ab.,  = ‘  <\/p>\n
8. A   aforesaid averments
\nindicates…ti1atV’::9\u00a7y}1aiyvas ‘ret:e’ifved by the contractor on<\/p>\n
rnonnt–h1:y.basis’\u00ab.iXi=as’ vt_h’e.,:amount that was paid at the end<\/p>\n
of the ye’arVVasVexAgzfati”a and secondly. the said averrnent<\/p>\n
‘  A ‘aisoi..y’indieatesthat it was the labour charges that was<\/p>\n
‘Vby_t.he contractor on monthly basis and apart<\/p>\n
A  amount, it was paid at the end of the year<\/p>\n
 AA to employees and the principal employer had not<\/p>\n
” -paid any eX~gratia amount separately. Therefore. there<\/p>\n
i is some force in the submission made by the learned<\/p>\n
counsel for the Corporation that the amount which the<\/p>\n
\u00bb9>.f<\/p>\n
9<\/span><\/p>\n
9. For the aforesaid reasons, the rriatter  remanded
\nto the E3.S.I. Court for the limited purpose of<\/p>\n
ascertaining as to whether the payment that xy\u00e9xarhade<\/p>\n
as exvgratia was in fact part of t.he  <\/p>\n
was paid at the end of the yeariri the.iigh-tiofditheyst.ah’dy4\\’~–_<\/p>\n
taken by t.he employer   ”*:’_the it<\/p>\n
application. The responderi-tyjemtpioyer .31ibe1*–t.y’<\/p>\n
to examine any ‘of the.___u:emp].oyeeS”\u00ab.ahd_f\u00a7 also the
\ncor1tract.ors eorieerIi”ec1’y.=:o’. case that what
\nwas paid wast’   that was paid<\/p>\n
every merit’?  ..  d
\n AfterVreeording’aeviderice in regard to the above
\naspeeteand’ VgiV=i.r’i-gV”‘b__o’t}’i’ sides opportunity to erosS~<\/p>\n
e>\u00a7;am_ir1e thewitlne\u00e9ases concerned. the E.S.1. Court shall<\/p>\n
  fo’f._t.he matter within. three months from the date<\/p>\n
 ._ preeefipt ofvvthis order.\n<\/p>\n
 appeal.” therefore. stands disposed of<\/p>\n
~ : ‘aecordingiy.\n<\/p>\n
Sdl –\n<\/p>\n
mos-E<\/p>\n
eke\/W<\/p>\n","protected":false},"excerpt":{"rendered":"
Karnataka High Court The Regional Director vs M\/S Bhuwalka Steel Industrial … on 17 December, 2009 Author: V.Jagannathan _R”ep.;”‘1jy it~s_Genera1_ Manager [Persor1nel). 1N “rm: HIGH comm or KARNATAKA AT BANGALORE [)ate<:i the 17*" day of December 2009 :BEFORE: THE HONBLE MRJUSTICE : V.JAGAi\\\u00a5NA'i"}~I–\u00a3iN MISCELLANEOUS FIRST APPEAL No. 2962 \/411351) BETWEEN : 1. The Regional Director, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,20],"tags":[],"class_list":["post-196942","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"\nThe Regional Director vs M\/S Bhuwalka Steel Industrial ... on 17 December, 2009 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/the-regional-director-vs-ms-bhuwalka-steel-industrial-on-17-december-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Regional Director vs M\/S Bhuwalka Steel Industrial ... on 17 December, 2009 - 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