{"id":231081,"date":"2007-01-11T00:00:00","date_gmt":"2007-01-10T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/employees-state-insurance-corpn-vs-ms-rajagopal-textile-mills-p-on-11-january-2007"},"modified":"2017-04-08T09:05:12","modified_gmt":"2017-04-08T03:35:12","slug":"employees-state-insurance-corpn-vs-ms-rajagopal-textile-mills-p-on-11-january-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/employees-state-insurance-corpn-vs-ms-rajagopal-textile-mills-p-on-11-january-2007","title":{"rendered":"Employees State Insurance Corpn vs M\/S.Rajagopal Textile Mills (P) &#8230; on 11 January, 2007"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">Employees State Insurance Corpn vs M\/S.Rajagopal Textile Mills (P) &#8230; on 11 January, 2007<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nMFA No. 1479 of 1998(B)\n\n\n\n1. EMPLOYEES STATE INSURANCE CORPN\n                      ...  Petitioner\n\n                        Vs\n\n1. M\/S.RAJAGOPAL TEXTILE MILLS (P) LTD\n                       ...       Respondent\n\n                For Petitioner  :SRI.TPM.IBRAHIM KHAN\n\n                For Respondent  :SRI.M.P.ASHOK KUMAR\n\nThe Hon'ble MR. Justice K.T.SANKARAN\n\n Dated :11\/01\/2007\n\n O R D E R\n                             K.T.SANKARAN, J\n\n                      ---------------------------------------------\n\n                          M.F.A.No.1479  of 1998\n\n                      ---------------------------------------------\n\n             Dated this the 11th day of January, 2007\n\n\n\n\n\n\n                                    JUDGMENT\n<\/pre>\n<p>      In this appeal, the Employees State Insurance Corporation<\/p>\n<p>challenges the order dated 25th  August, 1997 in I.C.No.25 of 96<\/p>\n<p>passed   by   the   Employees   Insurance   Court,   Palakkad.     The<\/p>\n<p>respondent   herein   runs   a   factory   covered   under   the   ESI   Act.<\/p>\n<p>The ESI Corporation demanded contributions for the period from<\/p>\n<p>1.4.1994   to   31.3.1995   on   amounts   paid   as   holiday   wages   and<\/p>\n<p>interim   relief.     The   respondent   herein   challenged   the   demand<\/p>\n<p>made by the ESI Corporation before the Insurance Court.<\/p>\n<p>      2.     The Employees Insurance Court held that the interim<\/p>\n<p>relief   paid   to   the   employees   is   &#8220;wages&#8221;   within   the   meaning   of<\/p>\n<p>Section 2(22) of the Act and that the applicant before the court<\/p>\n<p>was   liable   to   pay   the   contribution   amounting   to   Rs.31,300\/-   in<\/p>\n<p>respect   of   the   period   from   1.4.1994   to   31.3.1995   as   demanded<\/p>\n<p>by   the   Corporation.     However,   the   Employees   Insurance   Court<\/p>\n<p>held,   relying   on   the   Full   Bench   decision   of   this   court   in<\/p>\n<p><a href=\"\/doc\/1819014\/\">Employees State Insurance Corporation v. Malabar Cashewnut &amp;<\/p>\n<p><span class=\"hidden_text\">MFA<\/span><\/a> 1479\/1998                            2<\/p>\n<p>Allied   Products  (1993(1)   LLJ   596)   that   wages   paid   for   national<\/p>\n<p>and   festival   holidays   will   not   form   part   of   the   wages.   On   that<\/p>\n<p>finding, the court below held that the demand made by the ESI<\/p>\n<p>Corporation for contribution of Rs.23,191\/- on holiday wages for<\/p>\n<p>the   period   from   1.4.1994   to   31.3.1995   is   unsustainable.     The<\/p>\n<p>proceedings initiated by the Corporation to recover that amount<\/p>\n<p>were quashed.   The E.I. court also held that interest is payable<\/p>\n<p>by the applicant.  As per order dated 4th May 1998 in I.A. No. 24<\/p>\n<p>of 1998 filed by the ESI Corporation, the E.I. court modified the<\/p>\n<p>period   during   which   the   respondent   herein   is   liable   to   pay<\/p>\n<p>interest.\n<\/p>\n<\/p>\n<p>      3.       As   per   the   judgment   dated   16th  October   2001,   the<\/p>\n<p>Miscellaneous   First   Appeal   was   dismissed.     That   judgment   was<\/p>\n<p>reviewed   by   the   order  dated   26.10.2006  in   R.P.No.626   of  2001<\/p>\n<p>and   the   appeal   was   directed   to   be   posted   for   hearing   and<\/p>\n<p>disposal afresh.\n<\/p>\n<\/p>\n<p>      4.       The   E.I.   court   held   that   holiday   wages   would   form<\/p>\n<p>part   of  the   wages  only   on   the   basis  of  the   decision   reported  in<\/p>\n<p>1993 (1) LLJ 596 in Malabar Cashewnut &amp; Allied Products case.<\/p>\n<p><span class=\"hidden_text\">MFA 1479\/1998                              3<\/span><\/p>\n<p>The   judgment   of   the   Full   Bench   was   challenged   by   the<\/p>\n<p>Corporation   before   the   Supreme   Court.     The   Supreme   Court<\/p>\n<p>allowed the appeal by judgment dated 3.12.1997 and it was held<\/p>\n<p>thus:\n<\/p>\n<p>\n&#8220;It   is   not   in   dispute   that   the   decision   of   this   Court   in   <a href=\"\/doc\/1840033\/\">Regional<\/p>\n<p>Director,   Employees   State   Insurance   Corpn.   vs.   Popular<\/p>\n<p>Automobiles &amp; Ors.<\/a> [(1997) 7 SCC 665] answers the point raised<\/p>\n<p>in   these   appeals.     Accordingly,   we   hold   that   the   wages  paid   as<\/p>\n<p>per   the   Kerala   Industrial   Establishments   National   and   Festival<\/p>\n<p>Holidays Act, 1958 on holidays to the employees would form part<\/p>\n<p>part   of   &#8216;wages&#8217;   as   per   Section   2(22)   of   the   Employees&#8217;   State<\/p>\n<p>Insurance Act, 1948.\n<\/p>\n<\/p>\n<p>       The   order   of  the   High  Court   taking   a  contrary   view  is   set<\/p>\n<p>aside.  The appeals are allowed.  No order as to costs.&#8221;<\/p>\n<p>In view of the decision of the Supreme Court reversing the Full<\/p>\n<p>Bench  decision  in  <a href=\"\/doc\/1819014\/\">E.S.I.  Corpn.   v. Malabar   Cashewnut  &amp;  Allied<\/p>\n<p>Products, the<\/a>  order passed by the E.I. court holding that holiday<\/p>\n<p>wages will not form part of wages is liable to be interfered with.<\/p>\n<p>The   finding   rendered   by   E.I.   court   in   paragraph   28   of   the<\/p>\n<p><span class=\"hidden_text\">MFA 1479\/1998                      4<\/span><\/p>\n<p>judgment is set aside and the application filed by the respondent<\/p>\n<p>herein,   challenging   the   demand   made   and   the   proceedings<\/p>\n<p>initiated by the Corporation, is dismissed.<\/p>\n<p>       MFA is allowed as above.<\/p>\n<pre>\n\n\n\n\n\n                                                     K.T.SANKARAN,\n\n                                                        JUDGE\n\n\ncsl\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nMFA 1479\/1998    5\n\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court Employees State Insurance Corpn vs M\/S.Rajagopal Textile Mills (P) &#8230; on 11 January, 2007 IN THE HIGH COURT OF KERALA AT ERNAKULAM MFA No. 1479 of 1998(B) 1. EMPLOYEES STATE INSURANCE CORPN &#8230; Petitioner Vs 1. M\/S.RAJAGOPAL TEXTILE MILLS (P) LTD &#8230; Respondent For Petitioner :SRI.TPM.IBRAHIM KHAN For Respondent :SRI.M.P.ASHOK KUMAR The [&hellip;]<\/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":[8,21],"tags":[],"class_list":["post-231081","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Employees State Insurance Corpn vs M\/S.Rajagopal Textile Mills (P) ... on 11 January, 2007 - Free Judgements of Supreme Court &amp; 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\/employees-state-insurance-corpn-vs-ms-rajagopal-textile-mills-p-on-11-january-2007\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Employees State Insurance Corpn vs M\/S.Rajagopal Textile Mills (P) ... on 11 January, 2007 - Free Judgements of Supreme Court &amp; 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