Supreme Court of India
The Employees State Insurance Corporation v. M/s Texmo Industries
INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.
What the Court ordered
We are of the view that, the reasoning that Conveya nce Allowance cannot be excluded from the definition of ‘wages’ as it is paid every month to every employee, like House Rent Allowa nce, in terms of the contract of employment, so as to meet to and fro conveyance expenses, is is based on an erroneous construction of Section 2(22) of the said Act.
Judgment, page 8
From the headnote
Employee State Insurance Act, 1948 – s.2(22) and s.2 (24) – Whether ‘wages’, as defined in s.2(22) of the ESI Act would i nclude Conveyance Allowance paid by a Company to its employees – eld: From the definition of wages in s.2(22), it is amply clear that wages includes remunerative payments, but does not include compensato ry payments – Travelling allowance including the value o f travelling concession has expressly been excluded from the definition of wages, as also any payment made to an employee to reimburs e or compensate for special expenses that an employee mi ght incur by reason of
Authorities it was built on
- 1984 Harihar Polyfibres v. The Regional Director Esi Corporation
- 2000 M/s.whirlpool of India Ltd. v. Employees' State Insurance Corporation
- 2012 Catholic Syrian Bank Ltd. v. Commissioner of Income Tax, Thrissur
- 1993 Wellman (india) Pvt. Ltd. v. The Employees State Insurance Corporation
- 1996 M/s. Sundaram Clayton Ltd. Etc. v. Commissioner of Income Tax
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