HANDLOOM HOUSE ERNAKULAM versus REGIONAL DIRECTOR, ESI

If sales commission and incentive bonus are paid at intervals exceeding two months, they are excluded from the definition of 'wages' under Section 2(22) of the Employees State Insurance Act, 1948. Factual determination is required in each case.

Parties: Appellant: Handloom House Ernakulam; Respondent: Regional Director, ESI
Jurisdiction: India
Judgment Date: 29 April 1999
Procedural Posture: Civil Appeal / Appeal Against Kerala High Court Judgment in M.f.a. No. 315 of 1990
Outcome: Appeal allowed; impugned High Court judgment set aside; case remanded to High Court for fresh consideration.
Legal Topics: Employees State Insurance, Definition of Wages, Incentive Bonus, Sales Commission

Labour Law Employee Benefits Employees State Insurance Definition of Wages Incentive Bonus Sales Commission

Case Brief

Summary, issues, holding and outcome

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Full judgment text Legal principles 2 Authorities cited 5 Party arguments 2

Parties

Handloom House Ernakulam

Appellant

Regional Director, ESI

Respondent

Procedural Posture

Civil Appeal / Appeal Against Kerala High Court Judgment in M.f.a. No. 315 of 1990

Legal Issues

1 Whether incentive bonus and sales commission paid at intervals exceeding two months are includible as 'wages' under Section 2(22) of the Employees State Insurance Act, 1948

Ratio Decidendi

Court Disposition

Appeal allowed; impugned High Court judgment set aside; case remanded to High Court for fresh consideration.

Orders

Case remitted to High Court for disposal afresh in light of Supreme Court observations.
Impugned judgment of Kerala High Court set aside.