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Showing contexts for: apprentice stipend in M/S.Anna Cooperative Spinning Mills ... vs Employees State Insurance Corporation on 30 October, 2017Matching Fragments
Heard the learned counsel for the parties.
2.The appellant is a cooperative spinning mill. It is covered by the provisions of the Employees State Insurance Act, 1948. Coverage is not under challenge. The issue is regarding the quantum of contribution payable for the period from July 1996 to March 2006. The respondent passed an order under Section 45 A of the ESI Act. The same was questioned by filing ESIOP.No.115/2008 before the Employees State Insurance Court (Labour Court), Madurai. The same was partly allowed in respect of claim of contribution on conversion charges and the petition was dismissed in respect of other claims. Contending that the ESIOP ought to have been allowed in respect of claim of contribution with regard to the payment of stipend to the apprentices engaged under certified standing orders of the appellant and payment of tiffin allowance to the employees, this appeal has been filed.
3.This Court admitted the appeal on the following questions of law :
A.Whether the appellant is liable to pay contribution for the stipend paid to apprentices engaged as per its certified standing order for the period from 1996 to 2006 when the apprentice are exempted as per Section 2(9) of the ESI Act at the relevant point of time?
B.Whether the appellant is liable to pay contribution for the tiffin expenses for the period from 1996 to 2006 when the said expenses is not wages as per Section 2(22) of the ESI Act?
5.The learned counsel appearing for the appellant placed reliance on the decision reported in 2001 1 LLJ - Employees State Insurance Corporation Vs. Mount Mettur Pharmaceutical Limited, Madras. It has been followed consistently ever since. Answering the substantial questions of law in favour of the appellant, this Civil Miscellaneous Appeal is allowed. The respondent corporation is directed to exclude the stipend paid to the apprentices engaged in the standing orders and the tiffin allowances paid to the employees while calculating the contribution payable for the aforesaid period. No costs.