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Judgment
S. Jagadeesan, J.—The earlier Division Bench, consisting of Justice Sri N.K. JAIN as Acting Chief Justice and Justice Sri K. RAVIRAJA
PANDIAN, by order, dated August 10, 2000, directed W.A. No.929 of 1999, to be posted along with these appeals. Hence, all the matters are
taken up together for final disposal, with the consent of the counsel for both sides.
A short question that arises for consideration in these appeals is whether the service charges collected by the management of the Hotel, on
behalf of their employees in lieu of direct tips, and the same is paid to the employees at a later date, would attract the term ""service charges"" and
will constitute ""wages,"" as contemplated u/s 2(22) of the Employees'' State Insurance Act.
Now both the counsel concede that the department has taken a view that such tips collected by the management of the hotel to be paid to their
employees at a later date will not constitute ""wages"" as contemplated u/s 2(22) of the Employees'' State Insurance Act. In fact the Standing
Counsel for the respondent Sri Desappan also fairly represented that in view of the present stand taken by the department, these appeals have to
be allowed.
Recording the statement of both the counsel, all the appeals are allowed. No costs. CMP No. 8976 of 1999 is closed.