THE REGIONAL DIRECTOR, EMPLOYEES'STATE INSURANCE CORPORATIO vs BATA SHOE COMPANY (P) LTD.

The Supreme Court held that the bonus paid by the respondent to its employees does not fall under the definition of 'wages' as per Section 2(22) of the Employees State Insurance Act, 1948. The Court found that the bonus was an ex-gratia payment and not a statutory, production, or incentive bonus, thus not constituting part of the contract of employment. The appeals by the Regional Director of Employees’ State Insurance Corporation were dismissed, affirming the lower court's ruling that the respondent was not liable for contributions based on the bonus payments.