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1960 Supreme(SC) 348

SUPREME COURT OF INDIA
12th December, 1960.
P.B. GAJENDRAGADKAR, K.N. WANCHOO AND K.C. DAS GUPTA, JJ.
Shri Ambica Mills Co. Ltd., Appellant
Versus
Shri S. B. Bhatt and another, Respondents.
Civil Appeal No. 243 of 1959.
Advocates appeared
Mr. M. C. Setalvad, Attorney General, for India, M/s. G. P. Vyas and I. N. Shroff, Advocates, with him, for Appellant; M/s. Vithalbai Patel, S. S. Shukla, C. T. Daru and Mrs. E. Udayarathnam, Advocates, for Respondent No. 1.

Advocates:
C.P.Vyas, C.T.Daru, E.UDAYARATHNAM, I.M.SHROFF, M.C.SETALVAD, S.S.SHUKLA, Vithalbhai B.Patel

The jurisdiction of the authority under S. 15 of the Payment of Wages Act, 1936, extends to incidental questions that are necessary to determine the main question of whether a claim arises out of deductions from wages or delay in payment of wages.

Headnote:

PAYMENT OF WAGES ACT - SECTION 15 - JURISDICTION OF AUTHORITY - INCIDENTAL QUESTIONS - DETERMINATION OF CONTRACT TERMS - DISPUTE ABOUT APPLICABILITY OF CONTRACT - WITHIN JURISDICTION.

Fact of the Case:

Three employees of the appellant textile mill applied to the authority under S. 16 of the Payment of Wages Act, 1936, claiming delayed wages. The authority found that the applicants were folders doing cut-looking and were entitled to higher wages under paragraph 16 of an industrial award. On appeal, the appellate authority dismissed the applications, holding that the applicants were not semi-clerks as contemplated by clause 5 of an agreement between the mill owners and the textile labour association. The High Court allowed a writ petition filed by the respondents, setting aside the orders of the authorities below and sending the case back to the authority for dealing with it in accordance with law.

Finding of the Court:

The High Court was justified in correcting the error of law committed by the appellate authority in holding that clause 2 of the agreement was the determinative clause and that unless an employee satisfied the requirements of the said clause he could not claim the benefit of clause 5. The error was apparent on the face of the record as the two clauses were mutually exclusive and clause 5 expressly provided for employees not falling under clause 2.

Issues: 1. Whether the High Court exceeded its jurisdiction in issuing a writ of certiorari to correct an error of law committed by the appellate authority. 2. Whether the applications made by the respondents' union on behalf of the three employees were incompetent under S. 15 of the Payment of Wages Act, 1936.

Ratio Decidendi: 1. The High Court has jurisdiction to issue a writ of certiorari to correct errors of law apparent on the face of the record, including errors in the construction of documents. 2. The jurisdiction conferred on the authority under S. 15 of the Payment of Wages Act, 1936, is limited to claims arising out of deductions from wages or delay in payment of wages, but it also extends to incidental questions that are necessary to determine the main question. The question of whether a particular employee falls within a category of employees specified in the contract of employment is an incidental question that is within the jurisdiction of the authority to decide.

Final Decision: The appeal is dismissed with costs.

Judgment

GAJENDRAGADKAR, J. : The principle question which this appeal by special leave raises for our decision relates to the nature and extent of the jurisdiction conferred on the authority by S. 15 of the Payment of Wages Act, 1936 (Act 4 of 1936) (hereafter called the Act). This question arises in this way. The appellant Shri Ambica Mills Co. Ltd., is a textile mill working at Ahmedabad. Three of its employees named Punamchand, Shamaldas and Vishnuprasad made an application to the authority under S. 16 of the Act and prayed for an order against the appellant to pay them their delayed wages. In order to appreciate the contentions raised by the appellant disputing the validity of the respondents claim it is necessary to set out the background of the dispute in some detail. It appears that an award called the Standardisation Award which covered the mill industry in Ahmedabad was pronounced by the Industrial Tribunal on April 21, 1948, in Industrial Reference No. 18 of 1947. This award fixed the wages for different categories of workers working in the textile mills at Ahmedabad, but left over the question of clerks for future decision. Amongst the operatives whose wages were determined by the award the case of hand-folders was specifically argued before the Industrial Tribunal. The Labour Association urged that the rate of Rs. 38-9-0 awarded to them was too low and it was pointed out on their behalf that they did the same as cut-lookers did in Bombay where a head cut-looker was given Rs. 52-and a cut-looker Rs. 42-4-0. On the other hand the mill owners contended that the rate should have been fixed at Rs. 34-2-0 instead of Rs. 36-9-0. The Tribunal found it difficult to decide the point because enough evidence had not been produced before it to show the kind of work that hand -folders were doing at Ahmedabad; that is why the Tribunal was unable to raise the wage of hand-folders to that of cut-lookers in Bombay. However, it made a significant direction in that behalf in these words : "At the same time", it was observed, "we desire to make it clear that if there are persons who are doing cut-looking as well as folding, they should be paid the rate earned by the cut-lookers in Bombay". This question has been considered by the Tribunal in paragraph 16 of its award.

2. The question of clerks, the decision of which had been adjourned by the Tribunal was later considered by it and an award pronounced in that behalf. However the said award was later terminated by the clerks in 1949, and that led to an agreement between the Ahmedabad Mill Owners Association and the Textile Labour Association in the matter of wages payable to clerks. This agreement was reached on June 22, 1949. Clauses 2 and 5 of this agreement are material for the purpose of this appeal. Let us therefore read the two clauses :

"2. That this agreement shall apply to all the Clerks employed in the local mills, i. e., persons doing clerical work, that is those who do routine work of writing, copying or making calculations and shall also include compounders and assistant compounders who are qualified and who are employed in the local mills.

5. A separate scale for those of the employees who occupy the position lower than that of a full-fledged Clerk but higher than that of an operative will be provided as under :

Rs. 40-3-70-EB-4-90-5-105.

This scale will be applicable in case of ticket-boy, ticket-checker, coupons-sellers, talley-boy, scale-boy, production-checker, thread-counter, cloth-measure or yard-counter, fine-reporter, cloth/yarn-examiner, department storeman, cut-looker and those others who have not been included above but who can properly fall under the above category."

3. After this agreement was thus reached persons doing the work of cut-lookers began to feel that they were entitled to the benefit of cl. 5 and some claims were put forth on that basis against the employers. Vishnuprasad and Punamchand applied before the authority (Applications Nos. 39 and 40 of 1954)
















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