SUPREME COURT OF INDIA
J.M. SHELAT AND C.A. VAIDIALINGAM, JJ.
Payment of Wages Inspector, Ujjain, Appellant
Versus
Surajmal Mehta, Director, The Barnagar Electric Supply and Industrial Co. Ltd., and another, Respondents.
Civil Appeal No. 1577 of 1966,
D/- 3-12-1968.
Advocates appeared
Mr. I. N. Shroff, Advocate, for Appellant.
Payment of Wages Act, 4 of 1936 - Section 15 (2), 15, 2 (vi) (d), 25A to 25J, 2 (oo), 7, 9 to 13, 13A and 20 - Industrial Disputes Act, 1947 - Section 25FF, 33C (I) and 33C (2) - Employees - Recover Wages - Compensation - Whether said application was maintainable in view of revocation of company s licence - Whether Authority had jurisdiction to determine liability of respondent 1 for retrenchment compensation before amount thereof was ascertained under Section 33C - Whether in view of services of workmen not having been interrupted by said transfer and terms and conditions of service applicable to them - Whether with or without deductions but does not provide for time within which payment is to be made as wages - Whether compensation payable under Section 25FF of Industrial Disputes Act can fall under amended definition in Section 2 (vi) (d) of Act and can be called wages - Whether in view of limited jurisdiction of Authority under Section 15 (2) of Act, it was intended to deal with such questions - Whether monetary or non-monetary, which was capable of being paid in terms of money - Whether he had a right to receive such a benefit - Whether workman claiming benefit was entitled to it where such right was disputed by employer - Whether award under which workman had made a claim was a nullity - Whether for such a claim legislature intended to provide alternative remedies both under Industrial Disputes Act and Payment of Wages Act - Whether a particular matter is incidental to claim or not care should be taken neither to unduly expand nor curtail jurisdiction of Authority - Whether there was any interruption in employment of workmen - Whether conditions of service under Board were any less favourable than those under company - Whether Board, as new employer, had become liable to pay compensation to workmen – Held, Act was passed to regulate payment of wages to certain classes of persons employed in any factory or by a railway administration or by a person fulfilling a contract with a railway administration or in any industrial establishment to which a State Government by notification has extended Act - Section 3 lays down as to who shall be responsible for payment of wages - Section 4 provides for fixation of wage periods and Section 5 lays down the time within which payment of wages has to be made - It is explicit from terms of Section 15 (2) that Authority appointed under sub-section (1) has jurisdiction to entertain applications only in two classes of cases, namely, of deductions and fines not authorised under Sections 7 to 13 and of delay in payment of wages beyond wage periods fixed under Section 4 and time of payment laid down in Section 5 - But it has at same time to be kept in mind that jurisdiction under Section 15 is a special jurisdiction - Authority is conferred with power to award compensation over and above liability for penalty of fine which an employer is liable to incur under Section 20 - When definition of wages was expanded to include cases of sums payable under a contract, instrument or a law it could not have been intended that such a claim for compensation which is denied on grounds which inevitably would have to be inquired into and which might entail prolonged inquiry into questions of fact as well as law was one which should be summarily determined by Authority under Section 15 - Nor could Authority have been intended to try as matters incidental to such a claim questions arising under proviso to Section 25FF - In Court view it would be Labour Court in such cases which would be proper forum which can determine such questions under Section 33C(2) of Industrial Disputes Act which also possesses power to appoint a commissioner to take evidence where questions of facts require detailed evidence – Court agree with High Court that Authority had no jurisdiction under Section 15 (2) of Act to try these applications - Appeal dismissed.
Judgment
SHELAT, J.:- This appeal, by certificate, is directed against the judgment and order of the High Court of Madhya Pradesh and raises the question of the scope of jurisdiction of the Authority under the Payment of Wages Act, 4 of 1936 (hereinafter referred to as the Act).
2. On the licence of the Barnagar Electric Supply and Industry Company, of which respondent 1 was at all material times the managing director, having been revoked by the Madhya Pradesh Government and the company s undertaking having been taken over by the Madhya Pradesh Electricity Board, respondent I served notices on the company s employees that their services would no longer be required as from October 1, 1962. Thereupon the appellant on behalf of 20 employees of the company filed an application under Section 15 (2) of the Act to recover from respondent 1 wages for the notice month and retrenchment compensation amounting to Rs. 12,853.60 P. payable to the employees under Section 25FF of the Industrial Disputes Act, 1947. On respondent 1 contesting the claim as also the jurisdiction of the Authority, the Authority raised certain preliminary issues, namely : (1) whether the said application was maintainable in view of the revocation of the company s licence, (2) whether the Authority had jurisdiction to determine the liability of respondent 1 for retrenchment compensation before the amount thereof was ascertained under Section 33C (2) of the Industrial Disputes Act and (3) whether in view of the services of the workmen not having been interrupted by the said transfer and the terms and conditions of service applicable to them after the said transfer being not in any way less favourable than before and the said Board as the new employer being liable after the transfer for compensation in the event of retrenchment, the employees were entitled to claim any compensation. By his order dated May 21, 1963, the Authority held against respondent 1 on the question of jurisdiction. Respondent 1 thereupon filed a writ petition in the High Court and a Division Bench of the High Court held that Section 15 of the Act did not apply and that the proper forum for such an application was a Labour Court under Sec. 33C (2) of the Industrial Disputes Act. This appeal challenges the correctness of this order.
3. Mr. Shroff for the appellant contended that after the amendent of the definition of wages in the Act by Act 68 of 1957 and the amended definition having now included "any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for payment of such sum whether with or without deductions but does not provide for the time within which the payment is to be made" as wages, there could be no doubt that the legislature has conferred jurisdiction on the Authority under the Act to determine compensation payable under Section 25FF of the Industrial Diputes Act in an application under Section 15 (2) of the Act and that therefore the High Court was in error in quashing the order passed by the Authority. Mr. Chagla appearing for Respondents 1 and 2 in the next appeal, on the other hand, contended (1) that the Authority under the Act was a special Authority with limited jurisdiction, that it has to deal only with the subject matters specified in the Act and its jurisdiction must therefore be strictly construed, and (2) that the Act and the Industrial Disputes Act deal with different subjects, provide different tribunals with different jurisdictions and therefore it is not possible to hold that Parliament which enacted both the Acts could possibly have contemplated that a claim arising under the Industrial Disputes Act should be determined by a tribunal set up under a different Act.
4. On these contentions the first question which arises for determination is whether compensation payable under Section 25FF of the Industrial Disputes Act can fall under the amended definition in Section 2 (vi) (d) of the
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