Judgment

KULDIP SINGH, J.:- Special leave granted.

2. The question for our consideration in these appeals is whether arrears of wages, as a result of wage-increase-award under the Industrial Disputes Act, 1947 (The Act), would come within the definition of "basic wages" under Section 2(b) of the Provident Fundand Miscellaneous Provisions Act, 1952 (The Fund Act).

3. A dispute regarding wages and other conditions of service arose between the Rajasthan State Electricity Board (The Board) and its workmen. The parties arrived at a settlement as a result of which the dispute was referred to the arbitrators under the Act. The arbitrators entered upon the reference and gave an award dated May 20, 1985., The relevant part of the award is reproduced as under:-

"The matters in dispute (terms of reference) are as under:-

(1) Wages increase:

a) What should be the Minimum Wages for regular unskilled workmen of Rajasthan State Electricity Board in Pay Scales No. 1 with effect from April 1, 1980?

b) What should be the wage structure of different categories of workmen of Rajasthan State Electricity Board covered under pay scales Nos. 1 to 6 with effect from April 1, 1980?

Decisions on matters in dispute (terms of reference)

After hearing the arguments on behalf of the parties and considering the documents supplied by them, and taking into account other relevant matters, our decisions on the matters in dispute are given below:-

The minimum wages for regular unskilled workmen of RSEB in pay scale No. 1 with effect from 1st April, 1980 shall be Rs. 400 (Four hundred only) with NIL Dearness Allowance or any other addition to wages in the nature of Dearness Allowance, henceforth referred to as D.A.

Revised pay scales: On the basis of minimum basic pay of Rs. 400 with NIL DA, Revised pay scales Nos. 1 to 6 shall be as per Annexure-1 to this Award with NIL DA with effect from 1st April, 1980".

4. According to the award various categories of workmen were to be paid higher wages with effect from April 1, 1980. The arrears of pay and other benefits accrued to the workmen were to be paid in four equal instalments. The first instalment was payable on December 1, 1985 and the remaining three at an interval of six months each. The Provident Fund authorities issued directions that provident fund contributions be deducted from the arrears paid to the workmen. Accordingly when the first instalment was disbursed the Board deducted the employees contribution and also made its own contribution as required under the Fund Act. However, at the time of the second instalmerit, the Board filed a writ petition under Article 226 of the Constitution of India before the Rajasthan High Court challenging the directions of the Provident Fund authorities on the ground that arrears payable to the employees as a result of the award of the arbitrators were not the "basic wages" under Section 2(b) of the Fund Act. A learned single Judge of the High Court dismissed the writ petition. On appeal, a Division Bench of the High Court set aside the judgment of the learned single Judge and allowed the writ petition on the following reasoning:-

"If a contract of employment provides for payment of wages at a future date then it may fall within the definition of wages as the same becomes payable under the contract of employment, wages payable under some statute or payable, under orders of a Court cannot be said to be wages payable under a contract of employment. The scheme framed under Section 6 of the P.F. Act provides for calculation of the contribution on basis of the emoluments actually drawn during a whole month. The employer has to submit a consolidated statement of the employees who are members of the Fund along with their basic wages and this return is to be submitted within a prescribed time. If subsequently there is a change in the basic wages then there is no provision in the scheme for preparing an amended statement. The contribution recovered from the employees has to be entered every month