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2005 Supreme(SC) 1236

ARIJIT PASAYAT, H.K.SEMA
P. C. Agarwala – Appellant
Versus
Payment of Wages Inspector, M. P. – Respondent


Judgment

Arijit Pasayat, J.—All these appeals involve identical issues. By judgments rendered by Division Bench of the Madhya Pradesh High Court, impugned in the appeals held that Directors of Jiyajirao Cotton Mills Ltd. (hereinafter referred to as the ‘Company’) to be personally liable for the payment of wages to the workmen of the company under the Payment of Wages Act, 1936 (in short the ‘Act’. However, the authorities under the Act could proceed against the assets of the company in the hands of the Directors or the assets acquired from income of the company by the Directors. The personal property of the Directors, however, could not be proceeded against if it acquired from the sources other than the income of the company. The Letters Patent Appeals filed against the judgments of the learned Single Judge were dismissed. It is to be noted that learned Single Judge had held that writ petitions were not maintainable as the writ petitioners had an alternative remedy under Section 17 of the Act. However, the Letters Patent Court considered the case on merits and as noted above came to the conclusion about liability of the Directors.

2. While the Directors who were writ petitioners had







































































































































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