Supreme Court Of India
LIFE INSURANCE CORPORATION OF INDIA - Appellant
Versus
ANWAR KHAN (D) THROUGH L.RS - Respondent
Civil Appeal 6289 Of 2000
Decided On : 04/23/2007
Advocates Appeared :
BHARAT SANGAL, K.Ramumurthy, R.R.KUMAR, S.RAJAPPA, SAMYADIP CHATTERJI
LIC - Retirement Age Dispute - Payment of Wages Act, 1936, U.P. Dookan Aur Vanijya Adhisthan Adhiniyam, 1962 - Sections 14, 15, 18 - The court discussed the dispute over the retirement age of Development Officers and the applicability of the Payment of Wages Act, 1936 and U.P. Dookan Aur Vanijya Adhisthan Adhiniyam, 1962. It highlighted the definitions of 'employee' and 'wages' under the Adhiniyam, and the provisions related to payment of wages, deductions from wages, and recovery of wages under both acts. The court emphasized that the entitlement for compensation is only under the Payment of Wages Act, and there cannot be a claim both under Section 15 of the Act and Section 18 of the Adhiniyam.
Fact of the Case:
The case involved a dispute over the retirement age of Development Officers and a claim for compensation under the Payment of Wages Act, 1936.
Finding of the Court:
The court found that the claimant was not entitled to compensation under the Payment of Wages Act, and set aside the amount awarded as compensation.
Issues: Dispute over retirement age, applicability of the Payment of Wages Act, claim for compensation.
Ratio Decidendi: The entitlement for compensation is only under the Payment of Wages Act, and there cannot be a claim both under Section 15 of the Act and Section 18 of the Adhiniyam.
Final Decision: The appeal was allowed, and the court directed that there shall not be any recovery of the awarded compensation.
ARIJIT PASAYAT, J.
( 1 ) CHALLENGE in this appeal is to the order passed by a Division Bench of the Allahabad High Court affirming the order passed by the learned Single Judge of the said High Court.
( 2 ) BACKGROUND facts in a nutshell are as follows:
Questioning decision taken by the appellant-Life Insurance Corporation of India (in short 'lic') fixing the age of retirement of Development Officer, presently called the Field Officer at 58 years, a suit was filed by respondent- Anwar Khan. The said Anwar Khan has expired in the meantime and his legal representatives are presently the respondents. The suit was filed primarily for declaration that in view of the agreement between the Field Officers Association and the LIC age of retirement is 60 years. The suit was decreed on 30. 7. 1981 and the appeal by the LIC was dismissed on 27. 3. 1982. The second appeal filed before the High Court is pending. During the pendency of the second appeal, the respondent-Anwar Khan moved the authorities under the Payment of Wages Act, 1936 (in short the 'act') claiming compensation. Stand of the LIC before the original authority was that the Development Officers are not covered by the Act as they get more than Rs. 1,000/- p. m. By Order dated 11. 6. 1993, the Assistant Labour Commissioner held that the claimant was entitled to wages for the relevant period plus double the amount as compensation. An appeal was preferred by the LIC. The Appellate Authority by order dated 7. 5. 1999 modified the Award to the extent that the claimant was entitled to the wages claimed along with the compensation of amount equivalent to back wages. LIC filed a writ petition questioning correctness of the order of the Appellate Authority.
( 3 ) THE learned Single Judge dismissed the writ petition. The Division Bench of the High Court held that Letters Patent Appeal was not maintainable. As noted above, Anwar Khan died in 1990. Stand before the High Court was that the authorities under the Act should not have decided the claim made as the suit filed was merely for a declaration and no consequential relief was granted. In any event, the Act has no application and no compensation is payable. The application was filed under Section 15 (2) of the Act. Reference was also made to the U. P. Dookan Aur Vanijya Adhisthan Adhiniyam, 1962 (in short the "adhiniyam" ).
( 4 ) THE High Court noted that the Assistant Labour Commissioner observed that no evidence was led regarding nature of the job. Therefore, the claim that the applicant was belonging to the supervisory category is not acceptable. With regard to Section 15 of the Act, it was noted that the salary which was being paid to the claimant was factually to be decided. Initially the Assistant Labour Commissioner held that the suit was not maintainable. In appeal, the matter was remanded. A plea was raised that the suit was pre-mature since there was no definite determination as second appeal was pending. The High Court held that even if the Act has no application that does not render the proceedings irregular. It was submitted by the learned Counsel for the LIC that the High Court has erred in holding that under Section 18 of the Adhiniyam, the Act has application. It was pointed out that undisputedly the claimant was receiving salary of more than Rs. 1500/ -. The expression "employee" is defined under the Adhiniyam in Section 2 (6) and "wages" has been defined under Section 2 (18 ). Section 18 relates to recovery of wages. It is also pointed out that compensation could not have been awarded since there was a bona fide dispute about the liability.
( 5 ) IN response, learned Counsel for the respondent submitted that the Field Officers are not workmen. The question of the amount received as wages has to be decided only after it is decided as to whether Section 14 of the Adhiniyam has no application. It is only then Section 16 of the Adhiniyam which shall have no application. Undisputedly, the LIC is a commercial establishme
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