1996 Supreme(AP) 1007

Andhra Pradesh High Court
Judges : S.DASARADHA RAMA REDDY
Large-sized Co-operative Credit Society - Appellant
Versus
Labour Court - Respondent
Decided On : 10-08-96

Section 17-B wages are in the nature of subsistence allowance and when once paid cannot be recovered irrespective of the result of the writ petition, even in cases where the award is set aside as perverse, nullity, grossly erroneous or without jurisdiction.

Headnote:

INDUSTRIAL DISPUTES - SECTION 17-B - WAGES DURING PENDENCY OF PROCEEDINGS IN HIGHER COURTS - RECOVERABILITY - RATE OF WAGES - INTERPRETATION OF LAST DRAWN WAGES - SECTION 17-B WAGES AS SUBSISTENCE ALLOWANCE - NON-RECOVERABILITY IRRESPECTIVE OF RESULT OF WRIT PETITION - EXCEPTIONS - REMEDY FOR NON-PAYMENT OF SECTION 17-B WAGES - DETERMINATION OF LAST DRAWN WAGES.

Fact of the Case:

The petitioner, a large-sized cooperative credit society, obtained an award against the respondent, an employee, for a deficit in stocks. The award was confirmed by the Cooperative Tribunal. The employee filed an industrial dispute, which was transferred to the Labour Court. The Labour Court passed an ex parte award setting aside the order of removal and directing reinstatement with continuity of service but without back wages. The petitioner filed a writ petition to set aside the ex parte award, which was allowed. The Labour Court was directed to dispose of the industrial dispute afresh on merits. The employee filed another writ petition claiming back wages and for quashing the award to that extent, which was technically allowed. The petitioner also filed a writ petition against the order of the Labour Court allowing the industrial dispute, which was also allowed. The employee filed an additional affidavit claiming that he was entitled to a higher rate of wages under Section 17-B of the Industrial Disputes Act, 1947 (the Act).

Finding of the Court:

The court held that Section 17-B wages are in the nature of subsistence allowance and when once paid cannot be recovered irrespective of the result of the writ petition, even in cases where the award is set aside as perverse, nullity, grossly erroneous or without jurisdiction. However, in exceptional cases when the award is perverse or erroneous or patently without jurisdiction or nullity, the court acting under Article 226 is not debarred from exercising its powers and passing appropriate orders on the petition seeking suspension of the operation of the award. Section 17-B wages directed to be paid but not paid cannot be claimed by the employee at the time of final hearing of the writ and when it is allowed. The remedy of the employee in such cases is to move the court to vacate the suspension of operation of the award. In case the writ is dismissed, the employee can always claim back-wages during the pendency of the case subject to the proof of non-employment elsewhere. Last drawn wages means, as held by the Division Bench in Praga Tools case (supra), the wages which the employee would have been entitled to on the date of suspension of award of reinstatement inclusive of all allowances.

Issues: 1. Whether Section 17-B wages are recoverable from the management even though the writ is allowed at the time of final hearing and the award is set aside? 2. At what rate the wages are payable?

Ratio Decidendi: 1. Section 17-B wages are in the nature of subsistence allowance and when once paid cannot be recovered irrespective of the result of the writ petition, even in cases where the award is set aside as perverse, nullity, grossly erroneous or without jurisdiction. However, in exceptional cases when the award is perverse or erroneous or patently without jurisdiction or nullity, the court acting under Article 226 is not debarred from exercising its powers and passing appropriate orders on the petition seeking suspension of the operation of the award. 2. Section 17-B wages directed to be paid but not paid cannot be claimed by the employee at the time of final hearing of the writ and when it is allowed. The remedy of the employee in such cases is to move the court to vacate the suspension of operation of the award. In case the writ is dismissed, the employee can always claim back-wages during the pendency of the case subject to the proof of non-employment elsewhere. 3. Last drawn wages means, as held by the Division Bench in Praga Tools case (supra), the wages which the employee would have been entitled to on the date of suspension of award of reinstatement inclusive of all allowances.

Final Decision: The writ petitions were disposed of. The Labour Court was directed to dispose of the industrial dispute afresh on merits within three months from the date of receipt of the order. The employee was held entitled to wages at the last drawn scale from March 10, 1992 to January 1993, to be determined by the Labour Court. The employee was not entitled to claim Section 17-B wages for the period between January 1993 and the date of the order.