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1956 Supreme(Pat) 167
PATNA HIGH COURT
V.Ramaswami and Raj Kishore Prasad JJ.
Superintendent Of Collieries
Versus
Deputy Commr.And Ors.
Miscellaneous Judicial Case No. 683 of 1955 ;
Decided On : DECEMBER 10, 1956
The authority under Sec. 15(1) of the Payment of Wages Act, 1936, has no jurisdiction to entertain a claim for refund of bonus illegally paid to workmen as such bonus does not fall within the definition of 'wages' under Sec. 2(vi) of the Act.
Headnote:
PAYMENT OF WAGES ACT, 1936 - SEC. 2(VI), 3, 4, 5, 7, 9-13, 15(1), 15(2), 15(3) - COAL MINES BONUS SCHEME, 1948 - PARAGRAPHS 2(A), 2(B), 4(A), 6(1) - BONUS - DEDUCTION FROM WAGES - JURISDICTION OF AUTHORITY UNDER SEC. 15(1) - INTERPRETATION OF STATUTORY PROVISIONS.
Fact of the Case:
Petitioner, the Superintendent of Collieries, Giridih, challenged an order passed by the Deputy Commissioner of Hazaribagh under Sec. 15(3) of the Payment of Wages Act, 1936, directing him to refund bonus illegally paid to certain workmen and to pay compensation. The workmen had received the bonus in contravention of the Coal Mines Bonus Scheme, 1948, framed under the Coal Mines Provident Fund and Bonus Schemes Act, 1948.
Finding of the Court:
The Court held that the workmen were not entitled to the bonus as they had not fulfilled the attendance requirement under paragraph 4(a) of the Scheme. The bonus paid to them was, therefore, illegal and the petitioner was entitled to deduct the amount from their wages. The Court further held that the authority under Sec. 15(1) of the Act had no jurisdiction to entertain the workmen's claim for refund of the bonus as it did not fall within the definition of 'wages' under Sec. 2(vi) of the Act.
Issues: 1. Whether the workmen were entitled to the bonus under the Coal Mines Bonus Scheme, 1948? 2. Whether the deductions made from the workmen's wages were illegal? 3. Whether the authority under Sec. 15(1) of the Payment of Wages Act, 1936, had jurisdiction to entertain the workmen's claim for refund of the bonus?
Ratio Decidendi: 1. The Court interpreted paragraph 4(a) of the Coal Mines Bonus Scheme, 1948, and held that a Category II employee was required to put in an attendance of 169 days during the relevant period to qualify for a bonus. The Court further interpreted paragraph 6(1) of the Scheme and held that leave granted by the employer to an employee could be counted as days of attendance for the purpose of meeting the attendance requirement, but only up to a maximum of 21 days. 2. The Court held that the bonus paid to the workmen was illegal as they had not fulfilled the attendance requirement under paragraph 4(a) of the Scheme. The Court further held that the deductions made from the workmen's wages were not illegal as they were made to recover the illegally paid bonus. 3. The Court held that the authority under Sec. 15(1) of the Payment of Wages Act, 1936, had no jurisdiction to entertain the workmen's claim for refund of the bonus as it did not fall within the definition of 'wages' under Sec. 2(vi) of the Act.
Final Decision: The Court allowed the petition and issued a writ of mandamus commanding the Deputy Commissioner of Hazaribagh not to give effect to his order dated 7th September, 1955, and a writ of certiorari quashing the said order.
Raj Kishore Prasad, J.
1. The petitioner is the Superintendent of Collieries, Giridih. He has presented an application to this Court under Articles 226 and 227 of the Constitution, and asked for a writ, in the nature of mandamus commanding opposite party No. 1 who is the Deputy Commissioner of Hazaribagh, not to give effect to his order dated the 7th September, 1955, passed under Sec.15 (3) of the Payment of Wages Act, 1936 (Act IV of 1936), and, not to direct the petitioner to refund to opposite party 2 to 5, who are some of the workmen employed in Karbarbaree colliery in Giridih, the amount of bonus realised from them because it was illegally paid to them, in ignorance, and, in contravention of the provisions of the Coal Mines Bonus Scheme, 1948, framed under Sec. 6 of the Coal Mines Provident Fund and Bonus Schemes Act, 1948 (Act XLVI of 1948); He has also asked for a writ in the nature of certiorari to quash the aforesaid order of the opposite party No. 1.
2. The petitioner is the person who is responsible for the payment of wages, under Sec.3 of the Payment of Wages Act to the workmen in the Collieries in Giridih, including Karoarbaree Colliery, in which opposite party 2 to 5 were also working.
3. The petitioners case is that the workmen of the said Colliery are entitled to the payment of bonus in terms of, and, on compliance with the conditions laid down in the Coal Mines Bonus Scheme, 1948. Through oversight and by sheer mistake, bonus was paid to many workmen, including opposite party 2 to 5, although they were not legally entitled to receive the same in accordance with the coal mines bonus Scheme. When the mistake was pointed out by the auditor, steps were taken, to realise it from such workmen, including opposite party 2 to 5, by deduction from their wages.
4. Opposite party 2 to 5, therefore, along with others, filed an application, under Sec.15 (2) of the Payment of Wages Act, before opposite party No. 1, who is the authority appointed by the State Government, under Sec.15 (1) of the Act, to hear and decide all claims arising out of also deductions from the wages of persons employed, or paid, in the district of Hazaribagh.
5. Their grievance was that Rs. 3/- per head had been deducted from their wages for the wage-periods, contemplated by Sec. 4 of the Payment of Wages Act, in respect of which wages were paid to them on 21-4-1955, 28-4-1955 and 5-5-1955, at Re. 1/- per head per week, and, they therefore, prayed for directions under Sub-section (3) of Sec.15 of the Act, directing the petitioner to refund the amount illegally deducted from their wages, and to pay compensation amounting to Rs. 100.00 to the opposite party 2 to 5.
6. On this application, opposite party 1 issued a notice to the petitioners, who showed cause before him. Opposite party 1, thereafter, after hearing the parties and considering the report of the enquiry, submitted by the Inspector, which is Annexure A to the application, passed orders on the 7th September, 1955, directing the petitioner under Sub-section (3) of Sec.15 of the Act, to refund the amount, deducted from the wages of the opposite party 2 to 5 to them, and, he further directed that in the event of the employers failure to make the aforesaid payment to opposite party 2 to 5 as directed, further legal action for realisation of the amount" in question will be taken.
7. Mr. Ray Parasnath, Government pleader, in support of the rule, has argued that the directions given by opposite party No. 1 under Sub-section (3) of the Sec.15 of the Payment of Wages Act, are illegal and ultra vires, and, therefore, they should be quashed.
8. Paragraphs 4(a) and 6(1) of the Coal Mines Bonus Scheme are the relevant provisions for the present case, and, they read as follows :
"4, Qualification for bonus in coal mines in West Bengal and Bihar--An employee in a coal mine in West Bengal or Bihar shall qualify for a bonus from his employer- (a) in respect of the period from the twelfth of May, 1947 t
