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1957 Supreme(Pat) 79

PATNA HIGH COURT
Sinha and K.Dayal JJ.
Md.Qasim Lari, Factory Manager Sasamusa Sugar Works Ltd.
Versus
Md.Shamsuddin
Civil Revision No. 40 of 1954 ;
Decided On : MARCH 20, 1957

Wages fixed by award or conciliation proceedings under the Industrial Disputes Act are covered by the definition of "wages" under the Payment of Wages Act and are subject to the jurisdiction of the authority under the Act.

Headnote:

PAYMENT OF WAGES ACT - WAGES - DEDUCTIONS - JURISDICTION OF AUTHORITY UNDER THE ACT - WAGES FIXED BY AWARD OR CONCILIATION PROCEEDINGS UNDER THE INDUSTRIAL DISPUTES ACT - WHETHER COVERED BY DEFINITION OF WAGES - REMEDY UNDER THE PAYMENT OF WAGES ACT - WHETHER BAR TO REMEDY UNDER OTHER ACTS.

Fact of the Case:

The petitioner, the Manager of Sasamusa Sugar Works, challenged the jurisdiction of the authority under the Payment of Wages Act to entertain applications for refund of deductions made by the Sugar Works from the wages of its employees. The employees claimed that they were entitled to Rs. 2-2-0 per day as wages, whereas they were paid at the rate of annas 10 per day, resulting in a deduction of Rs. 1-8-0 per day.

Finding of the Court:

The court held that the authority under the Payment of Wages Act had jurisdiction to entertain the applications and proceed thereunder to give its decision. The court found that the minimum wages fixed by the award or in conciliation proceedings were well within the definition of "wages" given in the Act and that the deductions made by the Sugar Works were not permissible under any of the provisions of the Act.

Issues: 1. Whether the authority under the Payment of Wages Act had jurisdiction to entertain the applications for refund of deductions made by the Sugar Works from the wages of its employees. 2. Whether the wages fixed by award or conciliation proceedings under the Industrial Disputes Act were covered by the definition of "wages" under the Payment of Wages Act. 3. Whether the remedy provided under the Payment of Wages Act barred the employees from seeking remedies under other Acts.

Ratio Decidendi: 1. The definition of "wages" under the Payment of Wages Act is wide and includes any remuneration, capable of being expressed in terms of money, which would be payable if the terms of the contract of employment, express or implied, were fulfilled. This definition includes any bonus or other additional remuneration of the nature aforesaid which would be so payable. 2. The wages fixed by an award or conciliation proceeding under the Industrial Disputes Act are binding on the employer and the employee and must be deemed to have been impliedly agreed upon between the parties. Therefore, such wages are covered by the definition of "wages" under the Payment of Wages Act. 3. The remedy provided under the Payment of Wages Act is not barred by the availability of remedies under other Acts. An aggrieved person can choose to seek the forum provided for in the Payment of Wages Act, and the authority under the Act cannot refuse to exercise its jurisdiction.

Final Decision: The court dismissed the petition and upheld the jurisdiction of the authority under the Payment of Wages Act to entertain the applications for refund of deductions made by the Sugar Works from the wages of its employees.

Judgment

Sinha, J.

1. This application has been made by the Manager, Sasamusa Sugar Works, Limited, who has been named as the Manager of the factory under Section 7 of the Factories Act.

2. Opposite Party No. 1 is the General Secretary of the Sasamusa Workers Union and opposite party No. 2 claims to be one of the daily coolies employed by the Sasamusa Sugar Works, Limited.

3. On different dates a number of applications were filed by several persons including the opposite party claiming refund of the deductions made by the Sugar Works under Sec.15 of the Payment or Wages Act (Act IV of 1936), before the District Magistrate, Chapra, who is the prescribed authority under the Payment of Wages Act. The matter came up to this Court on several occasions. On the last occasion the matter was remanded to the authority for decision of the preliminary point raised by the opposite party and other claimants in regard to the maintainability of the applications.

The petitioner on behalf of the Sugar Works contended that the applications were not maintainable because the opposite party as well as the other claimants had not made out a case of deduction from wages, and as such the prescribed authority had no jurisdiction to proceed under the Payment of Wages Act. When the matter went down, the prescribed authority has held that he has jurisdiction to proceed with the matter inasmuch as the claim is cognizable under the Payment of Wages Act.

4. The case of the opposite party is that opposite party No. 2 was entitled to Rs. 2-2-0 per day as wages, whereas he was paid at the rate of annas 10 per day, and, therefore, there was a deduction of Rs. 1-8-0 per day.

5. AS is found by the Court below it was not disputed before the Court that an Industrial Tribunal made an award fixing the pay of the employees of the Sasamusa Sugar Works at Rs. 2-2-0 per day and in pursuance of that award the management of the said Sugar Works came to an agreement that the employees would be paid Rs. 2-2-0 per day. The Court below has also held that Rs. 2-2-0 amounted as wages as given in the Payment of Wages Act, and that as they were paid admittedly annas 10 per day, the balance out of Rs. 2-2-0 was deduction, and, therefore, the matter could be looked into under Sec.15 of the Payment of Wages Act which will hereafter be referred to as the Act.

6. The only points urged by Mr. Sinha in support of the application are that as the aforesaid Sugar Works had at no point of time paid at the rate prescribed by the award, it could not be a case of deduction by the employer; and secondly, that as there were provisions in other Acts for recovery of claims under an award, the Court below had no jurisdiction to proceed under this Act.

7. The first question involves consideration of the definition of wages given under the Act, but before I do so, I should like to refer to Sec.15, the relevant part of it, under which the applications were made :

"15 (1).....

2. Where contrary to the provisions of this Act any deduction has been made from the wages of an employed person, or any payment of wages has been delayed, such person himself, or any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf, or any Inspector under this Act, or any other persons acting with the permission of the authority appointed under Sub-section (1), may apply to such authority for a direction under Sub-section (3).

* * * * *

3. When any application under Sub-section (2) is entertained, the authority shall hear the applicant and the employer..... and, after such further inquiry (if any) as may be necessary, may, without prejudice to any other penalty to which such employer or other person is liable under this Act, direct the refund to the employed person of the amount deducted..... together with the payment of such compensation as the authority may think fit....."

8. For the application of this section, therefore, it must be held what the wages were, and whether th





















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