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2012 Supreme(Pat) 1238

IN THE HIGH COURT OF JUDICATURE AT PATNA
V.N. SINHA, J.
Umesh Prasad Choudhary Son of Late Madho Sharan Choudhary (in 459) : Petitioner
Sahara India through its Chairman & Managing Director & Ors. (in 3658)
Versus
The State of Bihar Through the Presiding Officer Industrial Tribunal, Patna - Cum - Appellate Authority Under Bihar Shops & Establishment Act, 1953, Shram Bhawan, Bailey Road, Patna & Ors. (in 459) : Respondents
Civil Writ Jurisdiction Case No.459 and 3568 of 2012
Decided On : 18-09-2012

Advocates Appeared:
For the petitioner: Mr. Arun Kumar Pandey, Mr. Pramod Pandey, (in 459); M/s Umesh Prasad Singh, Ashok Kumar Jha (in 3568).
For the State : Mr. Niraj Kumar, (in 459); M/s Rakesh Kumar Samrendra, Obai-dullah (in 3568)
For the Respondents: Mr. Arun Kumar Pandey, Pramod Pandey, (in 3568)

The central legal point established in the judgment is the interpretation of the term 'wages' under the Payment of Wages Act, emphasizing that all remuneration expressed in terms of money, including Travelling Allowance and incentive scheme amounts, should be considered as part of wages.

Headnote:

Wages - Payment of Wages Act - Section 2(VI) - [Payment of Wages Act, 1936, Section 2(VI)] - The court discussed the interpretation of the term 'wages' under the Payment of Wages Act, emphasizing that all remuneration expressed in terms of money, including salary, allowances, or otherwise, should be considered as part of wages. The court highlighted that the restrictive interpretation of wages by the authorities was not in line with the Act and referred to a relevant judgment to support its decision.

Fact of the Case:

The employee and the Management of Sahara India filed writ petitions challenging the judgment rejecting the appeal against the order to pay arrears of wages but refusing to include Travelling Allowance and incentive scheme amounts as part of wages under the Payment of Wages Act.

Finding of the Court:

The court held that the arrears of wages were rightfully ordered to be paid with penalty. It also found that Travelling Allowance, incentive scheme amounts, and bonus should be considered part of wages under the Payment of Wages Act, contrary to the restrictive interpretation by the authorities.

Issues: The issues revolved around the definition of 'wages' under the Payment of Wages Act and whether Travelling Allowance and incentive scheme amounts should be included as part of wages.

Ratio Decidendi: The court's decision was based on the interpretation of the term 'wages' under the Payment of Wages Act, emphasizing that all remuneration expressed in terms of money should be considered as part of wages, including Travelling Allowance and incentive scheme amounts.

Final Decision: The court allowed the writ application filed by the employee, directing the payment of Travelling Allowance, incentive scheme amounts, and bonus within a reasonable time, while dismissing the writ petition of the Management.

ORDER


Heard learned counsel for the parties.

2. Employee and the Management of Sahara India has filed these two writ petitions challenging the judgment dated 29.11.2011 passed in B.S.E. Appeal No. 3, 4/2010 (Annexure-4,8 respectively), whereunder appeal filed by them against order dated 12.3.2010 in B.S.E. Case No. 4/2004 (Annexure-3, 6 respectively) by the Deputy Labour Commissioner-cum-Appointed Authority under the Bihar Shops & Establishment Act (hereinafter referred to as the “Act”) has been rejected. Earlier Shop Establishment Case No.4/2004 was filed by the employee praying, inter alia, to direct the Management of Sahara India to pay the arrears of salary, Traveling Allowance and the prize money payable to the employee under different contest award, incentive schemes. In reply to the aforesaid petition Management of Sahara India filed petition Annexure-3 in C.W.J.C. No. 3568 of 2012 stating that request for payment of T.A. Bill and prize money payable under contest award and different incentive schemes are not part of the wages as defined under Section 2(VI) of the Payment of Wages Act, 1936 as such not payable and prayer made in this regard is fit to be rejected. It was submitted by the Management of Sahara India before the Deputy Labour Commissioner that the definition of term wages in the payment of Wages Act may be wide but shall not include the Travelling Allowance as also the prize money payable to the employee under different incentive schemes for the reason that payment due under Travelling Allowance and incentive scheme is not part of terms of employment, expressed or implied. It is submitted with reference to Annexure-3 that unless payment of Travelling Allowance and incentive money is part of the terms of employment that cannot be paid to the employee and prayer for giving such direction is misconceived. The Deputy Labour Commissioner-cum-Appointed Authority having perused the pleadings made by the parties and the evidence led both oral and documentary passed order dated 12.3.2010 directing the Management of Sahara India to pay the arrears of wages for the months of March, 1996-June, 1996 amounting to Rs. 18,325/- with five times penalty amounting to Rs. 91,625/-, total amount Rs. 1,09,950/-. The Deputy Labour Commissioner, however, refused the request of the petitioner for payment of Travelling Allowance and the amount payable to the employee under different incentive schemes holding that Travellilng Allowance and the amount payable under the different incentive scheme is not part of wage as defined under the Payment of Wages Act.

3. Management of Sahara India challenged the order passed by the Deputy Labour Commissioner vide B.S.E. Appeal No. 3/2010 assailing the findings with regard to payment of wages for the months of March, 1996-June, 1996 with five times penalty. The employee challenged the Award in B.S.E. Appeal No. 4/2010 on the ground that Deputy Labour Commissioner erred in law in not including the amount payable to the employee under Travelling Allowance and different incentive schemes as according to the employee the definition of the term wages under the payment of Wages Act include all remuneration payable to the employee by way of salary, allowance, or otherwise. It is submitted that Travelling Allowance would have become part of the wages by virtue of the inclusion of word „allowance as part of wages. As regards the payment of amount under different incentive schemes, it is submitted that the word „otherwise included in the definition of the term wages would take within its sweep amount payable to the employee under different schemes for the reason that the definition of the term wages provides for inclusion of all money payable to the employee as terms of employment expressed or implied. It is submitted that no sooner the incentive schemes for procuring investment was notified and the employee began to work in terms of the incentive scheme for procuring deposit for the company the scheme bec




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