1978 Supreme(Pat) 117
HIGH COURT OF PATNA (RANCHI BENCH)
N. P. SINGH & MANORANJAN PD., JJ.
Smt. Sarla Devi Agrawala
Vrs.
The State of Bihar & ors
C. W. J. C. no. 47 of 1978 (R)
Decided On : 8.5.1978
For the petitioner: M/s S.B. Sanyal and K. K. Jhunjhunwala.
For the Opp. party: Mr. Ram Nandan Sahai Sinha G. P.
Headnote:Minimum Wages Act, Sec. 20 (5) (a)-Code of Criminal Procedure, Secs. 3 (4) & 5-Executive Magistrate appointed authority under the Minimum Wages Act to decide claim for short wages-Minimum Wages Act being special law shall prevail over General Law-Provisions of Sec. 3 of the Code cannot be taken aid of-Authority is a creature of the Special Law who has been appointed by the appropriate Government under powers vested in it-Order for payment of claim not vitiated.
(para 4)
Order against the company-Direction or shareholders cannot be individually proceeded 'with by issue of distress warrants against them-Company is a legal person with its own rights and liabilities-Persons associated with the company are not the company-Actions to realise the dues under the claim can be taken against the assets of the company.
(paras 5 & 7)
Constitution of India, Art 226 -Action of authority being patently illegal and with-out jurisdiction-Writ jurisdiction can be invoked-Party cannot be asked to go to the authority and show cause.
(para 6)
Nagendra Pd. Singh, J.
The Sub-divisional Magistrate, Kodarma in purported exercise of the powers conferred on him by sub-section (5) of Section 20 of Minimum Wages Act, 1948 (hereinafter referred to as the 'Act), has directed issuance of distress warrant against the petitioner of this writ application. From the statement made in the main writ application and different supplementary affidavits, which were filed during the pendency of the writ application, it appears that M/s Christian Mica Industries Ltd. Respondent no. 4 (hereinafter referred to as the 'said company') is a public limited company having its registered office at Calcutta, which carries on business of Mica in the districts of Hazaribag and Giridih. The said company had employed several employees. On 12.10.77, the respondent-Labour Superintendent, acting as Inspector under the aforesaid Act, filed application under section 20 of the Act for a direction to the comp1ny as well as several other persons named therein to pay the different amounts, which have not been paid to the employees of the said company. Towards the end or that application, the names of different employees with the amount which is payable to them has been mentioned. According to the said application the Company and the persons mentioned therein who have been described as the persons connected with the management of the said company have failed to pay minimum wages to the employees aforesaid, in accordance with the provisions of the said Act, which had given the cause of action for filing the application in question. The petitioner has also been named as one of the person connected with the management of the said company and her name appears against sl. no. 5.
2. The relevant portion of Section 20 is as follows (1) The appropriate Government may by notification in the official Gazette, appoint any Commissioner for Workmen's Compensation or any officer of the Central Government exercising functions as a Labour Commissioner for any region. or any officer of the State Government not below the rank of Labour Commissioner, any other officer with experience as Judge of a Civil Court or as a stipendiary Magistrate to be the Authority to hear and decide for any specified area all claims arising out of payment of less than the minimum rates of wages or in respect of the payment of remuneration for days of rest or for work done on such days under clause (b) or clause (c) of subsection (1) of section 13 or of wages at the overtime rate under section 14 to employees employed or paid in that area.
(3) When any application under sub• section (2) is entertained, the Authority shall hear the applicant and the employer or give them an opportunity of being heard, and after such further inquiry if any as it may consider necessary, may without prejudice to any other penalty to which the employer may be liable under this Act, and the Authority may direct :--
(i) in the case of a claim arising out of payment of less than the minimum rates of wages, the payment to the employee of the amount by which the minimum wages payable to him exceed the amount actually paid, together with the payment of such compensation as the Authority may think fit, not exceeding ten times the amount of such excess:
(ii) in any other case, the payment of the amount due to the employee, together with the payment of such compensation as the Authority may think fit, not exceeding ten rupees, and the Authority may direct payment of such compensation in cases where the excess or the amount due is paid by the employer to the employee before the disposal of the application.
(5) Any amount directed to be paid under this section may be recovered-
(a) if the Authority is a Magistrate, by the Authority as if it were a fine imposed by the Authority as a Magistrate, or
(b) if the Authority is not a Magistrate, by any Magistrate 'to whom the Authority makes application in this behalf, as if it were a fine impose d by such Magistrate.
3. The Sub-divisional M