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1977 Supreme(Cal) 274

High Court Of Calcutta
SABYASACHI MUKHERJI
ALGEMENE BANK NEDERLAND N.V. - Appellant
Versus
CENTRAL GOVERNMENT LABOUR COURT AT CALCUTTA - Respondent
Matter No.417 of 1977
Decided On : 08/05/1977

Advocates Appeared:
JATIN GHOSH, S.P.DAS, SUBRATA ROY CHAUDHURI

The Labour Court has no jurisdiction to make an order under Section 33C(2) of the Industrial Disputes Act, 1947, where the workman has no clear existing right to the wages claimed.

Headnote:

INDUSTRIAL DISPUTES ACT, 1947 - SECTION 33C(2) - WAGES - DEDUCTION - ENTITLEMENT - JURISDICTION OF LABOUR COURT - CONTRACT OF EMPLOYMENT - ENTIRE OR DIVISIBLE - SERVICES RENDERED - PAYMENT FOR WORK DONE - UNAUTHORIZED ABSENCE - NO WORK NO PAY - PRINCIPLES OF NATURAL JUSTICE - WRIT JURISDICTION.

Fact of the Case:

The petitioner, a banking company, challenged the order of the Labour Court directing it to pay Rs. 11.41 to the respondent, an employee, for the period of absence from work. The petitioner contended that the Labour Court had no jurisdiction to make the order under Section 33C(2) of the Industrial Disputes Act, 1947, as the respondent had no right or entitlement to claim the said amount. The respondent contended that the service contract was indivisible and could not be made the subject matter of appropriation, and that there could not be any deduction of wages without due process of law.

Finding of the Court:

The Court held that the Labour Court had no jurisdiction to make the order under Section 33C(2) of the Industrial Disputes Act, 1947, as the respondent had no clear existing right to the wages claimed. The Court observed that the right to wages depended upon the performance of work during the period of employment, and that if there was any failure of that consideration, the employer was entitled to refuse any payment at all. The Court further held that the contract of employment was not divisible, and that the respondent was not entitled to wages for the period of hours of work that he had not done.

Issues: 1. Whether the Labour Court had jurisdiction to make the order under Section 33C(2) of the Industrial Disputes Act, 1947. 2. Whether the respondent had a right or entitlement to claim the wages for the period of absence from work. 3. Whether the contract of employment was entire or divisible.

Ratio Decidendi: 1. The jurisdiction of the Labour Court under Section 33C(2) of the Industrial Disputes Act, 1947, is limited to cases where the workman is entitled to receive from the employer any money or benefit which is capable of being computed in terms of money. 2. A workman is entitled to wages only for the work done, and there is no right to wages for the period of absence from work. 3. The contract of employment is not divisible, and the employee is not entitled to wages for the period of hours of work that he has not done.

Final Decision: The Court allowed the petition, set aside the order of the Labour Court, and restrained the respondents from giving effect to the same. However, the Court clarified that this order would not prevent the respondents from raising or agitating the question in an appropriate forum in accordance with law.

SABYASACHI MUKHERJI, J.

( 1 ) SHYAMAPADA Das, the respondent No. 2 is an employee of M/s. Algemene Bank Nederland N. V. , the petitioner herein. The petitioner carries on banking business in India and for this purpose employees various categories of employees namely, officers, clerical staff and subordinate staff at its establishment at 18a, Brabourne Road, Calcutta. The said establishment is a commercial establishment within the meaning of the West Bengal Shops and Establishments Act, 1963 and as such is registered under the said Act. The banking industry has been declared by the appropriate Government as one engaged in the utility service. The terms and conditions of service including the hours of work, wage structure of the employees are governed by various awards namely, Sastri Award, Desai Award and the Industrywise Bipartite Settlement dated the 19th October, 1966 and various settlements arrived at subsequent thereto. It will be necessary at the relevant time to refer to the provisions of the Bipartite Agreement in detail. On the 10th September, 1976 the members of the staff, clerical and sub-ordinate excepting lady staff by ceasing work in combination left their places of work at 3 P. M. and according to the petitioner Bank, illegally and wrongfully held a meeting and demonstration inside the Bank premises during the Bank's normal working hours by forming, again according to the petitioner Bank, an unlawful assembly. The members of the said assembly including the respondent No. 2 Shyamapada Das remained absent from their works, shouted slogans and squatted inside the premises without doing any work from 3 P. M. to 5-45 P. M. The petitioner Bank without prejudice to its rights to take disciplinary action issued a notice. The said notice after setting out the aforesaid facts contained the following statement:"without prejudice to the right of the Bank to take disciplinary action where warranted, the concerned members of the staff are hereby informed that they would not be entitled to any salary for their period of absence from their duty on the basis of "no work No pay. " This will, however, not apply in case of those who were on sanctioned leave on that day. "

( 2 ) THE petitioner Bank paid wages to the workmen including the respondent No. 2, who had remained absent on the 10 September, 1976 on a pro rate basis for the period they had rendered services and did not pay any wages for the period of absence. Thereupon, on the 17th May, 1976, the respondent No. 2 filed an application under Section 33c (2) of the Industrial Disputes Act, 1947 for recovery of a sum of Rs. 11. 41 before the Central Government Labour Court at Calcutta. The respondent No. 2 alleged that the petitioner Bank had wrongfully deducted Rs. 11. 41 from the salary of the respondent No. 2 for the month of September, 1976. It was further alleged by the respondent No. 2 that neither in the Bipartite Settlement nor in any law of the land applicable to the parties, was there any provision for deducting monthly salary of any workman pro rata on the basis of the alleged, 'no work No pay'. The petitioner Bank filed an objection to the said application and contended that the application under Section 33c (2) was misconceived and not maintainable. The petitioner contended that the workman concerned had no right under the law to claim wags for the period for which he did not work. It was further contended that the claim of the respondent No. 2 was not based on any claim for money or benefit derived under any Award or Settlement but on the ground that although the workmen of the Bank had remained absent from the duty, yet they were entitled to salary for the period of their absence. The petitioner contended that there was no right or entitlement of the respondent No. 2 for the money claimed. It was, therefore, submitted that the application under Section 33c (2) of the Industrial Disputes Act, 1947 was misconceived. The application came up for hearing before the Cent
















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