HIGH COURT OF CHHATTISGARH AT BILASPUR
Rakesh Mohan Pandey, J.
Managing Director Now Chief Executive Officer Bhilai Steel Plant Bhilai - Appellant
Vs.
Ramesh S/o Ramlu - Respondent
WPL No. 102, 185, 186, 188, 184, 190 of 2024
Decided On : 09-01-2025
(A) Minimum Wages Act, 1948 - Section 20 - Labour Court's jurisdiction - The petitioners challenged the Labour Court's order directing payment of minimum wages to workmen, asserting they were not directly employed by the petitioners but by the Parents Teachers Association. The Labour Court's order was based on the workmen's claims under Section 20, which allows workmen to seek redress for wage discrepancies. The court found that since there was no dispute regarding the minimum wage rates, the Labour Court exceeded its jurisdiction. (Paras 3, 8, 11)
(B) Jurisdiction of Labour Court - The court reiterated that the Labour Court under the Minimum Wages Act cannot adjudicate on matters beyond determining minimum wage entitlements, referencing prior judgments that clarified the appropriate forums for such claims. (Paras 9, 10)
Facts of the case:
The petitioners contested the Labour Court's decision that ordered them to pay minimum wages to workmen, who were employed by the Parents Teachers Association, not directly by the petitioners. The Labour Court had previously ruled in favor of the workmen regarding wage discrepancies.
Findings of Court:
The Labour Court's order was set aside as it exceeded its jurisdiction under the Minimum Wages Act, allowing the workmen to seek redress through appropriate forums.
Issues: The main issues included whether the Labour Court had jurisdiction to order payment of minimum wages to workmen not directly employed by the petitioners and the interpretation of Section 20 of the Minimum Wages Act.
Ratio Decidendi: The court concluded that the Labour Court's jurisdiction is limited to determining minimum wage entitlements and cannot adjudicate on employment disputes not directly involving the petitioners.
Result: Writ petitions allowed.
Order :
(Rakesh Mohan Pandey, J.)
1) Since common questions of law and facts are involved in the present case, these writ petitions are clubbed together, heard together and finally decided by this common order.
2) The petitioners have challenged the orders impugned dated 15.12.2023 passed by the Authority under the Minimum Wages Act, Labour Court, Durg (CG) in Case Nos. 42/MW ACT/2017 CIVIL; 43/MW ACT/2017; 44/MW ACT/2017 CIVIL CIVIL; 45/MW ACT/2017 CIVIL; 46/MW ACT/2017 and 48/MW ACT/2017 CIVIL, whereby applications moved by the workmen under Section 20 of the Minimum Wages Act, 1948 were partly allowed by the said Court and the petitioners were directed to make a payment of difference amount of minimum wages from December, 2015 to June, 2017 within a period of 2 months.
3) Mr. P. R. Patankar, learned counsel appearing for the petitioners would submit that the private respondents of all writ petitions were never appointed by the petitioners. He would further submit that they were deployed by the Parents Teachers Association (for short, the Association) of respective schools on the post of Sweeper/cleaner on different dates. He would contend that the services of the private respondents were terminated by the Association on different dates. He would argue that the private respondents approached the learned Labour Court against the termination of their services & the learned Labour Court allowed the statement of claims and passed an award of reinstatement with 50% back wages. The said order was challenged by the petitioner(s), writ petitions were preferred and the matter was remanded back to the learned Labour Court on 26.06.2008. The learned Labour Court again passed an award of reinstatement with 50% back wages and that award was challenged by filing a batch of writ petitions in the year 2012 and the lead case was WPL No. 35 of 2012.
Mr. Patankar would further argue that the Co-ordinate Bench held that the private respondents/workmen were never appointed by SAIL/BSP, and their salary/ wages/remuneration was paid by the parents-teacher association. It was further held that SAIL/BSP may run or control the school and the Parents Teacher association, but there was no direct control or supervision over the workmen who were reporting to the school and not to the management of SAIL/BSP. He would contend that in the present case also, the learned Labour Court under the Minimum Wages Act cannot pass an order for payment of minimum wages to the workmen as there is no such provision in the Act, 1948.
4) On the other hand, learned counsel appearing for the private respondents/workmen would oppose the submissions made by Mr. Patankar and submit that the workmen/private respondents were appointed by Parents-Teacher-Association but the schools were under the control and supervision of BSP/SAIL, therefore, the learned Labour Court rightly passed the order in their favour.
5) I have heard learned counsel for the parties and perused the documents.
6) The private respondents/workmen moved an application under Section 20 of the Minimum Wages Act 1948 before the learned Labour Court for payment of wages.
7) Section 20 of the Act, 1948 states that a workman who is getting less payment of wages than the minimum rate of wages may approach the authorities for his grievance.
8) In the present case, the private respondents/workmen claimed wages and there was no dispute with regard to the difference between the minimum wages and wages which were being paid to the workmen, therefore, the private respondents on incorrect legal premises approached the learned Labour Court under the Minimum Wages Act, 1948.
9) The issue in this regard is not rest integra. The Hon’ble Supreme Court while dealing with a similar issue in the matter of Manganese Ore (India) Ltd. v. Chandi lal Saha & ors. ( (1991 LAB I.C. 524) ) in para-17 held as under:-
“17. In the present case there was no dispute regarding the rates of wages and it is admitted by the parties that the minimum rates of wag
The Labour Court under the Minimum Wages Act lacks jurisdiction to adjudicate wage claims for workers not directly employed by the petitioners, as established in prior case law.
Point of Law : when a statute gives a right and provides a forum of adjudication of rights, remedy has to be sought only under the provisions of that Act and the performance of the rights has to be e....
Point of Law : Section 33C(2) of The Industrial Disputes Act, 1947 reads as Recovery of money due from an employer.
when there is a payment of wages lesser than the minimum rate of wages payable for an employment, a claim can be raised under section 20(1) of the Act.
The court established that the State and Gram Panchayats can be jointly liable for minimum wages under the Minimum Wages Act, reinforcing employee rights.
Minimum Wages Act serves to secure workers' rights by mandating minimum wage payments; compliance is legally enforced.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.