High Court Of Delhi
MUKUL MUDGAL, S. MURLIDHER RAO
RAJ GARIHA VISHRAM SADAN - Appellant
Versus
VIJAY KATE - Respondents
LPA 571 Of 2006
Decided On : 09/13/2006
ID Act - Industrial Disputes - 17-B
Fact of the Case:
The respondent workman was appointed as a Security Guard and terminated. The Labour Court awarded reinstatement and back wages. The appellant challenged the award, and the respondent filed an application under Section 17-B of the ID Act for payment of arrears of wages.
Finding of the Court:
The court found that the appellant was liable to pay the workman full wages last drawn during the pendency of the proceedings, inclusive of any maintenance allowance, as per Section 17-B of the ID Act. The court also clarified that the High Court could direct payment of wages higher than the last drawn wages, and the amount was payable from the date of the award.
Issues: The issues involved the interpretation of Section 17-B of the ID Act and the power of the High Court to award wages higher than the last drawn wages.
Ratio Decidendi: The court held that the High Court could award an amount higher than the last drawn wages under Section 17-B of the ID Act, and the payment was effective from the date of the award. The court emphasized the socio-economic aspect of wage structure and the discretionary power of the High Court to grant relief.
Final Decision: The appeal was partly allowed, setting aside the second impugned order and affirming the first impugned order. The appellant was directed to give effect to the order dated 1. 8. 2005, and any adjusted amount was to be repaid to the workman.
S. MURALIDHAR, J.
( 1 ) THIS appeal is directed against two orders of a learned Single Judge. By the first impugned order dated 1. 8. 2005, the learned Single Judge disposed of an application under S. 17-B of the Industrial Disputes Act 1947 ("id Act")being CM No 8620 of 2004 filed by the respondent workman in Writ Petition (C)No. 2768 of 2004 filed by the appellant. The appellant was directed to pay to the respondent workman, from the date of the Award i. e. , 1. 3. 2002 "at the highest of the two rates between the last drawn wages and the minimum wages notified by the authorities from time to time. " This was made subject to the respondent workman"furnishing an undertaking in this Court, along with his latest address, to the effect that in the event of this court holding in favour of the petitioner, he shall reimburse the differential between the last drawn wages and the amount paid in terms of the orders passed today. "
( 2 ) BY the second impugned order dated 27. 9. 2005 the learned Single Judge disposed of an application being CM No 10653 of 2005 filed by the appellant and modified the earlier order dated 1. 8. 2005 only to the extent that the appellant was directed to make payment of the wages at the higher of the two rates between the last drawn and the minimum wages with effect from April, 2003 till 1st august, 2005. The appellant was also entitled to adjust the amount of Rs. 4,940/-paid to the respondent workman in purported compliance of the order made on 1. 8. 2005.
( 3 ) THE brief facts leading to the filing of this appeal are that the respondent workman was appointed by the appellant as Security Guard on 24. 5. 1988 and his last drawn salary was Rs. 380/- per month which was much lower than the statutory minimum wages payable. Aggrieved by the termination of his services on 20. 4. 1990, the respondent workman raised an industrial dispute which was registered as I. D. No. 233 of 1991 before the Labour Court. By an Award dated 1. 3. 2002, the Labour Court held that the termination of the services of the respondent workman was illegal and directed his reinstatement with continuity in service and 50% back wages.
( 4 ) THE appellant herein initially filed Writ Petition (C) No. 3433/2003 in this Court challenging the said Award. However by an order dated 3. 11. 2003, the writ petition was permitted to be withdrawn with liberty to the appellant herein to file an application before the Labour Court for recalling the Award. The said application was dismissed by the Labour Court on 6. 2. 2004 Thereafter, the appellant filed another Writ Petition (C) No 2768 of 2004 on or around February 2004 By an order dated 30. 4. 2004, the learned Single Judge, while issuing rule, granted stay of the implementation of the Award subject to the deposit of 35% of the award amount.
( 5 ) ON 26. 7. 2004, the respondent workman filed an application under Section 17b of the ID Act stating that he was unemployed from the date of the termination of his services and that he was not gainfully employed in any establishment or occupation. He accordingly prayed that the appellant herein be directed to release the arrears of wages to the respondent workman at 50% wages w. e. f. 20. 4. 1990 (the date of termination) till 1. 3. 2002, the date of the Award. He prayed for payment of the arrears of wages from 1. 3. 2002 till date at the rate of minimum wages. He also prayed that he may be permitted to withdraw the 35% amount of the Award, i. e. , Rs. 54,926/- which had been deposited by the appellant in the Labour Court. This application was initially disposed of by the first impugned order dated 1. 8. 2005 of the learned Single Judge and later modified by the second impugned order dated 27. 9. 2005 to the extent indicated hereinbefore.
( 6 ) MR. MUKUL Gupta, the learned counsel for the appellant submits that although the law concerning the power of the High Court to award wages higher than last drawn wages, in an application under Section 17-B of the
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