SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2021 Supreme(Del) 859

IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
Sanjay Bansal - Appellant
Versus
Munesh Kumar & Anr. - Respondents
Civil Writ Petition No. 4177 of 2019, Civil Miscellaneous Application No. 18798 of 2019
Decided On : 08-11-2021

Advocates appeared:
Rohit Singha, Advocate

Settlement of disputes through mediation can lead to the satisfaction of an order directing payment, precluding further recovery by the employee.

Headnote:

Delhi Shops and Establishments Act - Wages - Section 21(3) - Section 21(5)(b)

Fact of the Case:

The petitioner challenges an order directing payment of wages and compensation under the Delhi Shops and Establishments Act, 1954. The employee had filed a claim for unpaid wages, which was settled through mediation proceedings.

Finding of the Court:

The court found that all disputes were settled through mediation, and the employee received the agreed settlement amount. As a result, the impugned order stood satisfied, and no further recovery could be initiated by the employee.

Issues: The main issue was the enforcement of the order directing payment of wages and compensation under the Delhi Shops and Establishments Act, 1954.

Ratio Decidendi: The settlement of disputes through mediation and the receipt of the settlement amount by the employee led to the satisfaction of the impugned order, precluding further recovery by the employee.

Final Decision: The court disposed of the petition and all pending applications, affirming that the disputes had been fully and finally resolved, and there would be no outstanding claim by the employee or the employer under the Delhi Shops and Establishments Act, 1954 or the ID Act.

JUDGMENT

Prathiba M. Singh, J. - This hearing has been done through video conferencing.

2. None appears for the Respondent.

3. The present petition has been filed challenging the order dated 3rd October 2016 passed by the authority under the Delhi Shops and Establishments Act, 1954, North District, Labour Welfare Centre, Nimri Colony, Delhi. By the impugned order, the authority has directed the Petitioner to pay wages of Rs. 39,039/- along with a penalty/compensation of Rs. 3,903/- to the Respondent- Claimant. The operative portion of the order reads as under:

"That as discussed above, it is held that the applicant is entitled to receive the above payment of due earned wages under the Shops & Establishment Act, 1954. Therefore, in exercise of powers conferred upon this authority by Sub-Section 3 of Section 21 of the Act, Respondent .Sh. Sanjay Bansal, Prop, of M/s. Indian Travels Service, 780,Balliinaran,Chandni Chowk, Delhi-110006 is hereby directed to pay the applicant his due earned wages decided above i.e. Rs. 39,039/- alongwith penalty/ compensation of 10 % i.e. Rs.3,903/- for not making the payment of earned wages to the applicant in time, within 30 days from the date of this order under intimation to this Authority failing which proceedings to recover the same shall be initiated as per the provisions of the law."

4. The brief background is that one Shri Munesh Kumar, who is the Respondent No. 1 in this petition, filed a claim against the Petitioner who is the proprietor of M/s Indian Travels Service Regd., 780, Ballimaran, Chandni Chowk, Delhi-110006, on the ground that he had been working as a field worker since 10th January, 1991 and his monthly wages amounting to Rs. 10,000/-, per month, were not paid from 1st January 2016 to 15th April 2016. The said amount was Rs. 39,039/-, which was claimed to have not been paid by the employer, leading to the filing of the said claim before the authority.

5. Vide the impugned order dated 3rd October, 2016, the order extracted above, directing the Petitioner herein to pay the said amount, along with compensation, was passed by the authority. The said award is under challenge in the present petition.

6. The submission of Mr. Rohit Singla, ld. Counsel appearing for the Petitioner, is that the employee had also preferred proceedings under the Industrial Disputes Act, 1947. However, finally, all the disputes were settled vide settlement dated 7th October 2017, and a sum of Rs. 75,000/-, in terms of the terms of the settlement, as recorded in the order, has been paid.

7. A perusal of the records show that mediation proceedings had taken place between the employer and the employee, and the settlement that has been entered into on 7th October 2017, has been recorded before the Delhi Mediation Centre at the Karkardooma Courts. The relevant paragraphs of the settlement reads as under:

"The mediation process explained to the parties. Single and joint sessions held with the parties. Now, the parties have agreed to settle all their disputes qua the present matter voluntarily and amicably on the following terms and conditions:-

1. It is agreed between the parties that the management shall pay a total sum of Rs. 75,000/- (Rs. Seventy Five Thousand only) to the workman towards full and final settlement of all his claims/ disputes/demands arising out of the present matter including reinstatement, reemployment, back wages, earned wages, leave encashment, compensation, gratuity, bonus & any other statutory dues, if any.

2. It is agreed between the parties that the payment of the settled amount of Rs. 75,000/- shall be made by the management to the workman in the court concerned on 17.10.2017 as per the following schedule:-

a) Rs. 50,000/- (Rs. Fifty Thousand only) shall be paid in cash.

b) Rs. 25,000/- (Rs. Twenty Five Thousand only) shall be paid by way of PDC dated 17.11.2017.

3. It is agreed between the parties that on receipt/realization of the settled amount, in the manner agreed herein above, the workman s

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top