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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Capital Maintenance Corporation - Appellant
Versus
Govt. of NCT of Delhi - Respondent
W.P.(C) 1782 of 2019
Decided On : 24-02-2022




A workman filing for wages under Section 17B must truthfully disclose employment status; failure to do so results in disqualification from back wages despite wrongful termination.

Headnote:(A) Industrial Disputes Act, 1947 - Section 33C(2) - Application for recovery of wages - Award granted reinstatement and 50% back wages not contested - Workman concealed employment details post-award leading to false affidavit - No entitlement to back wages due to lack of candor - Provident fund and gratuity to be released. (Paras 3, 28-34)

(B) Labor Law - Section 17B - Payment of wages during court proceedings - Two conditions for relief: reinstatement order must be challenged and proof of unemployment required - Importance of full disclosure by workman emphasized in applications under Section 17B. (Paras 15-19)

Facts of the case:
The Workman was employed as a Peon since 1980 until his termination in 2007. An award in 2009 reinstated him with back wages, which the Management did not contest. The Workman later sought execution of this award, claiming unemployment; however, evidence emerged indicating he had been employed elsewhere.

Findings of Court:
The Workman was found to have deliberately concealed information about his employment, rendering his affidavit false. While no penal action was taken, back wages were not awarded due to his misleading conduct. The Court determined no back wages would be given, albeit depriving the Workman of back payments.

Issues: Main issues included whether the Workman was gainfully employed during the contested period and the implications of his false affidavit.

Ratio Decidendi: The Court ruled that truthful disclosure is critical in applications for payment under Section 17B, asserting a lack of candor disqualifies a workman from receiving wages. Furthermore, post-superannuation, the restoration of employment is unwarranted.

Result: Petition disposed of; no back wages awarded.

Table of Content
1. challenge to earlier labour court award (Para 3 , 4 , 5)
2. procedural steps for execution of award (Para 6 , 7 , 8)
3. disclosure of employment status by the workman (Para 9 , 10 , 11)
4. court's scrutiny of workman's employment history (Para 12 , 13 , 14)
5. understanding section 17b of the act (Para 15 , 17 , 18 , 19 , 20)
6. burden of proof in section 17b applications (Para 21 , 22 , 23)
7. steps in processing section 17b applications (Para 24 , 25 , 26)
8. judicial approach to reinstatement vs. compensation (Para 27 , 28 , 29 , 30)
9. conclusion on workman's entitlement to wages (Para 31 , 32 , 34)
10. final orders and decisions (Para 35 , 36)

JUDGMENT

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

CM APPL. 9776/2022 (for exemption)

2. Allowed, subject to all just exceptions. Application is disposed of.

WP(C) 1782/2019 & CM APPLs. 8341/2019, 8342/2019, 20526/2019 & 9747/2022

3. The present petition has been filed challenging the order dated 30th May, 2018 passed by the Labour Court in LCA No.273/16 titled Sh. B.S. Negi v. The Management of M/s. Capital Maintenance Corporation. By the impugned Award, the Labour Court has allowed the application filed by the Respondent No.2-Workman (hereinafter, "Workman") under Section 33C(2) of the Industrial Disputes Act, 1947 (hereinafter, "Act") for recovery of money as per Award dated 12th November, 2009 passed by the Labour Court in ID No.321/2009 between The Management of M/s. Capital Maintenance Corporation v. Its Workman Sh. B.S. Negi.

4. The Workman was working with the Petitioner-Management (hereinafter, "Management") as a Peon since 1st April, 1980. The services of the Workman were terminated on 19th January, 2007. The Workman raised an industrial dispute challenging his termination. Vide award dated 12th November, 2009 passed by the Labour Court in ID No.321/2009, the Labour Court directed the reinstatement of the Workman, along with grant of 50% back wages. The operative portion of the said award dated 12th November, 2009, reads as under:

    "So far as the backwages are concerned, seeing the number of years of services and other facts and circumstances of the case, he is granted reinstatement with 50% back wages.

    The Award is passed accordingly. Ahlmad is directed to send six copies of this award to the appropriate Government. The file be consigned to Record Room."

5. The said Award dated 12th November, 2009 was not challenged by the Management. Thereafter, the Workman filed an application under Section 33C(2) of the Act, seeking execution of the said Award. While deciding the application filed by the Workman, the following amounts were directed to be paid to the Workman:

    "The details of calculation is as under:

    Last Drawn Wage: Rs.9015/-

    Date of enforcement of award: 14,04.2010

    Date of enforcement date upto 14.04.2012 total months: 24 months

    Total wages entitled by the workman from 14.04.2012-9015x24=Rs.2,16,360/- with 10% interest."

6. Notice was issued in the present petition on 20th February, 2019. On the said date, this Court had also directed the Management to deposit 50% of the awarded amount within four weeks, with the Registrar General of this Court. Subject to the said deposit, the impugned Award was stayed till the next date of hearing. Pursuant thereto, the Management has deposited a sum of Rs.2 lakhs with this Court, which is lying in a Fixed Deposit.

7. In the meantime, an application under Section 17B of the Act was also moved by the Workman seeking payment of monthly wages, on the ground that he is unemployed. The categorical statement made in support of the said claim, in the application, reads as under:

    "That the applicant workman is not gainfully employed in any establishment since his termination and he has been not able to get employment in any establishment despite his best of efforts. That the applicant workman is undergoing an acute phase of financial crisis due to his prolonged phase of unemploy

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