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2026 Supreme(Guj) 167

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, L. S. PIRZADA, JJ.
Deputy Executive Engineer – Appellant 
Versus 
Jayntibhai Bhemabhai Parmar & Anr. - Respondent
R/Letters Patent Appeal No. 163 Of 2026 In Civil Application (For Directions) No. 1 Of 2023 In R/Special Civil Application 7789 of 2017 With Civil Application (For Interim Relief) No. 1 Of 2026, R/Letters Patent Appeal No. 164 Of 2026, R/Special Civil Application No. 7847 Of 2017, R/Letters Patent Appeal No. 165 Of 2026, R/Special Civil Application No. 7792 Of 2017, R/Letters Patent Appeal No. 166 Of 2026, R/Special Civil Application No. 7793 Of 2017, R/Letters Patent Appeal No. 167 Of 2026, R/Special Civil Application No. 7866 Of 2017
Decided On : 13-02-2026

Advocates Appeared:
For the Appellant : Mr Mb Gohil
For the Respondent: Ms Krishna Desai, Agp, Mr Mukesh H Rathod

Section 17B of the Industrial Disputes Act mandates employers to pay wages to workmen during the appeal process if they are not gainfully employed, ensuring financial support to employees awaiting resolution.

Headnote:(A) Industrial Disputes Act, 1947 - Section 17B - Wages pending proceedings - Respondents, terminated in 2003, sought wages under section 17B during appeal - The court affirmed the necessity of providing wages under section 17B mandatorily, stating that the employer is obliged to pay wages if the workman is not employed elsewhere - It was emphasized that late applications should receive benefits only from their filing date (15.03.2023) - Orders for compliance and timeline for arrears were set. (Paras 2, 3, 4, 9, 11)

(B) Employment Rights - Employer obligation - The responsibility lies with the employer to fulfill statutory mandates under section 17B, to ensure that employees are not left without income during appeals - The judgments highlight that financial pressures on the employer do not negate their legal responsibilities. (Paras 4, 10)

Facts of the case:
The respondents were terminated in 2003, with relief granted in 2016 by the Labour Court for reinstatement and back wages; however, no execution was implemented during the appeals, leading to this petition for urgent wage payment under section 17B.

Findings of Court:
The court affirmed the learned Single Judge's decision to grant section 17B benefits from 15.03.2023, highlighting the importance of timely remuneration for workmen even if appeals were filed by the employer.

Issues: The core issue was whether the employer was obligated to pay wages under Section 17B during the appeal process and the implications of late application submissions.

Ratio Decidendi: The court concluded that the statutory obligation for payment of wages under section 17B persists despite the employer's claims of financial strain, ensuring workmen receive their entitled wages during the pendency of legal proceedings.

Result: Appeals disposed of; the appellant is directed to comply with wage payments under section 17B.

Table of Content
1. appeals against orders for wage relief. (Para 1 , 2)
2. court's observation on wage benefits under id act. (Para 3 , 4)
3. challenges to employment terms and wage claims. (Para 5 , 6)
4. mandate of section 17b on wage payments. (Para 8 , 9 , 10)
5. conclusion on appeal outcomes and orders. (Para 12 , 13)

ORDER :

BHARGAV D. KARIA, J.

1. Heard learned advocate Mr. M.B. Gohil for the appellant, learned advocate Mr. Mukesh Rathod for respondent No.1 and learned Assistant Government Pleader Ms. Krishna Desai for respondent No.2.

2. These appeals are filed under Clause 15 of the Letters Patent,1865 being aggrieved by the common order dated 28.10.2024 passed by the learned Single Judge in Civil Applications filed by the respondents with a prayer to grant wages under section 17B of the Industrial Disputes Act, 1947 (For short ‘the ID Act’) on the ground that the respondents were not gainfully employed in any establishment and they are unemployed during the pendency of the Special Civil Applications filed by the appellant being aggrieved by the common Judgement and Award passed by the Labour Court granting relief of reinstatement along with continuity of service and 50% backwages for the interregnum period i.e. from the date of termination till date of the reinstatement.

3. Learned Single Judge, by common order dated 28.10.2024 passed in these Civil Applications directed the appellant to comply with the provision by granting benefits under section 17B of the ID Act from the date of filing of Civil Applications i.e. from 15.03.2023 onwards only to the employees who have filed the affidavit along with the Civil Applications under section 17B of the ID Act.

4. The learned Single Judge, while passing the aforesaid order, has observed as under:

“3. Considering the submission made by both the parties and averments made in the application as well as in the reply filed by the opponent wherein, with regard to gainful employment no incriminating evidence placed along with affidavit. The submission of learned advocate Mr.Bhatt that in absence of any details with regard to the address it would be difficult for the opponent herein to verify the details. However, no such contentions in raised in the reply which is filed on 04.05.2023, even after 04.05.2023 though, more than six months has been passed but till date no controverting material was placed before this Court to show that applicants are gainfully employed elsewhere.

4. At this stage object of section 17B is required to be kept in mind. Section 17 -B is inserted by Act No.46 of 1982 and it has become effective since 21st August, 1984. The reason for which this section is inserted is apparent. A judicial notice can be taken of the fact that of the two, that is, employer and employee, the employer is mightier while the employee is weak not only economically but in its overall position. It is also not unknown that after adjudication by the Labour Court or the Tribunal in favour of an employee, filing of an appeal before the High Court or a higher forum, is a matter of routine practice and after filing of such an appeal obtaining `interim order' seeking stay against the execution, operation and implementation of the order of the Court of the first instance is also not uncommon. This used to result into leaving the employee high and dry despite an order passed in his favour. It is also a known fact that there was no certainty as to how long the said agony will last as once the appeal is admitted, factor of uncertainty sets in and, therefore, to overcome that difficulty, the present section is introduced on the Statute Book. The object is to help an employee to subsist and survive.

5. The applicants were terminated from the service in the year 2003 and award was passed by the learned labour court on 26.05.2016 challenging the above aforesaid award petitions are filed before this Court on 13.02.2017 which was admitted by this Court vide order 09.08.2018. While admitting the petitions not sta

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