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1992 Supreme(Raj) 1027

RAJASTHAN HIGH COURT
M.C.Jain, J.
Rajasthan Minerals and Company - Appellant
Versus
Authority Under Minimum Wages Act and Anr. - Respondent
C.W.P. No. 3300 of 1989.
Decided On : 18-12-1992

Advocates:
For the Petitioner:N.P., Advocate.
For the Respondent:P.P. Choudhary, Advocate.

The Authority is justified in passing an ex parte order if the employer fails to appear on the specified date despite being served with the notices.

Headnote:

MINIMUM WAGES ACT - SECTION 20(2), 22D, 29 - RULES 29(1), 29(2) - EX PARTE ORDER - SETTING ASIDE - SERVICE OF NOTICE - CONDONATION OF DELAY - AWARD OF COMPENSATION - INTERPRETATION.

Fact of the Case:

The petitioner challenged the ex parte order passed by the Authority under the Minimum Wages Act directing the payment of difference in wages and compensation. The petitioner contended that the notices of the claim petitions and the application for setting aside the ex parte order were not personally served upon him.

Finding of the Court:

The court found that the notices were duly received by the petitioner's employee who was authorized to receive them. The court also found that the petitioner did not appear on the specified date despite being served with the notices. Therefore, the Authority was justified in hearing and determining the applications ex parte.

Issues: 1. Whether the notices of the claim petitions and the application for setting aside the ex parte order were properly served upon the petitioner? 2. Whether the Authority was justified in passing the ex parte order? 3. Whether the Authority was justified in awarding compensation to the tune of eight times of the difference amount of wages?

Ratio Decidendi: 1. The court held that the notices were duly received by the petitioner's employee who was authorized to receive them. Therefore, the petitioner was properly served with the notices. 2. The court held that the Authority was justified in passing the ex parte order since the petitioner did not appear on the specified date despite being served with the notices. 3. The court held that the Authority was not justified in awarding compensation to the tune of eight times of the difference amount of wages. The court reduced the amount of compensation to the amount of wages-difference.

Final Decision: The writ petition was partly allowed. The amount of compensation was reduced from Rs. 73,347.60 to Rs. 9, 168.45 provided the petitioner pays the difference amount and compensation totalling Rs. 18,336.90 to the workers within three months.

JUDGMENT

1. - This writ petition has been filed for quashing the ex parte order of the Authority under the Minimum Wages Act-cum-Regional Labour Commissioner (Central), Ajmer (hereinafter to be called the Authority) dated January 28, 1985 (Annexure 2) directing the payment of Rs. 9, 168.45 as difference-amount of wages (minimum paid) and Rs. 73,347.60 as compensation under Section 20, Minimum Wages Act, 1948 (hereinafter called 'the Act') and also order dated August 25, 1988 (Annexure 3) of the Authority dismissing the application of the petitioner for setting aside the said ex parte order. The facts of the case may be summarised thus.

2. On October 5, 1984 Labour Enforcement Officer (C), Bhilwara (respondent No. 2) (in short the Inspector) filed six applications under Section 20(2) of the Act in the prescribed form for direction to pay the difference of wages arising out of less payment of wages than the minimum and compensation. Their details are as follows:

S. No. Wages period No. of workers Amount claimed Compensation claimed
1. 19.10.83 to 31.10.83 10 424.00 4240.00
2. 1.3.84 to 31.3.84 23 2174.90 21749.00
3. 1.3.84 to 28.2.84 23 2001.35 20013.50
4. 1.1.84 to 31.1.84 22 2155.40 21554.00
5. 1.11.83 to 30.11.83 10 1102.40 11024.00
6. 1.12.83 to 31.12.83 12 1310.40 13104.00
Total 9168.45 91684.50
All these six cases were consolidated. Despite sufficient service of the notices, the employer (writ petitioner) did not turn up and as such the Authority proceeded ex parte against him. Ex parte order granting Rs. 9168.45 as the difference amount and Rs. 73,347.60 as compensation, total Rs. 82,516.05 in respect of all claim petitions was passed. On March 25, 1985, an application for setting aside this ex parte common order was moved. Despite service of the notices intimating the dates of its hearing, the employer (writ petitioner) did not turn up. As such the application was dismissed by order dated August 25, 1988 (Annex.3)

3. It has been contended by the learned counsel for the petitioner that the notices of the claim petitions and the notice of the application for setting aside the said ex parte common order were not personally served upon the employer (writ petitioner). There is no force in this contention. Para No. 6 of the writ petition runs as under:

"6. That the unfortunate lot of the petitioner is that the partners of the petitioner firm live in Calcutta and their factory in Rajasthan is being looked after by the general power of attorney holder Shri Kashinath Rajgadhia and in the administration again in turn the matter of this labour problems was being handled by one employee Shri Harendra Singh and in the sequence of this all summons and notices whatever were addressed to the petitioner, were received by Shri Harendra Singh, but for reasons best known, he did not bring to the notice of Shri Kashinath Rajgadhia also having received notice from respondent No. 1 or about the initiation of the proceedings, with the result that notwithstanding to be claim being ex facie false did not come to be defended."

4. The first half part of para No. 9 of the writ petition runs as under:

"9. That on coming to know of this an application was filed by Shri Kashinath Rajgadhia purporting to be on behalf of the petitioner and again the same thing happened as it happened earlier, namely, that the notices were sent instead of being sent to the petitioner to Shri Kashinath Rajgadhia and were all received by the same person Shri. Harendra Singh. Of course for the earlier lapse of Shri Harendra Singh disciplinary action has been taken against him, but this time being annoyed by the disciplinary action said Shri Harendra Singh again used to receive the notice and did not bring them to the notice of the petitioner or even to the notice of Shri Kashinath and ultimately left the job even without resigning and misplaced the relevant file...."
Thus the writ-petitioner's own case is that his employee Harendra Singh was looking after the labour problems of his facto











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