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2003 Supreme(J&K) 203
IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
Permod Kohli, J.
Nazir Hussain Shah - Appellant
Versus
Authority Under Payment Of Wages Act - Respondent
OWP No. 494/2002
Decided On : 08 July, 2003
Advocate For Appellant: S.T. Hussain
Advocate For Respondent: A.H. Furahi
The main legal point established is that the jurisdiction of the Authority under the Payment of Wages Act is limited to claims arising from deductions from wages or delay in payment of wages, and the scope of wages as defined under the Act does not cover claims for supply of material and labor charges.
Headnote:
Payment of Wages Act - Jurisdiction - Section 15
Fact of the Case:
The petitioner challenged an award passed by the Assistant Labour Commissioner under the Payment of Wages Act, regarding a claim for supply of material and labor charges. The petitioner argued that the claim did not fall within the scope of wages as defined under the Act.
Finding of the Court:
The court found that the claimant, although claiming to be a mate supplying labor and material, did not fall within the categories competent to lodge a claim for wages under Section 15(2) of the Payment of Wages Act. The court held that the award passed by the Authority was beyond the scope of the Act and without jurisdiction.
Issues: Jurisdiction of the Authority under the Payment of Wages Act, scope of wages as defined under the Act
Ratio Decidendi: The court held that the claimant did not fall within the categories competent to lodge a claim for wages under the Act, and the claim for supply of material and labor charges did not fall within the scope of wages as envisaged by the Act.
Final Decision: The court quashed the award, stating that the Authority had no legal authority to take cognizance of the claim petition and pass the award.
2. The grounds of challenge to the award are that respondent No.2 filed a frivolous claim petition before respondent No. 1 claiming therein that he has supplied material i.e., Iron, Cement, Sand etc. worth Rs. 9,300/- and that he also supplied labour. He claimed a sum of Rs, 55,530/- as outstanding amount in respect to supply, of material and labour charges. Respondent No. 1 initiated exparte proceedings and passed the award impugned in the writ petition. It is submitted that the award passed by respondent No.1 is without jurisdiction as the amount claimed by respondent No.2 was in respect to alleged supply of Iron, Cement, Sand etc. The Authority under the Payment of Wages Act is only entitled to award payment of wages to the workmen in terms of Section 15 of the Payment of Wages Act. Neither respondent No.2 was a workman nor the claims lodged by him were wages as defined under the Payment of Wages Act. For the purposes of convenience definition of ˜employed person™ and ˜Wages™ is quoted below:
(i) ˜employed person™ includes the legal representative of a deceased employed person.
(vi) Wages means all remuneration (whether by way of salary, allowances, or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and includes-
(a) any remuneration payable under any award or settlement between the parties or order of a Court;
(b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period;
(c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name)
(d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made.
(e) Any sum to which the person employment is entitled under any scheme framed under any law for the time being in force;
But does not include-
(1) any bonus (whether under a scheme of profit- sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any
(2) award or settlement between the parties or order of a Court;
(3) the value of any house-accommodation, or of the supply of light, water medical, attendance or other amenity, or of any service excluded from the computation of wages by general or special order of the State Government.
(4) Any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;
(5) Any traveling allowance or the value of any traveling concession;
(6) Any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; of
(7) Any gratuity payable on the termination of employment in cases other than those specified in sub- clause(d)
Section 15. Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims.-
(1)...
(2) Where contrary to the provisions of this Act any deduction has been made from the wages of an employed person, or any payment of wages has been delayed, such person himself, or any legal practitioner or any official of a registered trade union authorized in writing to act on his behalf, or any Inspector under this Act, or any other person acting with the permission of the authority appointed under sub-section (1), may apply to
