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1964 Supreme(P&H) 102
HIGH COURT OF PUNJAB & HARYANA
A. N GROVER,H. R. KHANNA, JJ.
Ram Amar Nath
Versus
State of Punjab
Civil Writ No. 1675 of 1963
Decided On : 22-07-1964
Anand Swaroop and R.S. Mital, for Petitioner; M.R. Sharma for Advocate-General, for Respondents.
The impugned Act was a piece of legislation for the welfare of labour and was covered by Entry 24 of the Concurrent List.
Headnote:
PAYMENT OF WAGES (PUNJAB AMENDMENT) ACT, 1962 - CONSTITUTIONALITY - ACT 4 OF 1936, SEC. 6 - ACT 15 OF 1962 - The Punjab Legislature was competent to enact the impugned Act, which amended the Payment of Wages Act, 1936, to allow for compulsory saving of a part of a bonus payable to an industrial worker, as it fell within the subject of "welfare of labour" in Entry 24 of List III of the Seventh Schedule to the Constitution.
Fact of the Case:
The petitioner, an employee of New India Embroidery Mills, challenged the vires of the Payment of Wages (Punjab Amendment) Act, 1962, which allowed the company to pay part of his bonus in the form of National Plan Savings Certificates or National Defence Certificates, arguing that it violated Article 14 of the Constitution.
Finding of the Court:
The court held that the impugned Act was constitutional and valid, and was not violative of Article 14 of the Constitution. It found that the amendment made in Section 6 of the Payment of Wages Act was a piece of legislation for the welfare of labour and was covered by Entry 24 of the Concurrent List.
Issues: 1. Whether the impugned Act was beyond the competence of the Punjab Legislature. 2. Whether the impugned Act was violative of Article 14 of the Constitution.
Ratio Decidendi: 1. The court held that the impugned Act was within the competence of the Punjab Legislature as it fell within the subject of "welfare of labour" in Entry 24 of List III of the Seventh Schedule to the Constitution. 2. The court held that the impugned Act was not violative of Article 14 of the Constitution as the classification made in the Act was founded upon an intelligible differentia, had a rational basis and was related to the object of the welfare of the low paid industrial workers.
Final Decision: The petition was dismissed.
H. R. KHANNA, J. :- Milkhi Ram petitioner by means of this petition under Article 226 of the Constitution of India seeks to challenge the vires of the Payment of Wages (Punjab Amendment) Act, 1962 (Punjab Act No. 15 of 1962) hereinafter referred to as the Act.
2. The brief facts of the case are that the petitioner is an employee of the New India Embroidery Mills (Private) Limited, Chheharta. Under a settlement regarding payment of bonus to workmen of that Company for the year ending 31st March, 1963, the petitioner became entitled to a bonus amounting to Rs. 340/-. The Management of the Company paid the petitioner Rs. 220/- in cash and debited Rs. 120/- saying that this amount would be paid in the shape of 12 years National Plan Savings Certificates or National Defence Certificates or 10 years Defence Deposit Certificates in accordance with Punjab Government Labour Department Notification No. GSR-50/C.A. 4/36/S 26/ Amd(1)/63 D/- the 11th February, 1963. The above notification was issued by the Punjab Government as a consequence of the amendment made in the Payment of Wages Act by the impugned Act. According to the petitioner, the Impugned Act is beyond the competence of the Punjab Legislature and is violative of Article 14 of the Constitution. The petitioner has, accordingly, prayed for a suitable writ, order or direction for quashing the above-mentioned notification
3. The petition has been resisted by the Punjab State. It is averred that the impugned Act is constitutional and valid, and is not violative of Article 14 of the Constitution.
4. Before dealing with the respective contentions of the parties, it would be convenient to refer to the relevant provisions of law. Section 6 of the Payment of Wages Act, 1936 (Act No. IV of 1936) provided that "all wages shall be paid in current coins or currency notes or in both" Section 2 of the Payment of Wages Act contains the definition Clauses and sub-clause (c) of clause (vi) of that Section shows that wages shall include any additional remuneration payable under the terms of employment (whether with a bonus or by any other name). The impugned Punjab Act No. 15 of 1962, received the assent of the President of India on June 22, 1962, and was thereafter published in the Punjab Gazette on July 11, 1962 By the impugned Act an amendment was made in Section 6 of the Payment of Wages Act and as a result of the amendment Section 6 came to read as under :
"6. Wages to be paid in current coin or currency notes. All wages shall be paid in current coin or currency notes or in both :
Provided that where the amount of any bonus payable to an employed person exceeds an amount of one hundred rupees for the year to which the bonus relates, fifty per centum of the amount of bonus in excess of one hundred rupees shall be paid or invested in the manner prescribed.
Explanation.- For the purposes of the Section, the expression -
(1) "Wages" shall include any bonus or the description given in sub-clause (1) of clause (vi) of Section 2.
(2) "bonus" means bonus payable to an employed person under the terms of employment or under any award or settlement or order of a Court, and also includes any bonus of the description given in sub-clause (1) of clause (vi) of Section 2."
5. The case of the Punjab State is that by virtue of powers conferred by Entry 24 in List III, i.e., Concurrent List of the Seventh Schedule to the Constitution the Punjab Legislature was competent to enact the impugned Act The above Entry deals with the following subjects :
24 Welfare of labour including conditions of work provident funds, employers liability workmens compensation, invalidity and old age pensions and maternity benefits"
6. Mr. Anand Swaroop, learned counsel for the petitioner, has argued that as under Section 6 of the Payment of Wages Act, as it stood originally, all wages were to be paid in current coins or currency notes and as under the amendment made by the impugned Act part of the bonus, which is a kind of wages, is no
