1996 Supreme(All) 21
IN THE HIGH COURT OF ALLAHABAD
D. K. Seth, J.
MOHD.BUX - Appellant
Versus
DISTRICT JUDGE - Respondents
C. M. W. P. 22491 Of 1994
Decided On : 01/08/1996
Asok Bhushan
Non-payment of wages by an employer to an employee, when the entitlement of the employee is denied, is a deduction and not delayed payment, and the employer is liable to pay compensation under Section 15(3) of the Payment of Wages Act, 1972.
Headnote:
PAYMENT OF WAGES ACT, 1972 - SECTION 15(3) - DEDUCTION - DELAYED PAYMENT - INTERPRETATION - COMPENSATION - QUANTUM - FACTORS TO BE CONSIDERED.
Fact of the Case:
The petitioner, a driver employed by the Irrigation Department of Uttar Pradesh, was terminated from service in 1980. He filed a claim petition before the U.P. Public Services Tribunal, which allowed his reinstatement without back wages. The petitioner then filed a writ petition in the High Court, which held that he was entitled to back wages subject to his gainful employment elsewhere. Since no payment was made, the petitioner filed an application under Section 15 of the Payment of Wages Act before the Payment of Wages Authority, which allowed his claim and directed the employer to pay compensation ten times the wages payable. The employer appealed to the District Judge, who partly allowed the appeal and set aside the payment of penalty and compensation, upholding the payment of salary.
Finding of the Court:
The High Court held that the non-payment of wages by the employer to the employee cannot be termed as delayed payment but is deduction and that the Payment of Wages Authority was justified in allowing compensation.
Issues: 1. Whether the non-payment of wages in the present case is a deduction or delayed payment? 2. If it is a deduction, whether the compensation allowed by the Payment of Wages Authority was justified?
Ratio Decidendi: 1. The Court held that the non-payment of wages in the present case is a deduction and not delayed payment, as the employer denied the petitioner's entitlement to the wages. 2. The Court held that the compensation allowed by the Payment of Wages Authority was justified, as the employer had not paid the wages for a significant period of time and the petitioner had suffered agony and sufferance on account of the non-payment.
Final Decision: The Court modified the order of the Appellate Authority and the Payment of Wages Authority, directing the respondents to pay the amount of deduction of Rs. 17335.33 paise together with compensation of Rs. 34610.66 paise within a period of eight weeks from the date a certified copy of the order is produced before them.
( 1 ) THE Services of the petitioner, who was appointed as Driver (Road Roller) on November, 1, 1978 in the Irrigation Department of the State of Uttar Pradesh, was terminated by an order dated february 18, 1980. The Petitioner filed claim petition before U. P. Public Services Tribunal, lucknow. The said claim petition was allowed, directing reinstatement of the petitioner without back wages. Civil Miscellaneous Writ Petition No. 3420 of 1982 moved by the petitioner was allowed on October 9, 1991, holding that the petitioner was entitled to back wages subject to his gainful employment elsewhere. Since no payment was made the petitioner made an application under Section 15 of Payment of Wages Act before the Payment of Wages Authority. The said case was registered as case PW-18/92. By an order dated May 11, 1992 the said claim was allowed and the employer was directed to pay compensation ten times the wages payable.
( 2 ) AN appeal against the aforesaid Order dated May 11, 1992 being Miscellaneous Civil Appeal no. 78 of 1992 was preferred before the District Judge, Jhansi. The said appeal was allowed partly by an order dated May 13, 1994 passed by the learned District Judge, Jhansi being the appellate Authority Under Payment of Wages Act, setting aside the Payment of penalty and compensation upholding the payment of salary. It is against this order the present writ petition has been moved.
( 3 ) LEARNED counsel for the petitioner, Sri Ashok Bhushan contends that the payment for the said period amounts to deduction for which ten times penally is prescribed. In the facts and circumstances of the case the non-payment or withholding of payment of salary by the employer to the employee cannot be termed as delayed payment but is deduction and it has been 50 held in the case of Delta Forging Works v. Manik Karmakar 1977 LIC 207, Divisional Personnel officer, Northern Railway, Allahabad v. Ambika Prasad and Ors. 1988 (57) FLR 113 (All.), union of India v. Kameshwar Dubey and Ors. (1988-II-LLJ-302) (Del.) and Raj Ku-mar manohar Lal v. Union of India through the General Manager, Northern Railway Baroda House, new Delhi and Anr. AIR 1969 All 472.
( 4 ) LEARNED counsel for the respondents employer on the other hand contends that the order passed by the learned District Judge, Jhansi is correct. In the facts and circumstances of the case payment can never be termed as deduction, it was delayed payment as has been held by the learned District Judge and, therefore, no compensation is payable.
( 5 ) IN order to appreciate the rival contentions it is necessary to refer to different provisions of payment of Wages Act, 1972. Section 3 casts upon the employer the responsibility for payment of persons employed by him of all the wages required to be paid under the Payment of Wages act, 1972 (hereinafter referred to as the said Act ). Section 5 prescribes time for payment of wages as before the expiry of 7th day when employed in Railway, Factory or other establishment, in which thousand persons are employed and before expiry of tenth day, if employed in any other factory or establishment, after the last date of the last wage period in respect of which wages are payable. Section 6 provides that all wages are to be paid in current coin or currency notes or in both except the employee has authorisation to pay him the wages by cheque or by crediting his wages in his bank account. Section 7 prohibits deductions of any amount from the wages except those authorised by or under the said Act namely the deductions specified in the said section. Sections 10, 11, 12, 12-A and 13 of the Act provide various kinds of deduction sor recovery permissible un- der the said Act, Section 15 provides the machineries for recovering such deductions made from wages or delayed payment of wages and penalty for malicious or vexatious claims while Section 17 of the Act prescribes for an appeal.
( 6 ) NOW the question remained that payments which have not been made o