IN THE HIGH COURT OF ALLAHABAD
J. K. Tandon, J.
JASWANT SUGAR MILLS LTD. - Appellant
Versus
AUTHORITY UNDER THE PAYMENT OF WAGES ACT - Respondents
Civil Misc. Writ 1921 Of 1959
Decided On : 12/09/1960
PAYMENT OF WAGES ACT, 1936 - WAGES - RETAINERS ALLOWANCE - NOT INCLUDED - AUTHORITY UNDER SECTION 15 INCOMPETENT TO DIRECT PAYMENT.
Fact of the Case:
Seasonal laborers claimed retainers allowance for the off-season period under Section 15 of the Payment of Wages Act, 1936. The employer contested the claim, arguing that retainers allowance was not included in the definition of "wages" and that the authority lacked jurisdiction to order its payment.
Finding of the Court:
The court held that retainers allowance was not included in the definition of "wages" under the Payment of Wages Act, 1936, as it was not remuneration for work done or to be done during the off-season. The court further held that the authority under Section 15 was incompetent to direct the payment of retainers allowance.
Issues: 1. Whether retainers allowance is included in the definition of "wages" under the Payment of Wages Act, 1936? 2. Whether the authority under Section 15 of the Payment of Wages Act, 1936, has jurisdiction to direct the payment of retainers allowance?
Ratio Decidendi: 1. The definition of "wages" under the Payment of Wages Act, 1936, includes all remuneration payable to a person employed in respect of his employment or work done in such employment. Retainers allowance is not remuneration for work done or to be done during the off-season, and therefore, it is not included in the definition of "wages". 2. The authority under Section 15 of the Payment of Wages Act, 1936, has jurisdiction to direct the payment of wages only. Since retainers allowance is not wages, the authority lacks jurisdiction to order its payment.
Final Decision: The court quashed the order of the authority directing the payment of retainers allowance.
( 1 ) THE above petition which is under Article 226 of the Constitution raises an important question of law as to the true meaning and scope of the term "wages" defined in the Payment of Wages act, 1936, and consequently as to the scope of Section 15 of the said Act under which the authority empowered therein can direct the payment of what has been claimed to be in this case delayed wages. It will be necessary at the very outset to state certain facts peculiar to the case.
( 2 ) THE petitioner is a sugar undertaking owing its mills in the town of Meerut. The respondents, who are twenty-eight in number, besides the authority which made the order under Section 15 of the Act, are some of the seasonal labourers who happened to be employed in the petitioners mills season after season during the last few years. The fact is not disputed that these respondents are seasonal workmen. The Standing Orders governing the conditions of employment of workmen in Vacuum Pan Sugar Factories in this State--the petitioner factory is one such factory--classify workmen in six different categories viz. , (1) Permanent, (2) Seasonal, (3) Temporary, (4) Probationers, (5) Apprentices and (6) Substitutes. The seasonal workman is one who is engaged only for the crushing season but who is liable to be called on duty at any time in the off season and if he refuses to join or does not join he loses his lien as well as his retaining allowance. The expression "season" is also defined in these Standing Orders and means "the period commencing from the date when the crushing commences till the date when crushing ends. " It is not contested that the crushing season does not last during the whole of the length of the year.
( 3 ) DURING the period when the crushing season is not continuing the seasonal workmen who are engaged only for the crushing season are, since they are no longer engaged and are in off-season, paid retainers allowance. The twenty-eight respondents claiming that they were entitled to this allowance for the off-period during the year 1957-58 moved the appropriate authority under section 15 of the Payment of Wages Act for a direction that the employer be directed to pay the amount of the retainers allowance which according to them was payable but had not been paid. The petitioners contested their liability on the ground, firstly, that no such allowance was payable and, finally, on the ground, with which this petition is presently concerned, that the payment claimed or asked for by the respondents was not included in the term "wages" defined in the Payment of Wages Act, 1936, and, therefore, the authority hearing the applications by these persons was incompetent to act under the said Act. The petitioners objection having failed before that authority they have come up by this petition impugning the order passed by it. The order is dated the 15th June, 1959, and has directed different amounts, as mentioned in col. 5 of the Schedule part of the above order, to be paid to the several persons.
( 4 ) THE relief asked is a writ in the nature of certiorari quashing the said order and a direction also that it may not be given effect to. The grounds urged are, as previously noticed, that the retainers allowance was not included within the term "wages" defined in the Act and that that being so the authority acted without) jurisdiction in making the order under Section 15.
( 5 ) THE relevant extract from the definition of the term, "wages" contained in the Payment of wages Act 1936 is thus:
"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 remunoration payable under any award or settlement between the parties or order of a court; (b) any remuneration to which the
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