IN THE HIGH COURT OF ALLAHABAD
MR. JUSTICE ARUN TANDON
Anil Kumar Yadav
Versus
State of U.P. and Others
C.M.W.P. No. 37896/2007
Decided on: August 16, 2007
Payment of Wages Act - Application of U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, 1962 - Section 2(4), Section 18 - The court discussed the provisions of U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, 1962 and its applicability to commercial establishments, including Cinema Halls, under Section 2(4) and Section 18. The court emphasized that employees of such commercial establishments, if not paid their wages as provided under the Act, can ask for recovery of the withheld wages in accordance with the provisions of the Payment of Wages Act, 1936.
Fact of the Case:
The petitioner made applications under the Payment of Wages Act alleging non-payment of wages by the employers, which were initially allowed by the Prescribed Authority but later overturned by the Appellate Authority.
Finding of the Court:
The court found that the Appellate Authority had ignored the provisions of U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, 1962 and the applicability of the Payment of Wages Act to Cinema Halls, leading to a misconceived finding.
Issues: The issue before the court was whether the petitioner, designated as Manager of the Cinema Hall, was excluded from the purview of the U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, 1962 based on his designation.
Ratio Decidendi: The court held that mere designation as Manager does not automatically exclude an employee from the operation of the U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, 1962, and that the nature of the duties discharged is more relevant than the designation.
Final Decision: The writ petition was allowed, the order dated July 12, 2007 was quashed, and the appellate authority was directed to decide the appeal filed by the petitioner afresh, specifically in light of the observations made by the court.
Per ARUN TANDON, J.
Heard learned counsel for the parties. Counsel for the parties agree that the writ petition may be finally disposed at this stage without calling for a counter affidavit specifically in view of the order proposed to be passed today.
2. Petitioner Anil Kumar Yadav made three applications under the provisions of Payment of Wages Act alleging therein that the employers Imperial Cinema have not made payment of wages for the period mentioned in the applications. The applications were numbered as PW A-1 of 1995, PW A-2/1995 and PW A-3/1995. The Prescribed Authority under the Act vide order dated July 15,2003 held that the applications made were liable to be allowed and, therefore, directed payment of withheld 2 wages along with interest thereon and penalty.
3. Against this order of the Prescribed Authority, the employers Imperial Cinema filed an appeal under Section 17 of the Payment of the Wages Act. The Additional District Judge, Moradabad Appellate Authority under the impugned order dated July 12, 2007 has allowed the appeal filed by the employers only after recording that the provisions of Payment of Wages Act are not applicable insofar as the Cinema Halls are concerned and, therefore, the applications made by the petitioner could not have been entertained.
4. Counsel for the petitioner submits that there has been complete non- consideration of the provision of Section 2 (4) read with Section 18 of the U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, 1962. It is, therefore contended that the impugned order is patently illegal and is liable to be set aside.
5. On behalf of respondents it is stated that petitioner in his applications admitted that he was the Manager. Such persons are excluded from the provisions of U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, 1962 under Section 3 and, therefore, the applications made by the petitioner under the Payment of Wages Act were misconceived. The Appellate Authority has not committed any error in passing the impugned order.
6. For the purposes of appreciating the contention raised on behalf of the parties, it is worthwhile to reproduce Section 2 (4), Sections 18 and 3(a) of the U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, 1962:
2(4) Commercial establishment means any premises not being the premises of a factory, or a shop, wherein any trade, business. manufacture, or any work in connection with, or incidental or ancillary thereto, is carried on for profit and includes a premises wherein journalistic or printing work, or business of banking, insurance, stocks and shares, brokerage or produce exchange is carried on, or which is used as theatre, cinema, or for any other public amusement or entertainment or where the clerical and other establishment of a factory, to whom the provisions of the Factories Act, 1948, do not apply work;
3. The provisions of the Act not to apply to certain persons, shops and commercial establishments.(1) The provisions of this Act shall have no application to-
(a) employees occupying positions of confidential, managerial or supervisory character in a shop or commercial establishment, wherein more than five employees are employed:
Provided that the number pf employees so exempted in a shop or commercial establishment shall not exceed ten per cent of the total number of employees thereof;"
18. Recovery of wages. -The wages of an employee, if not paid as provided by or under this Act, shall be recoverable in the manner provided in the Payment of Wages Act, 1936 as if the same wages were payable under that Act."
7. From the aforesaid provisions it is apparently clear that the commercial establishments, which include a Cinema Hall are covered by the provision of U.P. Dookan Aur Vanijya Adhishthan Adhiniyam, 1962 and employees of such commercial establishment, if not paid their wages as provided under the Act, ask for recovery of the withheld wages in accordance with the provisions of the Payment of Wages Act, 1936 (Reference Section 2 (4) read
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