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2007 Supreme(All) 2870
High Court of Judicature at Allahabad
THE HONOURABLE MR. JUSTICE RAKESH TIWARI
Superintending Engineer, Electricity Transmission Circle, Kanpur
Versus
The Prescribed Authority (Payment Of Wages Act) City Magistrate, Kanpur & Others
W.P. No.54885 of 2003
Decided on : 28-11-2007
For the Petitioner:Gaurav Kumar Srivastava, Advocate. For the Respondent:
S.R. Verma, M.M.D. Agrawal, Standing Counsel.
The judgment establishes that medical reimbursement is considered remuneration and falls within the definition of wages under the Payment of Wages Act.
Headnote:
Payment of Wages Act - Medical Reimbursement - 1936 - Section 15, Section 17 - Section 2(VIII), Section 2(VI) - State of Punjab v. Ram Lubhya Bagga
Fact of the Case:
The case involves a widow seeking reimbursement for medical expenses incurred in the treatment of her deceased husband, an employee of U.P. Power Corporation Limited. The dispute arose from the referral of the deceased to a hospital not recognized by the corporation.
Finding of the Court:
The court found that the referral to the non-recognized hospital was justified as the Mariampur Hospital, recognized by the corporation, lacked the necessary medical facilities. The court also held that medical reimbursement falls within the definition of wages under the Payment of Wages Act.
Issues: The key issues included the validity of medical reimbursement under the Payment of Wages Act and the authority of the hospital to refer the deceased to a non-recognized hospital.
Ratio Decidendi: The court determined that medical reimbursement constitutes remuneration and falls within the ambit of the definition of wages under the Act. It also emphasized the discretion of the hospital to refer patients for specialized treatment, even to non-recognized hospitals.
Final Decision: The writ petition was dismissed, and the appellate court's amount due, along with interest, was ordered to be paid to the respondent.
Rakesh Tiwari, J.
1. Heard learned Counsel for the parties.
2. This petition has been filed challenging the validity and correctness of the appellate order 17.9.2003 passed by the District Judge, Kanpur Nagar in Appeal No. 18 of 2003, Superintending Engineer, Electricity Transmission Circle and Ors. v. Smt. Chhaya Saxena and Ors. arising from order dated 20.6.2006 passed by the City Magistrate, Kanpur Nagar appointed as Prescribed Authority under the Payment of Wages Act, 1936.
3. The brief facts of the case are that Sri A.K. Sexena husband of respondent No. 3 Smt. Chhaya Sexena was a clerk in U.P. Power Corporation Limited (Transmission Division) at Kakadeo Kanpur. He fell seriously ill and he was initially admitted in the Mariampur Hospital Kanpur Nagar on 8.9.1998, which was recognized for the treatment of employees by the U.P. Power Corporation Limited. As the treatment of Sri A.K. Sexena required better medical facilities, which was not available in the aforesaid Mariampur Hospital, he was referred by the Superintendent Mariampur Hospital to Regency Hospital Kanpur Nagar on 13.9.1998. Accordingly, Sri A.K. Sexena was admitted there and while under treatment in the Regency Hospital died in September, 1998.
4. Respondent No. 3 Smt. Chhaya Saxena the widow moved an application before the Prescribed Authority under Section 15 of Payment of Wages Act for a direction to the employers for payment of Rs. 35000/- as medical reimbursement spent in the treatment that was given to her late A.K. Sexena husband at the Regency Hospital at Kanpur Nagar on reference by Mariampur Hospital. It appears that payment/reimbursement for treatment was not given to her on the ground that the Regency Hospital was not a recognized Hospital by U.P. ground that the Regency Hospital was not a recognized Hospital by UP. Power Corporation Limited, Kanpur Nagar for treatment of its employees and that Superintendent Mariampur Hospital had wrongly referred her late husband Sri A.K. Sexena to Regency Hospital as he had no such power.
5. The Prescribed Authority after considering the objections recorded a finding of facts that the petitioner was admittedly referred by the corporation to Mariampur Hospital, which was recognized and approved for treatment of its employees by the UP. Power Corporation Limited, Kanpur Nagar but as all medical facilities for saving the life of the deceased employee were not available the Superintendent Mariampur Hospital referred the case for embergency treatment to save the life of the deceased employee to Regency Hospital where they were available. The court noted that where such serious matter of life and death is before the dependants/relatives of the patients it is not possible for them in such state as to first very whether the hospital when the patient is being shifted on referred is recognized by the employer or not particularly when the Superintendent of the hospital is referring the case.
6. It also noted that neither any list of approved Hospital was made available by the U.P. Power Corporation Limited, Kanpur Nagar to the wife/relatives of the deceased nor was any objection made by the corporation on this ground at any time. It appears to be an admitted fact on record that the petitioner had been treated as Mariampur Hospital all expenses incurred by him would have been paid or reimbursement to him.
7. The other objection of the petitioner before the authority was that reimbursement of medical expenses do not fall within the purview of definition of wages under Section 2(VIII) of Payment of Wages Act, 1936.
8. Aggrieved by the order passed by the Prescribed Authority, the petitioner filed appeal under Section 17 of the Payment of Wages Act, which was registered as appeal No. 18/03. The appellate authority by its order dated 17.9.2003 allowed the appeal confirming the order passed by the Prescribed Authority aforesaid. Aggrieve by the rejection of this appeal, the petitioner has come up in this writ petition
