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1961 Supreme(MP) 140

High Court Of Madhya Pradesh
V. R. Newaskar, J.
TIRJUGI SITARAM - Appellant
Versus
BADLU PRASAD BHERUPRASHAD - Respondents
Misc. Appeal 207 Of 1960
Decided On : 12/08/1961

Advocates Appeared:
Loknath Trivedi, S.R.JOSHI

Gratuity payable to a worker on termination of employment constitutes 'wages' and is not liable to attachment in execution of a decree for money.

Headnote:

{'KEYWORD': 'Wages', 'SUBJECT': 'Attachment of Gratuity', 'ACT SECTION LIST': "C. P. Code Section 60 (h), Payment of Wages Act, Workmen's Compensation Act, Industrial Disputes Act, Minimum Wages Act", 'SUMMARY': "Gratuity payable to a worker on termination of employment constitutes 'wages' and is not liable to attachment in execution of a decree for money. The term 'wages' should be interpreted broadly to include any remuneration paid to a worker for their labor, including gratuity, which serves the purpose of providing livelihood and incentivizing skill and efficiency."}

Fact of the Case:

A judgment debtor appealed a lower court decision that held that gratuity payable to him on cessation of employment was not wages and was attachable in execution of a decree for money.

Finding of the Court:

The court held that gratuity payable to a worker on termination of employment constitutes 'wages' and is not liable to attachment in execution of a decree for money.

Issues: Whether gratuity payable to a worker on termination of employment constitutes 'wages' and is not liable to attachment in execution of a decree for money.

Ratio Decidendi: The court interpreted the term 'wages' broadly to include any remuneration paid to a worker for their labor, including gratuity, which serves the purpose of providing livelihood and incentivizing skill and efficiency. The court also considered the definitions of 'wages' in various statutes, including the Payment of Wages Act, Workmen's Compensation Act, Industrial Disputes Act, and Minimum Wages Act, and found that gratuity is generally included in the definition of 'wages'.

Final Decision: The court allowed the appeal and restored the decision of the court of first instance, holding that the gratuity payable to the judgment debtor was not attachable in execution.

V. R. NEWASKAR, J.

( 1 ) THE only question which arises for consideration in this second appeal relating to execution proceedings is whether the amount of gratuity payable to a worker in a Cotton Mill by his employer constitutes 'wages' of a labourer, as contemplated under Section 60 (h) of C. P. Code and as such is not liable to attachment.

( 2 ) THE executing court before whom the question was raised held that such gratuity payable to a Mill worker constitutes his wages and as such is exempt from attachment.

( 3 ) ON appeal, the first appellate court came to the contrary conclusion and held that it is not wages and is attachable. That court directed the amount which had been called and lying in deposit in court pending consideration of this question, to be paid to the decree-holder.

( 4 ) THE judgment-debtor appeals.

( 5 ) IN AIR 1945 Bom 119, Jivan Lal v. Ramtuji Bhaiji, his Lordship Sen J. , of the bombay High Court had to consider whether the bonus, which a labourer in a textile Mill in Ahmedabad was to receive for the year 1942, was attachable in execution of a decree for money. The definitions of the term wages as given in the payment of Wages Act as also defined in Halsbury's Laws of England Volume. 14 page 650 para 1227 were taken into account. It was observed with reference to the former that "the definition in the Workmen's Compensation Act does not refer to any terms of employment and prima facie the expression 'benefit' would perhaps include the payment of bonus". The learned Judge thereafter examined certain facts which had led to the decision of the Mill Owners' Association of Ahmedabad to pay bonus to their employees. It was found that an agreement was reached between the Ahmedabad Mill Owners' association and the Textile Labour Association Ahmedabad in January 1942 whereunder the Textile workers at Ahmedabad were to receive bonus at a regulated scale such scale being based on the kind of work done and the number of working days and hours, attended by them. This agreement was held binding. The learned Judge then referred to the definition of 'wages' given in Halsbury, Vol. 14, page 650, para 1227 and it was held that having regard to the wide amplitude of that definition the bonus payable to workers as per the aforesaid agreement became 'wages' of a labourer and was attachable. There it was further considered whether the term bonus implied ex-gratia payment or otherwise. It is unnecessary to consider that question in this case as, we are here concerned not with 'bonus' but with 'gratuity' which the judgment-debtor is to receive on cessation of his employment. The gratuity would, it may be presumed, be payable not ex-gratia but in accordance with a regulated scheme depending upon the period for which the worker had put in labour. Such a payment could not be considered ex-gratia.

( 6 ) IN the present case the learned Additional District Judge has considered the definition of the term 'wages' as given in the Payment of Wages Act and has, relying upon Clauses (d) and (6) held that in the absence of any evidence led by the judgment-debtor ,to show that the gratuity payable to him fell under Clause (d) it was not wages by reason of Clause (6 ). It was observed that there is nothing on record to show or suggest that the gratuity payable to judgment-debtor in this case is of a kind shown in Clause (d ). The above referred Bombay decision as also the decision in AIR 1954 Sau 19, Harji Malla v. Karsanji, were distinguished on the ground that they related to 'bonus' and not to 'gratuity'.

( 7 ) IT is contended that this view of the court below is erroneous.

( 8 ) NOW the term 'wages' is not defined in the Civil Procedure Code and we will therefore have to take into account the ordinary meaning of the term. We may also refer to such meaning of the term as attaches to it under different legislative provisions to arrive at the exact significance of that term for the purposes of section 60 (h ).

( 9 ) THE term wages according










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