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1964 Supreme(MP) 47

High Court Of Madhya Pradesh
P. V. Dixit, C. J. and K. L. Pandey, J.
SURAJMAL MEHTA - Appellant
Versus
AUTHORITY UNDER PAYMENT OF WAGES - Respondents
Misc. Petn. 31 Of 1963
Decided On : 03/25/1964

Headnote:(1) Payment of Wages Act, 1936 - Ss. 2 (vi) (d) & 15 - wages - amount payable under section 25-FF of the Industrial Disputes Act, 1947 - is not wages - Payment of Wages Authority cannot order the payment of such amount.

       The definition of wages as given in the Payment of Wages Act includes any sum which is payable to a workman because of the termination of his employment.

       The compensation paid to an employee under section 25-FF of the Industrial Disputes Act is not any sum paid to him by reason of the transfer of ownership or management of the undertaking in which he is employed if he satisfies the test prescribed by that section and if this does not fall in the proviso to section 25-FF. The right to compensation under section 25-FF arises by virtue of the provisions of section 25-FF and by the fiction created by that provision and not because of any termination of services as such of the employee. A claim to compensation under section 25 FF of the 1947 Act is not any claim to wages as defined in section 2 (vi) (d) of the Payment of Wages Act and the Payment of Wages Authority has no jurisdiction to entertain and determine, under section 15 of the Payment of Wages Act, any claim in regard to it. [Para 9

       (2) Industrial Disputes Act, 1947 - Ss 25-FF & 33-C (2) - compensation payable under section 35-FF - can be determined by the Labour Court under section 33-C (2) - Payment of Wages Authority - has no jurisdiction to determine such amount - Payment of Wages Act, 1936 - Ss 15 & 2 (vi) (d).

       The question whether the workers are entitled to any compensation under section 25-FF can be determined by the specified Labour Court and until it is so determined there can be no question of the issue of any direction to the quondam employer for the payment of compensation. The Payment of Wages Authority has no jurisdiction to determine such compensation under section 15 of the Payment of Wages Act. [Para 13

DIXIT, C. J.

( 1 ) THIS is an application under Articles 226 and 227 of the Constitution for the issue of a writ of certiorari for quashing an order dated 21st May 1963 of the authority for Ujjain under the Payment of Wages Act, 1936, (hereinafter referred to as the Authority) overruling the petitioner's objection as to its jurisdiction, and for the issue of a writ of prohibition restraining the said Authority from entertaining and investigating an application filed under Section 15 of the Act for a direction to the petitioner to pay to certain workers compensation under Section 25-FF of the Industrial Disputes Act, 1947.

( 2 ) THE matter arises thus. The Badnagar Electric Supply and Industrial Co. , Ltd. , badnagar, having secured a licence from the Government of the quondam Gwalior state, was doing business in the distribution of electric energy in that place. The company's licence was revoked by the Madhya Pradesh Government and the undertaking was taken over by the M. P. Electricity Board on 1st October 1962. The petitioner was the Managing Director of the Company. When notice was given by the petitioner to the employees of the Company that their services were not required by the Company from 1st October 1962, some twenty employees of the Company made an application on 20th September 1962 to the Government Labour Officer, Ujjain, to take necessary steps for securing to them the payment of "notice pay and retrenchment compensation". The Labour officer asked the petitioner to make 'she payment demanded by the twenty employees, but the petitioner denied the liability of the Company to pay any compensation to the employees. Thereupon the Payment of Wages Inspector, Ujjain, filed an application on 7th february 1963, under Section 15 of the Act, before the Authority praying that a direction be issued under Section 15 (3) of the Act for payment to the aforesaid twenty employees "notice pay and retrenchment compensation" amounting to Rs. 12,853. 60 np. or such sum as may be determined by the Authority.

( 3 ) THE petitioner contested the claim made by the Payment of Wages Inspector inter alia on the grounds that the Authority had no jurisdiction to determine whether the petitioner was liable to pay any compensation to the employees of the company under Section 25-FF of the Industrial Disputes Act; that the jurisdiction of the Authority was limited to the recovery of an amount already ascertained by the Labour Court under Section 33-C (2) of the Act of 1947; and that as the services of the employees claiming compensation had been taken over by 1he M. P. Electricity Board and had not been interrupted on account of the transfer of the undertaking to the Board and as the terms and conditions of service applicable to them after the transfer were not in any was less favourable than those applicable to them immediately before the transfer, they were not entitled to any compensation. The Authority overruled the objection holding that it had jurisdiction to determine the liability of the petitioner for payment of compensation under Section 25-FF of the Industrial Disputes Act and that for giving jurisdiction to the Authority it was not necessary that there should have been prior ascertainment by the Labour Court under Section 33-C (2) of 1947 Act of the compensation claimed under Section 25-FF of the said Act.

( 4 ) IT was argued by Shri Chaphekar, learned counsel appearing for the petitioner, that under Section 15 of the Act the jurisdiction of the Authority was limited; that section 15 of the Act did not confer upon the Authority the power and jurisdiction to determine complicated questions regarding the liability of the employer to pay compensation under Section 25-FF of the Industrial Disputes Act, 1947; and that the Authority could, only order recovery of the compensation determined by the labour Court under Section 33-C of the 1947 Act. It was said that the amount claimed by the employees was a benefit capable of being computed in ter


















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