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1978 Supreme(MP) 80

High Court Of Madhya Pradesh
G. P. Singh and K. K. Dube, JJ.
MANGANESE ORE INDIA LTD
Versus
BISEN RAJARAM
Decided On : Apr 19,1978

Advocates Appeared:
R.P.Sinha, S.C.CHATURVEDI, S.V.Natu,

Headnote:(1) Minimum Wages Act, 1948-S.2 (h)-wages-bonus-when included in wages.

       Where bonus is paid to a workman by reason of a term, express or implied, in the contract of employment itself, it is included in the term wages. But where bonus is paid under independent contract, it is not a part of 'wages'. AIR 1958 SC 518 relied on. [Para 4

       (2) Industrial Law.-attendance bonus-what is-when a part of wages.

       When bonus is payable on condition of there being minimum attendance during quarter of a year, it is known as 'attendance bonus'. When the term of paying such bonus is included in the contract of employment it is wages. [Para 4

       (3) Industrial Disputes Act, 1947 - S.33-C (2) - nature of jurisdiction under-Minimum Wages Act, 1948-S.20.

       The determination of the right or liability may not fall within section 33-C (2), but the determination of the extent of the liability does fall within it. AIR 1974 SC 1604 relied on. [Para 5

       The claim of the workmen is for the balance of the amount payable to them in accordance with the rate applicable which is not in dispute. Such a dispute is not cognizable by the Authority under section 20 of the Minimum Wages Act. The jurisdiction under section 33-C (2) of the Industrial Disputes Act for entertaining such a claim is, therefore, not taken away. AIR 1969 SC 1335 relied on. [Para 6

JUDGMENT :

( 1. ) THE petitioner is a Government Company owning manganese mines in the States of Madhya Pradesh and Maharashtra. Respondents 1 to 8 in this petition are ail workmen employed by the petitioner at bharweli Mine in Balaghat. All these respondents are unskilled workers. By Government of India notification dated 19th May 1969, the minimum rate of wage per day fixed for unskilled workers is Rs. 2. 40. This rate has been made effective from the date of the notification. The workmen filed identical applications on 17th September 1970, under section 33-C (2) of the Industrial disputes Act, 1947, before the Industrial Tribunal-cum-Labour Court, Jabalpur, for payment of arrears of wages in accordance with the rate notified by the government. The workmen complained that they have been paid less than the minimum wage. The petitioner, in reply to these applications, submitted that the workmen were supplied foodgrains at concessional price and the proportionate cash value of this benefit should be added to the wages actually paid to them. It was also submitted that the workmen were paid attendance bonus and this amount should also be added to the wages paid. According to the petitioner, if these amounts are added to the wages received by the workmen, it would be found that they had received wages in excess of the minimum wage notified by the Government. The petitioner further submitted that the issue raised by the workmen would not be considered under section 33-C (2) of the act. The Industrial Tribunal-cum-Labour Court disposed of the applications made by the workmen by a composite order passed on 12th December 1970. The Tribunal held in favour of the petitioner that it was entitled to add the proportionate cash value of foodgrains supplied at concessional rates to the workmen for the purpose of minimum wage. It was, however, held that the petitioner was not entitled to add attendance bonus to the amount of wages paid for the purpose of minimum wage. The petitioner then filed this petition under Article 226 of the Constitution for quashing of the order of the Industrial Tribunal-cum-Labour Court.

( 2. ) THE first question that arises for consideration is whether the amount paid as attendance bonus to the workmen should be taken into account for finding out that minimum wages as fixed by the Government were paid to the workmen. The petitioners case is that the attendance bonus is paid to the workmen under certain agreements entered into between the management and the representatives of the workmen. It is said that according to these agreements, the bonus is payable on the condition of there being minimum attendance during the quarter of a year. The agreements have not been filed before us and we do not know as to what are their exact terms. The Government of India in a memorandum issued on 25th March 1970 took the view that the notified minimum rates of wages would not include the quarterly attendance bonus paid to the workmen. As earlier stated, the Industrial Tribunal-cum-Labour Court has also taken the same view. It is the correctness of this view that has been challenged before us.

( 3. ) THE definition of "wages" under section 2 (h) of the Minimum Wages act is as under :

" (h) "wages" means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract 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 house rent allowance), but does not include :- (i) the value of- (a) any house accommodation, supply of light, water, medical attendance, or (b) any other amenity or any service excluded by general or special order of the appropriate Government; (ii) any contribution paid by the employer to any pension fund or provident fund or under any scheme of social insurance; (iii) any travelling allowance or the value of any travelling concession; (iv) any sum paid to the person employ













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