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1997 Supreme(MP) 123

C.K. Prasad, J.
Kalekhan Mohd. (Firm) And Ors.
vs
State Of M.P. And Ors.
Decided On : 5 March, 1997

The authority under the Payment of Wages Act has jurisdiction to entertain applications for bonus payment where the dispute is regarding the amount of bonus payable and is a matter of calculation, and not a matter of adjudication covered by Section 22 of the Payment of Bonus Act.

Headnote:

PAYMENT OF WAGES ACT - SECTION 15(2) - PAYMENT OF BONUS ACT - SECTION 22 - JURISDICTION OF AUTHORITY UNDER PAYMENT OF WAGES ACT - DISPUTE REGARDING BONUS PAYABLE - CALCULATION OF BONUS - DELAY IN PAYMENT OF WAGES - SCOPE AND AMBIT OF SECTION 15(2) OF THE PAYMENT OF WAGES ACT.

Fact of the Case:

Petitioners, a partnership firm and its managing partner, challenged two orders passed by the authority under the Payment of Wages Act. The first order overruled their objections that the application filed by the Assistant Labour Commissioner was not maintainable and that the claim for bonus was barred by limitation. The second order held that the matter was not covered by Section 22 of the Payment of Bonus Act and that the authority had jurisdiction to entertain the application.

Finding of the Court:

The court held that the authority under the Payment of Wages Act had jurisdiction to entertain the application for bonus payment. It found that the dispute regarding the amount of bonus payable was a matter of calculation and not a matter of adjudication covered by Section 22 of the Payment of Bonus Act. The court also held that bonus is a wage and that delay in payment of bonus is covered by Section 15(2) of the Payment of Wages Act.

Issues: 1. Whether the authority under the Payment of Wages Act had jurisdiction to entertain the application for bonus payment. 2. Whether the dispute regarding the amount of bonus payable was a matter of calculation or a matter of adjudication covered by Section 22 of the Payment of Bonus Act. 3. Whether bonus is a wage and whether delay in payment of bonus is covered by Section 15(2) of the Payment of Wages Act.

Ratio Decidendi: 1. Section 15(2) of the Payment of Wages Act empowers the authority to entertain applications for directions regarding deductions from wages or delay in payment of wages. 2. A dispute regarding the amount of bonus payable is a matter of calculation and not a matter of adjudication covered by Section 22 of the Payment of Bonus Act. 3. Bonus is a wage and delay in payment of bonus is covered by Section 15(2) of the Payment of Wages Act.

Final Decision: The court dismissed the writ petition and directed the authority to conclude and pass a final order within three months from the date of appearance of the parties. The court also directed that if the authority found that bonus was payable to the workman, the workman would be entitled to interest at the rate of 12% per annum.

ORDER

C.K. Prasad, J.

1. Petitioner No. 1 is a partnership firm whereas petitioner No. 2 is its managing partner. The firm carries on the business of manufacturing bidis in the State of M.P. The Assistant Labour Commissioner filed application Under Sections 15(2) and 16 of the Payment of Wages Act stating therein that the petitioners did not pay bonus to its workmen in accordance with law. On receipt of the notice the petitioners filed their objection before the authority under the Payment of Wages Act. Objections of the petitioners were that application having been filed by the Assistant Labour Commissioner, the authority under the Payment of Wages Act, ought not to have taken cognizance of the same and proceeded with the matter. It was further contended that the claim made in the application was barred by limitation and bonus being not a wage, the authority under the Payment of Wages Act has no jurisdiction to entertain the application. The aforesaid objections of the petitioners were overruled by the impugned order dated 31-8-1984. Petitioners further contended that the matter being covered by the provisions of Section 22 of the Payment of Bonus Act, application Under Section 15 of the Payment of Wages Act was not maintainable. This objection was also overruled by order dated 6-2-1985. These two orders i.e. orders dated 31-8-1984 and 6-2-1985 are being impugned by the petitioners (hereinafter referred to as Employer) in the present writ petition, filed under Article 227 of the Constitution of India.

2. Shri Menon appears on behalf of the petitioners and he could not point out any illegality in the order dated 31-8-1984. It is relevant here to state that in the order dated 31-8-1984 the authority has stated that amendment in the petition was allowed and after the amendment the petition shows that it has been filed by the Inspector. It is further held that bonus is a wage and therefore, application before the authority under the Payment of Wages Act was maintainable. As regards the question of limitation, it held that an issue has been framed and the same shall be answered at that stage. I do not find any error in the order dated 31-8-1984.

3. While assailing the order dated 6-2-1985 learned counsel contends that as the matter is covered Under Section 22 of the Payment of Bonus Act, the authority under the Payment of Wages Act has no jurisdiction to entertain the petition.

4. Shri Gupta, Government Advocate, representing the respondents submits that the rate at which bonus is to be paid is a matter of calculation and can be adjudicated by the authority Under Section 15(2) of the Payment of Wages Act. He further submits that petitioners had a remedy of appeal Under Section 17 of the Payment of Wages Act, writ petition deserves to be dismissed on this ground alone.

5. Shri Menon submits that the claim laid by the workmen is in the field of adjudication and, therefore, squarely a matter of dispute, as contemplated Under Section 22 of the Payment of Bonus Act and the authority under the Payment of Wages Act has no jurisdiction to go into this question. Shri Menon further submits that as the dispute exists between the employer and employee in respect to the bonus payable, which in his submission would obviously include the amount of bonus, such a dispute is squarely covered Under Section 22 of the Payment of Bonus Act and once it is so covered authority exercising the power Under Section 15(2) of the Payment of Wages Act cannot entertain such dispute.

6. Section 15(2) of the Payment of Wages Act reads as follows :-

"15.............

(1)..............

(2) Where contrary to the provisions of this Act any deduction has been made from the wages of an employed person, or any payment of wages has been delayed, such person himself, or any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf, or any Inspector under this Act, or any other person acting with the permission of the authority appointed









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