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2025 Supreme(Online)(Guj) 4251
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.S. SUPEHIA, R. T. VACHHANI, JJ
HARSHADKUMAR MANUBHAI PARMAR – Appellant
Versus
ARVINDKUMAR P. PARIKH – Respondent
Letters Patent Appeal No. 805 of 2025 | Special Civil Application No. 2315 of 2022
For the Appellants/Petitioners: MR SUBRAMANIAM IYER, ROBIN PRASAD
For the Respondents: MR DIPAK R DAVE, MR YOGI K GADHIA
The Labour Court lacks jurisdiction under Section 33(C)(2) of the Industrial Disputes Act without prior determination of employee entitlement.
Headnote:(A) Industrial Disputes Act, 1947 - Section 33
(C)(2) - Minimum wages, entitlement - Employees filed Recovery Applications claiming minimum wages and other benefits post-contract termination - Labour Court partly allowed claims, but Higher Court emphasized the lack of prior adjudication on disputed claims, clarifying that the Labour Court cannot entertain cases without established rights - Notably, arguments regarding settled claims were addressed, underscoring legal obligations under various Acts. (Paras 3, 4, 10, 11)
(B) Jurisdiction of Labour Court - Jurisdiction outlined under Section 33
(C)(2) only allows enforcement of pre-existing benefits, necessitating prior adjudication of employment relationships. (Paras 8, 9)
Facts of the case:
This appeal arose from recovery applications by employees claiming minimum wages and benefits from a contract engaged with Adani Gas Ltd. Following a settlement attempt, the Labour Court made partial awards, prompting the present appeal over jurisdictional issues.
Findings of Court:
Court upheld the Labour Court’s award of Rs. 10,000/- for minimum wages but reiterated the necessity of prior adjudication of other claims.
Issues: Whether the Labour Court had the jurisdiction to adjudicate claims without a pre-existing right determined or prior adjudication.
Ratio Decidendi: The court ruled that without a prior adjudication on entitlement, the Labour Court's jurisdiction under Section 33
(C)(2) is limited; claims not pre-existing or previously recognized are not maintainable.
Result: Appeal rejected.
| Table of Content |
|---|
| 1. final disposal consented (Para 1 , 2) |
| 2. employees claimed wages and benefits (Para 3 , 4 , 5) |
| 3. jurisdictional limits of labour court discussed (Para 6 , 9) |
| 4. arguments from advocates presented (Para 7 , 8) |
| 5. appeal rejection outcome (Para 10 , 11) |
(PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)
1. With the consent, the matter is taken up for final disposal today.
2. The present Letters Patent Appeal emanates from the order dated 22.04.2025 passed in the captioned writ petition being Special Civil Application No. 2315 of 2022, which is decided along with other group of matters.
3. The present Appeal emanates from the original recovery application proceedings, which were filed by the respective employees, total 11 in number, being Recovery Application Nos. 55 of 2016 to 65 of 2016 claiming Minimum Wages, Weekly off, Privilege Leave and Bonus etc., for the period from 01.03.2011 to 22.01.2016, along with interest. 09 applications were partly allowed in favour of the employees, whereas 02 were withdrawn. The present respondent challenged the award passed by the Labour Court in individual recovery application.
4. The respondent No.1 was awarded the contract by the respondent No. 2-Adani Gas Ltd. to run CNG pump by an agreement, however, the said contract was terminated in January, 2016. It appears that the employees, who were engaged in the CNG pump, filed a complaint before the Government Labour Officer seeking wages etc., and during which it appears that a settlement was arrived at between the parties, whereby Rs.10,000/- was paid to each of the employees, however, the appellants did not accept the said amount offered to them. Thereafter, they filed a Recovery Application before the Labour Court under Section 33 (C)(2) of the Industrial Disputes, Act, 1947 (for short “the I.D. Act”) interalia claiming the aforementioned amount from 01.03.2011 to 22.01.2016. The respondent No.1 categorically raised an objection objecting the amount claimed by the present appellant as there was no pre-existing right determined in the favour of appellant - employees. The respondent No.1 disputed the amount claimed by the employees and further clarified about the amount paid under the settlement before the Labour authorities.
5. The Labour Court by the impugned judgments partly allowed the recovery applications of the employees, whereby minimum wages were awarded by the Labour Court to the extent of Rs. 10,000/-, and in light of the settlement, allowed other claims in toto along with 8%
interest and Rs. 5000/- towards cost.
6. The same gave rise to filing of the writ petition by the present appellant along with other 09 individuals. The respondent assailed the same by filing the captioned writ petition being Special Civil Application No. 2315 of 2022 raising preliminary objection to the extent that there is no existing right, there was delay in filing the application and since the parties have already reached at a settlement for minimum wages, an alternative remedy is also available under Section 20 of the Minimum Wages Act , 1948 claiming Minimum Wages, weekly off, Privilege Leave and Bonus etc.. The learned Single Judge has allowed the writ petition in part by upholding the award so far as the granting of the Minimum Wages of Rs. 10,000/- is concerned.
7. Learned advocate Mr. Iyer appearing for the appellants has submitted that the judgment and award passed by the learned Single Judge is required to be quashed and set aside as it is not in dispute that the present appellant who was serving under the respondent No.1, was the contractor of the respondent No.2. It is submitted that the learned Single Judge has accepted the liability of payment of minimum wages, and simultaneously rejected the pensionary benefits, bonus Leave Encashment etc. It is submitted that the respondent-Contractual employees are covered under the Shops and Establishment Act , 1948 and he has to pay the aforesaid amount. He has also submitted that there are difference o
