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1967 Supreme(Online)(Guj) 2

GUJARAT HIGH COURT
S. T. Desai, CJ, Bakshi, J
Gopichand Khoobchand Sharma v. Works Manager Loco-shops Western Railway Dohad
S. C. Appln. No. 600, 781, 782 of 1962



Advocates:
For the Appellants/Petitioners: V. B. Patel

Deductions from wages are permissible under Section 7(2)(h) of the Payment of Wages Act, 1936, when made in compliance with valid orders from competent authorities, irrespective of their validity status.

Headnote:(A) Payment of Wages Act, 1936 - Sections 7(2)(h) and 15 - Deductions from wages - Authority under the Act cannot question the legality of an order made by a competent authority that requires deduction - Deductions made based on an order by the General Manager, who had the statutory power, were permissible - A deduction based on an order, whether valid or void, stands unless overturned - The authority must consider only if the order was made by a competent authority - Petitioners' applications for recovery of deducted wages were rightfully dismissed. (Paras 1, 7, 8 and 12)

Facts of the case:
Petitioners were dismissed without inquiry due to convictions for offences, reinstated after acquittal by a higher court, and faced deductions from their wages based on the General Manager's orders during their absence.

Findings of Court:
The deductions were identified as permissible under Section 7(2)(h) of the Act as they were made in compliance with orders from a competent authority.

Issues: Whether the deductions fell within Section 7(2)(h) of the Act and whether the authority could question the legality of the General Manager's order on deductions.

Ratio Decidendi: The court asserted that the authority does not have the jurisdiction to question the legality of orders made by competent authorities concerning deductions; any deduction based on such orders is enforceable until legally overturned.

Result: Petitions dismissed.

Table of Content
1. scope of authority under payment of wages act (Para 1)
2. authority's arguments against deductions (Para 2)
3. need for joining parties in petitions under art. 226 and art. 227 (Para 3)
4. validity of deductions under s.7(2)(h) (Para 4)
5. deductions justified by authority's order (Para 5)
6. interpretation of payments and deductions in the act (Para 6 , 8)
7. permissibility of deductions under order of competent authority (Para 7)
8. judicial precedents on deduction under s.7(2)(h) (Para 9)
9. validity and application of r.14 regarding deductions (Para 10 , 11)
10. final ruling on deductions and costs (Para 12)

1. The principal question which arises in these petitions relates to the scope and ambit of the power of the Authority under the Payment of Wages Act , 1936 (hereinafter referred to as 'the Act') in relation to an application made by an employed person for deducted wages under S.15 where the claim for deduction is sought to be supported by the employer by reference to the provisions of S.7(2)(h). The facts giving rise to the petitions are identical save for the name of the petitioner and the amount involved in each case and it will, therefore, be convenient if we set put the facts relating to the petitions together. The petitioner in the first petition was at all material times employed as a material Examiner in the Loco Shop, the petitioner in the second petition was employed as a Fitter in the Electrical Workshop and the petitioner in the third petition was employed as a Fitter in the R. M. Shop of the Western Railway Administration at Dohad. In respect of an incident which took place on 29th March 1955 the petitioners were prosecuted in the Court of the Judicial Magistrate, First Class, Dohad for offences under S.147, S.332, S.342 and S.427 read with S.149 of the Indian Penal Code and the prosecution resulted in the conviction of the petitioners for those offences by the learned Magistrate. On the strength of the conviction so recorded against them, the petitioners were dismissed from service without holding a departmental inquiry by three separate orders dated 22nd March 1956. The petitioners thereafter preferred an appeal to the Sessions Court, Panchmahals at Godhra, and the learned Sessions Judge allowed the appeal and acquitted the petitioners. The State carried the matter further in revision to the High Court but the High Court by an order dated 1st March 1957 rejected the revision application of the State and confirmed the acquittal of the petitioners. In view of this order passed by the High Court, the General Manager of the Western Railway Administration by an order dated 4th January 1958 reinstated the petitioners in service and in regard to the intervening period between the date of dismissal and the date of rejoining service, directed that that period shall be treated as "leave with pay to the extent due and the balance as leave without pay". This last direction was given by the General Manager in exercise of his powers under R.2044 of the Rules framed by the Government of India, Ministry of Railways, and published in Indian Railway Establishment Code. There was some dispute between the parties as to which R.2044 was in force at the time when this order was made by the General Manager; the 1951 edition of the Indian Railway Establishment Code set out R.2044 in one form while the 1958 edition of that Code set out R.2044 in a revised form. According to the petitioners there was nothing to show when the revised R.2044 came into force and the validity of the order made by the General Manager was, therefore, required to be judged by reference to the old rule, while the respondents contended that it was the revised rule which was in force at the relevant time and that governed the validity of the order of the General Manager. We shall advert to this controversy a little later when we deal with the arguments urged on behalf of the parties though we may point out at this stage that in the view we are tak




















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