THE HON’BLE SRI JUSTICE NAMAVARAPU RAJESHWAR RAO WRIT PETITION No.25767 OF 2006

ORDER:

This Writ Petition is filed aggrieved by the order dated

30.06.2006 passed by the 1^st respondent in S&E Appeal No.2 of 2004, wherein the 1^st respondent confirmed the order dated 26.05.2004 passed by the 2^nd respondent in S & E Case No.1 of

2002.

2. Brief facts of the case are as follows:

(a) The petitioner’s company is registered under the provisions of the Companies Act, 1956 and it is engaged in the business of manufacture and sale of the consumable goods with the Brand name "UJALA". Respondent No.3 was deployed by the petitioner’s Company as Marketing Intelligence Assistant to canvass the sales of the products of the petitioner’s Company, as per the Tour programme prepared by him one month in advance duly submitted to his superiors. The 3^rd respondent has to specifically look after Khammam District in the State of Andhra Pradesh. Later, respondent No.3 was not authorized and was away from the area of operation viz., Khammam District. His area of operation did not extend anywhere except Khammam District. He unilaterally ceased to work from 04.11.2001 onwards. Thereafter, he has chosen to discontinue from the services of the Petitioner’s Company.

(b) While so, the petitioner’s Company received a Notice, dated 16.07.2002 from respondent No.2, wherein it is stated that the respondent No.3 filed a petition under Section 50 of the A.P. Shops and Establishments Act, vide S.E.Case No.1 of 2002, calling upon the petitioners to appear on 31.07.2002 at 3.00 p.m. The petitioners entered appearance and filed their counter statement. After hearing both the parties, respondent No.2 passed order, dated 26.05.2004 directing the petitioners to pay an amount of Rs.80,850/- to respondent No.3 within a period of

30 days from the date of receipt of the said order.

(c) Aggrieved by the order, dated 26.05.2004, the petitioners filed S & E Appeal No.2 of 2004 before respondent No.1, and the same was dismissed by order dated 30.06.2006 confirming the order dated 26.05.2004 passed by the 2^nd respondent. Aggrieved by the said order, the petitioners filed the present writ petition.

3. Respondent No.3 filed counter affidavit stating as follows :-

(a) Respondent No.3 was appointed by the petitioner’s Company as Marketing Intelligence Assistant on 09.09.1996, and he used to take the material viz. UJALA Blue Liquid and Maxo Cyclothrin Mosquito Coils cartoons through the authorized stockist M/s.Sri Laxmi Srinivasa Enterprises, Kothagudem, and rendered services for the growth and prosperity of the Company. Having been satisfied with his services, his services were confirmed w.e.f. 01.04.1997 by the 1^st petitioner Company and on confirmation of his services, he was paid Rs.2,000/- per month towards wages and by June 2001, he was paid @

Rs.5,250/-.

(b) While respondent No.3 had been rendering his services as Marketing Intelligence Assistant, the petitioner- Company stopped payment of wages from November, 2001 onwards without any reason. Having waited for a considerable time, the 3^rd respondent made repeated requests through letters dated 07.01.2002 and 30.01.2002 respectively, but there was no response from the petitioner’s Company. As such, the 3^rd respondent approached respondent No.2 by filing a claim petition claiming a sum of Rs.43,925/- (Wages of Rs.41,925/- + expenditure of Rs.1402/-), for the claim period from 04.11.2001 to 20.06.2002, and the same was allowed on 26.05.2004.

Aggrieved by the said order, the petitioners’ Company filed an appeal before respondent No.1 and the same was dismissed on 30.06.2006 confirming the order passed by respondent No.2. Challenging the order dated 30.06.2006, the petitioners’

Company filed the present writ petition.

4. On 08.12.2006, this Court while admitting the writ petition granted interim stay of the operation of the order dated 30.06.2006 passed by the Appellate Authority. Thereafter, the 3^rd respondent filed W.V.M.P.No.1186 of 2007 and thi