VERY IMPORTANT POINT
The expression full wages last drawn in Section 17-B of the Industrial Disputes Act, 1947, means wages drawn by a workman at the time of termination of his employment and not wages which he would have drawn on the date of the award.

Headnote:(i) LABOUR LAW-Industrial Disputes Act, 1947-Section 17-B-Payment of full wages to workman pending proceedings in higher Courts-Expression full wages last drawn -Meaning-Words must be given their plain and material meaning-Word full in expression full wages last drawn -Means all emoluments which are included in wages as defined in clause (rr) of Section 2-Whether expression full wages last drawn means wages drawn by a workman at time of termination of his employment or wages which he would have drawn on date of award?-Held, it would be wages only at the rate last drawn and not at the same rate at which the wages are being paid to the workmen who are actually working.
       Held : Section 17-B has been enacted by Parliament with a view to give relief to a workman who has been ordered to be reinstated under the award of a Labour Court or the Industrial Tribunal during the pendency of proceedings in which the said award is under challenge before the High Court or the Supreme Court. The object underlying the provision is to relieve to a certain extent the hardship that is caused to the workman due to delay in the implementation of the award. The payment which is required to be made by the employer to the workman is in the nature of subsistence allowance which would not be refundable or recoverable from the workman even if the award is set aside by the High Court or this Court. Since the payment is of such a character Parliament thought it proper to limit it to the extent of the wages which were drawn by the workman when he was in service and when his services were terminated and therefore used the words "full wages last drawn". To read these words to mean wages which would have been drawn by the workman if he had continued in service if the order terminating his services had not passed since it has been set aside by the award of the Labour Court or Industrial Tribunal, would result in so enlarging the benefit as to comprehend the relief that has been granted under the award that is under challenge. Since the amount is not refundable or recoverable in the event of the award being set aside it would result in the employer being required to give effect to the award during the pendency of the proceedings challenging the award before the High Court or the Supreme Court without his being able to recover the said amount in the event of the award being set aside. We are unable to construe the provisions contained in Section 17-B to cast such a burden on the employer. In our opinion, therefore, the words "full wages last drawn" must be given their plain and material meaning and they cannot be given the extended meaning as given by the Karnataka High Court in Visveswaraya Iron & Steel Ltd. (supra) or the Bombay High Court in Carona Sahu Co. Ltd. (supra). (Para 10)
       In our opinion, the expression "full" only emphasizes that all the emoluments which are included in "wages" as defined in clause (rr) of Section 2 of the Act so as to include the amounts referred to in sub-clauses (i) to (iv) are required to be paid. In this context, it may also be mentioned that in Section 17-B Parliament has also used the words "inclusive of any maintenance allowance admissible to him under any rule". These words indicate that maintenance allowance that is admissible under any rule is required to be paid irrespective of the amount which was actually being paid as maintenance allowance to the workman. But with regard to wages Parliament has used the words "full wages last drawn" indicating that the wages that were actually paid and not the amount that would be payable are required to be paid. (Para 11)
       (ii) Constitution of India-Articles 226 and 136-Industrial Disputes Act, 1947-Section 17-B-Right of workman to be paid the amount of full wages last drawn by him during pendency of proceedings in High Court or Supreme Court-Powers of High Court and Supreme Court to direct payment of a higher amount-Such a direction would be dehors provisions contained in Section 17B -Court may also give directions regarding refund or recovery of excess amount in the event of the award being set aside-View of Bombay High Court in Elpro International Ltd. that in exercise of power under Arts. 226 and 136, an order can be passed denying benefit granted u/s 17-B-Held, not sustainable.
       Held : As regards the powers of the High Court and the Supreme Court under Articles 226 and 136 of the Constitution it may be stated that Section 17-B, by conferring a right on the workman to be paid the amount of full wages last drawn by him during the pendency of the proceedings involving challenge to the award of the Labour Court, Industrial Tribunal or National Tribunal in the High Court or the Supreme Court which amount is not refundable or recoverable in the event of the award being set aside, does not in any way preclude the High Court or the Supreme Court to pass a order directing payment of a higher amount to the workman if such higher amount is considered necessary in the interest of justice. Such a direction would be dehors the provisions contained in Section 17-B and while giving the direction the Court may also give directions regarding refund or recovery of the excess amount in the event of the award being set aside. But we are unable to agree with the view of the Bombay High Court in Elpro International Ltd. (supra) that in exercise of the power under Articles 226 and 136 of the Constitution an order can be passed denying the workman the benefit granted under Section 17-B. The conferment of such a right under Section 17-B cannot be regarded as a restriction on the powers of the High Court or the Supreme Court under Articles 226 and 136 of the Constitution. (Para 12)

JUDGMENT

S.C. Agrawal, J.-Special leave granted.

The question that falls for consideration in this appeal is whether the expression "full wages last drawn" in Section 17-B of the Industrial Disputes Act, 1947 (hereinafter referred to as `the Act ) means wages drawn by a workman at the time of termination of his employment or wages which he would have drawn on the date of the award.

2. The respondent was employed as Clerk-cum-Cashier with the appellant-Bank. After holding an inquiry into charges relating to misappropriation of funds of the Bank to the tune of Rs. 5,000/- as contained in charge sheet dated June 18, 1983 he was dismissed by order dated July 1, 1986. The said dismissal of the respondent gave rise to an industrial dispute which was referred for adjudication to the Central Industrial Tribunal (hereinafter referred to as the Tribunal ). The Tribunal found that the charges were not established and held that the dismissal of the respondent was illegal. The Tribunal directed reinstatement of the respondent in service. The appellant-Bank has filed a writ petition under Article 227 of the Constitution in the Gujarat High Court challenging the said award of the Tribunal and the said writ petition is pending in the High Court. In the said writ petition the Division Bench of the High Court on September 11, 1991 passed an interim order staying the operation of the award on the condition that the appellant-Bank would comply with the provisions of Section 17-B of the Act and will pay to the respondent during pendency of the writ petition wages as per the said provisions subject to the respondent complying with its requirement meaning thereby that he will be paid wages last drawn or which would have been drawn if he was not suspended. An application was submitted by the respondent for modification of the said order seeking a direction for payment of wages as on the date of the award. The said application was, however, rejected by the Division Bench of the High Court by order dated October 22, 1991. Subsequently another application was filed by the respondent whereunder it was submitted that during the pendency of the writ petition in the High Court settlements had been signed with regard to wage revision, etc., the last such settlement being dated February 14, 1995 and that the said settlements had been implemented by the appellant-Bank in respect of employees already in employment. The respondent claimed that he was also entitled for revision in wage structure including Dearness Allowance and other perks and perquisites. On the said application the learned Single Judge on September 26, 1955 passed an order directing that the respondent shall be paid the wages as revised by the appellant-Bank including the increments, D.A., etc. which are granted to all the employees pursuant to two settlements signed during the pendency of the writ petition between the banking industry and the All India Trade Unions which are known as the Fifth and the Sixth Bipartite Settlements and that arrears be paid to him from the date of the award accordingly. The Letters Patent Appeal filed by the appellant-Bank against the said order of the learned Single Judge was decided by a Division Bench of the High Court by the impugned judgment dated February 7, 1996 whereby the direction given by the learned Single Judge regarding wages payable to the respondent has been maintained but the direction regarding arrears has been modified and it has been directed that the appellant-Bank shall deposit all arrears payable under that order upto December 31, 1995 in a separate fixed deposit of three years in the name of the respondent and that from January 1, 1996 onwards the respondent will be paid according to the order of the learned Single Judge and that the deposit will abide by the final result of the Special Civil Application but the interest accruing on the fixed deposit shall be paid to the respondent. Feeling aggrieved by the said judgment of the Division Bench

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1997 Supreme(SC) 1489

VERY IMPORTANT POINTThe expression full wages last drawn in Section 17-B of the Industrial Disputes Act, 1947, means wages drawn by a workman at the time of termination of his employment and not wages which he would have drawn on the date of the award.

Cases Referred (1)

VERY IMPORTANT POINT
The expression full wages last drawn in Section 17-B of the Industrial Disputes Act, 1947, means wages drawn by a workman at the time of termination of his employment and not wages which he would have drawn on the date of the award.