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Management Of Wakefield Estate v. P.L. Perumal

Madras High Court
Nov 21, 1958
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Structured Summary of the Opinion (Article 227 Revision — Wakefield Estate / Minimum Wages Act)

Factual and Procedural Background

In October 1957, 32 persons who claimed to be workers in the Wakefield Estate applied through the president of the Neelamalai Plantation Workers' Union to the Labour Court at Coimbatore for directions under Section 20(3) of the Minimum Wages Act. They alleged that they had worked in the estate from March 1957 to September 1957 and had not been paid wages due under the Minimum Wages Act; they claimed an aggregate sum of Rs. 1,153-3-0 and prayed for directions to the estate management to pay that amount.

The estate manager filed a counter denying that any of the applicants were employed by him; in an additional counter he admitted that some applicants had worked for some days in March 1957 but categorically denied that any had worked in the estate from April to September 1957. The workers filed a rejoinder asserting that they were workmen employed by the respondent.

The Labour Court (tribunal) held that the workers were entitled to the amount claimed and issued the directions sought. The management sought revision of that order before the High Court under Article 227 of the Constitution. The High Court's opinion addresses (a) the sufficiency of the evidence that the workers worked in the estate from April to September 1957, (b) entitlement to unpaid minimum wages for March 1957, and (c) whether the summary remedy under Section 20 of the Minimum Wages Act is available to past employees.

Legal Issues Presented

  1. Whether any of the petitioners actually worked in Wakefield Estate from April to September 1957 inclusive (i.e., whether the tribunal's finding on this factual issue was supported by sufficient evidence).
  2. Whether the petitioners whose names appear in Ex. M.3 (relating to March 1957) were paid less than the statutory minimum and are therefore entitled to the difference for March 1957.
  3. Whether the summary remedy under Section 20 of the Minimum Wages Act is available to past employees (i.e., whether the statutory term "employee" includes persons who have ceased to be employed at the time relief is sought).
  4. Whether the High Court should exercise its revisional jurisdiction under Article 227 to quash the tribunal's order given the alleged evidentiary deficiencies.

Arguments of the Parties

Management / Respondent (Estate Manager)

  • The manager's counter: none of the applicants were employed by the respondent and hence are not entitled to claim the difference in wages.
  • In an additional counter the manager admitted some applicants had worked some days in March 1957 but asserted none worked in the estate from April to September 1957.
  • The management challenged the tribunal's reliance on certain documents (books/registers) and argued issues of non-production and potential fabrication were relevant.

Workers / Applicants

  • The workers' rejoinder: the petitioners are workmen employed by the respondent.
  • Counsel for the respondents (workers) relied on a precedent (Nagendranth v. Commissioner of Hills Division, Assam) concerning the scope of the High Court's power under Article 227, arguing there was no justification for interference with the tribunal's conclusions.
  • Mr. Sankaran (for the respondents) argued that even if past employees could not use the summary remedy under Section 20 after their employment ceases, they would not be left remediless: they could recover unpaid minimum wages as debts in ordinary courts or raise an industrial dispute.

Point Raised by Mr. Jagadisa Ayyar (for the management)

  • He contended that the summary remedy in Section 20(2) of the Minimum Wages Act is available only to an "employee" as defined in Section 2(1) at the time relief is sought, and thus does not extend to persons who have ceased to be employees (past employees).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Nagendranth v. Commissioner of Hills Division, Assam, 1958 S.C.J. 798 Explains the scope of the High Court's power to interfere under Article 227 of the Constitution. The workers' counsel invoked this decision to argue against interference with the tribunal's findings. The High Court acknowledged the precedent but held that where tribunal conclusions are based on virtually no admissible evidence (or on evidence which no reasonable person could accept), interference under Article 227 is justified.

Court's Reasoning and Analysis

The court proceeded by addressing the key factual question first: whether any of the claimants worked in Wakefield estate from April to September 1957.

Evidence assessment regarding April–September 1957:

  • Of the 32 petitioners, ten (W.Ws. 3 to 12) gave testimony; removing those ten leaves 22 petitioners whose claim to have worked in April–September had "extraordinarily little evidence."
  • The only evidence relied on for many of the claimants were two sentences from W.W.12's testimony: an in-chief statement that certain named persons were "regularly working here till Deepavali" and a cross-examination remark that "all the workers ... whose names were read just now all have been working only in your estate."
  • The court found W.W.12 to be an "ignorant and illiterate woman" and noted the record did not show what names were put to her in-chief; her cross-examination answer did not specify the period during which those persons worked at the estate. The court emphasized that none of the 22 persons themselves gave oral evidence that they worked in the estate during April–September and that none of W.Ws.3–11 testified that any of those 22 persons worked there.
  • Crucially, the names of none of these 22 persons appear in Ex. M.4, the Wakefield estate acquaintance roll for April–September 1957, which undermined the claim they worked in that period.

On the authenticity and probative value of Ex. M.4:

  • The court addressed a criticism that Ex. M.4 and other estate documents were not produced before W.W.1 (the Labour Officer) in October 1957 and therefore might be spurious. The court rejected the notion that Ex. M.4 was fabricated, reasoning that fabrication of such a register would have required cooperation of many (about 33) workers (signatures/thumb marks appear), and that the timing and circumstances made fabrication unlikely.
  • The court acknowledged certain features (thumb marks without amounts, lack of officers' initials) but did not regard these as proof of fabrication.
  • The court concluded that the tribunal did not properly consider Ex. M.4 and that if Ex. M.4 is not fabricated, the petitioners' claim that they worked in Wakefield Estate from April to September 1957 must fail.

On the tribunal's treatment of other documentary and testimonial exhibits:

  • The tribunal had observed that W.Ws.3–12's evidence of permanency was supported by Exhibits W.1–W.11 (medical chits). The High Court found this observation "demonstrably erroneous": the chits were requests by one John (on behalf of management) for medical attention and there was no evidence linking the names on those chits to the petitioners; none of the persons named in those chits were examined to identify themselves as petitioners.
  • The tribunal also observed non-production of certain books by management. The High Court criticized the tribunal for not ascertaining what books were called for or considering their bearing on the claims; the tribunal had not examined the relevance of the non-produced books to the petitioners' claim of employment during April–September.

Findings on March 1957 wages:

  • Names of some petitioners do appear in Ex. M.3 for March 1957. The Labour Officer W.W.1 stated that men were paid Rs. 1-4-0, women Re. 1, and pluckers at 6 pies per pound of green leaves, reflecting what the workers told him and what the manager confirmed. W.W.1 was not cross-examined on this portion of his evidence; the court accepted this unchallenged evidence as correct.
  • Although Ex. M.3 shows receipts at the statutory rate, the court observed that receipts sometimes overstate amounts actually paid. On this basis, the court concluded that petitioners whose names are in Ex. M.3 are entitled to the difference between what was actually paid (as per W.W.1's evidence) and the minimum wage under the Act for March 1957.

Statutory interpretation — whether Section 20's summary remedy extends to past employees:

  • Section 20(2) / 20(3) of the Minimum Wages Act provides a summary remedy, available (the question was) only to an "employee" as defined in Section 2(1) of the Act. The Act defines "employee" as any person who is employed for hire or reward in a scheduled employment; the definition does not expressly include past employees.
  • The court examined drafting context and compared the Minimum Wages Act definition with the broader definition of "workman" in the Industrial Disputes Act (which, for certain purposes, expressly includes discharged workmen). The court inferred that if the legislature had intended past employees to be included within "employee" for Section 20 remedies, the statute would have been drafted to say so (as is done in other enactments when past or "former" persons are intended to be covered).
  • The court accepted Mr. Sankaran's concession (as characterised by the opinion) that even if past employees cannot invoke the summary machinery of Section 20 after their employment has ceased, they are not left remediless — unpaid minimum wages can be sued as a debt in ordinary courts or raised as an industrial dispute. But the statutory summary remedy itself is confined to persons who are "employees" at the relevant time.
  • On this statutory construction ground alone, the court held that the summary remedy under Section 20 is not available to past employees, and thus the petition against that part of the tribunal's order must succeed.

Exercise of revisional jurisdiction (Article 227):

  • The court addressed the workers' reliance on Nagendranth v. Commissioner of Hills Division (scope of Article 227). The bench observed that if the tribunal's conclusion had been based on some acceptable evidence, interference would not be justified. But given that the evidence supporting the claim of 22 of the workers was "so little as to be practically non-existent," and the evidence for the other ten was of a character "no reasonable man could possibly accept" unless Ex. M.4 were to be considered fabricated (which the court found impossible), interference under Article 227 was warranted.

Holding and Implications

Holding: The petition under Article 227 is allowed and the order of the Labour Court below is set aside. There will be no order as to costs.

Implications:

  • Direct effect on the parties: The High Court set aside the tribunal's directions that had awarded the claimed aggregate sum to the petitioners. Insofar as the petitioners' claim for employment during April–September 1957 depended on Ex. M.4 and the weak oral evidence, that claim fails. However, petitioners whose names appear in Ex. M.3 (relating to March 1957) are found entitled to the difference between the wages actually paid (as per unchallenged W.W.1 evidence) and the statutory minimum for March 1957.
  • Statutory consequence: The court construed the word "employee" in Section 20 of the Minimum Wages Act as meaning a person who is employed (i.e., current employees). The summary remedy under Section 20 is not available to past employees who have ceased to be in employment. Such former employees must, if necessary, recover unpaid minimum wages by ordinary proceedings or by raising an industrial dispute; they cannot invoke Section 20's summary machinery once the employment relationship has ended.
  • Precedential and broader impact: The court based its decision on statutory construction and the factual insufficiency of the evidence before the tribunal. The opinion does not purport to create a novel principle beyond the statutory interpretation that Section 20's summary remedy applies only to current employees; rather, it applies that interpretation to the facts and quashes the tribunal order for lack of reliable evidence and for the statutory-limits reason.

No order as to costs was made by the High Court.

Show all summary ...

1. This is a petition under Article 227 of the Constitution to revise the order of the Labour Court of Coimbatore in M.W.P. No. 80 of 1957, dated 31 December 1957.

2. On 19 October 1957, 32 persons who claimed to be workers in an estate called the Wake-field Estate applied through the president of the Neelamalai Plantation Workers' Union to the Labour Court at Coimbatore for certain directions under Section 20(3) of the Minimum Wages Act. Their case was that they had been working in Wakefield Estate from March 1957 to September 1957, and that they had not been paid the wages due to them under the Minimum Wages Act. They claimed that a sum of Rs. 1,153-3-0 was due to them in the aggregate and prayed that directions be given to the management of the Wakefield Estate to pay them this money.

3. The manager of the estate filed a counter in which he stated :

None of the applicants is entitled to claim the difference in wages claimed as none of the petitioners is employed by this respondent.

The workers filed a rejoinder to the effect that "the petitioners are workmen employed toy the respondent." The respondent filed an additional counter in which he admitted that some of the applicants had worked in his estate for some days in March 1957; but he categorically asserted that none of the workers had worked in his estate on any day from April to September inclusive. The tribunal held that the workers were entitled to the amount they claimed and issued the directions prayed for. The management has now come to this Court to have this order quashed.

4. The first question that arises for determination is whether any of the respondents actually worked in Wakefield estate from April to September 1957 inclusive. Of the 32 petitioners, ten were examined as W.Ws. 3 to 12. If we leave them out for the moment, there would be 22 of the petitioners left. To show that any of them worked in Wakefield estate at any time from April to September 1957 inclusive, there is extraordinarily little evidence. Learned counsel for the respondents was able to draw my attention only to two sentences in the evidence of W.W. 12 as constituting the evidence on this point. One sentence was in the chief-examination which ran as follows:

Though till Deepavali, I have been working, the persona whose names you now read are all workers who were all regularly working here till Deepavali.

The other sentence was in cross-examination and it ran:

All the workers, who figure in this petition and whose names were read Just now all have been working only in your estate.

W.W. 12 who gave these two answers is an ignorant and illiterate woman who does not know even her age. The record does not, show what names were put to W.W. 12 when she was examined-in-chief. It will also be noticed that so far as the answer she gave in cross-examination is concerned, it does not indicate what the period of time was during which these persons worked in Wakefield estate. If these 22 persons actually worked in Wakefield estate from April to September inclusive, it is really surprising that no better evidence "was forthcoming. Not one of these persons went into the box to say that he or she actually worked in the estate during that period. Not one of the nine persons who were examined as W.Ws. 3 to 11 stated that any of these 22 persons worked in the estate. I may mention here that name of none of these persons appears in Ex. M. 4, the acquaintance roll maintained by the Wakefleld estate for the period from April to September 1957. Certain comments were made on this register and to those I shall return presently. At the moment it will be sufficient to mention that name of not one of these persons appears in the register.

5. So far as W.Ws. 3 to 12 are concerned, they did no doubt say that they worked in the estate from April to September 1957. But there is nothing more than their word of mouth and to support it there is no evidence whatever the name of not one of these persons appears in Ex, M. 4. So far as this document and some others produced by Wakefield estate are concerned, the criticism was made that they were not produced before W.W. 1, the Labour Officer who visited the estate in October 1957, and therefore they must be spurious. On this comment I would make a few observations. The first is that the person whom W.W. 1 asked to produce the books was the manager of the estate, and he then stated that the books were with the proprietor. If the proprietor had been called upon to produce any book and he had omitted to do so, then the criticism based on non production of the book would have some force. That apart, I find it impossible to believe that Ex. M. 4 could have been fabricated. The motive for fabricating a book of this kind could have arisen only after the dispute between the parties started. That dispute came into existence only in October 1957. To fabricate a book like Ex. M. 4 would have required the co-operation of at least 33 persons, because either the signatures or the thumb marks of as many as 33 persons appear in this book. One may presume that the existence of the dispute between the Wakefield estate and the respondents must have been known to the other workers in the estate. In that context it is very unlikely that the management would have sought to enlist the co-operation of any of the workers to fabricate a document of this kind. Even if it had, it is in the last degree unlikely that the workers would have obliged the management. I notice at p. 11 of the book thumb marks of various persons without the amounts paid to them having been entered. This no doubt shows that the thumb marks of the workers were obtained in advance of the entries. But it does not show and cannot show that the register was fabricated. The comment was made that Ex. 4 does not contain the initials of any officers. I do not consider that circumstance to be of any importance.

6. The lower court observed that the evidence of these workers, W. Ws. 3 to 12, that they were permanent workers is fully supported by Exs. W. 1 to W. 11. This observation is demonstrably erroneous. Exhibit W. 1 to W. 11 are chits issued by one John on behalf of the management requesting that the persons referred to in them be given medical attention and treatment. There is no evidence whatever to show that the persona mentioned in the chits are among the petitioners. None of the persons, whose names appear in the chits has been examined and certainly no one who has been examined has given evidence to say that he or she is the person referred to in any of these chits.

7. Regarding the failure of the management to produce certain books, the court below observed.

Regarding W. W.2, he also stated that at a time when he inspected, he wanted certain books. The manager did not produce them. Thus, the non-production of material books is clearly made out by these two officers. Even at the time of the enquiry the management had not cared to produce the books said to have been signed by the labour officer.

The tribunal, however, did not ascertain what the books were which were called for and which were not produced. Nor did it consider what bearing those books would have had if produced on the claim of the respondents that they had been working to Wakefleld Estate from April to September 1957.

8. The tribunal did not say in clear terms that Ex. M. 4 is a fabricated document, and on the evidence it is impossible to reach or maintain any such conclusion. If that document is not fabricated, the claim of the petitioners that they worked in Wakefield Estate from April to September 1957 must fail.

9. So far as March 1957 is concerned names of the petitioners appear In Ex. M. 3, and so the only question here is whether they have been paid the minimum rate of wages they are entitled to under the Act or only smaller amounts. On this point there is the evidence of W. W. 1 which runs as follows:

Men workers were paid Rs. 1-4-0 and women workers Re. 1, and pluckers at 6 pies for pound of green leaves plucked. This is what the workers told me. The manager also told me that this is correct, i.e., what the workers told me.

This witness was not cross-examined on this part of his evidence, and I must take It as correct. No doubt Ex. M. 3 shows that they were paid at the rate fixed by the statute; but to this circumstances I attach no importance. Very often receipts are taken from employees for amounts larger than those actually handed over to them. On this part of this case my conclusion is that all the petitioners whose names appear in Ex. M. 3 are entitled to be paid for March 1957 the difference between the wages actually paid to them according to the evidence of W. W. 1 and what would be admissible to them under the Minimum Wages Act.

10. The learned advocate for the respondents referred me to the decision in Nagendranth v. Commissioner of Hills Division Assam 1958 S.C.J. 798, where the scope of the power of the High Court to interfere under Article 227 of the Constitution is explained and contended that in the present case there is no justification whatever for Interfering with the conclusions reached by the tribunal. If the conclusion reached by the tribunal had been based on some little acceptable evidence, however inadequate it might be, I would not have interfered. But so far as 22 of the workers are concerned, the evidence is so little as to be practically non-existent. So far as the other ten are concerned, there is no doubt some evidence namely the statement of W.Ws. 3 to 12. But that evidence is one, which, in my opinion, no reasonable man could possibly accept. Before we can accept their evidence, we must be prepared to say that Ex. M. 4 is a fabricated document and It seems to me that it is impossible to say that. That being so, I think this Court will be justified in interfering.

11. The second contention of Mr. Jagadisa Ayyar was this. The summary remedy provided by Section 20(2) of the Minimum Wages Act is available only to an employee. So far as It is now material the definition of the word, "employee" in Section 2(1) runs as follows :

Employee means any person who is employed for hire or reward to do any work ...in a scheduled employment in respect of which minimum rates have been fixed.

The definition then goes to say that the word " employee " includes out-workers and other persons declared to be employees by the appropriate Government. With that we are not now concerned. According to Mr. Jagadisa Ayyar a person who seeks relief under the Act must be an employee within the definition of the Act at the time he seeks the relief.

12. In the Industrial Disputes Act Which is an earlier enactment the word workman is defined as meaning any person employed in any industry and Includes for certain purposes workmen who have been discharged. But persona who have ceased to be employees are not included In the definition of " employee" In the Minimum Wages Act. According to ordinary routine practice a draftsman who was called upon to define a word in a statute would look for precedents in the earlier Acts and it is unlikely that he would have overlooked the definition of workman in the Industrial Disputes Act of 1947, which had been passed only about a year before. The inference legitimately arises that persons who ceased to be employees were deliberately left out of the definition of the word " employee " in 1948. Dealing with this aspect of the matter, Mr. Sankaran the learned Advocate for the respondents, contended that if the view which Mr. Jagadisa Ayyar put forward is accepted, the result would be that an employee whose services have been terminated without his having been paid the wages due to him in full would be unable to recover them. But that is not so. Where minimum wages have been fixed for an employee in any industry, he would have earned those minimum wages during the period he was in employment. The sum of money payable to him would be a debt which he can collect by resort to, should the need arise, the ordinary courts. It will also be open to him to raise an industrial dispute over the matter. An employee whose services are terminated will not, therefore, lose the wages he has earned. The only thing is that he will not be entitled to invoke the summary machinery provided in Section 20 of the Minimum Wages Act after he ceases to be an employee.

13. There is nothing new in such a view of the matter. Under the Madras Estates Land Act for example a landholder to whom arrears of rent are due could collect the money by distaining the moveable property of the ryot in arrear. But he would not be entitled to do so if before effecting the distraint the relationship of landholder and ryot ceases to exist.

14. The argument of Mr. Sankaran requires that the word " employee " in Section 20 of the Act should be so construed as to include past employees. If that had been the intention of the legislature, it is difficult to understand why the section was not so drafted as to include past employees also. If we look into the Indian Companies Act we find that the relevant sections there are so drafted that where it is intented to confer rights or to fasten liabilities on past members, the word " past members " are inserted in the appropriate place. Similar provision is to be found in the Co-operative Societies Act; and I have no doubt that there are other enactments which contain similar provisions.

15. Since Section 20 speaks only of employees and does not speak of past employees, and since the word " employee " is defined as meaning a person who is employed, I consider that the summary remedy provided by Section 20 is not available to past employees. On this ground alone, this petition is bound to succeed.

16. This petition is allowed and the order of the court below is set aside. There will be no order as to costs.