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N. Mohammed Mohideen And Another v. Deputy Commissioner Of Labour (Inspection), Chennai And Others

Madras High Court
Jun 9, 2008
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Structured Summary of the Opinion (K. Chandru, J.)

Factual and Procedural Background

The two writ petitions challenge orders of the appellate authority dismissing delayed appeals against Inspector's orders directing payment of unpaid maternity benefit to two women who worked as beedi-rollers in the petitioners' establishment. The third respondent in W.P. No. 13500 of 1998 (Smt. Badhrakali) gave birth on 27.8.1996 and the third respondent in W.P. No. 13501 of 1998 (Smt. Santhammal) gave birth on 16.12.1996. The petitioners refused to grant maternity benefit for these third deliveries, relying on a purported two-child policy and by taking undertakings from women workers that they would not claim maternity benefit for a third child; in practice, non-adherence to such undertakings resulted in payment of only half the wages.

The beedi establishment is governed by the Beedi and Cigar-Workers (Conditions of Employment) Act, 1966, which, by section 37, applies the provisions of the Maternity Benefit Act, 1961 to women workers in the beedi industry. The third respondents complained to the Inspector (the second respondent) under section 6(6) of the Maternity Benefit Act; the Inspector issued orders dated 31.3.1997 and 16.5.1997 (the text contains a minor apparent date-variation for the second order) directing payment of specified sums to the third respondents. The petitioners did not file timely appeals to the appellate authority within the 30-day period prescribed by section 17(3) of the M.B. Act, and their belated appeals (filed after delays of 205 and 164 days) were dismissed by the appellate authority on the ground that it had no power to condone the delay. The petitioners then filed these writ petitions challenging the appellate authority's orders. This Court earlier granted interim injunctions restraining execution of the appellate orders; final hearing was then conducted and the Court disposed of the writ petitions.

Legal Issues Presented

  1. Whether the third respondents (women beedi-rollers) are entitled to maternity benefit in respect of maternity leave availed for delivering their third child under the Maternity Benefit Act, 1961 read with Article 42 of the Constitution.
  2. Whether the appellate authority under section 17(3) of the Maternity Benefit Act has power to condone delay in filing an appeal beyond the 30-day period (as contended by the parties).

Arguments of the Parties

Petitioners' Arguments (as advanced by Smt. Uma Ramanathan)

  • The appeals were filed with delay because the petitioners were not sure who the correct appellate authority was; they were moving from one office to another and only later identified the first respondent as the appellate authority — therefore the delay was neither wilful nor wanton.
  • The appellate authority has inherent power under section 17(3) of the Maternity Benefit Act to condone delay, and nothing in the statute prohibits such condonation; the appellate authority's orders should be set aside and the matter remitted for disposal on merits.

Third Respondents' / Opposing Arguments (as advanced by Mr. M. Muthupandian)

  • Section 17(3) of the M.B. Act specifies the time for filing an appeal and, in the absence of any special provision, the appellate authority has no power to condone delay.
  • Even if the matter is remitted, the appellate authority cannot accept the objections raised by the petitioners.
  • The M.B. Act imposes no restriction on maternity benefit for women who deliver more than twice; a governmental two-child policy cannot be read into the statute and what applies to government servants is not automatically applicable to beedi-workers governed by the M.B. Act.
  • To illustrate the statutory distinction, he submitted that unlike some restrictions applicable to government servants, workers under the M.B. Act (even unmarried women) are entitled to maternity benefit if they deliver a child.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
B. Shah v. Presiding Officer, Labour Court, Coimbatore (1977 2 LLN 606) The beneficent rule of construction for beneficial social legislation (maternity benefits) consistent with Article 42 — to interpret the Maternity Benefit Act so as to enable the woman worker to subsist, recuperate, nurse her child and preserve or regain work efficiency. The Court relied on this authority to support the interpretation that the M.B. Act should be construed liberally and that no ceiling on number of deliveries is to be read into the statute; the decision is described as setting the tone for interpreting the M.B. Act.
Rajesh D. Darbar v. Narasingrao Krishnqji Kulkami (2003 10 AIC 150 SC) The principle that courts can mould, vary or reshape relief when the originally sought relief has become obsolete or when a new form of relief is more efficacious owing to subsequent developments; courts may shape equitable reliefs in exceptional situations. The Court extracted and relied on the passage to explain the scope of the Court's power to mould relief; the passage was used as authority for shaping reliefs in appropriate circumstances and to explain limitations on divesting vested statutory rights.
Patterson v. State of Alabama Illustrates the position that relief may be moulded or reshaped where appropriate (as cited in the Rajesh D. Darbar passage). Referenced within the quoted passage from Rajesh D. Darbar to illustrate the general proposition regarding moulding relief; the opinion reproduces that illustrative reference.
Lachmeshwar Prasad Shukul v. Keshwar Lai Chandhuri Falls within the category where rights already vested cannot be nullified except where there is a change in law made applicable; shows limits of moulding relief when substantive rights are vested. Referred to within the Rajesh D. Darbar passage quoted by the Court to explain limits on changing vested rights by subsequent events or equitable moulding.
Pasupuleti Venkateswarlu v. Motor & General Traders Where the right to a remedy depends on presence or absence of certain basic facts at the time relief is to be granted, the Court can take note of supervening facts; also falls under statutory settings where amendment/continuation is permissible to avoid multiplicity of litigation. Referred to as an example in the Rajesh D. Darbar passage; used to explain circumstances in which courts may permit changes in relief to avoid multiplicity of litigation.
V.P.R.V Chockalingam Chetty v. Seethai Ache (AIR 1927 PC 252) Authority cited for the proposition that rights vested by statute cannot be divested by equitable doctrine, subject to exceptions. Quoted within the Rajesh D. Darbar passage as a precedent illustrating the limits of equitable interference with statutory rights; the opinion reproduces that citation.

Court's Reasoning and Analysis

The Court's analysis proceeds along the following lines, as stated in the opinion:

  1. The court framed the short question as whether the third respondents are entitled to maternity benefit for the maternity leave taken on account of delivery of their third child.
  2. The opinion situates maternity protection within broader human-rights and social-policy contexts, noting the Universal Declaration of Human Rights, ILO instruments on maternity protection (Conventions Nos. 3 and 103 and Recommendation No. 95), and the Directive Principle under Article 42 of the Constitution that the State shall make provision for maternity relief.
  3. The court relied on the Supreme Court's decision in B. Shah v. Labour Court, Coimbatore, which endorsed a beneficent rule of construction for beneficial social legislation like the Maternity Benefit Act, to interpret provisions so as to further social justice for women workers.
  4. Factually, the Court found that the third respondents were beedi-rollers employed in an establishment covered by the Beedi and Cigar-Workers (Conditions of Employment) Act, 1966; section 37 of that Act applies the Maternity Benefit Act to women workers in the beedi industry. The petitioners denied maternity benefit to the third respondents citing a supposed government two-child norm and had taken undertakings from workers to not claim benefits beyond two deliveries; in practice non-adherence to such undertakings resulted in reduced wages.
  5. Pursuant to complaints, the Inspector (second respondent) issued orders under section 6(6) of the M.B. Act directing payment of specified sums to the third respondents. The petitioners failed to file timely appeals under section 17(3), and their belated appeals were dismissed by the appellate authority as beyond its power to condone delay.
  6. The petitioners' counsel argued that the delay was not wilful and was due to uncertainty about the appellate authority's identity and that section 17(3) does not prohibit condonation. The opposing counsel argued that section 17(3) prescribes time and, absent a special provision, there is no power to condone delay; he also argued that the M.B. Act contains no restriction limiting benefits for births beyond two deliveries and that a government two-child policy cannot be read into the statute.
  7. The Court observed that remanding the matter to the appellate authority would serve no useful purpose because the petitioners had no credible defence to deny maternity relief to the third respondents. The Court further observed that the allegation about undertakings extracted from female workers not to claim benefits beyond two deliveries, if proved, would expose the petitioners to liability for prosecution under the M.B. Act and the Beedi and Cigar Act.
  8. The Court referred to Rajesh D. Darbar v. Narasingrao Krishnqji Kulkami on the scope of a court's power to mould reliefs in appropriate circumstances and reproduced the relevant passage explaining when reliefs may be varied or shaped in light of subsequent developments; this passage was used to explain the equitable jurisdiction and its limits.
  9. Statutorily, the Court noted there is no provision in the M.B. Act fixing any ceiling on the number of deliveries by a female worker. The Court concluded that, read with Article 42, every female worker covered by the M.B. Act is entitled to claim maternity benefits without any numerical ceiling on the number of deliveries. This interpretation was held to be consistent with the Supreme Court's decision in B. Shah (supra).

Holding and Implications

Holding: The writ petitions are dismissed. The petitioners are directed to comply with the orders of the second respondent (the Inspector) within a period of four weeks from receipt of a copy of this order. No costs.

Implications:

  • Direct effect on the parties: The petitioners must pay the sums assessed by the Inspector to the third respondents and comply with the Inspector's orders within four weeks; the petitioners' challenges to the appellate authority's dismissal of their late appeals failed and the writ petitions are dismissed.
  • Statutory interpretation: The Court held that the Maternity Benefit Act contains no statutory ceiling on the number of deliveries qualifying for benefits; read with Article 42 and established precedent (B. Shah), female workers covered by the Act are entitled to maternity benefits irrespective of the number of deliveries.
  • The opinion does not state that it establishes a new precedent distinct from the principles already discussed; it interprets the M.B. Act in line with existing Supreme Court authority and constitutional obligation under Article 42 and applies those principles to the facts before it.

This summary is strictly confined to the information contained in the provided opinion and does not add or infer facts beyond that text.

Show all summary ...

K. Chandru, J.:— Heard the arguments of the learned Counsel for the parties and perused the records.

2. The short question that arises in these two writ petitions is whether the third respondent in each of the writ petitions are entitled to get maternity benefit in respect of the maternity leave availed by them for delivering their third child. Special care and assistance for motherhood is one of the basic human rights contained in the Universal Declaration of Human Rights. Provisions for maternity protection is one of the programmes which is being furthered by the ILO on a worldwide basis. In pursuance of this objective the ILO has adopted two Conventions No. 3 and 103 and a recommendation No. 95 concerning Maternity Protection. Of these, Convention No. 3 was adopted in the very first of its constitutions. India subscribes to the principles contained in these instruments though it might not have ratified the conventions. It is one of the Directive Praiciples of State Policy contained in the Constitution of India that the State should make provision for maternity relief.

3. Article 42 of the Constitution reads as follows:

“42. Provision for just ana humane conditions of work and maternity relief.—The State shall make provision for securing just and humane conditions of work and for maternity relief.”

4. The Supreme Court vide its judgment in B. Shah v. Presiding Officer, Labour Court, Coimbatore . 1977 2 LLN 606., dealt with the interpretation of the maternity benefit available to the daily wage workers and set the tone for interpreting the provisions of the Maternity Benefit Act, 1961 (for short, ‘M.B Act’). The following passage found in paragraph 18 page 612 of the said judgment may be usefully extracted below:

“…. It has also to be borne in mind in this connection that in interpreting provisions of beneficial pieces of legislation like the one in hand which is intended to achieve the object of doing social justice to women workers employed in the plantations and which squarely fall within the purview of Article 42 of the Constitution, the beneficent rule of construction which would enable the woman worker not only to subsist but also to make up her dissipated energy, nurse her child, preserve her efficiency as a worker and maintain the level of her previous efficiency and output has to be adopted by the Court.”

5. The third respondents in each of the writ petitions were rolling beedis in the petitioner establishment. While the third respondent in W.P No. 13500 of 1998 (Smt. Badhrakali), gave birth to a child on 27.8.1996, the third respondent in W.P No. 13501 of 1998 (Smt. Santhammal) gave birth to her third child on 16.12.1996 They were not granted the maternity benefit on the specious plea that they were not eligible for the same since it was their third child and that it was not in accordance with the policy of the Government propagating only a two child norm. They have also taken an undertaking from the women beedi rollers that they will not claim maternity benefit if they have the third child. In practice, if they fail to adhere to that undertaking, they were given only half the quantum of beedi leaves thereby seriously depriving their right to earn full wages. Such a blatant denial of maternity relief was done by the petitioners even though their establishment is covered by Beedi and Cigar-Workers (Conditions of Employment) Act, 1966 (for short, ‘Beedi and Cigar Act’). Section 37 of the Beedi and Cigar Act applied the provisions of the M.B Act, 1961 to all the women workers in the Beedi Industry.

6. The third respondents approached the second respondent, who is the notified authority under section 6(6) of the M.B Act for covering unpaid maternity benefit. section 6(6) of the M.B Act reads as follows:

“(6) The failure to give notice under this section shall not disentitle a woman to maternity benefit or any other amount under this Act if she is otherwise entitled to such benefit or amount and in any such case, an Inspector may either of his own motion or on an application made to him by the woman, order the payment of such benefit or amount within such period as may be specified in the order.”

7. The second respondent, being the notified Inspector under the Act, on receipt of the complaints, issued notice to the petitioner and computed a sum of Rs. 2880/- payable to Smt. Badhrakali and Rs. 2071/- payable to Smt. Santhammal by her orders dated 31.3.1997 and 16.5.2007 respectively. Though the petitioners were entitled to file an appeal within thirty days to the appellate authority in terms of section 17(3) of the M.B Act, no such appeal was filed within the time frame. The petitioners filed appeals to the first respondent with a delay of 205 days in W.P No. 13500 of 1998) and 164 days (in W.P No. 13501 of 1998) before the first respondent. The appellate authority, after notice to the third respondent, held that there was no power for the appellate authority to condone the delay if the appeals are filed beyond thirty days and in that view of the matter, dismissed both the appeals by two separate orders dated 12.5.1998 It is these two orders, which are impugned in these two writ petitions.

8. At the time of admission, this Court granted interim injunction from executing the order, on 2.9.1998 and subsequently, it was made on 29.8.2003

9. Smt. Uma Ramanathan, learned Counsel for the petitioners submitted that the impugned orders are erroneous and the petitioners filed the appeals with delay only because they were not sure of as to who was the appellate authority. They were moving from one office to another and finally, found that the first respondent was the appellate authority. Therefore, the delay was neither wilful nor wanton and the order of the appellate authority should be set aside and the matter shall be remitted for disposal on merits. She also submitted that under section 17(3) of the M.B Act, the appellate authority has inherent power to condone the delay and there is no prohibition for doing so.

10. Mr. M. Muthupandian, learned Counsel for the third respondent in both the writ petitions, submitted that section 17(3) of the M.B Act specifies time for filing appeal and in the absence of any special provision, the authority has no power to condone the delay. He also submitted that even if it is remitted back, the appellate authority cannot accept the objections raised by the petitioners. He also submitted that the M.B Act does not provide any restriction on the benefit to be received by a woman worker if she delivers more than two times. He also submitted that the policy of the Government in having a two-child norm, cannot be read into the Act and whatever applies to a Government servant need not be made applicable to the Beedi workers, who are governed by the provisions of M.B Act. To show the difference between Government servants and other workers, he also submitted that in respect of Government servants, no maternity leave will be given if the marriage is not preceded delivery but whereas in the case of workers governed by the M.B Act, even an unmarried female worker is entitled for the maternity benefit if she delivers a child.

11. No useful purpose will be served in remanding the matter to the first respondent even if the petitioner has to succeed in assailing the present impugned orders. It will be an useless formality because the petitioners have no credible defence in denying the maternity relief to the third respondent in each of the writ petitions. The allegation made by the third respondents before the appellate authority that undertakings have been taken from female workers that they will not claim any maternity benefit beyond two deliveries, is a serious allegation and if proved, the petitioners are liable for prosecution under the provisions of the M.B Act, 1961 read with Beedi and Cigar Act, 1966.

12. In this context, regarding the power of this Court to mould the relief, it is necessary to refer to the judgment of the Supreme Court in Rajesh D. Darbar v. Narasingrao Krishnqji Kulkami . 2003 10 AIC 150 SC and the relevant passage found paragraph 4 of the said judgment may be usefully extracted below:

“Where the nature of the relief, as originally sought, has become obsolete or unserviceable or a new form of relief will be more efficacious on account of developments subsequent to the suit or even during the appellate stage, it is but fair that the relief is moulded, varied or reshaped in the light of updated facts. Patterson v. State of Alabama, illustrates this position. It is important that the party claiming the relief or change of relief must have the same right from which either the first or the modified remedy may flow. Subsequent events in the course of the case cannot be constitutive of substantive rights enforceable in that very litigation except in a narrow category (later spelt out) but may influence the equitable jurisdiction to mould reliefs. Conversely, where rights have already vested in a party, they cannot be nullified or negated by subsequent events save where there is a change in the law and it is made applicable at any stage. Lachmeshwar Prasad Shukul v. Keshwar Lai Chandhuri, falls in this category. Courts of justice may, when the compelling equities of a case oblige them, shape reliefs—cannot deny rights—to make them justly relevant in the updated circumstances. Where the relief is discretionary. Courts may exercise this jurisdiction to avoid injustice. Likewise, where the right to the remedy depends, under the statute itself, on the presence or absence of certain basic facts at the time the relief is to be ultimately granted, the Court, even in appeal, can take note of such supervening facts with fundamental impact. This Court's judgment in Pasupuleti Venkateswarlu v. Motor & General Traders, read in its statutory setting, falls in this category. Where a cause of action is deficient but later events have made up the deficiency, the Court may, in order to avoid multiplicity of litigation, permit amendment ana continue the proceeding, provided no prejudice is caused to the other side. All these are done only in exceptional situations and just cannot be done if the statute, on which the legal proceeding is based, inhibits, by its scheme or otherwise, such change in the cause of action or relief. The primary concern of the Court is to implement the justice of the legislation. Rights vested by virtue of a statute cannot be divested by this equitable doctnne (see V.P.R.V Chockalingam Chetty v. Seethai Ache . AIR 1927 PC 252.)”

13. There is no provision under the M.B Act fixing any ceiling on the number of deliveries made by a female worker. So long as Article 42 of the Constitution read with the provisions of the M.B Act is available, every female worker covered by the Act is entitled to claim maternity benefits without any ceiling on the number of deliveries made by them. That will be the correct interpretation which will be in tune with the judgment of the Supreme Court rendered in B. Shah v. Labour Court, Coimbatore . 1977 2 LLN 606. (vide supra). In view of the same, the writ petitions filed by the petitioners are misconceived and liable to be dismissed. Accordingly, the writ petitions are dismissed. No costs. The petitioners are hereby directed to comply with the orders of the second respondent within a period of four weeks from the date of receipt of a copy of this order.

14. Petitions Dismissed.