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Naranji Peraji Transport Company v. Ramnikbhai B. Waghela

Gujarat High Court
Dec 12, 1997
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Structured Summary of the Opinion

Factual and Procedural Background

This petition challenges the judgment and award of the learned Chief Judge, Labour Court, Rajkot in Recovery Application No. 1322 of 1980 dated 30 April 1984.

The respondent (the "workman") had been employed by the petitioner (the "transport company") for over nine years. The workman resigned on 1 May 1980 and filed Recovery Application No. 1322 of 1980 on 23 July 1980 under Section 33-C(2) of the Industrial Disputes Act, 1947.

The workman claimed overtime (three extra hours daily), payment for having worked on 468 Sundays (asserting entitlement to weekly-off or compensation), wages for 63 days' leave, and bonus at 20% for S.Y. 2036. The Labour Court rejected claims for the daily overtime and the 63 days' leave, but awarded Rs. 14,348.88 for 468 Sundays and the bonus claimed.

The transport company challenged the Labour Court's award by filing the present petition. Pursuant to an interim order, the transport company deposited Rs. 7,500 in the Labour Court; that amount was withdrawn by the workman. The petition was heard and decided by the Court whose opinion is summarized here.

Legal Issues Presented

  1. Whether the Labour Court had jurisdiction under Section 33-C(2) of the Industrial Disputes Act, 1947 to entertain and adjudicate the workman's Recovery Application seeking wages/compensation for Sundays worked, where the fact of working on Sundays was disputed by the employer and there was no prior adjudication or employer's recognition of that entitlement.
  2. Whether, in the case of a motor transport worker, the appropriate forum for claims of this nature was the authority under the Payment of Wages Act, 1936 (in view of the Motor Transport Workers Act, 1961 making provisions of the Payment of Wages Act applicable), thereby ousting the Labour Court's jurisdiction under Section 33-C(2).
  3. Whether the Labou r Court was correct in rejecting the employer's preliminary objection regarding maintainability based on alternative statutory remedies (e.g., Payment of Wages Act or Minimum Wages Act).

Arguments of the Parties

Petitioner's (Transport Company's) Arguments — Mr. Chari

  • The transport company disputed the workman's entitlement to wages for Sundays and contested that he worked on those Sundays; because the claim was disputed, the workman should have raised an industrial dispute rather than a recovery application under Section 33-C(2).
  • Section 33-C(2) jurisdiction requires an undisputed claim or a claim previously adjudicated by a competent court or tribunal; absent that, the Labour Court could not exercise jurisdiction. In support, reliance was placed on Municipal Corporation of Delhi v. Ganesh Razak & Anr.
  • The claim was belated (raised only after resignation even though the workman had served nearly ten years); reliance was placed on Employees' State Insurance Corporation v. Natvarlal Amrutlal Shah.
  • Transport workers are governed by the Motor Transport Workers Act, 1961, and by virtue of Section 25 of that Act the Payment of Wages Act, 1936 applies to motor transport workers. Therefore, the workman should have proceeded under the Payment of Wages Act and not under the Industrial Disputes Act. For this proposition reliance was placed on Delhi Transport Corporation v. D. D. Gupta & Anr.

Respondent's (Workman's) Arguments — Mr. Shah

  • The scope of Section 33-C(2) of the Industrial Disputes Act is broad and wider than ordinary execution proceedings; it permits computation of statutory entitlements even where full formal execution is sought.
  • The workman was a motor transport worker entitled to double wages for overtime under Section 26 of the Motor Transport Workers Act, 1961, and the overtime entitlement is statutory; it was not argued that the transport company disputed entitlement to overtime as a principle.
  • The sole factual question for the Labour Court was whether the workman actually rendered services on Sundays; if he did, computation under Section 33-C(2) followed. Mr. Shah relied on evidence (depositions) and on the Labour Court's earlier order dated 14 September 1981 rejecting the transport company's preliminary objection to maintainability.
  • If multiple remedies are available, a workman may choose any one remedy and cannot be denied that choice simply because an alternative remedy exists.
  • Reliance was placed on several authorities (Central Bank of India Ltd. v. P. S. Rajagopalan; Town Municipal Council, Athani; Nityanand M. Joshi; Chief Mining Engineer, East India Coal Co.; M/s R. L. Kalathia & Co.) to support the broader ambit of Section 33-C(2) and the competence of Labour Courts to compute benefits arising out of existing statutory or adjudicated rights.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court in This Opinion
Municipal Corporation of Delhi v. Ganesh Razak & Anr (1995 1 CLR 170 S.C.) That Section 33-C(2) permits the Labour Court's power to interpret awards/settlements for execution but does not permit the Court to determine entitlement where there has been no prior adjudication or recognition by the employer. The Court relied on this decision to hold that the Labour Court could not adjudicate the disputed question whether the workman worked on Sundays (i.e., could not first determine entitlement) in exercise of Section 33-C(2) where no prior adjudication or employer recognition existed; thus the Labour Court lacked jurisdiction on that basis.
Central Bank of India Ltd. v. P. S. Rajagopalan (AIR 1964 SC 743) Considered the scope and ambit of Sections 33-C(1) & (2); held that Section 33-C(2) has a wider scope and that claims not based on settlements or awards may also be competent under it. The opinion references this case as authority for the proposition that Section 33-C(2) has wide scope; the Court considered it but distinguished the present facts because the factual question of entitlement (work on Sundays) was disputed and not previously adjudicated or recognized.
Town Municipal Council, Athani v. Presiding Officer, Labour Court, Hubli & Anr (AIR 1969 SC 1335) Held Labour Court can entertain Section 33-C(2) applications where rates/wages are not in dispute; also held challenges to jurisdiction could be waived if not raised earlier. The Court noted this authority to show situations where Labour Courts have jurisdiction, but observed that in the present case the fact of working on Sundays was disputed and the issue of jurisdiction was raised and required determination; the Court relied on the principles but found them distinguishable given the dispute of fact.
Nityanand M. Joshi v. Life Insurance Corporation of India & Ors (AIR 1970 SC 209) Held the scope of Section 33-C(2) is wider than Section 33-C(1) and that Article 137 of the Limitation Act would not apply to applications under Section 33-C(2). Cited by the workman's counsel to support the broader reach of Section 33-C(2). The Court acknowledged the authority but did not allow it to override the need for prior adjudication/recognition when entitlement is disputed.
Chief Mining Engineer, M/s. East India Coal Co. Ltd. v. Rameshwar & Ors (AIR 1968 SC 218) Held that the benefit sought to be computed under Section 33-C(2) must be an existing right (adjudicated or provided for) arising out of the employer-workman relationship; statutory/scheme benefits can be included. The Court cited this decision for the proposition that only an existing adjudicated or statutory right may be computed under Section 33-C(2); it used the principle to conclude that where there was no adjudication or employer recognition of the workman's Sunday claims, Section 33-C(2) could not be used to determine entitlement.
Municipal Council, Athani (referred earlier) — treated above This row is intentionally left concise because the earlier Athani entry covers the principle used. See Athani row.
Delhi Transport Corporation v. D. D. Gupta & Anr (1984 II LLJ 79) Held that for motor transport workers the Payment of Wages Act, 1936 is specifically made applicable (via Motor Transport Workers Act, 1961) and thus the remedy may lie under the Payment of Wages Act rather than other forums. The Court relied on this authority to determine that the motor transport worker's claims should have been pursued under the Payment of Wages Act and that accordingly the Labour Court did not have competence under Section 33-C(2) to entertain the application—i.e., the Labour Court's preliminary rejection of this objection was wrong.
M/s R. L. Kalathia & Co. v. State of Gujarat & Ors (1990 I CLR 705 (1990 (1) GLR 236)) This Court had held that where multiple remedies are available (e.g., under Industrial Disputes Act and Minimum Wages Act), a workman may choose either remedy and that choice is not prohibited simply because another remedy exists. The opinion cited this decision; however, the Court distinguished it on facts and referred to the Delhi Transport Corporation decision, concluding that in the specific context of motor transport workers the Payment of Wages Act is the exclusive or appropriate remedy for claims of the nature made.
Employees' State Insurance Corporation v. Natvarlal Amrutlal Shah (1996 I CLR 904 (Guj. H.C.)) Relied upon by petitioner to support the contention that the workman's claim was belated and could not be entertained. The petitioner relied on this authority to press the point of delay; the Court noted the contention but stated it did not need to decide the delay issue in view of its primary jurisdictional conclusions.

Court's Reasoning and Analysis

The Court's analysis proceeds in two principal strands: (A) the nature and proper scope of Section 33-C(2) of the Industrial Disputes Act, and (B) the effect of the statutory scheme governing motor transport workers that brings the Payment of Wages Act into operation for such workers.

1. Scope of Section 33-C(2) and entitlement issues

  • The Court acknowledged authorities (Central Bank of India; Town Municipal Council, Athani; Nityanand M. Joshi; East India Coal Co.; etc.) establishing that Section 33-C(2) can be broad and may permit computation of benefits arising from existing adjudicated or statutory rights.
  • However, relying particularly on Municipal Corporation of Delhi v. Ganesh Razak, the Court emphasized the limitation: Section 33-C(2) empowers the Labour Court to interpret and implement rights that have been previously adjudicated or recognised by the employer (or are clearly established), but it does not empower the Labour Court to first determine the entitlement in the absence of such prior adjudication or recognition.
  • Applying that principle to the facts, the Court noted that although the extent of wages (the rate) was not disputed, the transport company did dispute the very fact that the workman had rendered services on Sundays and asserted he enjoyed weekly-off in lieu. Because the factum of work on Sundays (the foundational entitlement) was disputed and there was no prior adjudication or employer recognition of that entitlement, the Labour Court could not, under Section 33-C(2), decide the contested question of entitlement and then compute benefits.

2. Application of Payment of Wages Act to motor transport workers

  • The Court considered the statutory framework: Motor Transport Workers Act, 1961 makes the Payment of Wages Act, 1936 applicable to motor transport workers (via Section 25 and related provisions) and contains provisions (Section 37) indicating its operation notwithstanding inconsistent provisions elsewhere.
  • The Court relied on the Delhi Transport Corporation decision which held that, for motor transport workers, the Payment of Wages Act is specifically applicable and thus claims arising in that context are to be pursued under the Payment of Wages Act rather than in other fora.
  • Given that the workman here was a motor transport worker, the Court held that the Labour Court lacked competence to entertain the application under Section 33-C(2) because the proper remedy for claims of this nature lay under the Payment of Wages Act. The Court therefore concluded that the Labour Court had erred in rejecting the transport company's preliminary objection to maintainability.

3. Conclusion of analysis

  • Because (i) the entitlement to wages for Sundays was disputed and there was no prior adjudication or employer recognition of that entitlement, and (ii) the statutory scheme for motor transport workers required application of the Payment of Wages Act, the Court concluded that the Recovery Application under Section 33-C(2) was not maintainable before the Labour Court.
  • The Court expressly stated it did not need to decide the separate contention on delay, because its jurisdictional conclusions rendered that unnecessary.

Holding and Implications

Holding:

Petition allowed: the Court held that the Recovery Application under Section 33-C(2) of the Industrial Disputes Act was not maintainable before the Labour Court in the present case.

Implications and immediate consequences (as stated in the opinion):

  • The Labour Court wrongly rejected the transport company's preliminary objection to maintainability; the Labour Court should not have entertained and decided the substantive disputed question of whether the workman worked on Sundays under Section 33-C(2) because there was no prior adjudication or employer recognition of that entitlement.
  • Given the motor transport worker statutory framework, claims of this nature should be pursued under the Payment of Wages Act, 1936—per the Court's reliance on the Delhi Transport Corporation authority—so the Labour Court's exercise of jurisdiction under Section 33-C(2) was inappropriate in this factual context.
  • Practical disposition: the petition was allowed; the Court made the Rule absolute and directed that there be no order as to costs. The opinion records that Rs. 7,500 had been deposited in the Labour Court pursuant to an interim order and had been withdrawn by the workman; the transport company stated it would not seek to recover that sum.
  • No broader new precedent was announced beyond the application of existing authorities; the decision applies those authorities to the facts and holds the Labour Court's proceeding under Section 33-C(2) to be incompetent in the particular circumstances of this case.

Note: This summary is based exclusively on the information contained in the provided opinion and does not add or infer facts beyond the text.

Show all summary ...

1. This petition arises of the judgment and award of the learned Chief Judge, Labour Court, Rajkot passed on Recovery Application No. 1322 of 1980 on 30th April, 1984.

2. The respondent herein (hereinafter referred to as 'the workman') was in employment with the petitioner (hereinafter referred to as "the transport company") for more than nine years. It appears that on 1st May, 1980, the workman resigned from the service and on 23rd July, 1980, he preferred the above Recovery Application No. 1322 of 1980 under Section 33-C(2) of the Industrial Disputes Act, 1947 (hereinafter referred to as "the Act"). The workman claimed that every day he had worked for nearly 12 hours and he was, therefore, entitled to overtime for three hours every day. He further claimed that he had worked on all Sundays without any leave and he was entitled to a weekly-off. He, therefore, claimed wages for 468 Sundays. He also claimed wages for 63 days' leave and bonus at the rate of 20 per cent for S.Y. 2036. The Labour Court, under its impugned judgment and award, rejected the claim of the workman for overtime for three hours every day and the wages for 63 days' leave. The Court did award a sum of Rs. 14,348.88 ps. for 468 Sundays, the workman claimed to have worked and also the bonus as claimed by the workman.

Feeling aggrieved, the transport company has preferred this petition. Learned Advocate Mr. Chari has appeared for the transport company. He has submitted that the amount being nominal, he does not press his challenge to the bonus awarded to the workman and he confines his challenge to the overtime awarded to the workman for 468 Sundays that the workman alleged to have worked.

3. Mr. Chari has contended that the transport company does not recognise the workman's right to receive wages for the Sundays he claims to have worked on. He has submitted that the transport company disputed the claim of overtime wages for Sundays claimed by the workman. In view of the said dispute, the workman could have raised industrial dispute. However, there being no undisputed claim or the claim adjudicated by the competent Court or the Tribunal, the Labour Court could not have exercised its jurisdiction under Section 33-C(2) of the Act. In support of his contention, he has relied upon the judgment of the Supreme Court in the matter of Municipal Corporation of Delhi v. Ganesh Razak & Anr. 1995 1 CLR 170 S.C. He has also contended that the workman had served for nearly ten years for the transport company and he raised the claim for wages for Sundays only after he resigned from the service, i.e., claim made by the workman was grossly belated and could not have been entertained by the Labour Court. He has, therefore, relied upon the judgment of this Court in the matter of Employees' State Insurance Corporation v. Natvarlal Amrutlal Shah 1996 I CLR 904 (Guj. H.C.). He has also submitted that the transport workers are governed by the Motor Transport Workers Act, 1961 and under the provisions contained in Section 25 thereof, Payment of Wages Act, 1936 applies to the motor transport workers. In view of the said special enactment made for the benefit of the motor transport workers, the workman should have raised his claim before the authority under the Payment of Wages Act and not under the Act. In support of his contention, he has relied upon the judgment in the matter of Delhi Transport Corporation v. D. D. Gupta & Anr. 1984 II LLJ 79.

4. In reply to the contentions raised by Mr. Chari, Mr. Shah, the learned Advocate appearing for the workman has submitted that the scope of Section 33-C(2) of the Act is wider than that of an ordinary execution proceedings. He has submitted that in the instant case, the workman being a motor transport worker under Section 26 of the Motor Transport Workers Act, 1961, was entitled to the double wages for overtime for which he worked and accordingly, he has claimed Rs. 30.60 ps. for each of the Sundays that he worked. He has, therefore, submitted that right to receive the double wages is a statutory right and it was never disputed that the petitioner was entitled to overtime for rendering service on Sundays also. It was not in dispute that the last monthly wages drawn by the workman was Rs. 460/-. Hence, the only question that was required to be examined by the Labour Court was whether the workman did render the services on Sundays as was claimed by him, i.e., the benefit of service rendered on Sundays was required to be computed as provided under Section 33-C(2) of the Act and, therefore, the Labour Court was within its power and authority in examining the claim made by the workman and in computing the benefits that would be available to him. He has next contended that the workman, soon after his tendering the resignation, raised this claim and, therefore, the claim raised by the workman cannot be said to be a belated or stale claim. He has next contended that if more than one remedy is available to the workman for redressal of his grievance, the workman may choose one of the said remedies and if he avails of any one of the remedies, same cannot be denied to him on the ground that he could have availed of the another remedy as well. Mr. Shah has read over the deposition of the workman as well as the other workers who deposed in his favour and also the deposition made on behalf of the transport company. He has submitted that actually there was no dispute that the workman did render services on Sundays. Mr. Shah has relied upon the order made by the Labour Court on 14th September, 1981 rejecting the preliminary contention raised by the transport company. It appears that the transport company raised the preliminary issue regarding maintainability of the recovery application made by the workman and contended that the workman should have approached the Minimum Wages Act, 1948 or the Payment of Wages Act, 1936. He has submitted that though the said contention was rejected by the Labour Court, same was not challenged further, In support of his contentions, he has relied upon the judgments of the Supreme Court in the matters of the Central Bank of India Ltd. v. P. S. Rajagopalan AIR 1964 SC 743; Town Municipal Council, Athani v. Presiding Officer, Labour Court, Hubli & Anr. AIR 1969 SC 1335; Nityanand M. Joshi v. Life Insurance Corporation of India & Ors. AIR 1970 SC 209; Chief Mining Engineer, M/s. East India Coal Co. Ltd. Bararee Colliery, Dhanbad v. Rameshwar & Ors. AIR 1968 SC 218; and of this Court in the matter of M/s. R. L. Kalathia & Co. v. State of Gujarat & Ors. 1990 I CLR 705; (1990 (1) GLR 236). In the matter of Central Bank of India Ltd. (supra), the Court considered the scope and ambit of Sections 33-C(1) & (2) of the Act. The Court held that :

"the scope of Section 33-C(2) is undoubtedly wider than that of Section 33-C(2) and ... .. it is possible that the claims not based on settlements, awards or made under the provisions of Chapter 65-A may also be competent under Section 33-C(2) and that may illustrate its wider scope"
.

5. In the matter of Town Municipal Council, Athani, (supra), the jurisdiction of the Labour Court to entertain an application under Section 33-C(2) of the Act was questioned on the ground that the remedy under Section 21 of the Minimum Wages Act, 1948 was available to the workman. The Court negatived the contention and held that the rates at which the workmen were entitled to the wages not being in dispute, the Labour Court did have jurisdiction to entertain the application under Section 33-C(2) of the Act. However, challenge to the jurisdiction on the ground that the applications of the kind were not maintainable under Section 33-C(2) was not permitted to be raised since the same was not raised either before the Labour Court or before the High Court. Similarly, in the matter of Nityanand M. Joshi (supra), the Court held that the scope of Section 33-C(2) was wider than that of Section 33-C(1) and that Art. 137 of the Limitation Act would not apply to the applications made under Section 33-C(2) of the Act. In the matter of East India Coal Company (supra), the Court held that :

"It is clear that the right to the benefit which is sought to be computed must be an existing one, that is to say, already adjudicated upon or provided for and must arise in the course of and in relation to the relationship between an industrial workman and his employer ... there is no reason to hold that a benefit provided by a statute or a Scheme made thereunder without there being anything contrary under such statute or Sec. 33-C(2), cannot fall within sub-section (2). Consequently, the benefit provided in the bonus scheme made under the Coal Mines Provident Fund and Bonus Scheme Act, 1948 which remains to be computed must fall under Sub-section (2) and the Labour Court, therefore, had jurisdiction to entertain and try such a claim, it being a claim in respect of an existing right arising from the relationship of an industrial workman and his employer"
.

6. In the matter of Municipal Corporation of Delhi (supra), the Court had occasion to decide the scope of Section 33-C(2) of the Act. The Court, considering several earlier judgments including one in the matter of Central Bank of India Ltd. (supra) held that :

"This decision itself indicates that the power of the Labour Court under Section 33-C(2) extends to interpretation of the award or settlement on which the workman's right rests like executing Courts' power to interpret decree for the purpose of execution, where the basis of the claim is referable to the award or settlement, but it does not extend to determination of the dispute of entitlement or the basis of the claim if there be no prior adjudication or recognition of the same by the employer"
.

In paragraph 12 of the judgment, the Court held that :

"the Labour Court has no jurisdiction to first decide the workman's entitlement and then proceed to compute the benefit so adjudicated on that basis in exercise of its power under Section 33-C(2) of the Act. It is only when the entitlement has been earlier adjudicated or recognised by the employer and, thereafter, for the purpose of implementation or enforcement thereof, some ambiguity requires interpretation is treated as incidental to the Labour Court's power under Section 33-C(2) like that of the executing Court's power to interpret the decree for the purpose of its execution. In course of such exercise of such power, the Labour Court may interpret the basis of the claim made by the workman. However, it has no jurisdiction to consider and adjudicate whether the workman is entitled to such benefit"
.

7. In the present case, it is true that the extent of wages earned by the workman was not disputed by the transport company before the Labour Court. However, in no uncertain terms, the transport company did dispute the factum of workman's rendering service on Sundays. It was categorically stated that the workman did enjoy the weekly-off in the event he served on Sundays. The Labour Court in exercise of its jurisdiction under Section 33-C(2) of the Act could not have taken up the task of adjudicating and recording finding whether the workman worked on Sundays or not or whether in lieu of Sundays, he enjoyed any weekly-off or not. In my view, therefore, there was no prior adjudication in favour of the workman that the workman did work on Sundays and for that, he was entitled to receive overtime in accordance with Section 26 of the Motor Transport Workers Act, 1961. Neither did the employer recognise the workman's right to receive such overtime wages and in absence of such prior adjudication or recognition by the employer, the matter at dispute could not have been decided by the Labour Court in exercise of its power under Section 33-C(2) of the Act. In my view, therefore, application was not maintainable before the Labour Court.

8. The next contention raised by Mr. Chari in respect of the Labour Court's jurisdiction to entertain the application made before it also requires consideration. In the matter of Delhi Transport Corporation (supra), the Court was considering a similar issue. The Court held that the Payment of Wages Act, 1936 was specially enacted for the benefit of all wage earners. However, a special enactment has been enacted, i.e., Industrial Disputes Act, 1947 for the benefit of a class of wage earners, i.e., those who are the workman as defined under Section 2(s) of the Industrial Disputes Act. A further enactment has been made for the benefit of the motor transport workers, i.e., Motor Transport Workers Act, 1961. In view of Section 25 of the said Act, the provisions contained in the Payment of Wages Act, 1936 as in force for the time being shall apply to the motor transport workers engaged in the motor transport undertaking. Section 37 of the said Act provides that the provisions of the said Act shall have the effect notwithstanding anything inconsistent therewith contained in any other law or in the terms of any award, agreement or contract of service whether made before or after the commencement of the said Act. Hence, the Court held that in cases of motor transport workers, Payment of Wages Act, 1936 has been specifically made applicable and the same shall apply to the claims arising out of the provisions contained in Motor Transport Workers Act, 1961. In that view of the matter, the motor transport worker should have approached the authorities under the Payment of Wages Act, 1936 for claim arising of the said Act and, therefore, the Labour Court had no jurisdiction to entertain the application under Section 33-C(2) of the Act. In the matter of M/s. R. L. Kalathia & Co. (supra), this Court held that both the remedies one under the Art and the other under the Minimum Wages Act were available to the workman and the fact that the workman could have availed of the remedy under the Minimum Wages Act, 1948 would not prohibit the workman from going to the Labour Court for computation of their claims under Section 33-C(2) of the Act. Similar is the decision of the Supreme Court in the matter of Town Municipal Council, Athani (supra). It is true that if more than one remedy is available to a workman, the workman may choose to prosecute either of the remedies available to him. In my opinion, the Delhi High Court is right in holding that the only remedy available to the motor transport worker was under the Payment of Wages Act, 1936. In the present case, the workman is a motor transport worker and, therefore, in my view, as is held by the Delhi High Court, the application under Section 33-C(2) before the Labour Court was not competent. The Labour Court wrongly rejected the preliminary issue raised by the transport company.

9. In view of the above discussion and my decision that the application under Section 33-C(2) was not maintainable before the Labour Court, I need not dwell upon the issue of delay raised by Mr. Chari. I, therefore, do not deal with the same.

10. Petition is, therefore, allowed. Mr. Chari states that pursuant to the interim order granted by this Court, the transport company had deposited a sum of Rs. 7,500/- in the Labour Court which amount has been withdrawal by the workman. He states that the transport company shall not recover the aforesaid amount of Rs. 7,500/- which is paid to the workman as aforesaid. Rule is made absolute. There shall be no order as to costs.