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  • S. 33C(2) of the Industrial Disputes Act.10.
  • S. 33C(2) of the Industrial Disputes Act
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  • S. 33C(2) of the Industrial Disputes Act.10.
  • S. 33C(2) of the Industrial Disputes Act
Smart Summary

Factual and Procedural Background

The petitioner challenged Exhibit P2, an order passed by the Labour Court, Kannur (the second respondent). The first respondent filed Claim Petition No. 66 of 1989 under S. 33C(2) of the Industrial Disputes Act before the Labour Court seeking determination and recovery of amounts claimed to be due. The first respondent's case was that he joined the petitioner's studio on 16 September 1985, was promised wages payable in lump sum on demand because the amount was also used for studio improvement, was paid only Rs. 350, left the studio in June 1988 and claimed Rs. 24,087 (including wages, bonus and leave wages). The petitioner (studio owner) disputed maintainability, asserted that the first respondent was only given an opportunity to study photography and was at best an apprentice, and said payments of Rs. 2 to Rs. 25 were made on humanitarian grounds though no entitlement existed.

At the Labour Court, PW.1 was examined for the claimant and RWs.1 and 2 for the employer; Exhibit P1 series were produced by the claimant. The Labour Court concluded that the claimant was not an employee but only an apprentice and therefore entitled to a stipend; it fixed "basic wages" as stipend at Rs. 325 per month and determined amounts due from September 1985 to September 1988. The petitioner challenged that order (Exhibit P2) before this Court. The first respondent did not challenge the finding that he was an apprentice rather than an employee.

Legal Issues Presented

  1. Whether the Labour Court had the power under S. 33C(2) of the Industrial Disputes Act to calculate and fix the amount of money due to a person found to be an apprentice rather than an employee.
  2. Whether an application under S. 33C(2) of the Industrial Disputes Act is maintainable for recovery of stipend when the claimant is held to be an apprentice and not a workman/employee.
  3. Whether, where the entitlement itself (status as employee/workman) is disputed and not previously adjudicated, a Labour Court can decide entitlement and then compute monetary benefits under S. 33C(2).

Arguments of the Parties

First Respondent's Arguments

  • He was employed as a worker in the petitioner's studio from 16 September 1985 and left in June 1988.
  • He was promised wages payable in lump sum on demand because amounts were used for studio improvement.
  • He was paid only Rs. 350 and claimed Rs. 24,087 including wages, bonus and leave wages.

Petitioner's Arguments

  • The claim petition was not maintainable under the statute.
  • The first respondent was given an opportunity only to study photography and, at best, was an apprentice rather than an employee.
  • Payments made to the first respondent (Rs. 2 to Rs. 25) were on humanitarian grounds though he was not entitled to any amount as an employee.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
President, K.P Co-operative Society v. Employees' State Insurance Corporation, Trichur, [1975 (2) L.L.N 365] Establishes that an apprentice works to learn the trade and may assist in work, but is not employed for wages in the same sense as a workman; entitlement is to training (and possibly prospective absorption) rather than wages. The Court relied on this principle to reinforce the distinction between an apprentice and an employee, supporting the view that an apprentice is not entitled to wages as a workman would be.
Divisional Personnel Officer, Southern Railway v. Kamalam [1989 (1) L.L.N 449] Holds that a Labour Court under S. 33C(2) is to calculate money due where the benefit is capable of being computed and is based on an existing, previously adjudicated right; where entitlement is disputed, the Labour Court cannot adjudicate that entitlement under S. 33C(2). The Court applied this principle to conclude that computation under S. 33C(2) must be founded on an existing right; if entitlement (e.g., status as employee) is disputed and not adjudicated previously, the Labour Court lacks jurisdiction to determine that entitlement and then compute benefits.
Municipal Corporation of Delhi v. Ganesh Razak [1995 (1) L.L.N 402] Affirms that where the very basis of the workman's claim (entitlement) is disputed and there is no earlier adjudication or recognition, the dispute as to entitlement is outside the scope of proceedings under S. 33C(2); the Labour Court cannot first decide entitlement and then compute benefits under S. 33C(2). The Court relied on this ratio to hold that because the employer disputed the claimant's status and established that he was not a workman, the Labour Court could not lawfully compute and award payment under S. 33C(2) based on a determination of entitlement made in that proceeding.

Court's Reasoning and Analysis

The Court proceeded in several steps grounded on findings and statutory interpretation contained in the opinion:

  1. The Labour Court's primary factual finding—that the first respondent was not an employee but only an apprentice—was noted and recognized as unchallenged before this Court. The finding that the claimant was an apprentice became final between the parties.
  2. The Labour Court nonetheless fixed a "basic wages" amount of Rs. 325 per mensem as a stipend, stating: "In the absence of any evidence to prove the stipend, I fix the basic wages claimed by the petitioner as stipend, i.e, Rs. 325 per mensem," and determined that amount as due from September 1985 to September 1988.
  3. The Court addressed whether a Labour Court dealing with a petition under S. 33C(2) of the Industrial Disputes Act has the power to calculate money due to an apprentice. The Court considered established authorities (Divisional Personnel Officer, Southern Railway v. Kamalam and Municipal Corporation of Delhi v. Ganesh Razak) which hold that S. 33C(2) proceedings permit computation of money only where entitlement to the benefit is already established or previously adjudicated; if entitlement is disputed with no prior adjudication, the Labour Court cannot determine entitlement and then compute money under S. 33C(2).
  4. Applying those principles, the Court concluded that S. 33C(2) provides a remedy only to a workman (employee). Since the claimant had been found to be an apprentice and there is no employer-employee relationship in that status, the application under S. 33C(2) was not maintainable for recovery of stipend. Stipend is not remuneration payable to an employee under the Act; therefore S. 33C(2) did not afford a basis to award stipend to an apprentice.
  5. Accordingly, the Court determined that the Labour Court exceeded or misapplied its jurisdiction in directing payment to the first respondent under S. 33C(2) and quashed that portion of Exhibit P2 which directed payment.

Holding and Implications

Holding: The original petition is allowed and Exhibit P2 is quashed insofar as it directs payment of any amount to the first respondent. No costs.

Implications: The direct effect is that the Labour Court's order awarding Rs. 325 per mensem (and the resultant monetary determination) to the first respondent is set aside because the claim was brought under S. 33C(2) by a person held to be an apprentice rather than a workman, and S. 33C(2) remedies apply only to workmen. The opinion does not purport to establish a broader new precedent beyond application of the cited authorities; it applies existing precedent to the facts and resolves the question of maintainability and jurisdiction in the present case.

    Achutan v. Babu

    1. Petitioner challenges Exhibit P2 order passed by the Labour Court, Kannur, the second respondent.

    2. First respondent herein filed a claim petition (Claim Petition No. 66 of 1989) under S. 33C(2) of the Industrial Disputes Act before the second respondent for determining the amount due to him. First respondent's case was that he was employed as a worker in the studio owned by the petitioner herein. He was “promised” by the petitioner herein to pay wages in lumpsum on demand since that amount is also utilised for the improvement of the studio. According to him, he joined the service of the petitioner herein on 16 September 1985 and he was paid Rs. 350 only. He left the studio in June 1988. He claimed Rs. 24,087 including wages, bonus, leave wages etc.

    3. Petitioner who is the owner of the studio, disputed the said claim and contended, inter alia, that the application itself is not maintainable; that the applicating was only given an opportunity for studying photography as he was personally known to him and that the applicant can at best, claim the status of an apprentice. The applicant was paid Rs. 2 to Rs. 25 out of humanitarian ground though he was not entitled for any amount.

    4. PW. 1 was examined and Exhibit P1 series were marked on the side of the applicant. RWS. 1 and 2 were examined on the side of the studio owner. On analysis of the entire evidence produced before the Court, second respondent came to the conclusion that the applicant was not an employee under the opposite party, but is entitled to get stipend as an apprentice and proceeded to fix “basic wages” as stipend at the rate Rs. 325 per month. This order is under challenge.

    5. I heard learned counsel for the petitioner and the first respondent. The files were placed before me. I have perused the entire files.

    6. The case of the first respondent before the Labour Court was that he was employed by the petitioner. On the other hand, petitioner herein maintained that the first respondent was only an apprentice in the studio. After having analysed the evidence adduced and Exhibit P1 series of documents produced, the Labour Court came to the conclusion that it cannot be held that the first respondent herein was an employee in the studio under the petitioner. The Labour Court has rejected the evidence of PW. 1 and held that the first respondent is not an employee. It further accepted the evidence of the employer and held that the applicant was only an apprentice. The said finding is in page 14 of the original petition. It reads as follows:

    “He was an apprentice from 1985 September to 1988 September Exhibit P1 series alone cannot be relied on to hold that PW. 1 was an employee of RW. 1…………. Therefore, it is safe to accept the case of respondent on this point An apprentice is entitled to get stipend.”

    Thus, it has been clearly found that the first respondent herein is not an employee in the studio, but was only an apprentice. This portion of the finding has not been challenged by the first respondent worker herein before this Court. Learned counsel for the first respondent has admitted before this Court that the first respondent has not chosen to challenge the impugned order so far. Therefore, the finding that he was not a worker but only an apprentice, has become final between the parties.

    7. A Division Bench of this Court has held in President, K.P Co-operative Society v. Employees' State Insurance Corporation, Trichur, [1975 (2) L.L.N 365], in Para. 4, at page 368:

    “… In the case of an apprentice though he may also assist in the work of the factory and he may also turn out work it is not to get such out turn, that he is permitted to work but to enable him to learn the trade. He may be given some incentive such as the prospect that he may be absorbed in the establishment and his training in the establishment may stand him in good stead elsewhere. While it may be said that he is working in the factory it cannot possibly be said that he is employed for wages in the factory as in the case of a workman in the factory….”

    Thus, it can be said that an apprentice can, at best, have a prospective hope that he will be absorbed in the establishment later and he is not entitled to wages.

    8. After having found that the claimant is only an apprentice, the Labour Court proceeded further to fix the “basic wages” of the claimant. The finding of the Labour Court in Exhibit P2 in that regard is extracted here:

    “In the absence of any evidence to prove the stipend, I fix the basic wages claimed by the petitioner as stipend, i.e, Rs. 325 per mensem.”

    The further finding is as follows:

    “Admittedly PW 1 is not working in the studio of RW 1 since September 1988. PW. 1 has no case that employment was denied to him. This is a circumstance which would indicate that the case of PW. 1 cannot be accepted in its entirety. Therefore, the amount due to the applicant is determined as Rs. 325 per mensem from September 1985 to September 1988.”

    9. The next question for consideration, therefore, is whether the Labour Court has powers to calculate the amount of money due to the apprentice while dealing with the petition under S. 33C(2) of the Industrial Disputes Act. This Court has held in Divisional Personnel Officer, Southern Railway v. Kamalam [1989 (1) L.L.N 449], thus, in Para. 6, at pages 449, and 450:

    “A Labour Court, while dealing with a petition under S. 33C(2) of the Industrial Disputes Act is to calculate the amount of money due to the workman from his employer. If the workman is entitled to any benefit which is capable of being computed in terms of money, that can be computed and the workman given the money. The said calculation or computation should be on the basis of an existing right to money or benefit which had been previously adjudicated. If the right to the money or benefit which is sought to be computed is disputed, the Labour Court cannot adjudicate on that in petition filed under S. 33C(2). The question as to whether the workman is entitled to the benefit is beyond the purview of the jurisdiction of the Labour Court under S. 33C(2) of the Industrial Disputes Act. In other words, the determination of the question as to whether the employee is entitled to the right claimed by him as also to whether the employer is liable to pay the amount claimed by the employee are not to be adjudicated upon by the Labour Court while dealing with the petition under S. 33C(2) of the Industrial Disputes Act….”

    10. In a recent decision of the Supreme Court in Municipal Corporation of Delhi v. Ganesh Razak [1995 (1) L.L.N 402], it is held, in Para. 12, at page 407:

    “…………… The ratio of these decisions clearly indicates that where the very basis of the claim or the entitlement of the workman to a certain benefit is disputed, there being no earlier adjudication or recognition there of by the employer, the dispute relating to entitlement is not incidental to the benefit claimed and is, therefore, clearly outside the scope of a proceeding under S. 33C(2) of the Act. 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 S. 33C(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 that the interpretation is treated as incidental to the Labour Court's power under S33C(2) like that of the Executing Court's power to interpret the decree for the purpose of its execution.”

    11. In the present case, the employer has disputed the status of the claimant and has successfully proved before the Labour Court that the claimant was not appointed as a workman in the establishment. The Court found that he was not a workman. S. 33C(2) of the Act provides a remedy only to a workman to make an application for recovery of the amounts due to him. Only an employee can file an application under S. 33C(2) of the Act against his employer. In so far as an apprentice is concerned, there is no employer-employee relationship. An apprentice is only a student and the premises are only his training ground. By assisting the employer in the studio, he may also turn out work where he is permitted to work; but it is only to enable him to learn the trade. He attends the studio not to work as an employee, but only to learn the work. Hence, the application under S. 33C(2) is not maintainable for recovery of stipend. Stipend is not remuneration payable by an employer to his employees. S. 33C(2) of the Act gives a right only to a workman to claim the amount due to him.

    12. For the above reasons, the original petition is allowed and Exhibit P2 order is quashed in so far as it directs payment of amount to the first respondent herein. No costs.

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    Comments

    Achutan v. Babu
    (Jun 12, 1996)