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Mr. Abdul Latif, v. The Divisional Superintendent, Lahore Division, North Western Railway, .
Case Summary — Review of Appealability of Orders Refusing Directions under Section 15, Payment of Wages Act, 1936
Factual and Procedural Background
The dispute arises from an application under Section 15 of the Payment of Wages Act, 1936 made by Abdul Latif, formerly employed as a Booking Clerk on the North Western Railway and removed from Crown service on 9-8-1942. Abdul Latif submitted multiple petitions under Section 15 for payment of delayed wages, including the application dated 31-8-1945, seeking payment of delayed wages for the period 1 April 1945 to 30 September 1945. The Authority appointed under the statute concluded there was a bona fide dispute regarding the validity of the removal from service and, invoking the proviso to Sub-section (3) of Section 15, declined to make a direction for payment. The application was dismissed without issuing notice to the opposite party. The petitioner appealed to the District Judge of Delhi, who declined to entertain the appeal on the ground that no appeal lies against an order refusing to make a direction. The petitioner then filed the present revision petition to this Court challenging the District Judge's legal conclusion.
Legal Issues Presented
- Whether an appeal lies from an order refusing to make a direction under Section 15 of the Payment of Wages Act, 1936 (i.e., does the term "direction" in Section 17(1) include a refusal or failure to make a direction)?
Arguments of the Parties
The opinion does not contain a detailed account of the parties' legal arguments.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Mohamed Haji Umar v. Divisional Superintendent, North Western Railway, AIR 1941 Sind 191 | Held that the word "direction" in Section 17 should be taken to include a refusal to make a direction; an employed person should have a right of appeal even if his claim was wholly dismissed. | Identified as authority supporting the proposition that "direction" includes refusal; the Court considered this view but did not adopt it in its final conclusion. |
| Divisional Supdt., North Western Railway, Lahore v. Abdul Latif, Civil Revision No. 454 of 1946 (High Court at Lahore) | Endorsed the view that "direction" covers both positive directions to pay and directions not to pay; criticized a construction that would deny appeal where the claim is wholly dismissed. | Cited as an endorsing authority for the first proposition (that "direction" includes refusal); the Court acknowledged it but did not follow this view in the decision rendered. |
| Khema Nand v. E. I. Rly. Administration, AIR 1943 All 243 | Held that a "direction" under Section 15 is a positive order directing payment; an application rejected (e.g., as time-barred) is not a "direction" and therefore not appealable. | Cited as a contrary authority to the Mohamed Haji Umar line; the Court treated this as supporting the view that refusal to make a direction is not appealable and relied on this construction in its reasoning. |
| P. Kumar v. Running Shed Foreman, E. I. Rly. Administration, AIR 1946 Oudh 148 (also referenced as AIR 1948 Oudh 148) | Adopted the view that Section 15 contemplates a positive order to pay and that rejection of an application means there was no direction; hence no appeal lies against such rejection. | Cited as a supporting authority for the proposition that refusal to make a direction is not a "direction" for the purposes of appeal; the Court relied on this approach. |
| Mohima Chunder Biswas v. Tarini Sundari Chose, ILR 19 Cal 487 | One of several authorities holding that an order refusing to remove a guardian is final and not appealable (interpretation under Guardians and Wards Act provisions). | Used analogously: the Court invoked this line of authorities to show that similar statutory schemes treat refusal orders as non-appealable, supporting the Court's construction of Section 17(1). |
| Pakhwantj Daj v. Indra Narain Singh, ILR 23 Gal 201 | Similarly held that refusal to remove a guardian is final and not appealable under the Guardians and Wards Act. | Referred to as part of a consistent body of authority that the Court used by analogy to support its conclusion regarding appealability under the Payment of Wages Act. |
| In re Bai Hazkha, ILR 20 Bom 667 | Another decision holding that refusal to remove a guardian is not appealable. | Cited among multiple decisions establishing the non-appealability of orders refusing to remove guardians; relied on by the Court by analogy. |
| Intiaz-un-Nissa v. Anwar-ul-Jah, ILR 20 All 433 | Authority holding order refusing to remove a guardian is final and not appealable. | Counted with the other Guardians and Wards cases to show judicial consistency; used to reinforce the Court's conclusion. |
| Kaniz Jenatul Kobra v. Hamidimnissa, 14 Ind Cas 56 (Gal) | Decision aligning with the principle that refusal to remove a guardian is not appealable. | Cited as part of the established line of authorities the Court used analogically to interpret appealability under the Payment of Wages Act. |
| Muhammad Anvvar Ali Khan v. Dara Shah Khan, ILR 42 All 514; 56 Ind Cas 208 (AIR 1920 All 397) | Earlier authority holding that an order refusing to remove a guardian is final and not subject to appeal. | Included in the list of analogous authorities; the Court relied on this consistent body of decisions in reaching its conclusion. |
| Suraj Narayan Singh v. Bishambat Nath, AIR 1925 Oudh 260 | Another case supporting the non-appealability of an order refusing to remove a guardian. | Part of the analogous jurisprudence invoked by the Court to support the reasoning that a refusal to make a statutory direction is not an appealable "direction." |
Court's Reasoning and Analysis
The Court framed the central statutory provisions: Sub-section (3) of Section 15 authorizes the Authority to direct refund or payment of delayed wages and compensation; Sub-section (4) authorizes a penalty where an application is malicious; and Section 17(1) expressly provides for an appeal "against a direction made under Sub-section (3) or Sub-section (4) of Section 15" but is silent on appeals from orders refusing to make a direction.
The Court identified two competing constructions of the term "direction" in Section 17(1):
- The first construction treats "direction" as synonymous with "order" and therefore inclusive of negative orders (i.e., refusals to make a direction). Authorities such as Mohamed Haji Umar and the Lahore decision in Divisional Supdt., North Western Rly. Lahore v. Abdul Latif support this reading, emphasizing the perceived unreasonableness of allowing an appeal only where part of a claim is allowed but denying appeal where the claim is wholly dismissed.
- The second construction regards "direction" as a positive command to make payment; under this view, a refusal or a decision not to make a direction is not a "direction" and hence not appealable. Khema Nand and P. Kumar reflect this contrary position.
To resolve the textual ambiguity, the Court employed parallel statutory interpretation and comparative analysis:
- Analogical reasoning: the Court examined a similar statutory framework in the Guardians and Wards Act (Section 39 and Clause (g) of Section 47). It noted a consistent line of authorities holding that an order refusing to remove a guardian is final and not appealable. The Court found this analogous and persuasive for construing Section 17(1) of the Payment of Wages Act.
- Legislative intent and expressness: the Court observed that when the Legislature intended to make orders refusing certain reliefs appealable it did so in clear language elsewhere (examples from clauses of Rule 1 of Order 43, CPC are cited: appeals lie from orders giving or refusing leave under Rule 10 of Order 22, from orders setting aside or refusing to set aside sales, and from orders recording or refusing to record certain agreements). The Court reasoned that if the Legislature had intended to allow appeals from refusals under Section 15, it could and would have expressed that intention explicitly.
- Doctrine of statutory creation of appeal rights: the Court reiterated the well-established principle that a right of appeal is a creature of statute and cannot be presumed unless expressly conferred. The mere fact that denying appeals in some situations may be "hard" or "unreasonable" is not sufficient to override the statutory silence.
Balancing these points, the Court concluded that the more consistent and legally sound construction is that Section 17(1) permits appeals only from positive directions made under Section 15(3) or (4), and does not confer a right of appeal from an order refusing to make a direction.
Holding and Implications
Holding: The Court upheld the District Judge's conclusion and held that no appeal lies from an order refusing to make a direction under Section 15 of the Payment of Wages Act, 1936. The petition (revision) was dismissed and there was no order as to costs.
Implications:
- Direct effect on the parties: The appeal filed by the petitioner could not be entertained and the petition for revision was dismissed; the Authority's dismissal without issuing notice stands.
- Broader implications: The opinion relies on statutory text, analogy to established Guardians and Wards jurisprudence, and examples of explicit legislative language in other procedural rules to justify its construction. The opinion does not elaborate on any broader policy consequences beyond the direct legal effect stated above.
Delivered by Harnam Singh, J.
1. The short point for decision in the present case is whether an appeal lies from an order refusing to make a direction under Section 15 of the Payment of Wages Act, 1936. It appears that one Abdul Latif who was employed as a Booking Clerk on the North Western Railway was removed from service of the Crown on 9-8-1942.
He submitted a number of petitions under Section 15 of the Act of 1936 for payment of delayed wages, including the one dated 31-8-1945 which forms the subject of the present case and in which he claims payment of delayed wages for the period commencing with the 1st April 1945 and ending with the 30th September 1945. The Authority appointed by the Provisional Government to hear and decide the claims arising under the statute came to the conclusion that there was a bona fide dispute between the employer and the employee as to whether the removal was or was not valid in the eye of law and, consequently, that in view of the proviso to Sub-section (3) of Section 15 the Authority was not at liberty to make a direction for the payment of wages.
The application was accordingly dismissed without issuing a notice to the opposite party. The petitioner appealed to the District Judge of Delhi, but the latter declined to entertain the appeal on the ground that no appeal could lie against an order refusing to make a direction. The petitioner has come to this Court in revision and the question for this Court is whether the learned District Judge has come to a correct determination in point of law.
2. Sub-section (3) of Section 15 provides that when any application under sub-section (2) of the said section is entertained, the Authority may direct the refund to the employed person of the amount deducted from his wages, or the payment of the delayed wages, together with the payment of such compensation as the Authority may think fit. Sub-section (4) empowers the Authority to direct that a penalty not exceeding Rs. 50/- be paid to the employer if the application is malicious or vexatious. Sub-section (1) of Section 17 is in the following terms:
"(1) An appeal against a direction made under Sub-section (3) or Sub-section (4) of Section 15 may be preferred, within 30 days of the date on which the direction was made .....
(a) by the employer or other person responsible for the payment of wages under Section 3, if the total sum directed to be paid by way of wages and compensation exceeds three hundred rupees, or
(b) by an employed person, if the total amount of wages claimed to have been withheld from him or from the unpaid group to which he belonged exceeds fifty rupees, or
(c) by any person directed to pay a penalty under Sub-section (4) of Section 15."
3. Section 17 provides clearly and in unambiguous language that in certain circumstances an appeal can be preferred against a direction made under Sub-section (3) or Sub-section (4) of Section 15, but it is com-pletely silent as to whether an appeal can lie from an order refusing to make a direction. The question which arises and which is by no means freedom difficulty is whether the expression "direction" can be deemed to include the expression "failure to make a direction" or "refusal to make a direction."
4. A diversity of judicial opinion has manifested itself in regard to the meaning that should be attached to the expression "direction" appearing in Sub-section (1) of Section 17. According to one view the Word "direction" must be deemed to be synonymous with the word "order" so that if an authority constituted under the Payment of Wages Act makes a direction (that is, an order under Section 15) an appeal would lie from the said direction or order, whatever the nature of such direction or order may be.
According to this view an appeal would lie from an order even if such order omits or refuses to make a direction. According to another view the word "direction" must be regarded as a positive order directing one person to make payment to the other and cannot be said to include a negative order, for example, an order that no payment should be made.
5. Two authorities have been cited in support of the first proposition. In Mohamed Haji Umar v. Divisional Superintendent, North Western Railway, AIR 1941 Sind 191, Weston J., held that although the USD of the word "direction" in Section 17 lends some support to the argument that no appeal will lie unless an order of the nature explicitly contemplated by Section 15(3) has been made, it would be a remarkable result if an employed person were held to have a right of appeal only if he has obtained an order allowing a part of claim, and to have no right of appeal if his claim has been rejected in toto however large it may have been.
The learned Judge, therefore, entertained no doubt whatever that the Legislature did not intend such a result, and that the word "direction" in Section 17 should be taken to include a refusal to make a direction. This view was endorsed in Divisional Supdt., North Western Rly. Lahore v. Abdul Latif, Civil Revn. No. 454 of 1946. decided by the High Court at Lahore in which Abdnr Rahman J., held that as it has been clearly provider in Section 17(1)(b) that an appeal was competent to an employed person, if the total amount of wages claimed to have been withheld from him exceed Rs. 50/-, it was extremely unreasonable to hold that the Legislature could have intended to allow a right of appeal to a person who had been allowed a part of his claim and that it could not have intended to allow a similar right of appeal to a person whose claim was totally dismissed. In the course of his order the learned Judge observed as follows:
"This means that the only qualification for any employed person to appeal as laid in Section 17 of the Act is that his claim must exceed a sum of Rs. 50/-and not that any part of his claim should have been decreed by the first Court. Had that been so, it would have been clearly stated. If the contention advanced by learned counsel for the petitioner were to be upheld, it would mean that the Legislature had omitted in Sub-clause (b) of Section 17 of the Act to provide for cases where the claim happens to be totally refused.
It seems to be wholly unreasonable to contend that while the Legislature had provided for an appeal where a claim was partially allowed by the Authority under the Payment of Wages Act it had failed to provide for a remedy when the whole of the claim was refused altogether. It would be anomalous to hold that while an appeal would be competent when a claim was allowed to some exit yet the decision of the Authority under the Payment of Wages Act would be final when it was negatived in toto.
One must rebel against a construction which would lead to such absurdities. The obvious meaning to be attached to. Sub-section (1) of Section 17 in my view is that the word 'direction' under sub-sections (3) and (4) of Section 15 of the Payment of Wages Act covers cases both when the direction is to pay and when there is a direction not to pay."
6. A contrary view has been taken in Khema Nand v. E. I. Rly. Administration, AIR 1943 All 243 and P. Kumar v. Running Shed Foreman E. L Rly. Administration, AIR 1946 Oudh 148. In the Allahabad case Hamilton J., held that the language of Section 15 indicates that a direction is an order to one side to make a payment to the other side. When the application of the employee under Section 15 is rejected as time-barred without even entering into the merits it must be taken that not merely was there no direction but that the application was not even entertained.
There is nothing in the Act which provides for an appeal in such cases. The learned Judge examined the case reported in AIR 1941 Sind 191 and held that although it is somewhat hard that there should not be an appeal in certain cases it was difficult to hold that a refusal to make a direction is a direction. In dealing with this argument he expressed himself as follows:
"It may be that the Legislature held that if an employee had made good his claim in part he should have a right of appeal as regards the part as to which he had failed but the Legislature thought that if he had entirely failed then he had not made out a prima facie case so he should have no right of appeal."
7. A similar view was, taken in AIR 1948 Oudh 148. In that case Thomas C. J., held that the language of Section 15 indicates that a direction under that section is an order to one side to make, payment to the person to whom the wages are due. But where am application of the employee under Section 15 has been rejected, it must be taken that there was no direction and hence no appeal lies against the order rejecting the application.
8. The construction which the Courts have placed on a similar provision in another enactment leads me to the same conclusion. Section 39 of the Guardians and Wards Act empowers a Court to remove a guardian appointed or declared by the Court,. or a guardian appointed by will or other Instrument and Clause (g) of Section 47 allows an appeal against an order removing a guardian.
The Courts have held again and again, that an order refusing to remove a guardian does not fall under that clause and is final and not appealable, vide Mohima Chunder Biswas v. Tarini Sundari Chose, ILR 19 Cal 487; Pakhwantj Daj v. Indra Narain Singh, ILR 23 Gal 201; In re, Bai Hazkha, ILR 20 Bom 667; Intiaz-un-Nissa v. Anwar-ul-Jah, ILR 20 All 433; Kaniz Jenatul Kobra v. Hamidimnissa, 14 Ind Cas 56 (Gal); Muhammad Anvvar Ali Khan v. Dara Shah Khan, ILR 42 All 514; 56 Ind Cas 208: (AIR 1920 All 397 (I)) and Suraj Narayan Singh v. Bishambat Nath. AIR 1925 Oudh 260.
9. Had the Legislature intended that an appeal should lie not only from an order making a direction but also from an order refusing to make a direction, it could have had no difficulty in manifesting its intention in clear and unambiguous language as it has done in the various clauses of Rule 1 of Order 43 of the Code of Civil Procedure. Clause (j), for example, provides that an appeal shall lie from an order under Rule 72 or Rule 92 of Order 21 setting aside or refusing to set aside a sale.
Similarly, Clause (1) declares that an appeal shall lie from an order under Rule 10 of Order 22 giving or refusing to give leave. Again Clause (m) confers a right of appeal from an order under Rule 3 of Order 23, recording or refusing to record an agreement, com-
promise or satisfaction.
10. The only inference that may reasonably be drawn from these provisions of law is that while the Legislature was anxious to confer a right of appeal against a direction made under Section 15 of the Act of 1936, it did not wish to confer a similar right in respect of an order refusing to make a direction. Nor can such right be presumed on the ground only that it is somewhat unreasonable that while the Legislature had provided for an appeal where the claim was partially allowed by the Authority it had failed to provide for a remedy when the whole of the claim was refused.
A right of appeal cannot be presumed on such vague surmising and the Legislature cannot be presumed to have done something which the Courts consider it should have done. It has been held repeatedly that an appeal is a creature of the statute and that a right of appeal cannot be presumed unless it has been expressly conferred.
11. For these reasons, I have no hesitation in endorsing the view taken by the learned District Judge that no appeal lies from an order refusing to make a direction and that the appeal preferred in the present case could not be entertained. The petition will be dismissed but there will be' no order as to costs.
Harnam Singh, J.
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