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  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 33(2) of the Industrial Disputes Act, 1947
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
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  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 33(2) of the Industrial Disputes Act, 1947
Smart Summary

Factual and Procedural Background

The respondent, employed as a canteen peon with the appellant Company, was charged on 17 June 1964 with theft of one packet of Brooke Bond tea and two seers of sugar. After an internal enquiry held on 22 June 1964—at which the respondent was present—the Enquiry Officer found the charge proved, and the Company dismissed the respondent on 28 July 1964.

Because an industrial dispute between the Company and its workmen was already pending, the Company sought approval of the dismissal under Section 33(2)(b) of the Industrial Disputes Act, 1947, by filing an application before the Industrial Tribunal, Bihar. The Tribunal upheld the fairness of the enquiry but rejected the Company’s application on the sole ground that the respondent had not been “paid” one month’s wages prior to dismissal, as required by the proviso to Section 33(2)(b). The Company obtained special leave and appealed to the Supreme Court.

Legal Issues Presented

  1. Whether tendering the respondent’s one month’s wages by postal money order constituted compliance with the requirement of “payment” under the proviso to Section 33(2)(b) of the Industrial Disputes Act, 1947.
  2. Whether, on the evidence, the Company had in fact tendered those wages before the dismissal order took effect.

Arguments of the Parties

Appellant Company

  • The proviso requires only a bona fide tender of wages, not actual receipt; precedent establishes that refusal or non-acceptance by the workman cannot invalidate the dismissal.
  • Wages of Rs 144 were remitted by money order on the very day of dismissal, and the dismissal letter expressly referred to this remittance.
  • The respondent deliberately avoided service of the registered letter and money order, as demonstrated by his acknowledged receipt of two other communications sent to the same address.

Respondent Workman

  • Denied having received the money order and contended that, therefore, the statutory condition of payment was unmet.
  • Argued that the Company failed to prove the money order was sent to the correct address and should have produced postal officials to establish delivery details.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Strawboard Manufacturing Co. v. Gobind (1962) 3 Suppl SCR 618 “Payment” in the proviso to Section 33(2)(b) is satisfied by tender; actual acceptance is not essential. Used as the foundational authority to construe “paid” as encompassing a bona fide tender of wages.
P. H. Kalvani v. Air France (1964) 2 SCR 104 An offer of one month’s wages before dismissal amounts to compliance with Section 33(2)(b). Reinforced that an offer/tender made contemporaneously with dismissal suffices.
Management of Delhi Transport Undertaking v. Industrial Tribunal, Delhi (1965) 1 SCR 998 Employer complies with the proviso even if the workman wilfully refuses to accept the tendered wages. Cited to negate the respondent’s attempt to thwart compliance by non-acceptance.

Court's Reasoning and Analysis

The Supreme Court reiterated the settled interpretation that the proviso to Section 33(2)(b) requires only a genuine tender of wages. Actual delivery into the workman’s hands is unnecessary because allowing refusal to defeat the employer’s compliance would render the provision unworkable.

On the factual question, the Court found “ample evidence” of tender:

  • The dismissal letter, served personally, by ordinary post, and by registered post, expressly stated that a money order for one month’s wages was being sent.
  • A postal receipt proved dispatch of a money order for Rs 144 to the respondent at the same address where other communications were admittedly received.
  • The respondent acknowledged receipt of the ordinary-post letter but claimed non-receipt of the registered letter and money order; the Court inferred deliberate avoidance because all items bore the same address.
  • No challenge to the Company’s assertion of remittance was raised until the respondent testified, and cross-examination suggested collusion with the postman to return the items marked “not known.”

Consequently, the Company had fulfilled the statutory condition by bona fide tender. The Tribunal’s contrary conclusion stemmed from misappreciation of the evidence and an unduly literal reading of “paid.”

Holding and Implications

Appeal Allowed; Tribunal’s order set aside. The Industrial Tribunal must grant approval to the Company’s dismissal of the respondent. Costs of the appeal are awarded to the Company.

Implications: The judgment reaffirms that employers satisfy Section 33(2)(b) when they make a bona fide, timely tender of one month’s wages. Workmen cannot invalidate a dismissal by refusing or evading receipt. While the decision does not create new doctrine, it strengthens existing precedent and provides practical guidance on evidentiary proof of tender.

    Indian Oxygen Limited v. Narayan Bhoumik .

    Shelat, J.— In June 1964, the respondent workman was a canteen peon in the employment of the appellant Company. He was charged on June 17, 1964 of stealing a packet of Brooke Bond tea and 2 seers of sugar. On June 22, 1964, an enquiry was held against him wherein he was present and participated. The enquiry officer having held that the charge against him was proved, the management passed an order of dismissal dated July 28, 1964.

    2. As an industrial dispute between the appellant Company and its workmen was pending at that time, the Company filed an application before the Industrial Tribunal, Bihar for approval of the said dismissal under Section 33(2) of the Industrial Disputes Act, 1947. In reply to the said application the respondant pleaded (a) that he was falsely implicated in the said charge, (b) that in spite of his request the enquiry officer did not permit him to bring a co-workman to help him in the said enquiry, (c) that the enquiry officer threatend him that if he brought any representative he would dismiss him forthwith and that if he did not, he would be recalled to duty within 2 or 3 days, (d) that he was not given any opportunity to defend himself, and (e) that the enquiry officer held the enquiry behind closed doors and took his thumb impressoins on certain papers under coercion. The Tribunal rejected these allegations and held that the enquiry was properly held. It also rejected the respondent's contention that the application was not maintainable as it was made not by the Company but by its District Manager, the Tribunal holding that that officer was competent to file the application.

    3. But the contention which appealed to the Tribunal and on the basis of which it dismissed the application was that the Company had failed to pay to the respondent a month's wages before the said order of dismissal came into operation and, therefore, had not complied with one of the conditions in the proviso to Section 33(2)(b). The Tribunal agreed that the order of dismissal served on the workman did mention the fact that Rs 144, being the month's wages, were being remitted to him by a postal money order. But the Tribunal observed that the workman in his evidence had denied receipt of the money order and in his cross-examination the Company had not challenged that statement. The Tribunal held that the Company had, therefore, failed to prove the remittance of the month's wages and on the ground that it had failed to satisfy one of the two conditions of the said proviso rejected the application. The appellant Company obtained special leave against this order and filed this appeal.

    4. The proviso to Section 33(2)(b) lays down that no workman shall be discharged or dismissed unless he has been paid wages for one month and an application has been made by the employer to the authority before which the proceeding is pending for approval of the action taken by him. Though the word used in the proviso is “paid”, the proviso does not mean that the employer must actually handover or pay to the workman dismissed or discharged his one month's wages. In Strawboard Manufacturing Co. v. Gobind (1962) 3 Suppl SCR 618 this Court while constructing this proviso, observered that when it lays down the condition as to payment of one month's wages all that the employer is required to do to carry out that condition is to tender the wages to the employee. But if the employes chooses not to accept them, he cannot come forward and say that there has been no payment of wages to him by the employer. Therefore, though Section 33 speaks of payment of one month's wages, it can only mean that the employer has tendered the wages and that would amount to payment, for otherwise a workman could always make the section unworkable by refusing to take the wages. In P.H Kalvani v. Air France (1964) 2 SCR 104 the employer had offered one month's wages to the workman before the order of dismissal against him came into force. The offer was held to be sufficient compliance of the said condition laid down in the proviso. Management of Delhi Transport Undertaking v. Industrial Tribunal, Delhi (1965) 1 SCR 998 was a case where the wages were remitted by money order but the workman purposely refused to receive them. It was held that the employers could not be said not to have complied with the condition laid down by the proviso. It is thus clear that the condition as to payment in the proviso does not mean that wages have to be actually paid but if wages are tendered or offered, such a tender or offer would be sufficient compliance for the purposes of Section 33(2)(b) proviso.

    5. The question is whether the appellant Company failed to prove that it had remitted the month's wages by money order to the respondent before its order of dismissal came into operation. In our view, there is ample evidence on record to show that the Company had sent the money order for Rs 144 at the same time that it served its order of dismissal both by personal delivery and by post. It is, therefore, not possible to appreciate in view of that evidence how the Tribunal persuaded itself to come to the conclusion that the Company had failed to prove the remittance. On the other hand, it appears fairly certain that the respondent workman somehow managed to avoid receiving the registered letter dated July 28, 1964 as also the said money order sent by the Company.

    6. The respondent joined service with the Company on August 20, 1957 and at that time gave the following address in the staff form which he had to fill in, namely,

    “Amla Basti,
    P.O Burma Mines,
    Jamshedpur.”
    When the charge-sheet against him was framed and he had to be served with it and notified as to the enquiry proposed to be held against him, the Company made enquiries as to his whereabouts. It was then found that he was living at the following address:
    “Line No. 1, Qr. 64,
    10 No. Basti Golmuri,
    Jamshedpur.”

    7. It was at this address that on June 20,1964 a peon of the appellant Company delivered to the respondent the said notice and obtained his thumb impression in the delivery book in acknowledgment of the receipt of the said notice. In pursuance of that notice, the respondent appeared at and participated in the enquiry on June 22, 1964. As aforesaid, the order of dismissal as passed on June 28, 1964 and on that very day it was served on him in three different ways, (a) by personal delivery by the Company's peon who also obtained the respondent's thumb impression in the delivery book, (b) by a letter sent by ordinary post, and (c) by a letter sent by registered post. In all these three letters, it was expressly stated that his month's wages were being remitted by postal money order. These communications were sent at the same address where the Company's peon had delivered the said notice as to the enquiry. The Company sent the wages on the same day by money order also at the same address. This fact is proved by the postal receipt produced by the Company. In that money order it was stated that Rs 144 were being remitted “being your wages for one month as per our Memo No. MAN/432 of 28-7-64”. These words were written in the coupon in the money order form and they show that the money was being remitted to the respondent and to no other person. The Tribunal, therefore, was in error when it said that the Company had failed to prove that Narayan Bhoumik to whom the said money order was sent was the same as the respondent.

    8. In his evidence the respondent admitted that the said letter sent by ordinary post was received by him and that his address at the time of the alleged theft by him was the one at which all these communications were addressed. The registered letter, however, came back to the Company on August 7, 1964 with the endorsement “not known and the money order also was returned to the Company on August 26, 1964 presumably for the same reason. The respondent knew that he had not received the registered letter as also the money order, yet when he filed his written statement he did not deny the statement made by the Company in its application that as required by Section 33(2)(b) proviso it had paid the month's wages to him. Even in the cross-examination of the Company's witness it was not said that the Company's aforesaid statement was false, or that the respondent had not received the money order No issue, therefore, was raised by the Tribunal as to whether the Company had paid the said wages or not. The first time that the respondent came out with the allegation that he had not received the said wages was when he gave evidence after the Company had closed its evidence. The Company, however, in the respondent's cross-examination suggested that though it had sent the money order, the respondent had somehow managed with the postman not to deliver to him the said registered letter and the said money order and to make an endorsement that the addressee was “not known”. It was, therefore, incorrect of the Tribunal to say that the Company had failed to cross-examine the respondent on this point.

    9. Counsel for the respondent contended that the endorsement on the registered letter when returned that the addressee was “not known” at the address written thereon showed that the Company had in that letter written a wrong address, that, therefore, the Company failed to prove that the said registered letter and the money order were sent to the respondent at his proper address and that the Company ought to have examined the postal authorities that the money order was sent at the address alleged by the Company. No question as to the registered letter and the money order having been sent at a wrong address can arise as the address written on the registered letter was, as admitted by the respondent, his address at the time of the alleged theft by him. There can also be no reason to think that the Company had given any address in the money order other than the one at which the Company had sent the registered letter and the other two letters. There was no point in the Company examining the postal authorities as at no time except when the respondent gave evidence, the fact of the wages having been sent to him by money order was denied. The postal receipt clearly shows that the Company had sent the said wages by money order.

    10. The fact that the two letters, one by personal delivery and the other by ordinary post, were admittedly received by him shows that the registered letter and the money order were sent to the respondent at the proper address, that is, the same address at which the letter by personal delivery and the letter by ordinary post were sent and delivered. Since the letter by ordinary post reached him, there is no reason why the postman could not have delivered the registered letter and the money order to the respondent, all the letters and the money order having been sent at the same address.

    11. On these facts we are satisfied that the Company remitted the month's wages to respondent by money order, that the money order was sent at the correct address, that the respondent managed not to receive the said money order and the said registered letter, that when the Company remitted the wages by money order, it tendered the month's wages to him and did all it could do to comply with the condition laid down in the said proviso. The Company having thus made a valid and a proper tender, there was no question of its not having complied with the condition in the said proviso and the Tribunal was bound to allow its application. The rejection of that application by the Tribunal was consequently wrong.

    12. In the circumstances we allow the appeal and set aside Tribunal's order of dismissal. The respondent will pay to the appellant Company the costs of this appeal.

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    Comments

    Indian Oxygen Limited v. Narayan Bhoumik .
    (Jul 24, 1968)