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Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • Section 33-C (2) of Industrial Disputes Act applies to Payment of Wages Act.
  • 1992 (2) U.P.L.B.E.C 1472 that Payment of Wages Act, 1936
  • Section 1(6) of Payment of Wages Act
  • Payment of Wages Act, 2006 (109)
  • Section 33-C (2) of I.D Act.7.
  • PAYMENT OF WAGES ACT 1936
  • PAYMENT OF WAGES ACT
  • Section 33-C (2).8.
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • Section 33-C (2) of Industrial Disputes Act applies to Payment of Wages Act.
  • 1992 (2) U.P.L.B.E.C 1472 that Payment of Wages Act, 1936
  • Section 1(6) of Payment of Wages Act
  • Payment of Wages Act, 2006 (109)
  • Section 33-C (2) of I.D Act.7.
  • PAYMENT OF WAGES ACT 1936
  • PAYMENT OF WAGES ACT
  • Section 33-C (2).8.
Smart Summary

Factual and Procedural Background

Respondent No. 2, Arun Kumar, was employed by the petitioner school and his services were terminated on 31-3-2001. On 23-6-2004, he filed an application before the Prescribed Authority under the Payment of Wages Act, 1936, registered as P.W.A Case No. 60 of 2004. He claimed that from 13-4-1991, he was appointed as O.S.D in the petitioner school and was paid less wages than those required under the V Pay Commission recommendations from 1-4-1996 onwards. The claimed difference amounted to approximately Rs. 6,75,918, along with a claim for ten times compensation.

The Prescribed Authority condoned the delay in filing the application through an order dated 20-12-2004, citing repeated applications to the management between September 2001 and March 2004 as the reason. This order was challenged and dismissed by the District Judge on 15-2-2005. Subsequently, on 25-3-2006, the Prescribed Authority allowed the claim in part, awarding about Rs. 2,70,000 as salary difference and imposing seven times damages amounting to Rs. 18,85,429, totaling Rs. 21,54,776. The petitioner school challenged these orders via this writ petition.

Legal Issues Presented

  1. Whether the Payment of Wages Act, 1936, applies to privately managed educational institutions.
  2. Whether delay in filing the application can be condoned on the ground of repeated representations to the management.
  3. Whether entitlement to pay scales based on V Pay Commission recommendations can be adjudicated under the Payment of Wages Act or Section 33-C(2) of the Industrial Disputes Act.
  4. Whether an employee drawing more than Rs. 1600 per month can claim under the Payment of Wages Act as per Section 1(6) of the Act.

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
U.P Basic Shiksha Parishad, Allahabad v. Prescribed Authority, 2006 (109) FLR 1101; (2006) 4 ALJ 203 Payment of Wages Act, 1936 is not applicable to educational institutions. Court relied on this precedent to hold that the Act does not apply to the petitioner school.
R.D.S.O Basic School v. Prescribed Authority, 1992 (2) U.P.L.B.E.C 1472 Payment of Wages Act, 1936 is not applicable to educational institutions. Supported the view that the Act does not extend to private educational institutions.
C. Jocob v. Director of Geology & Mining, 2008 AIR SCW 7233 Repeated representations are not grounds to condone delay in filing claims. Used to invalidate the Prescribed Authority's order condoning delay based on repeated applications to management.
Karnataka State Power Corporation Ltd. v. K. Thangappan, (2006) 4 SCC 322; AIR 2006 SC 1581 Repeated representations do not justify condoning delay in legal claims. Confirmed that delay cannot be condoned merely because of repeated representations.
Ghaziabad Zila Sahakari Bank Ltd. v. Additional Labour Court, Commissioner, 2007 (113) FLR 50; 2007 (2) ADJ 25 SC; 2007 (2) ALJ 719 Disputes regarding pay scale entitlement cannot be adjudicated under Section 33-C(2) of the Industrial Disputes Act. Applied to Payment of Wages Act claims, holding such disputes are not maintainable under this Act.
U.P.S.R.T.C v. Virendra Bhandari, (2006) 10 SCC 211; 2006 (6) ALJ 241 Salary claims based on Pay Commission recommendations cannot be recovered through Section 33-C(2) proceedings. Supported the principle that pay scale disputes are not adjudicable under Payment of Wages Act proceedings.

Court's Reasoning and Analysis

The court examined the applicability of the Payment of Wages Act, 1936, to the petitioner school, referencing precedents that exclude educational institutions from the Act's ambit. It found the Prescribed Authority's order condoning delay illegal because the sole ground—repeated applications to management—was insufficient, as held by Supreme Court precedents. The court reasoned that the delay from 1996 to 2001 was unexplained and could not be condoned. Further, the court held that disputes concerning entitlement to pay scales based on the V Pay Commission recommendations cannot be adjudicated under the Payment of Wages Act or Section 33-C(2) of the Industrial Disputes Act, following established Supreme Court rulings. Additionally, the court noted that Section 1(6) of the Payment of Wages Act bars claims by employees earning more than Rs. 1600 per month, which applied to respondent No. 2. Based on these principles, the court set aside the impugned orders.

Holding and Implications

The writ petition is allowed and the impugned orders dated 20-12-2004 and 25-3-2006 are set aside.

As a direct consequence, the respondent's claim under the Payment of Wages Act is dismissed, and the orders granting salary differential and damages are invalidated. The decision clarifies that the Payment of Wages Act does not apply to privately managed educational institutions and that delay in filing claims cannot be condoned on the basis of repeated representations alone. No new precedent was established beyond affirming existing legal principles.

    D.A.V. Public School v. Prescribed Authority

    1. Heard learned counsel for the parties.

    2. Respondent No. 2, Arun Kumar was an employee of petitioner school. His services were terminated on 31-3-2001. Thereafter, on 23-6-2004, he filed an application before Prescribed Authority under Payment of Wages Act, 1936, which was registered as P.W.A Case No. 60 of 2004. In the said application, he claimed that from 13-4-1991, he was appointed as O.S.D in the petitioner school and he was paid less wages than the wages required to be paid in accordance with the recommendations of V Pay Commission w.e.f 1-4-1996. It was stated that the difference came to Rs. 6,75,918/- (about Rs. 6,80,000/). Ten times compensation was also claimed. It has been held in U.P Basic Shiksha Parishad, Allahabad v. Prescribed Authority under Payment of Wages Act, 2006 (109) FLR 1101 : (2006) 4) ALJ 203) and R.D.S.O Basic School v. Prescribed Authority, 1992 (2) U.P.L.B.E.C 1472 that Payment of Wages Act, 1936 is not applicable to educational institutions.

    3. Through order dated 20-12-2004, Prescribed Authority under Payment of Wages Act condoned the delay. The only ground mentioned in the said order for condoning the delay was that since September, 2001 till March, 2004, respondent No. 2 gave several applications to the management. This is absolutely no ground for condoning the delay. In any case for delay since 1996 till 2001 when services of respondent No. 2 were terminated, there was absolutely no explanation. Against order dated 20-12-2004, appeal was filed, which was dismissed by District Judge Bijnore on 15-2-2005. I find that both the orders are utterly illegal as neither any ground for delay was taken nor any finding was recorded. The Supreme Court in the following authorities has held that filing repeated representations is no ground to condone the delay and it cannot keep a course of action alive.

    1. C. Jocob v. Director of Geology & Mining, 2008 AIR SCW 7233

    2. (2006) 4 SCC 322 : AIR 2006 SC 1581 “Karnataka State Power Corporation Ltd. v. K. Thangappan”

    4. Ultimately, Prescribed Authority under Payment of Wages Act, 1936 allowed the claim of respondent No. 2 through order dated 25-3-2006 holding that from 1-4-1996 to 31-3-2001 respondent No. 2 is entitled to salary in accordance with the V Pay Commission amounting to about Rs. 2,70,000/- (for this period about Rs. 2,40,000/- were paid). Seven times of the said amount, i.e Rs. 18,85,429/- was imposed as damages. Total amount directed to be paid came to Rs. 21,54,776/-. This writ petition is directed against orders dated 20-12-2004 and 25-3-2006.

    5. Recommendations of V Pay Commission when accepted by the Government are applicable upon Government employees. They are not applicable on privately managed educational institutions.

    6. Disputed question of entitlement to a particular pay or pay scale cannot be decided in proceedings under Payment of Wages Act. The same principle which applies to applications under Section 33-C (2) of Industrial Disputes Act applies to Payment of Wages Act. It has repeatedly been held by the Supreme Court that there cannot be any adjudication under Section 33-C (2) of I.D Act.

    7. In this regard, reference may be made to the authority reported in Ghaziabad Zila Sahakari Bank Ltd. v. Additional Labour Court, Commissioner, 2007 (113) FLR 50 : 2007 (2) ADJ 25 SC : (2007 (2) ALJ 719). In U.P.S.R.T.C v. Virendra Bhandari, (2006) 10 SCC 211 : (2006 (6) ALJ 241), it has been held that salary in terms of recommendations of Pay Commission cannot be recovered through proceedings under Section 33-C (2).

    8. Moreover by virtue of Section 1(6) of Payment of Wages Act an employee drawing more than Rs. 1600/- per month cannot make any claim under the said Act. Not only the employee claimed per month wages but even the per month wages actually paid to respondent No. 2 were more than Rs. 1600/-.

    9. Accordingly, writ petition is allowed. Impugned orders are set aside.

    10. Petition allowed.

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    Comments

    D.A.V. Public School v. Prescribed Authority
    (Jan 13, 2009)