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Smart Summary

Factual and Procedural Background

This appeal challenges an order dated August 10, 2007, passed by a learned single Judge in Civil Application Nos. 1554 of 2007 and 1916 of 2006. The first application was filed by the workmen seeking a direction for the respondents to provide regular wages and benefits equivalent to those paid to other employees of the respondent Company. The second application sought wages payable under section 17B of the Industrial Disputes Act, 1947. The learned single Judge granted reliefs including payment of wages at par with unskilled permanent workmen or statutory minimum wages, payment of wages even when no work was provided, acceptance of wages without prejudice to rights, and payment of arrears within four weeks. The management challenged the correctness of this order, particularly the grant of higher wages than minimum wages at an interim stage, leading to the present appeal.

Legal Issues Presented

  1. Whether a learned single Judge could grant, by an interim order, wages higher than the minimum wages payable to workmen under section 17B of the Industrial Disputes Act.
  2. Whether the Court can direct payment of wages to workmen at par with unskilled permanent workmen or statutory minimum wages even when work is not provided.
  3. The extent to which the interests of the employer should be protected while granting relief under section 17B of the Industrial Disputes Act.

Arguments of the Parties

Appellant's Arguments

  • The learned Judge could not grant wages higher than minimum wages by an interim order.
  • The order grants impermissible benefits prejudicing the management’s interest by directing payment at par with permanent workmen who may have longer service.
  • Regular wages cannot be granted at an interim stage and should be adjudicated along with the writ petition.

Respondent's Arguments

  • Workmen are entitled to equal pay for equal work, supported by Supreme Court judgments.
  • The Court can grant higher wages than minimum or last drawn wages under section 17B of the Act.
  • The filing of another application for regular benefits justifies granting such relief.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Food Corporation of India v. Shyamal K. Chatterjee, 2000 (87) FLR 677 Entitlement of workmen to equal pay for equal work. Supported the respondents' contention that workmen should receive wages at par with others performing similar work.
Regional Authority, Dena Bank v. Ghanshyam, 2001 (3) LLN 30 High Courts and Supreme Court can grant better benefits than those under section 17B; higher wages can be awarded but employer’s interests must be protected. Guided the Court to modify the order balancing the interests of both parties by substituting "last drawn wages or statutory minimum wages" in place of "wages at par with unskilled permanent workmen".

Court's Reasoning and Analysis

The Court recognized the settled legal principle that courts can grant higher benefits than those prescribed under section 17B of the Industrial Disputes Act, but also emphasized the necessity to protect the employer's interests. The Court found that the directions of the learned single Judge other than the first direction did not require interference. However, the first direction granting wages at par with unskilled permanent workmen was modified to require payment of last drawn wages or statutory minimum wages, whichever is higher, to balance equities between parties. The Court noted that the employer had voluntarily accepted to pay wages when work is provided and fixed a wage for periods when work is not provided. The Court clarified there was no reinstatement in the strict sense, and the order was without prejudice to the final determination of the writ petition. The Court disposed of the appeal with this modification and left parties to bear their own costs.

Holding and Implications

The appeal is disposed of with modification of the impugned order.

The Court modified the direction granting wages at par with unskilled permanent workmen to payment of last drawn wages or statutory minimum wages, whichever is higher, from the date of the order. The rest of the learned single Judge’s order was maintained. This decision balances the interests of both workmen and employer and does not create a binding precedent beyond the facts of the case. The order is without prejudice to the parties’ rights pending final adjudication of the writ petition. The parties were directed to bear their own costs.

    Raptakos Brett And Co. Ltd. v. Workmen Of Raptakos Brett And Co. Ltd. .

    Swatanter Kumar, C.J:— This appeal is directed against the order dated August 10, 2007, passed by the learned single Judge in Civil Application Nos. 1554 of 2007 and 1916 of 2006. The first application was filed on behalf of the workmen seeking a direction to the respondents in the petition to provide regular wages and other benefits which were paid to other employees working with the respondent Company while the latter was filed for claiming wages payable under section 17B of the Industrial Disputes Act, 1947 (hereinafter referred to as “the Act”). On both these applications, the following relief was granted to the workmen.

    (i) As the Company has decided to reinstate the workmen instead of paying dues under section 17B of the Industrial Disputes Act, the workmen shall be paid wages at par with unskilled permanent workmen or the statutory minimum wages whichever is higher, from the date of this order.

    (ii) If no work is provided to the workmen by the employer, they shall be paid wages @ Rs. 2,500/- per month.

    (iii) These wages shall be paid by the employer and accepted by the workmen without prejudice to their rights and contentions in the petition.

    (iv) The arrears payable to the workmen on account of non-payment of wages @ Rs. 2500/- per month, when work was not provided to them, after the order of this Court dated 29-8-2006, shall be paid within a period of four weeks from today.

    13. Civil Applications are disposed of accordingly.”

    2. The correctness of the above order is challenged on behalf of the management in the present appeal primarily on the ground that the learned Judge could not have, by an interim order, granted higher wages than the minimum wages payable to the workmen. The order also protected the interest of the workmen in a situation where a workman was not granted work. It may be noticed that by an order dated 29th August, 2006, passed in Civil Application No. 1916 of 2006, a learned single Judge of this Court has directed that the rate of wages payable to such unskilled workmen shall be decided at a later stage. The order, according to the appellant, grants impermissible benefits to the workmen and has prejudiced the interest of the management as they have been directed to pay the wages equivalent to a permanent workman who might have already put in large number of years of service. Thus the order is stated to have visited the appellant with adverse consequences.

    3. The learned counsel appearing for the respondent relied upon the judgments of the Supreme Court in the cases of (i) Food Corporation of India v. Shyamal K. Chatterjee, 2000 (87) FLR 677 and (ii) Regional Authority, Dena Bank v. Ghanshyam., 2001 (3) LLN 30, to contend that the workmen would be entitled to equal pay for equal work and as such the direction passed by the learned single Judge is in accordance with law. It is also the contention of the respondents that the Court can grant higher wages than the minimum wages or the last drawn wages payable to the workmen in an application under section 17-B of the Act. Since the workmen had also filed another application for being granted regular benefits, there was all the more reason for the Court to grant such a relief. On the other hand, according to the appellant, while relying upon the same judgement in the case of Dena Bank (supra), it is stated that the Court has jurisdiction to grant higher amounts but such regular wages cannot be granted at an interim stage and the matter could be adjudicated along with the writ petition.

    4. There is no doubt that even in the case of Dena Bank, the Supreme Court had clearly stated that the High Courts or the Supreme Court could grant better benefits than contemplated under the provisions of section 17-B of the Act and in a given case higher wages could be awarded, but the interest of the employer should also be protected while passing an order under section 17-B of the Act. There is no obligation on the part of the workman to repay the wages paid to him under section 17-B of the Act. The cumulative effect of the above settled position of law is that all the directions passed by the learned single Judge except direction (i) of the impugned order hardly call for any interference. Even the first direction of the above reproduced order could be moulded so as to balance the equities between the parties as well as to protect the interest of the management. The modified direction (i) of the learned single Judge reads as under:

    “As the Company has decided to reinstate the workmen instead of paying dues under section 17B of the Industrial Disputes Act, the workmen shall be paid last drawn wages or the statutory minimum wages whichever is higher, from the date of this order.”

    5. With the above modification, the appeal is disposed of, while leaving the parties to bear their own costs.

    6. The direction contained in the present appeal is without prejudice to the rights and contentions of the parties and shall be subject to the final determination of the writ petition.

    7. In view of the order passed in the main appeal, Civil Application No. 303 of 2007 does not survive and is accordingly disposed of.

    8. The learned counsel appearing for the respondent has stated that he was given liberty to file copies of the citations relied upon by him by today. This is somewhat unusual, but, in any case, we have heard the learned counsel for the respondent. Even today, he has argued before the pronouncement of the judgment.

    9. In the judgment, we have modified clause (i) of the impugned order and rest of the order of the learned single Judge has been maintained. Now it is contended before us that even that order should be reviewed on the ground that the respondent has been reinstated by the appellant and that he should be paid on parity with the regular workers. In support of this contention, he relies upon the judgment of the Supreme Court in Dena Bank (supra), which judgment has already been discussed by us in the order passed today. We may also further notice that the argument of the learned Counsel for the respondent is misconceived inasmuch as there is no reinstatement by the appellant. The appellant, in response to the application under section 17-B of the Act, has accepted to pay the wages, if they provide work to the workmen and if the workmen are not provided with any work, the learned single Judge has already fixed the wages of Rs. 2,500/- to be paid irrespective of the stand of the employer whether the workmen is provided with work or not. This certainly is the exception being taken voluntarily or otherwise by the employer. The workmen have not challenged this part of the order of the learned single Judge and in fact even before us.

    10. In the circumstances, no other directions are required to be passed.

    Order accordingly.
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    Comments

    Raptakos Brett And Co. Ltd. v. Workmen Of Raptakos Brett And Co. Ltd. .
    (Sep 29, 2007)