Supreme Court Dismisses Employer in Industrial Disputes Act Case — Labour Court's Jurisdiction Under Section 33C(2) Not Ousted by Minimum Wages Act, and Article 137 of Limitation Act Does Not Apply to Quasi-Judicial Tribunals. The Court Held That No Dispute Existed on Wage Rates, Rendering Section 20(1) of Minimum Wages Act Inapplicable, and Article 137 Governs Only Applications to Courts, Not Labour Courts.

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Case Note & Summary

The appeals arose from four writ petitions filed by the Town Municipal Council, Athani, before the High Court of Mysore, challenging orders of the Labour Court, Hubli, that had allowed applications by workmen under Section 33C(2) of the Industrial Disputes Act, 1947. The workmen had claimed amounts for overtime work and work done on weekly off-days, as well as washing allowance and uniform costs, spanning periods from 1955 to 1965. The Labour Court computed the amounts due and directed payment. The employer contended that the relief should have been sought under Section 20(1) of the Minimum Wages Act, 1948, a self-contained code, thereby ousting the Labour Court's jurisdiction, and that the claims were time-barred under Article 137 of the Limitation Act, 1963. The High Court dismissed the writ petitions, leading to these appeals by special leave. Before the Supreme Court, the appellant argued that the existence of the Minimum Wages Act impliedly excluded resort to Section 33C(2) of the Industrial Disputes Act. Additionally, they invoked Article 137 of the Limitation Act to contend that the applications were barred by limitation. The respondents, representing the workmen, countered that there was no dispute regarding rates of wages, and thus Section 20(1) was not attracted, and that the Labour Court, being a quasi-judicial tribunal, was not a court within the meaning of Article 137. The Court examined the scope of Section 20(1) of the Minimum Wages Act, noting that it empowers an Authority to decide claims relating to rates of wages—minimum rates, overtime rates, and rates for work on rest days. The power to direct payment under Section 20(3) is incidental to fixing such rates. Where there is no dispute about rates, and the only question is whether payment is due at agreed rates, Section 20(1) does not apply; the appropriate remedies are under Section 15(1) of the Payment of Wages Act, 1936, or Section 33C(2) of the Industrial Disputes Act. The Court found that the employer had not genuinely disputed the rates claimed, and a mere pleading that the State Government had not prescribed rates did not constitute a rate dispute. Hence, the Labour Court’s jurisdiction was not barred. On limitation, the Court held that Article 137 of the Limitation Act, 1963 applies only to applications made to courts. Tracing the legislative history and interpreting the expression ‘any other application’ in the third division, the Court followed the principle of ejusdem generis laid down in Mulchand v. Gopal Bhiva regarding Article 181 of the old Limitation Act. The inclusion of references to applications under the Criminal Procedure Code in the 1963 Act did not expand the scope to quasi-judicial tribunals; the article governs only applications to courts governed by the Civil or Criminal Procedure Codes. Since the Labour Court is not such a court, Article 137 did not apply. The decision in Manager P.K. Porwal v. Labour Court, Nagpur, which had held to the contrary, was overruled. Accordingly, the appeals were dismissed, and the Labour Court’s orders were upheld.

Headnote

A) Labour Law — Jurisdiction of Labour Court under Section 33C(2) of Industrial Disputes Act, 1947 vis-à-vis Minimum Wages Act, 1948 — Section 20(1) of Minimum Wages Act, 1948 — Section 20(1) applies only where there is a dispute as to rates of wages (minimum rates, overtime rates, rates for work on rest days); if no rate dispute exists, the remedy under Section 20(1) is not attracted, and workmen may seek computation and payment under Section 33C(2) of the Industrial Disputes Act or Section 15(1) of the Payment of Wages Act, 1936. The Labour Court's jurisdiction under Section 33C(2) is not barred by the Minimum Wages Act in the absence of a dispute on rates. Held that the applications were maintainable as no dispute on rates existed. (Paras 59-61)

B) Limitation Law — Applicability of Limitation Act, 1963 to Quasi-Judicial Tribunals — Article 137 of Limitation Act, 1963 — Article 137 governs only applications to courts, not to quasi-judicial bodies like Labour Courts; the ejusdem generis principle applied to the earlier Article 181 of the 1908 Act continues, and the inclusion of applications under Criminal Procedure Code does not extend its scope. Held that Article 137 does not apply to applications under Section 33C(2) before Labour Court, so no limitation bars. Overruled Manager P.K. Porwal v. Labour Court, Nagpur. (Paras 63-65)

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Issue of Consideration

Whether the Labour Court's jurisdiction under Section 33C(2) of the Industrial Disputes Act, 1947 is barred by the provisions of the Minimum Wages Act, 1948; and whether applications under Section 33C(2) are subject to limitation under Article 137 of the Limitation Act, 1963.

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Final Decision

The Supreme Court dismissed the appeals, holding that (i) the Minimum Wages Act did not bar the Labour Court's jurisdiction under Section 33C(2) because there was no dispute about rates of wages; and (ii) Article 137 of the Limitation Act, 1963 applies only to applications to courts governed by the Civil or Criminal Procedure Codes, and not to quasi-judicial bodies like Labour Courts, hence the applications were not time-barred. The decision in Manager P.K. Porwal v. Labour Court, Nagpur was overruled.

Law Points

  • Legal points not extracted
  • Section 33C(2) of Industrial Disputes Act provides a remedy for workmen to claim dues when no dispute as to rates exists
  • Section 20(1) of Minimum Wages Act deals only with disputes on rates of wages
  • Article 137 of Limitation Act applies only to applications to courts and not to quasi-judicial tribunals
  • ejusdem generis principle restricts scope of limitation article
  • no limitation period applies to applications under Section 33C(2) before Labour Court
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Case Details

1969 LawText (SC) (03) 30

Civil Appeals Nos. 170 to 173 of 1968

1969-03-20

Vishishtha Bhargava, J.M. Shelat

Citation not available, 1969 AIR 1335, 1970 SCR (1) 51, 1969 SCC (1) 873

B. Sen, S. N. Prasad, R. B. Datar, Janardan Sharma

Town Municipal Council, Athani

Presiding Officer, Labour Court, Hubli & Ors

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Nature of Litigation

Workmen filed applications under Section 33C(2) of the Industrial Disputes Act, 1947 before the Labour Court, Hubli, for computation and payment of overtime wages, wages for work on weekly off-days, washing allowance, and uniform costs.

Remedy Sought

The appellant (Town Municipal Council, Athani) challenged the Labour Court's orders directing payment by filing writ petitions under Article 226 of the Constitution before the High Court of Mysore and thereafter appeals by special leave to the Supreme Court.

Filing Reason

The appellant contended that the Labour Court lacked jurisdiction because the claims fell under Section 20(1) of the Minimum Wages Act, 1948, and that some claims were time-barred under Article 137 of the Limitation Act, 1963.

Previous Decisions

The Labour Court allowed the applications and directed payment; the High Court dismissed the writ petitions, upholding the Labour Court's jurisdiction.

Issues

Whether the Labour Court's jurisdiction under Section 33C(2) of the Industrial Disputes Act, 1947 is barred by the provisions of the Minimum Wages Act, 1948, particularly Section 20(1). Whether applications under Section 33C(2) are governed by Article 137 of the Limitation Act, 1963, and thus subject to limitation.

Submissions/Arguments

Appellant argued that the Minimum Wages Act is a self-contained code, implying exclusion of Section 33C(2) jurisdiction; the claims should have been filed under Section 20(1) and were time-barred; even under Section 33C(2), Article 137 of the Limitation Act applies. Respondents argued that there was no dispute about rates of wages, so Section 20(1) was not attracted; the Labour Court is not a court, so Article 137 does not apply; the applications fell within the scope of Section 33C(2).

Ratio Decidendi

Section 20(1) of the Minimum Wages Act, 1948 deals with disputes relating to rates of wages; if no dispute as to rates exists, that provision is not attracted and workmen can proceed under Section 33C(2) of the Industrial Disputes Act, 1947 or Section 15(1) of the Payment of Wages Act, 1936. Article 137 of the Limitation Act, 1963 applies only to applications to courts as provided in the earlier articles of the third division and does not apply to quasi-judicial tribunals like Labour Courts; the ejusdem generis principle continues to limit its scope.

Judgment Excerpts

The power under s. 20(3) of the Minimum Wages Act given to the Authority dealing with an application under s. 20(1) to direct payment of the actual amount found due, is only an incidental power for working out effectively the directions under s. 20(1) fixing various rates under the Act. Article 137 of the Limitation Act, 1963 governs only applications presented to courts under the Civil and Criminal Procedure Codes.

Procedural History

Workmen filed four applications under Section 33C(2) before Labour Court, Hubli, on various dates in 1965. The Labour Court allowed the applications and directed payment. Town Municipal Council, Athani, filed writ petitions under Article 226 in the High Court of Mysore; the High Court dismissed the writ petitions by common order dated 25-08-1967. The appellant then filed appeals by special leave to the Supreme Court.

Acts & Sections

  • Industrial Disputes Act, 1947: 33C(2)
  • Minimum Wages Act, 1948: 20(1), 20(3)
  • Limitation Act, 1963: Art. 137
  • Payment of Wages Act, 1936: 15(1)
  • Constitution of India: 226
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