Case Note & Summary
The case involves two Letters Patent Appeals (LPA 294/2010 and LPA 296/2010) arising from an order of a Single Judge dated 26.10.2010 in Writ Petition No.3139/2010. The appellant, Hiru B. Barot, was a workman employed by IPCA Laboratories Limited, a pharmaceutical manufacturer. On 23.11.2007, a charge-sheet was issued to him for refusing to prepare a Batch Manufacturing Record (BMR) and instigating other workmen. After an inquiry, he was found guilty and dismissed from service on 9.6.2008. The workman challenged the dismissal by filing a Reference before the Labour Court, Dadra & Nagar Haveli at Silvasa. During the pendency of the Reference, he filed an application (Exh.E) for an interim award under Section 17-B of the Industrial Disputes Act, 1947, seeking wages from the date of dismissal until the disposal of the Reference. The Labour Court allowed the application and directed the employer to pay wages at the rate of last drawn wages. The employer challenged this order by filing Writ Petition No.3139/2010 before the High Court. The Single Judge modified the Labour Court's order, reducing the wages to some extent. Both parties appealed: the workman filed LPA 294/2010 seeking restoration of the full wages, and the employer filed LPA 296/2010 challenging the very entitlement. The Division Bench heard both appeals together. The main legal issue was whether the workman was entitled to wages under Section 17-B during the pendency of the proceedings. The workman argued that Section 17-B is a beneficial provision and that he had filed an affidavit of non-employment. The employer contended that the workman was gainfully employed and that the company was facing financial hardship. The court analyzed Section 17-B and held that it is a mandatory provision intended to provide subsistence to the workman during litigation. The court noted that the employer's allegation of gainful employment was not supported by any evidence, and financial hardship of the employer is not a ground to deny wages. The court restored the Labour Court's order granting full wages from the date of dismissal until the disposal of the Reference, and dismissed the employer's appeal. The judgment was pronounced on 13.4.2011 by a Division Bench consisting of Justice A.M. Khanwilkar and Justice Mrs. Mridula Bhatkar.
Headnote
A) Industrial Disputes Act, 1947 - Section 17-B - Wages during pendency of proceedings - Workman dismissed from service challenged dismissal by filing reference before Labour Court - Workman filed application for interim award under Section 17-B - Labour Court granted wages - Single Judge modified order reducing wages - Division Bench restored full wages - Held that Section 17-B is a beneficial provision intended to provide subsistence to workman during litigation; employer cannot avoid payment by pleading financial hardship or alleging gainful employment without proof (Paras 1-10). B) Industrial Disputes Act, 1947 - Section 17-B - Affidavit of non-employment - Workman filed affidavit stating he was not employed - Employer alleged workman was gainfully employed but failed to produce evidence - Held that mere allegation without proof is insufficient to deny wages under Section 17-B (Paras 5-8). C) Industrial Disputes Act, 1947 - Section 17-B - Interim award - Labour Court has jurisdiction to grant interim award under Section 17-B even before final adjudication - Held that the provision is self-contained and does not require final determination of the dispute (Paras 3-4).
Issue of Consideration
Whether the workman is entitled to wages under Section 17-B of the Industrial Disputes Act, 1947 during the pendency of the reference before the Labour Court, and whether the employer can resist such payment on grounds of financial hardship or alleged gainful employment of the workman.
Final Decision
The Division Bench allowed LPA 294/2010 filed by the workman and restored the order of the Labour Court granting wages under Section 17-B from the date of dismissal until the disposal of the Reference. LPA 296/2010 filed by the employer was dismissed. The court directed the employer to pay the wages as per the Labour Court's order.
Law Points
- Section 17-B of Industrial Disputes Act
- 1947
- entitlement to wages during pendency of proceedings
- no condition of financial hardship
- workman's affidavit of non-employment sufficient
