Case Note & Summary
The present batch of writ petitions was filed by workmen challenging the order of the Industrial Court, Kolhapur, which while staying the execution of the Labour Court's award of reinstatement with continuity of service and back wages, denied the workmen wages under Section 17B of the Industrial Disputes Act, 1947. The Labour Court had directed the respondent-employer, M/s. S.J. Iron and Steel Pvt. Ltd., to reinstate the workmen with continuity of service and back wages. The employer challenged this award before the Industrial Court, which granted a stay but refused to grant wages under Section 17B, reasoning that the establishment had closed down and therefore the workmen were not entitled to wages. The workmen contended that the Industrial Court had failed to apply its mind and that closure of the establishment was not a ground to deny wages under Section 17B. The employer argued that since the establishment had closed, there was no question of reinstatement and no wages could be paid. The High Court examined the provisions of Section 17B and held that the section is a beneficial provision intended to provide subsistence to workmen during the pendency of proceedings challenging an award of reinstatement. The court noted that the only condition for entitlement is that the workman was not employed elsewhere. The closure of the establishment is irrelevant for the purpose of Section 17B. The court set aside the Industrial Court's order and directed the employer to pay wages under Section 17B from the date of the Labour Court's award until the disposal of the employer's challenge. The writ petitions were allowed.
Headnote
A) Industrial Law - Section 17B of Industrial Disputes Act, 1947 - Entitlement to Wages During Pendency of Proceedings - The workmen were awarded reinstatement with continuity of service and back wages by the Labour Court. The employer challenged the award in the Industrial Court, which stayed the award but denied wages under Section 17B on the ground that the establishment had closed. The High Court held that closure of the establishment does not disentitle workmen to wages under Section 17B, as the provision is intended to provide subsistence during the pendency of proceedings. The Industrial Court's order was set aside for non-application of mind. (Paras 1-15) B) Industrial Law - Section 17B of Industrial Disputes Act, 1947 - Closure of Establishment - The Industrial Court erroneously relied on the employer's plea of closure to deny wages under Section 17B. The High Court clarified that Section 17B does not require the establishment to be functional; it only requires that the workman was not employed elsewhere. The workmen are entitled to last drawn wages from the date of the award until the disposal of the employer's challenge. (Paras 10-15)
Issue of Consideration
Whether the Industrial Court was justified in denying wages under Section 17B of the Industrial Disputes Act, 1947 to workmen on the ground that the establishment had closed down, and whether the workmen are entitled to wages during the pendency of the employer's challenge to the award of reinstatement.
Final Decision
The High Court allowed the writ petitions, set aside the Industrial Court's order, and directed the employer to pay wages under Section 17B of the Industrial Disputes Act, 1947 to the workmen from the date of the Labour Court's award until the disposal of the employer's challenge.
Law Points
- Section 17B of Industrial Disputes Act
- 1947
- entitlement to last drawn wages during pendency of proceedings
- closure of establishment not a bar to payment of wages under Section 17B
- Industrial Court's order set aside for non-application of mind
