Bombay High Court Allows Appeal in Industrial Dispute Case — Section 17B Wages Must Include Allowances, Not Just Basic Wage. The court held that wages under Section 17B of the Industrial Disputes Act, 1947 must be the full wages last drawn, including all allowances, and not merely the basic wage.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The appellant, Amit Kumar, was a senior office assistant employed by Indian Airlines Ltd. He was removed from service on 24th June 2002 after a departmental enquiry found him guilty of unauthorizedly opening the office for disposal of vehicles, theft, fraud, and dishonesty. During the pendency of a writ petition challenging his removal, the appellant filed a Notice of Motion under Section 17B of the Industrial Disputes Act, 1947 seeking wages. The learned Single Judge awarded only Rs.4880/- as basic wage. The appellant appealed, contending that the amount was much less than what he ought to have received. The respondent agreed to the appeal being heard finally at the admission stage. The Division Bench held that Section 17B requires payment of full wages last drawn, which includes all allowances, not just basic wage. The court set aside the impugned order and directed the respondent to pay the appellant the full wages last drawn, including allowances, from the date of the petition till disposal of the writ petition. The appeal was allowed with no order as to costs.

Headnote

A) Industrial Law - Section 17B Wages - Full Wages Last Drawn - Section 17B of the Industrial Disputes Act, 1947 - The court held that wages under Section 17B must be the full wages last drawn by the workman, including all allowances, and not merely the basic wage. The learned Single Judge erred in awarding only basic wage of Rs.4880/-. The appeal was allowed and the respondent was directed to pay the appellant the full wages last drawn, including allowances, from the date of the petition till disposal of the writ petition. (Paras 2-6)

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Issue of Consideration

Whether wages under Section 17B of the Industrial Disputes Act, 1947 should be restricted to basic wage or include all allowances drawn by the workman at the time of removal.

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Final Decision

Appeal allowed. Impugned order dated 20th July 2005 set aside. Respondent directed to pay appellant full wages last drawn, including allowances, from date of petition till disposal of writ petition. No order as to costs.

Law Points

  • Section 17B of Industrial Disputes Act
  • 1947
  • wages during pendency of proceedings
  • full wages last drawn
  • allowances included in wages
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Case Details

2005 LawText (BOM) (12) 28

APPEAL NO.990 OF 2005 IN NOTICE OF MOTION NO.295 OF 2005 IN WRIT PETITION NO.1696 OF 2005

2005-12-19

H.L. Gokhale, J.P. Devadhar

Mr. Mohan Bir Singh for appellant, Mr. S.M. Dixit with Mr. Sudeep Dasgupta for respondent

Amit Kumar

Indian Airlines Ltd.

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Nature of Litigation

Appeal against order of Single Judge awarding wages under Section 17B of Industrial Disputes Act, 1947

Remedy Sought

Appellant sought higher wages under Section 17B than the basic wage awarded

Filing Reason

Appellant was removed from service and sought wages during pendency of writ petition; Single Judge awarded only basic wage

Previous Decisions

Learned Single Judge awarded Rs.4880/- as basic wage on Notice of Motion No.295 of 2005 in Writ Petition No.1696 of 2005

Issues

Whether wages under Section 17B of the Industrial Disputes Act, 1947 should be restricted to basic wage or include all allowances drawn by the workman at the time of removal.

Submissions/Arguments

Appellant argued that the amount awarded (Rs.4880/-) was much less than what ought to have been awarded. Respondent agreed to the appeal being heard finally at the admission stage.

Ratio Decidendi

Section 17B of the Industrial Disputes Act, 1947 requires payment of full wages last drawn by the workman, which includes all allowances, and not merely the basic wage.

Judgment Excerpts

The learned Single Judge has awarded an amount of Rs.4880/- only which was the basic wage of the appellant when he was removed from service. Section 17B of the Industrial Disputes Act, 1947 requires payment of full wages last drawn, which includes all allowances, not just basic wage.

Procedural History

Appellant removed from service on 24th June 2002. Writ Petition No.1696 of 2005 filed. Notice of Motion No.295 of 2005 taken out under Section 17B of Industrial Disputes Act, 1947. Learned Single Judge awarded Rs.4880/- as basic wage on 20th July 2005. Appeal No.990 of 2005 filed against that order. Heard finally at admission stage on 19th December 2005.

Acts & Sections

  • Industrial Disputes Act, 1947: 17B
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High Court Bombay High Court Allows Appeal in Industrial Dispute Case — Section 17B Wages Must Include Allowances, Not Just Basic Wage. The court held that wages under Section 17B of the Industrial Disputes Act, 1947 must be the full wages last drawn, includi...
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