Case Note & Summary
The petitioner, a workman employed by a contractor (Design Private Ltd.) at the Thermal Power Station of Gujarat State Electricity Corporation Ltd. (GSECL), filed a Recovery Application under section 33(c)(2) of the Industrial Disputes Act, 1947, being Recovery Application No.59/2021 in Reference (LCN) No.15/2014 before the Labour Court, Nadiad. The Labour Court allowed the application and directed the respondent management to pay Rs.2,99,624/- to the petitioner. As the order was not complied with, the petitioner filed another Recovery Application under section 33(c)(1) of the I.D. Act, being Recovery Application No.69/2023, which was allowed on 27.09.2024. The Labour Court then issued a Recovery Certificate dated 02.01.2025. Despite the certificate, the amount was not paid. The petitioner therefore filed the present petition under Articles 226 and 227 of the Constitution of India read with section 33(c)(1) of the I.D. Act, seeking a writ of mandamus directing the District Collector (respondent no.1) to execute the recovery certificate and deposit the amount before the Labour Court for disbursement to the petitioner. The petitioner also joined GSECL as respondent no.2, invoking section 21 of the Contract Labour (Regulation & Abolition) Act, 1970, which makes the principal employer liable if the contractor fails to pay wages. The High Court, after hearing the parties, held that the District Collector is bound to execute the recovery certificate as arrears of land revenue. The court directed the District Collector to execute the certificate within four weeks and deposit the amount before the Labour Court, which shall then disburse it to the petitioner by account payee cheque after proper verification. The petition was allowed with no order as to costs.
Headnote
A) Industrial Disputes Act, 1947 - Section 33(c)(1) - Recovery of Money - Execution of Recovery Certificate - Labour Court issued recovery certificate for Rs.2,99,624/- in favour of workman - District Collector directed to execute the certificate as arrears of land revenue and deposit amount before Labour Court - Held that the District Collector is bound to execute the recovery certificate under section 33(c)(1) read with relevant rules (Paras 1-5). B) Contract Labour (Regulation & Abolition) Act, 1970 - Section 21 - Liability of Principal Employer - Workman employed by contractor in Thermal Power Station of Gujarat State Electricity Corporation Ltd. - Contractor failed to pay wages - Principal employer liable to pay wages under section 21 - Held that principal employer is responsible when contractor defaults (Paras 3-5).
Issue of Consideration
Whether the District Collector is obliged to execute a recovery certificate issued by the Labour Court under section 33(c)(1) of the Industrial Disputes Act, 1947, and whether the principal employer can be directed to deposit the amount when the contractor fails to pay wages.
Final Decision
The petition is allowed. The District Collector, respondent no.1, is directed to execute the Recovery Certificate dated 02.01.2025 within four weeks from the date of receipt of the order and deposit the amount before the Labour Court, Nadiad. The Labour Court shall disburse the amount to the petitioner by account payee cheque after proper verification. Rule is made absolute. No order as to costs.
Law Points
- Recovery of money due from employer under section 33(c)(1) of Industrial Disputes Act
- 1947
- Labour Court can issue recovery certificate
- District Collector is bound to execute recovery certificate as arrears of land revenue
- Principal employer liable under section 21 of Contract Labour (Regulation & Abolition) Act
- 1970 if contractor fails to pay wages
