Case Note & Summary
The petitioner, The Goa Urban Co-operative Bank Ltd., challenged an order dated 24/03/2017 passed by the Labour Commissioner under Section 33C(1) of the Industrial Disputes Act, 1947, and the consequent Recovery Certificate dated 11/05/2017 issued by the Taluka Revenue Officer, Tiswadi. The background is that an Industrial Tribunal Award dated 30/08/2003 directed reinstatement of respondent No.1 (Rui Ferreira) with full backwages. This award was upheld by the High Court on 21/07/2014 and by the Supreme Court on 09/05/2016. Thereafter, respondent No.1 filed an application under Section 33C(1) for computation and recovery of backwages. The Labour Commissioner computed the amount and issued a recovery certificate. The petitioner-bank contended that the application was barred by limitation and that it was entitled to set-off certain amounts. The court held that the Labour Commissioner under Section 33C(1) has the power to compute the amount due under an award and issue a recovery certificate. The objection of limitation is not maintainable before the Labour Commissioner as the period for execution of an award is 12 years under Article 136 of the Limitation Act, 1963, and the application was within time. Regarding set-off, the court observed that the Labour Commissioner is not a civil court and cannot adjudicate disputed claims of set-off unless the award itself provides for adjustment. The petition was dismissed, upholding the order and recovery certificate.
Headnote
A) Industrial Law - Section 33C(1) of Industrial Disputes Act, 1947 - Recovery of Money - Computation of Backwages - The Labour Commissioner has jurisdiction to compute the amount of backwages due under an award and issue a recovery certificate. The employer cannot resist recovery on grounds of limitation or set-off when the award has attained finality. (Paras 1-10)
B) Limitation - Applicability to Execution of Awards - Limitation Act, 1963 - The period of limitation for execution of an award under the Industrial Disputes Act is governed by Article 136 of the Limitation Act, 1963 (12 years). The objection of limitation cannot be raised before the Labour Commissioner under Section 33C(1) as it is a proceeding for computation and recovery, not execution. (Paras 11-15)
C) Set-Off - Adjustment of Dues - Industrial Disputes Act, 1947 - The employer cannot claim set-off of amounts allegedly paid or due from the workman in proceedings under Section 33C(1) unless the award itself provides for such adjustment. The Labour Commissioner is not a civil court to adjudicate disputed claims of set-off. (Paras 16-20)
Issue of Consideration
Whether the Labour Commissioner under Section 33C(1) of the Industrial Disputes Act, 1947 can compute and recover backwages awarded by the Industrial Tribunal, and whether the petitioner-bank can raise objections regarding limitation and set-off at the recovery stage.
Final Decision
The High Court dismissed the writ petition, upholding the order of the Labour Commissioner dated 24/03/2017 and the Recovery Certificate dated 11/05/2017.
Law Points
- Section 33C(1) of Industrial Disputes Act
- 1947
- Article 227 of Constitution of India
- Limitation Act
- 1963
- Recovery of backwages
- Set-off
- Executability of award
Case Details
2018 LawText (BOM) (07) 126
WRIT PETITION NO.786 OF 2017
Shri G.K. Sardessai with Shri A. Carvalho for petitioner, Shri Vivek Rodrigues for respondent No.1, Shri Sagar Dhargalkar for respondent Nos.2 and 3, Ms. Amira Razaq for respondent No.4
The Goa Urban Co-operative Bank Ltd.
Mr. Rui Ferreira, Labour Commissioner, Head of Taluka Revenue Officer, Principal Commissioner of Income Tax
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ petition under Article 227 of the Constitution challenging order of Labour Commissioner under Section 33C(1) of Industrial Disputes Act, 1947 and recovery certificate.
Remedy Sought
Petitioner-bank sought quashing of the Labour Commissioner's order dated 24/03/2017 and recovery certificate dated 11/05/2017.
Filing Reason
Petitioner-bank contended that the application under Section 33C(1) was barred by limitation and that it was entitled to set-off certain amounts.
Previous Decisions
Industrial Tribunal Award dated 30/08/2003 in favour of respondent No.1 for reinstatement with full backwages; upheld by High Court on 21/07/2014 and by Supreme Court on 09/05/2016.
Issues
Whether the Labour Commissioner under Section 33C(1) of the Industrial Disputes Act, 1947 can compute and recover backwages awarded by the Industrial Tribunal?
Whether the petitioner-bank can raise objections regarding limitation and set-off at the recovery stage under Section 33C(1)?
Submissions/Arguments
Petitioner argued that the application under Section 33C(1) was barred by limitation and that the bank was entitled to set-off amounts allegedly paid or due from the workman.
Respondent No.1 argued that the award had attained finality and the Labour Commissioner had jurisdiction to compute and recover the amount, and limitation objections were not maintainable.
Ratio Decidendi
The Labour Commissioner under Section 33C(1) of the Industrial Disputes Act, 1947 has jurisdiction to compute the amount of backwages due under an award that has attained finality and issue a recovery certificate. Objections regarding limitation and set-off cannot be raised in such proceedings as the period of limitation for execution of an award is 12 years under Article 136 of the Limitation Act, 1963, and the Labour Commissioner is not a civil court to adjudicate disputed claims of set-off.
Judgment Excerpts
This petition takes exception to the impugned order dated 24/03/2017 passed by the Labour Commissioner under Section 33(C)1 as also the Recovery Certificate dated 11/05/2017 passed by the Taluka Revenue Officer, Tiswadi under Article 227 of the Constitution.
Heard Shri G.K. Sardessai, learned Advocate on behalf of the petitioner who submitted that an Award was passed by the Industrial Tribunal dated 30/08/2003 in favour of the respondent No.1 granting reinstatement with full backwages.
Procedural History
Industrial Tribunal Award dated 30/08/2003 in favour of respondent No.1; upheld by High Court on 21/07/2014; upheld by Supreme Court on 09/05/2016; respondent No.1 filed application under Section 33C(1) before Labour Commissioner; Labour Commissioner passed order dated 24/03/2017 computing backwages and issued recovery certificate dated 11/05/2017; petitioner filed writ petition under Article 227 challenging these orders.
Acts & Sections
- Industrial Disputes Act, 1947: 33C(1)
- Constitution of India: Article 227
- Limitation Act, 1963: Article 136
