In a significant legal development, the Supreme Court has issued a judgment addressing the long-pending dispute over post-award wages in the case involving the Sugar Mills and the employee. The case originates from the Labour Court’s award of reinstatement and compensation to the employee, yet a disagreement arose regarding the payment of wages post the 1997 award. This judgment sets a precedent in clarifying the calculation and payment of these wages, providing closure to this labor dispute.
Facts
- The respondent filed a petition under Section 33-C(2) of the I.D. Act seeking payment of wages post the Award dated 10.06.1997 due to non-reinstatement.
- The Appellant-Sugar Mills challenged the Order dated 06.08.2011 by the Labour Court in Misc. Case NO.42 of 2011 pertaining to the petition filed under Section 33-C(2).
- The genesis of the case lies in the Adjudication Case NO.64/1996 where the Labour Court had deemed the termination of the respondent on 07.12.1994 as improper and illegal.
- The award directed the reinstatement of the respondent before the employer and payment of Rs.5,000/- as compensation for back-wages.
- Intervening wages during the pendency of a writ petition were also addressed.
Also Read: Solapur Municipal Corporation vs. Majarewadi Gram Panchayat Employees
Analysis
- The High Court confirmed the Award dated 10.06.1997 for reinstatement
- The Labour Court order dated 06.08.2011 quantifying and directing payment post the Award was challenged
- Labour Court cannot decide on entitlement if not adjudicated or recognized by the employer
- The order of Labour Court for payment of wages from 10.06.1997 to joining date was disputed by the employer
- The scope of U.P. Industrial Disputes Act, 1947 is limited to calculation of monetary benefits with already adjudicated rights
- Sufficient time has passed since the order passed by the Labour Court.
- An amount of Rs.10,00,000 was deposited as an interim measure, of which Rs.6,00,000 has already been withdrawn by the employee.
- An exercise to remit the matter to the employer for reconsideration is not necessary at this stage.
Decision
- The appellant is directed to withdraw the amount of Rs.4,00,000/- which was held in deposit.
- The appellant shall receive only the principal amount of Rs.4,00,000/- and the accrued interest shall be paid to the respondent.
- The respondent has withdrawn Rs.6,00,000/- which will cover all wages payable till actual reinstatement post the Award dated 10.06.1997.
- Any disputes regarding the subsequent termination of the respondent are to be addressed separately with all contentions open for discussion.
Also Read: Jagdishchandra v. Joint Charity Commissioner & Ors.
Case Title: RAI BAHADUR NARAIN SINGH SUGAR MILLS LTD. Vs. MANGEY RAM
Case Number: C.A. No.-007218-007218 / 2019
