Case: Carona Sahu Company Limited Vs. Abdul Karim Munafkhan and Another

wages. The determination of the back wages is only on the basis of what the workman would have drawn during the period commencing from the date of dismissal and till the date of reinstatement and the quantum of back wages includes all the permissible increases during that interregnum. The expression "full wages last drawn" in our judgment means the full wages which the workman was entitled to draw in pursuance of the award and the implementation of which is suspended during the pendency of the proceedings. The submission of Shri Bhatkal, that the expression "last drawn" suggests that the workman is entitled only to that amount which was received by him at the time of dismissal, cannot be accepted. Though the word "drawn" connotes past tense, it is obvious that the proper construction of the section is that the workman is entitled to the full wages which the workman would have been entitled to draw but for the pendency of the proceedings in Court.The proviso to section 17-B sets out that in case the workman had been employed and had been receiving adequate remuneration during the pendency of the proceedings, then the Court can order that no wages will be payable or only part of the wages will be payable. The use of the expression "adequate remuneration" in the proviso while the use of the expression "full wages last drawn" in the principal body of the section indicates that the legislature contemplated payment of full wages as if employed in cases where the workman had not been employed in any establishment. It cannot even be suggested that the amount of Rs. 1,024.23 was the full wages when the workman, in case of reinstatement is entitled to draw a sum of Rs. 2,588.15. In these circumstances, in our judgment, the learned Single Judge was perfectly justified in directing the appellant Company to pay a sum of Rs. 2,588.15 to the respondent No. 1 during the pendency of the proceedings.5.Shri Bhatkal referred to decision of Delhi High Court reported in (1992) 1 L.L.J. 710, (M/s. Fouress Engineering (I) Pvt. Ltd. v. Delhi Administration and others), and to the decision of Karnataka High Court reported in (1993) II L. L. J. 198 (M/s Visveswaraya Iron and Steel Co. Ltd. v. M. Chandrappa and another). Shir Bhatkal very fairly submitted that the issue did not directly come up for consideration in these two cases, but the learned counsel relied upon some of the observations made in the decisions in support of the submission. The Division Bench of Delhi High Court which was hearing an appeal against order passed by learned Single Judge quoted the observations made by the learned Single Judge in paragraph 8 of the judgment . The observations are to the following effect :-"....What section 17B postulates is `full wages last drawn by the workman. Last drawn wages would be those which were drawn during the period of service, and the order which needs to be passed in such matters, would take into account the full wages last drawn. `Back wages is just a convenient expression. Statutory provision requires full wages last drawn by the workman to be paid to him. Full wages means full wages during the course of employment, and not what was paid upon termination of the employment."The Division Bench then confirmed the order passed by the learned Single Judge. We cannot appreciate the observations of the learned Single Judge approved by the Division Bench to the effect that the last drawn wages would be those which were drawn during the period of service. The subsequent observation that the full wages means `full wages during the course of employment and not what was paid upon termination of the employment seems to be conflicting. In the case before the Division Bench of Karnataka High Court, the award directing reinstatement of the workman was challenged before the learned Single Judge and the operation of the award was stayed on condition that the workman is reinstated and paid current wages. In view of the limited suspension of the award, the question as to the applicability of section 17-B of the Act did not arise for consideration. The Divisional Bench did make certain observation in paragraphs 12 and 13 of the judgment. The Division Bench observed in paragraph 12 that the contention, that the full wages last drawn should be interpreted so as to include not only the yearly increment and the DA but also the revision of pay, if any, effected during the pendency of the proceeding before the Labour Court and the amount payable per month should be determined accordingly, cannot be contracted. The Division Bench subsequently held that the content of the words "full wages last drawn" would take into their fold the wages drawn on the date of termination of the services plus the yearly increment and the DA to be worked out till the date of the award and that sum has to be paid to the workman during the pendency of the proceedings before the High Court. In our judgment, subsequent observations are not accurate. It is possible that the Division Bench had in contemplation that though the wages payable to the workman were those payable on the date of the award, still while determining those wages, the component of revision of wages cannot be taken into consideration. In our judgment, it is not possible even to deny the component of revision of wages while determining the quantum of wages payable on the date of the award to the workman. Every component of wages payable on the date of the award must be taken into consideration while determining what are the wages payable to the workman on the date of the award. In our judgment, this interpretation of the expression "wages last drawn" sub-serves the object and intention of the Parliament in enacting section 17-B of the Act. The decision of the learned Single Judge therefore does not suffer from any infirmity and the appeal must fail.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]The plain reading of the section makes it clear that the right to secure full wages is conferred upon the workman in cases were (a) award directs reinstatement of any workman; (b) employer prefers proceedings against such award in High Court or the Supreme Court and (c) the workman had not been employed in any establishment during the pendency of the proceedings in High Court or the Supreme Court. It is not in dispute in the present case that the award directs reinstatement of respondent No. 1 and the appellant Company had preferred petition in this Court to challenge the legality of the award and the respondent No. 1 had not been employed in any establishment during the pendency of the writ petition. Shri Bhatkal therefore, very rightly did not dispute that the workman is entitled to the benefit under sectionof the Act.The only dispute is in respect of quantum of wages payable to the workman during the pendency of the proceedings and to determine that question, it is necessary to ascertain the exact import of the expression "full wages last drawn". As mentioned hereinabove, the wages drawn by the workman on the date of dismissal were Rs. 1,024.23. It is not in dispute that in case the workman had continued in service till the date of the award, then the workman would have been entitled to draw the wages at the rate of Rs. 2,558.15is not possible to accede to the submission. The Parliament had introduced sectionof the Act with the object that the workman is not deprived of wages which he is entitled to draw in case the award directing reinstatement is implemented. The workman is deprived of the wages payable in pursuance of the award only because of pendency of the proceedings. The award directing reinstatement and continuity of service makes it clear that the dismissal of the employee was illegal and in the eyes of law the workman continued in service and consequently the workman was entitled also to payment of back wages. The determination of the back wages is only on the basis of what the workman would have drawn during the period commencing from the date of dismissal and till the date of reinstatement and the quantum of back wages includes all the permissible increases during that interregnum. The expression "full wages last drawn" in our judgment means the full wages which the workman was entitled to draw in pursuance of the award and the implementation of which is suspended during the pendency of the proceedings. The submission of Shri Bhatkal, that the expression "last drawn" suggests that the workman is entitled only to that amount which was received by him at the time of dismissal, cannot be accepted. Though the word "drawn" connotes past tense, it is obvious that the proper construction of the section is that the workman is entitled to the full wages which the workman would have been entitled to draw but for the pendency of the proceedings in Court.The proviso to sectionsets out that in case the workman had been employed and had been receiving adequate remuneration during the pendency of the proceedings, then the Court can order that no wages will be payable or only part of the wages will be payable. The use of the expression "adequate remuneration" in the proviso while the use of the expression "full wages last drawn" in the principal body of the section indicates that the legislature contemplated payment of full wages as if employed in cases where the workman had not been employed in any establishment. It cannot even be suggested that the amount of Rs. 1,024.23 was the full wages when the workman, in case of reinstatement is entitled to draw a sum of Rs. 2,588.15. In these circumstances, in our judgment, the learned Single Judge was perfectly justified in directing the appellant Company to pay a sum of Rs. 2,588.15 to the respondent No. 1 during the pendency of thecannot appreciate the observations of the learned Single Judge approved by the Division Bench to the effect that the last drawn wages would be those which were drawn during the period of service. The subsequent observation that the full wages means `full wages during the course of employment and not what was paid upon termination of the employment seems to be conflicting. In the case before the Division Bench of Karnataka High Court, the award directing reinstatement of the workman was challenged before the learned Single Judge and the operation of the award was stayed on condition that the workman is reinstated and paid current wages. In view of the limited suspension of the award, the question as to the applicability of sectionof the Act did not arise for consideration. The Divisional Bench did make certain observation in paragraphs 12 and 13 of the judgment. The Division Bench observed in paragraph 12 that the contention, that the full wages last drawn should be interpreted so as to include not only the yearly increment and the DA but also the revision of pay, if any, effected during the pendency of the proceeding before the Labour Court and the amount payable per month should be determined accordingly, cannot be contracted. The Division Bench subsequently held that the content of the words "full wages last drawn" would take into their fold the wages drawn on the date of termination of the services plus the yearly increment and the DA to be worked out till the date of the award and that sum has to be paid to the workman during the pendency of the proceedings before the High Court. In our judgment, subsequent observations are not accurate. It is possible that the Division Bench had in contemplation that though the wages payable to the workman were those payable on the date of the award, still while determining those wages, the component of revision of wages cannot be taken into consideration. In our judgment, it is not possible even to deny the component of revision of wages while determining the quantum of wages payable on the date of the award to the workman. Every component of wages payable on the date of the award must be taken into consideration while determining what are the wages payable to the workman on the date of the award. In our judgment, this interpretation of the expression "wages last drawn"the object and intention of the Parliament in enacting sectionof the Act.The decision of the learned Single Judge therefore does not suffer from any infirmity and the appeal must fail.