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Sections Part -2

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16.          SINGLE APPLICATION IN RESPECT OF CLAIMS FROM UNPAID GROUP-

               (1)          Employed persons are said to belong to the same unpaid group if they are borne on the same establishment and if 73[deduction shave been made from their wages in contravention of this Act for the same cause and during the same wage-period or periods or if] their wages for the same wage-period or periods have remained unpaid after the day fixed by section 5.

73.          Ins. by Act 53 of 1964, s. 14, (w.e.f. 1-2-1965).

(2)          A single application may be presented under section 15 on behalf or in respect of any number of employed persons belonging to the same unpaid group, and in such case 74[ever person on whose behalf such application is presented may be awarded maximum compensation to the extent specified in sub-section (3) of section 15].

(3)          The authority may deal with any number of separate pending applications, presented under section 15 in respect of persons belonging to the same unpaid group, as a single application presented under sub-section (2) of this section, and the provisions of that sub-section shall apply accordingly.

                 

COMMENTS

The Prescribed Authority has been conferred power to entertain the application even beyond the period of 12 months. (Rahat Hussain Khan v. 3rd Addl. District Judge & Ors; (1992) 64 FLR 302 (All.)].

17.          APPEAL-

(1)          75[An appeal against on order dismissing either wholly or in part an application made under sub-section (2) of section 15, or against a direction made under sub-section (3) or sub-section (4) of that section] may be preferred, within thirty days of the date on which 76[the order or direction] was made, in a Presidency-town 77[***] before the Court of Small Causes and elsewhere before the District Court-

(a)          by the employer or other person responsible for the payment of wages under section 3, if the total sum directed to be paid by way of wages and compensation exceeds three hundred rupees 78[or such direction has the effect of imposing on the employer or the other person a financial liability exceeding one thousand rupees], or

79[(b)    by an employed person or any legal practitioner or any official of a registered trade union authorized in writing to act on his behalf or any Inspector under this Act, or any other person permitted by the authority to make an application under sub-section (2) of section 15, if the total amount of wages claimed to have been withheld from the employed person exceeds twenty rupees or from the unpaid group to which the employed person belongs or belonged exceeds fifty rupees, or]

(c)           by any person directed to pay a penalty under 80[sub-section (4)] of section 15.

74.          Subs. by s.14, ibid, for certain words (w.e.f.1-2-1965).

75.          Subs. by Act 68 of 1957, s. 7, for "An appeal against a direction made under sub-section (3) or sub-section (4) of section 15" (w.e.f. 1-4-1958). The words and figures in italics were subs. by Act, 20 of 1937, s. 2 and Sch. I, for "sub-section (3)".

76.          Subs. by s. 7, ibid, for "the direction" (w.e.f. 1-4-1958).

77.          The words "or in Rangoon" omitted by the Government of India (Adaptation of Indian Laws) Order, 1937.

78.          Ins. by Act 53 of 1964, s. 15 (w.e.f. 1-2-1965).

79.          Subs. by s.15, ibid, for cl. (b) (w.e.f. 1-2-1965).

80.          Subs. by Act 20 of 1937, s. 2 and Sch. I, for "sub-section (5)".

81[(1A) No appeal under clause (a) of sub-section (1)] shall lie unless the memorandum of a appeal is accompanied by a certificate by the authority to the effect that the appellant has deposited the amount payable under the direction appealed against.]

82[(2)    Save as provided in sub-section (1) any order dismissing either wholly or in part an application made under sub-section (2) of section 15, or a direction made under sub-section (3) or sub-section (4) of that section shall be final.]

83[(3)    Where an employer prefers an appeal an appeal under this section, the authority against whose the appeal has been preferred may, and if so direction by the court referred to in sub-section (1) shall, pending with it.

(4)          The court referred in sub-section (1) may, if it thinks fit, submit any question of law for the decision of the High Court and, if it so does, shall decide the question in conformity with such decision.]

 COMMENTS

The Appellate Court under section 17 of the Act, is amenable to revision jurisdiction of the High Court, According to section 17 of the Act, Small Cause Court in a Presidency town and elsewhere the District Courts, are the Appellate authority, Both the Courts are subordinate to the High Court and as such, High Court by exercising revisional powers under section 115 C.P.C. can correct any error of jurisdiction committed by the said Appellate Court. [French Motors Car Co. Ltd. Workers Union v. French Motor Car Co. Ltd. LLR 1990 page 366 (Gua.H.C.)]

Appeal is not made to a persona designate but to a court. Revision lies against the appellate order to the High Courts. [Bharatpur Central Co-op. Bank Ltd. v. Rattan Singh & Ors; (1990) II CLR 516 (Raj).)]

The requirement of making deposit at the time of filing of a appeal does not destroy the remedy of the appeal. [Nagar Palika v. Prescribed Authority & Ors; (1992) 64 FLR 1005 (All.)].

                 

84     17A.       CONDITIONAL ATTACHMENT OF PROPERTY OF EMPLOYER OR OTHER PERSON RESPONSIBLE FOR PAYMENT OF WAGES-

(1)          Where any time after an application has been made under sub-section (2) of section 15 the authority, or where at any time after an appeal has been filed under section 17 by an employed person or 85[any legal practitioner or any official of a registered trade union authorized in writing to act on his behalf or any Inspector under this Act or any other person permitted by the authority to make an application under sub-section (2) of section 15] the Court referred to in that section, is satisfied that the employer or other person responsible for the payment of wages under section 3 is likely to evade payment of any amount that may be directed to be paid under section 15 or section 17, the authority or the court, as the case may be, except in cases where the authority or court is of opinion that the ends of justice would be defeated by the delay, after giving the employer or other person an opportunity of being heard, may direct the attachment of so much of the property of the employer or other person responsible for the payment of wages as is, in the opinion of the authority or court, sufficient to satisfy the amount which may be payable under the direction.

(2)          The provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to attachment before judgment under that Code shall, so far as may be, apply to any order for attachment under sub-section (1).]

81.          Ins. by Act 53 of 1964,s. 15 (w.e.f. 1-4-1958).

82.          Subs. Act 68 of 1957, s. 7, for sub-section (2) (w.e.f. 1-4-1958).

83.          Ins. by Act 53 of 1964, s. 15 (w.e.f. 1-2-1965).

84.          Subs. by s. 16, ibid, for certain words (w.e.f. 1-2-1965).

85.          Subs. by s. 16, ibid, for certain words (w.e.f. 1-2-1965).

 

18.          POWERS OF AUTHORITIES APPOINTED UNDER SECTION 15-

Every authority appointed under sub-section (1) of section 15 shall have all the of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling the production of documents, and every such authority shall be deemed to be a Civil Court of all the purposes of section 195 and of 86[Chapter XXVI of the. Code of Criminal Procedure, 1973 (2 of 1974).]

 

COMMENTS

Where an authority passed an order directing a party to produce the documents asked for by another party, the order would be liable to be quashed when the order was in the form of a bold directive to the party to produce the documents asked for by another party and it did not contain any recital about the documents which was to be produced about their relevancy to the controversy which the authority was called upon to decide. [Newspapers Ltd, Allahabad v. the State of U.P. 1982 Lab. IC 776 = 1982(44) FLB.]

19.          [POWER TO RECOVER FROM EMPLOYER IN CERTAIN CASES.]

Rep. by the Payment of Wages (Amendment) Act, 1964 (53 of 1964), s.17 (w.e.f. 1st February, 1965).

                 

20.          PENALTY FOR OFFENCES UNDER THE ACT-

(1)          Whoever being responsible for the payment of wages to an employed person contravenes any of the provisions of any of the following section, namely, 87[section 5 except sub-section (4) thereof, section 7, section 8 except sub-section (8) thereof, section 9, section 10 except sub-section (2) thereof, and sections 11 to 13], both inclusive, shall be punishable with fine 88[which shall not be less than two hundred rupees but which may extend to one thousand rupees.]

86.          Subs. by Act 38 of 1982, for "Chapter XXV of the code of Criminal Procedure 1898" s. 10 (w.e.f. 15-10-1982).

87.          Subs. by Act 53 of 1964, s. 18, for "section 5 and sections 7 to 13" (w.e.f. 1-2-1965).

88.          Subs. by Act 38 of 1982, for "which may extend to five hundred rupees" s.11 (w.e.f. 15-10-1982).

(2)          Whoever contravenes the provisions of section 4, 89[sub-section (4) of section 5, section 6, sub-section (8) of section 8, sub-section (2) of section 10] or section 25 shall be punishable with fine which may extend to 90[five hundred rupees.]

91[(3)    Whoever being required under this Act to maintain any records or registers or to furnish any information or return-

(a)          fails to maintain such register or record; or

(b)          willfully refuses or without lawful excuse neglects to furnish such information or return; or

(c)           willfully furnishes or causes to be furnished any information or return which he knows to be false; or

(d)          refuses to answer or willfully gives a false answer to any question necessary for obtaining any information required to be furnished under this Act,

shall for each such offence, be punishable with fine 92[which shall not be less than two hundred rupees but which may extend to one thousand rupees.]

(4)          Whoever-

(a)          willfully obstructs an Inspector in the discharge of his duties under this Act; or

(b)          refuses or willfully neglects to afford an Inspector any .reasonable facility for making any entry, inspection, examination, supervision, or inquiry authorized by or under this Act in relation to any railway, factory of 93[industrial or other establishment]; or

(c)           willfully refuses to produce on the demand of an Inspector any register or other document kept in pursuance of this Act; or

(d)          prevents or attempts to prevent or does anything which he has any reason to believe is likely to prevent any person from appearing before or being examined by an Inspector acting in pursuance of his duties under this Act;

shall be punishable with fine 94[which shall not be less than two hundred rupees which may extend to one thousand rupees].

89.          Subs. by Act 53 of 1964, s. 18, for "section 6" (w.e.f. 1-2-1965).

90.          Subs. by Act 38 of 1982, s. 11, for the words "two hundred rupees" (w.e.f. 15-10-1982).

91.          Ins. by Act 53 of 1964, s. 18, (w.e.f. 1-2-1965).

92.          Subs. by Act 38 of 1982, s.11, for "which may extend to five hundred rupees" (w.e.f 15-10-1982).

93.          Subs. by Act 38 of 1982, s. 11, for the words "industrial establishment" (w.e.f. 15-10-1982).

94.          Sub. by Act 38 of 1982, s.11, for "which may extend to five hundred rupees" (w.e.f. 15-10-1982).

(5)          If any person who has been convicted of any offence punishable under this Act is again guilty of an offence involving contravention of the same provision, he shall be punishable on a subsequent conviction with imprisonment for a term 95[which shall not be less than one month but which may extend to six months and with fine which shall not be less than five hundred rupees but which may extend to three thousand rupees]:

Provided that for the purpose of sub-section, no cognizance shall be taken of any conviction made more than two years before the date on which the commission of the offence which is being punished came to the knowledge of the Inspector.

(6)          If any person fails or willfully neglects to pay the wages of any employed person by the date fixed by the authority in this behalf, he shall, without prejudice to any other action that may be taken against him, be punishable with an additional fine which may extend to 96[one hundred rupees] for each day for which such failure or neglect continues.]

  21.          PROCEDURE IN TRIAL OF OFFENCES-

(1)          No Court shall, take cognizance of a complaint against any person for an offence under sub-section (1) of section 20 unless an application in respect of the facts constituting the offence has been presented under section 15 has been granted wholly or in part and the authority empowered under the latter section or the appellate Court granting such application has sanctioned the making of the complaint.

(2)          Before sanctioning the making of a complaint against any person for an offence under sub-section (1) of section 20, the authority empowered under section 15 or the appellate Court, as the case may be, shall give such person an opportunity of showing cause against the granting of such sanction, and the sanction shall not be granted if such person satisfies the authority or Court that his default was due to-

(a)          a bona fide error or bona fide dispute as to the amount payable to the employed person, or

(b)          the occurrence of an emergency or the existence of exceptional circumstances, such that the person responsible for the payment of the wages was unable, though exercising reasonable diligence, to make prompt payment, or

(c)           the failure of the employed person to apply for or accept payment.

(3)          No Court shall take cognizance of a contravention of section 4 or of section 6 or of a contravention of any rules made under section 26 except on a complaint made by or with the sanction of an Inspector under this Act.

                 

95.          Subs. by Act 38 of 1982, s. 11, for "which may extend to three months or with fine which may extend to one thousand rupees or with both" (w.e.f. 15-10-1982).

96.          Subs. by s. 11 ibid, for the words "fifty rupees" (w.e.f. 15-10-1982).

97[(3A) No Court shall take cognizance of any offence punishable under sub-section (3) or sub-section (4) of section 20 except on a com- plaint made by or with the sanction of an Inspector under this Act.]

(4)          In imposing any fine for an offence under sub-section (1) of section 20 the court shall take into consideration the amount of any compensation already awarded against the accused in any proceedings taken under section 15.

22.          BAR OF SUITS-

No Court shall entertain any suit for the recovery of wages or of any deduction from wages in so far as the sum so claimed-

(a)          forms the subject of an application under section 15 which has been presented by the plaintiff and which is pending before the authority appointed under that section or of an appeal under section 17; or

(b)          has formed the subject of a direction under section 15 in favour of the plaintiff; or

(c)           has been adjudged, in any proceeding under section 15, not to be owed to the plaintiff; or

(d)          could have been recovered by an application under section 15.

98[22A. Protection of action taken in good faith-

No suit prosecution or other legal proceeding shall lie against the Government or any officer of the Government for anything which is in good faith done or intended to be done under this Act.]

23.          CONTRACTING OUT-

Any contract or agreement, whether made before or after the commencement of this Act, whereby an employed person relinquishes any right conferred by this Act shall be null and void in so far as it purports to deprive him of such right.

99[24.    APPLICATION OF ACT TO RAILWAYS, AIR TRANSPORT SERVICES, MINES AND OILFIELDS-

 The powers by this Act conferred upon the State Government shall, in relation to 100[railway], 101[air transport services,] mines and oilfields; be powers of the Central Government.]

97.          Ins. by Act 53 of 1964, s. 10 (w.e.f. 1-2-1965).

98.          Ins. by s. 20, ibid, (w.e.f. 1.2.1965).

99.          Subs. by the Government of India (Adaptation of Indian Laws) Order, 1937, for the original section 24.

100.        Subs. by the Adaptation of Laws Order, 1950, "Federal railways (within the meaning of the Government of India Act, 1935)"

101.        Ins. by Act 38 of 1982, s. 21 (w.e.f. 15-10-1982).

25.          DISPLAY BY NOTICE OF ABSTRACTS OF THE ACT-

The person responsible for the payment of wages to persons 102[employed in a factory or an industrial or other establishment] shall cause to be 103[displayed in such factory or industrial or other establishment a notice containing such abstracts of this Act and of the rules made there under in English and in the language of the majority of the persons employed 104[in the factory, or industrial or other establishment] as may be prescribed.

106 [25A.             PAYMENT OF UNDISBURSED WAGES IN CASES OF DEATH OF EMPLOYED PERSON.

(1)          Subject to the other provisions of the Act, all amounts payable to an employed person as wages shall, if such amounts could not or cannot be paid on account of his death before payment or on account of his whereabouts not being known,

(a)          be paid to the person nominated by him in this behalf in accordance with the rules made under this Act; or

(b)          where no such nomination has been made or where for any reasons such amounts cannot be paid to the person so nominated, be deposited with the prescribed authority who shall deal with the amounts so deposited in such manner as may be prescribed.

(2)          Where, in accordance with the provisions of sub-section (1), all amounts payable to an employed person as wages-

(a)          are paid by the employer to the person nominated by the employed person, or

(b)          are deposited by the employer with the prescribed authority, the employer shall be discharged of his liability to pay those wages.]

26.          RULE-MAKING POWER-

(1)          The State Government may make rules to regulate the procedure to be followed by the authorities and Courts referred to in sections 15 and 17.

(2)          The State Government may, 107[***] (by notification in the Official Gazette, make rules for the purpose of carrying into effect the provisions of this Act.

(3)          In particular and without prejudice to the generality of the foregoing power, rules made under sub-section (2) may-

(a)          require the maintenance of such records, registers, returns and notices as are necessary for the enforcement of the Act

102.        Subs. by Act 38 of 1982, for "employed in a factory" s. 12 (w.e.f. 15-10-1982).

103.        Subs. by s. 12, ibid., for the words "displayed in such factory" (w.e.f. 15-10-1982).

104.        Subs. by Act 38 of 1982, .s. 12, for the words "in the factory" (w.e.f. 15-10-1982).

106.        Ins. by Act No.38 of 1982, s. 2, (w.e.f. 1-3-1994) vide GSR 287 (E) dated 1-3-1994.

107.        The words "Subject to the control of the Government General in Council" omitted by the A.O.1937.

108[prescribe the form thereof and the particulars to be entered in such registers or records]:

(b)          require the display in a conspicuous place or premises where employment is carried on of notices specifying rates of wages payable to persons employed on such premises;

(c)           provide for the regular inspection of the weights, measures and weighing machines used by employers in checking rates of wages payable to persons employed on such premises;

(d)          prescribe the manner of giving notice of the days on which wages will be paid;

(e)          prescribe the authority competent to approve under sub-section (1) of section 8 acts and omissions in respect of which fines may be imposed;

(f)           prescribe the procedure for the imposition of fines under section 8 and for the making of the deductions referred to in section 10;

(g)          prescribe the conditions subject to which deductions may be made under the proviso to sub-section (2) of section 9;

(h)          prescribe the authority competent to approve the purposes on which the proceeds of fines shall be expended;

(i)            prescribe the extent to which advances may be made and the installments by which they may be recovered with reference to clause (b) of section 12;

109[(ia) prescribe the extent to which loans may be granted and the rate of interest payable thereon with reference to section 12A;

(ib)         prescribe the powers of Inspectors for the purposes of this Act;]

(j)           regulate the scales of costs which may be allowed in proceedings under this Act;

(k)          prescribe the amount of court-fees payable in respect of any proceedings under this Act; 110[***]

(l)            prescribe the abstracts to be contained in the notices required by section 25.

111[(la) prescribe the form and manner in which nominations may be made for the purposes of sub-section (1) of section 25A, the cancellation or variation of any such nomination, or the making of any fresh nomination in the event of the nominee predeceasing the person making nomination, and other matters connected with such nominations;

108.        Subs. by Act 53 of 1964, s. 22, for "and prescribe the form thereof" (w.e.f. 1-2-1965).

109.        Ins. by Act 53 of 1964, s. 22 (w.e.f. 1-2-1965).

110.        The word "and" omitted by s. 22, ibid, (w.e.f. 1-2-1965).

111.        Ins. by s. 14, ibid, (w.e.f. 15-10-1982).

(lb)         specify the authority with whom amounts required to be deposited under clause (b) of sub-section (1) of section 25A shall be deposited, and the manner in which such authority shall deal with the amounts deposited with it under that clause;

112[(m)                provide for any other matter which is to be or may be prescribed.]

(4)          In making any rule under this section the State Government may provide that a contravention of the rule shall be punishable with fine which may extend to two hundred rupees.

(5)          All rules made under this section shall be subject to the condition of previous publication, and the date to be specified under clause (3) of section 23 of the General Clauses Act, 1897 (10 of 1897), shall not be less than three months from the date on which the draft of the proposed rules was published.

113[(6)  Every rule made by the Central Government under this section shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in 114[two or more successive sessions,] and if, before tile expiry of the session 115[immediately following the session or the successive sessions aforesaid,] both Houses agree in making any modification in the rule, of both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be;. So, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]

                 

112.        Ins. by Act 53 of 1964, s. 22(w.e.f. 1-2-1965).

113.        Subs. by Act 38 of 1982, s, 14 for sub-section (6) (w.e.f. 15-10-1982).

114.        Subs. by Act 38 of 1982, s. 14, for "two successive sessions" (w.e.f.15-10-1982).

115.        Subs. by s. 14, ibid., for "in which it is so laid or session immediately following" (w.e.f.15-10-1982).

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