MODI INDUSTRIES LIMITED Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) Leave granted.

(2.) The Additional Labour Commissioner issued a notice dated February 27, 1991 under S.3 of the U.P. Industrial Peace (Temporary Payment of Wages) Act, 1978 (hereinafter referred to as the 'Act') whereby the appellant-company was called upon to show cause as to why order for payment of wages to the workmen under S. 3 of the Act be not made against it. The hearing of the notice was fixed on March 10, 1991. The appellant-Company submitted its representation including the supplementary representation. The Company was given personal hearing. After considering the material placed by the Company on record, the Additional Labour Commissioner passed an order on April 29, 1991 directing the recovery of Rs. 3,67,474/- from the Company for payment of wages to the workmen for the month of January 1991 only. This order was challenged by the Company on various grounds by a writ petition filed in the High Court. The High Court by the impugned order negatived all the contentions and dismissed the petition. The operative part of the order of the High Court is as follows:

(3.) In order to resolve the controversy between the parties, it is first necessary to examine the provisions of the Act. As the title of the Act itself suggests it has been enacted to secure industrial peace by ensuring timely payment of wages to the workmen. The preamble of the Act states that it is an Act to provide "in the interest of maintenance of industrial peace, a timely payment of wages in bigger industrial establishments and for matters connected therewith". The statement of objects and reasons of the Act states that delays in payment of wages of workmen lead to simmering discontent among them. Sometimes a grave threat to law and order is also forced on this account. The provisions of the Payment of Wages Act, 1936 have been found to be inadequate to ensure timely payment of wages. The incidence of disturbance of industrial peace being greater in comparatively bigger establishments, it was considered necessary to provide that if the wage bill in default exceeds Rs. 50,000/- the amount should be recoverable as arrears of land revenue. Further, in order to curb the tendency of the employers to keep large amounts of wages in arrears, it was also necessary to make it a penal offence to be in default of a wage-bill exceeding Rs. 1lakh.