NGEF EMPLOYEES ASSN Vs. RPF COMMR

JUDGEMENT

(1.) This writ petition is by the NGEF Employees' Association and two employees of respondent-2 - the New Government Electric Factory (NGEF), Bangalore filed under Art.226 of the Constitution for the issue of a writ in the nature of mandamus directing the first respondent-The Regional Provident Fund Commissioner, Karnataka to refrain from demanding from the second respondent, the employer, deposit of the additional wages payable to the employees of the second respondent factory under the terms of the settlement dt. 1-3-1975 for the period between 6-7-1974 and 30-6-1975. The third respondent, the NGEF Workers' Union, which has got itself impleaded as one of the respondents, supports the case of the petitioners.

(2.) The necessary facts for decision of this case may be stated as follows : On the 1st of March, 1975 a settlement was arrived at between the employees and the employer, the second respondent, the NGEF, Bangalore. Under the terms of the said settlement the employees were accorded the benefit of certain additional wages for the period commencing from 1-4-1974. Cl(l) of the terms of the settlement expressly provides that the additional wages, as a result of revision of wage structure, will be arranged to be paid during August, 1975. There is also a provision in Cl (16) of the said settlement to the effect that the settlement is subject to the provisions of Addtional Emlouments (Compulsory Deposit) Act, 1974, (hereinafter referred to as 'the Act'). By letter dt.23/24 of July, 1975, produced in the case as Ext.'B', the first respondent called upon the Divisional Manager, (Personal and Administration) of the second respondent to pay the arrears of additional wages' payable to the employees of the second respondent in accordance with the settlement dated 1-3-1975 referred to above for the period from 6-7-74 to 30-6-75. It is stated that so far as the additional wages for the period from 1-7-75 to 5-7-75 is concerned, the same has been waived by the Govt. Request has been made in the said letter for the deposit of 80 per cent of additional wages immediately. After the attempts made by the petitioners to persuade the first and the second respondents not to give effect to the demand made in Ext.'B' failed, the petitioners have approached this Court for appropriate reliefs.

(3.) Sub-sec(3) of Sec.1 of the Act provides that the Act shall be deemed to have come into force on the 6th day of July, 1974, except S. 14 which shall come into force at once. The preamble to the Act states that it has been enacted to provide, in the interests of national economic development, for the compulsory deposit of additional emoluments and for the framing of a scheme in relation thereto, and for matters connected therewith or incidental there to. The expresstion "appointed day" has been defined in S.2(a) of the Act, to mean, the 6th day of July, 1974. The expression 'additonal wages' has been defined in S.2(c), as follows: 'additional wages' means such wages, over and above the wages payable to an employee in accordance with the rates in force immediately before the appointed day, as may become payable to the employee in respect of any period after the appointed day in pursuance of any wage revision, whether by or under an agreement or settlement between the parties or any award, decree or order of any Court, Tribunal or other authority or otherwise, but does not include- (i) any increment due to the employee in accordance with the time scale of pay applicable to the post held by him immediately before the appointed day, and any consequent increase in any allowance (not being dearness allowance) admissible under any rule or order in force immediately before the appointed day; (ii) any higher wages payable to the employee on his- (a) promotion to a higher post and any increment, being an increment within the prescribed limits, due to the employee in such higher post; (b) deputation or transfer to an equivalent post or to any post involving higher responsibilities and duties; (iii) any special pay, honorarium, fee or reward payable for any special work done; (iv) any remuneration payable for overtime work; (v) any increase in wages consequent on the revision of the minimum rates of wages fixed under the Minimum Wages Act, 1948 (11 of 1948); (vi) any increase in wages sanctioned in pursuance of the recommendations made- (a) by the Third Central Pay Commission; (b) before the appointed day, by any Pay Commission appointed by a State Government, in relation to the employees of that Government; (c) by any committee constituted, before the appointed day, by Parliament, Supreme Court or any High Court in relation to any employee of Parliament, Supreme Court or High Court, as the case may be. Explnation-1: Where any wage revision made after the appointed day is to be effective from a date prior to the appointed day, the wages payable immediately before the appointed day, before such wage revision, shall, for the purpose of computation of additional wages, be deemed to be the wages. Explanation-2: Any bonus (including incentive and production bonus) paid after the appointed day at a rate over and above the rate at which it was last paid before the appointed day, shall be deemed for the purpose of this Act, to be additional wages."