MANAGER RAJAPALAYAM MILLS LIMITED Vs. LABOUR COURT MADURAI

JUDGEMENT

(1.) The only question which arises in this appeal in this appeal is whether, having regard to provisions of S. 7(2)(f) of the Payment of Wages Act. 1936 hereinafter referred to as the Act, the employer-appellant was entitled to adjust the sum of Rs. 600.35 towards the dues of Rs. 983.46, which according to the employer, were due from the employee, as advance paid on behalf of the employee to a house building association.

(2.) It is not in dispute that the employee second respondent resigned from the service in October, 1975. Since the employer did not pay his salary for September, 1975, Rs. 403.42, and for 15 days in October, 1975 Rs. 196.93, in all totalling Rs. 600.35, the employee filed an application under S.33-C(2) of the Industrial Disputes Act, 1947 before the Presiding Officer, Labour Court, Madurai.

(3.) The defence of the employer was that the employer was to receive a sum of Rs. 983.46, as balance of the advance paid on behalf of the employee for the purposes of building a house by the Housing Building Association of the employees of the employer. The employee dose not dispute that the amount was advanced by the employer and that the every month a sum of Rs. 15, was being deducted from his wages towards the repayment of the advance given by the employer. His contention however was that even though he had resigned from service, the only permissible deduction was at the rate at which the deduction was being made while he was in employment and therefore, the employer was entitled to deduct Rs. 22.50 only from the wages due for September, and part of October, 1975. This contention was accepted by the Labour Court and the Labour Court directed a payment of Rs. 814.25 on account of arrears of wages from 1st September, 1975, to 15th October, 1975. The employer filed a writ petition in this Court. The learned single Judge accepted the claim of the employer that the employee was not entitled to wages for the unexpanded portion of the leave with wages for which a claim was made by him and the claim was allowed by the Labour Court. However, the learned Judge took the view that the employer could not have deducted more than Rs. 22.50 from the arrears of wages claimed and, therefore, the correct amount payable to the employer was computed at Rs. 577.85. This order is challenged by the employer in this appeal.