B K JOBANPUTRA Vs. B S KALEKAR

JUDGEMENT

(1.) THIS is an application under Article 227 of the Constitution of India, by 29 workmen who were in the employment of the third respondent the News Asiatic company Limited. They seek to get quashed the order of the Second Additional authority under the Payment of Wages Act, 1936, Bombay, of date 27th April 1962.

(2.) THE question that arises is whether the gratuity payable under the settlement arrived at during the course of the conciliation proceedings is "wages' within the meaning of that word in the payment of wages Act, 1936. These 29 workmen have been retrenched from service by the third respondent, the first 27 on 1st July 1960, and 28 and 29 on 1st November 1960. These 29 workmen, after they had been retrenched filed applications under the Payment of Wages Act, for recovery of certain sums falling under three categories wages for overtime work and for leave period, bonus and the amounts of gratuity claimed by them under the settlement reached during the course of conciliation proceedings. Now, the petitioners who had claimed payment of gratuity are only petitioners Nos. 2 to 8, 10, 16, 18, 28 and 29. The respondent company raised various objections, inter alia, contending that the gratuity was not 'wages' within the meaning of that word in the Payment of Wages Act. The issue arising out of this contention was considered as a preliminary issue, by the Authority appointed under the Payment of Wages Act, and has been decided against the workmen; hence this application.

(3.) IN order to appreciate the rival contentions raised by Counsel for parties, it would be convenient to reproduce the material part of the definition of 'wages'. The definition is contained in Clause (vi) of section 2 of the Payment of Wages Act, and the material part reads :-" (vi) 'wages means all remuneration whether by way of salary, allowances of otherwise expressed in terms of money or capable of being so expressed which would, if the terms of employment express or implied were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes - (a ). . . . . . . . . . . . . (b ). . . . . . . . . . . . . (c ). . . . . . . . . . . . . (d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provides for the time within which the payment is to be made".