LAWS(BOM)-1964-8-6

JOBANPUTRA B K Vs. KALELKAR B S

Decided On August 28, 1964
JOBANPUTRA (B.K.) Appellant
V/S
KALELKAR (B.S.) Respondents

JUDGEMENT

(1.) This is an application under Art. 227 of the Constitution of India, by 29 workmen who were in the employment of respondent 3, the New Asiatic Company, Ltd. They seek to get quashed the order of the Second Additional Authority under the Payment of Wages Act, 1936, Bombay, of 27 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 respondent 3, the first 27 on 1 July, 1960 and 28 and 29 on 1 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 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 had 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 S. 2 of the Payment of Wages Act and the material part reads :