RAJASTHAN STATE WARE HOUSING CORPORATION Vs. AUTHORITY APPOINTED UNDER THE PAYMENT OF WAGES ACT JAIPUR

JUDGEMENT

(1.) THE common question which arises in all these revision petitions is whether the Rajasthan State Ware Housing Corporation (hereinafter referred to as 'the Corporation') can deposit the arrears of Dearness Allowance (D. A.) admissible to its employees in the General Provident Fund (GPF) or some similar account and not pay in cash and would deposit in such G. P. F. or other account amount to deduction of wages under Section 7 of the Payment of Wages Act (hereinafter referred to as 'the Wages Act' ).

(2.) THE petitioner Corporation has been constituted under the Ware Housing Corporation Act, 1962 (hereinafter referred to as 'the Act') in which 50% shares belong to the State Government. It has its own staff and the service conditions of the staff are governed by regulations framed under Section 42 of the Act and are called Rajasthan State Ware Housing Corporation (Staff) Regulations ) 974 (hereinafter referred to as 'the Regulations ). THE Act provides for the constitution of the Corporation and other bodies in order to carry its functions. Section 20 provides for the constitution of Board of Directors in which shall vest the general superintendence and management of the affairs of the Corporation. Section 23 (1) and (2) of the Act read as under:- "23 (1 ). A State Warehousing Corporation may appoint such Officers and other employees as it considers necessary for the efficient performance of its functions. " "23 (2 ). Every person employed by a State Warehousing Corporation under this Act shall be subject to such conditions of service and shall be entitled to such remuneration as may be determined by regulations made by the Corporation under this Act," Regulation 24 of the Regulations framed under Section 42 of the Act reads as under:- "24 Dearness and Compensatory Allowance Employees of the Corporation shall be entitled to dearness and compensatory allowance at the rates admissible to employees of the State Government from time to time. "

(3.) THE learned counsel for the non-petitioner No. 2 has contended that the persons to whom the provisions of the Wages Act are applicable are to be paid wages without any deductions in accordance with the Section 6 of the Wages Act. This provides that all wages shall be paid in current coin or in currency notes and it is only under the authority of the employee that the wages can be paid either by cheque or by crediting the wages in his bank account. Section 7 permits the authorised deduction and for the present purpose Section 7 (2) (h) is relevant which reads as under:- "section (2)- Deductions from the wages of an employed person shall be made only in accordance with the provisions of this Act, and may be of the following kinds only namely: (h)- deductions required to be made by order of a Court or other authority competent to make such order. "