High CourtSingle JudgeAppeal allowed

Namor Ali Choudhury and Others v. Central Inland Water Transport Corporation Ltd. and Another

Case / Petition Number:Civil Appeal No. 1578 of 1973
Neutral Citation:[1978] 2 S.C.R. 205

Case Details & Bench

Court
High Court
Hon'ble Judges
  • N. L. Untwalia
  • P. N. Shinghal
Judgment Date
1977-11-16
Court Decision / Holding
Appeal allowed; High Court order quashing Labour Court's decision set aside; Labour Court’s order restored; West Bengal settlement extended to Assam Sector upheld.
Final Disposition
Appeal allowed

Parties to the Case

Appellants / Petitioners

  • Namor Ali Choudhury and Others

Respondents

  • Central Inland Water Transport Corporation Ltd.
  • Another

Legal Representation & Advocates

Counsels for Petitioners

  • • M. K. Ramamurthi
  • • A. K. Ganguly
  • • D. P. Mukherjee

Counsels for Respondents

  • • Nims De
  • • M. K. Banerjee
  • • S. M. Mandel
  • • A. G. Meneses

Case Synopsis & Summary

Namor Ali Choudhury and others, workmen of the respondent company, challenged a Labour Court order under section 33C(2) of the Industrial Disputes Act, 1947, directing computation of wages due to them based on settlements said to have been reached between their union and management, including a West Bengal settlement extended to the Assam Sector. The Labour Court awarded Rs. 848 per man at Rs. 20 per month from December 1969 to March 1972 and Rs. 12 per month from March 1970 to March 1972, while rejecting a claim for Rs. 13 per month from February 1971 to March 1972. The Gauhati High Court quashed the Labour Court order, holding that Section 33C(2) was narrowly interpreted and that disputes as to the amount due must exist for Labour Court adjudication; if no dispute existed over fixed settlements, Labour Court had no jurisdiction. The Supreme Court reverses, stating that section 33C(2) has two components: a pure money-claim and a computation of money of any benefit due. The phrase “if any question arises as to the amount of money due” encompasses four kinds of disputes: whether there is a settlement/award; whether a worker is entitled to money under such settlement/award; the rate or quantum; and whether the amount claimed is due. When entitlement is established, the amount can be determined by calculation, and the remedy under section 33C(2) is available. The Court endorses the principles laid down in Central Bank of India Ltd. v. P.S. Rajagopalan, R. B. Bansilal Abirchand Mills Co. Ltd. v. Labour Court Nagpur, and Sahu Minerals and Properties Ltd., while noting Punjab National Bank Ltd. v. K.L. Kharbanda is not applicable. The appeal is allowed, the High Court’s order is set aside, and the Labour Court’s order is restored.

Provisions of Law Cited

Industrial Disputes Act, 1947 (as amended by Act 36 of 1964)Section 33C(1)Section 33C(2)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argue that section 33C(2) comprises two parts and covers both pure money claims and computation of money of any benefit; disputes may arise about the amount due under settlements or awards, including entitlement and rate of payment. They contend that the Assam Sector workers are entitled to the benefit of the West Bengal settlement and that Labour Court can determine the amount due even if the dispute concerns a settlement extending beyond a single sector; the remedy under section 33C(2) would apply when entitlement is established, with calculation permissible to determine the amount due.

Contentions of Respondents

The respondents urged strict interpretation of section 33C(2), arguing that if there is any dispute as to money due, it should be decided by the Government under subsection (1) rather than by the Labour Court under subsection (2). They relied on Government certification under subsection (1) and argued that if a dispute exists, the Government should issue a certificate, and the Labour Court should not adjudicate the quantum unless there is no bona fide dispute.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Central Bank of India Ltd. v. P. S. Rajagopalan etc.(1964) 3 S.C.R. 140PositiveCited as illustrating the broad interpretation of the scope of section 33C(2) beyond a narrow view of ‘money due’, supporting the view that disputes as to entitlement and computation fall within Labour Court’s remit.
R. B. Bansilal Abirchand Mills Co. Ltd. v. Labour Court Nagpur & Ors.(1972) 2 S.C.R. 580PositiveCited to reinforce principles of interpretation of section 33C(2) and its reach over disputes concerning money due and computation.
Sahu Minerals and Properties Ltd. v. Presiding Officer, Labour Court and othersAIR 1975 S.C.R. 1745PositiveCited as supportive authority for the Court’s broad approach to ‘amount of money due’ and the Labour Court’s jurisdiction.
Punjab National Bank Ltd. v. K. L. Kharbanda[1962] 2 Suppl. S.C.R. 977Mentioned OnlyCited but held not applicable/not controlling for the present interpretation; used for contrast.

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Extracted Judgment Text

Exact text extracted from official judgment records.

205 NAMOR ALI CHOUDHURY AND OTHERS _v._ / CENTRAL INLAND WATER TRANSPORT CORPORATION LTD. AND ANOTHER _November_ 16, 1977 [N. L. UNTWALIA AND P. N. SHINGHAL, JJ.J _lndus:rial Disputes Act, 1947-Jurisdiction of Labour Court-lnterpreta-_ _tin11_ _of_ _uctio11_ 33C(I) _and_ (2). The appellants, workmen of the respondent company, filed an application under section 33C(2) of The Industrial Disputes Act, 1947, in the Labo~r Court asking it to compute their wages due from the respondent on the basIS of certain settlements said to have been arrived at between them and the management. Holding that each of the workman in the Assam Sector was also entitled to take advantage of the settlement between the company and its emplo}'ees in West Bengal, the Labour Court allowed their application in part rejecting only that portion of the claim of the workmen for Rs. 13/~ p.m. from Feb. 1971 to Mar., 1972. The Gauhati High Court allowed the writ application fiTed by the management and quashed the order of the Labour Court. Allowing the appeal by special leave, the court, A B ### c D HELD : (I) The High Court Committed an error in narrowly interpreting section 33C(2) of the Industrial Disputes Act, 1947. There are two parts of the sub.section (2) of section 33C of the Act. The first part is concemed with the money claim _simpliciter_ and the second part speaks about computa· tion in terms of money of any benefit to which the workman is entitled. Where any workman is entitled to receive from employer any money and if any question arises as to the amount of money due, then the question may be E decided by the Labour Court. The expression "if any question arises as to the amount of money due" embraces within its ambit any one or more of four kinds of disputes, namely: (1) Whether there is any settlement or award as alleged? (2) Whether any workman is entitled to receive from the employer any money at all under any settlement or an award etc. ? (3) If so, what will be the rate or quantum of such amount ? and, ( 4) Whether the amount claimed is due or not ? A dispute as to all such questions or any of them would attract the provisions of section 3 3C (2) of the Act and make the F remedy available to the workman concerned. If the right to get the money on the basis of the settlement or the award is not established, no amount of money wm be due. If it is established, then it has to be found out, _albeit,_ _ii_ may be by mere calculation, as to what is the amount due. For finding it out, it is not necessary that there should be a dispute as to the amount of money due also. The fourth kind of dispute will be covered by phrase "amount of money due". [207 A, C-H, 208 A] _Central_ Ban~ _of_ l~dia _Ltd,_ .v. _P._ _S._ _Rajagopalan etc._ (1964) 3 S.C.R. G 140; _R._ _B._ _Bans1la/_ _Abirchand Mills_ _Co._ _Ltd._ v. _Labour Court Nagpur_ & _Ors._ [1972] 2 S.C.R. 580; and _Sahu Minerals and Propeties Ltd._ v. _Presiding_ _Officer, Labour Court and others,_ A.I.R. 1975 S.C. 1745, followed. (2). Satisfaction o! the appropriate Goven1ment which is spoken of in sub·s~ct1op. (1) of section 33C of the Act in their _prima facie_ satisfaction when a claun is made by any workman before the Government for issuance of a ce~ificate by the Collector for realisation of the amount due. If the appro- H pnate _Government finds that. the amount clai"!ed. by the workman is due and ~here 1s no sue~ dISpnte "".h1ch needs any !"11ud1cation by the Labour Court in accordance with sub.section (2) or the dispute raised is not _bona_ _fide,_ then A B ## c D 206 SUPREME COURT REPORTS [1978] 2 S.C.R. the Government shall issue a certificate for the amount due to the Collector who shall_ proceed to recover the same in the manner as an arrear of land revenue. [208 D-E] _Punjab National Bank Ltd._ v. _K._ _L._ _Kharbanda_ [1962] 2 Suppl. S.C.R. 977, not applicable. CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1578 of 1973. #### Appeal by Special Leave from the Judgment and Order dated l 2-5-73 of the Gaubati High Coui:t in Civil Rule No. 778 of 1972. _M. K. Ramamurthi,_ _A._ _K._ _Ganguly_ and _D._ _P._ _Mukherjee_ for the Appellants. _Nimz_ _De,_ _M._ _K. Banerjee,_ S. _M._ _Mandel,_ _A._ G. _Menesses_ for respondent No. 1 The Judgment of the Court wa·s delivered by UNTWALIA, J.-This is an appeal by special leave from the judgment and order of the Gauhati High Court dated the 2nd of May, 1973 setting aside the order of the Labour Court, Gauhati dated. the 26th July, 1972. The facts are in a very narrow compass and the point involved is short. The appellants, workmen of the respondent company, filed an application under section 33C(2) of the Industrial Disputes Act, 1947-hereinafter to be referred to as the Act in the Labour Court asking it to compute their wages due from the re·spondent on the basis E of certain settlements said to have been arrived at between them and the management. The Labour Court allowed their application in part and held that each of the workman was entitled to get Rs. 848 /- froni the respondent company @ Rs. 20/- per month from December, 1969 to March, 1972 and @Rs. 12/- from March, 1970 to March, 1972. The claim of the workmen for Rs. 13 /- per month from February, 1971 to March, 1972 was reiected by the Labour Court. The rnanaoe-F ment challenged the order of the Labour Court in Civil Ru le N~. 778 of 1972 by a writ application. The Hi~h Court allowed the application and quashed the order of the Labour Court. Hence this appeal. It may be stated here that the only dispute between the management and the workmen in the proceeding under section 33Cl2) of the Act was whether the employees in the Assam Sector were also· G entitled to take advonta~e of the settlement between the company Rnd its employees in West Bengal. The quantum or the rate of extra wages to wh;ch the wnrkmen would have been entitled if the advantaees under the settlement were found available to them was not in dispute. In that view of the matter. the High Court was of the opinion, to quote the relevant words from its judgrnent "For conferring jurisdiction on a Labour Court under H section 33Cl2). it is not only necessarv that the workmen should be entitled to any money due but also that there should be a dispute about the amount of that money. It is # ' NA,M:PR ALI v. Cl!N'fML INJ,,\l'ID WATER ( _Untwalia,_ _!.)_ 207 clear that thll!"e is no dispµte with re&ard to tb.e aJ:\lOunts of money which have already ~n fixed by the settlem.ent. That being the position, there is. no question withiµ the scope of section 33C(2) for determination by the Labour Court in this. case." A In our judgment the High Court has committed an error in so B narrowly interpreting section 33C(2) of the Act. Tht1 said provision runs as follows. : "Where any workman is entitled to receive from the employer any money or any benefit which is capable of being computed in terms of money and if any question arises as ### to the amount of money due or as to the amount at which c such benefit 'should be computed, then the question may, subject to any rules that may be made under this Act, be decided by such Labour Court as may be specified in this behalf by the appropriate Government.'' There are two parts of the sub-section as it stands after its amendment by Act 36 of 1964. The first part is concerned with the money claim D _simpliciter_ and the second part speaks about computation in terniS of money of any benefit to which the workman is entitled. Although for appreciation of the point at issue there is no substantial difference between the two, we shall confine our discussion to the money claim only pure and simple. On a plain reading of the wordings of the Statue it would be found that where any workman is entitled to receive from employer any money and if any question arises as to the amount Ji: of money due, then the question may be decided by the Labour Court The expression "If any question arises as to the amount of money due" embraces within its ambit any one or more of the following kinds of ### di&putes : (I) Whether there is any settlement or award as alleged? . F (2) Whether any workman is entitled to receive from the employer any money at all under any settlement or an award etc? ( 3) If so, what will be the rate or quantum of such amount? ( 4) Whether the amount claimed is due or not? G Broadly speaking, these will be tb.e disputes which will be referable to the question as to the amount of money due. If the right to get the money on the basis of the settlement or the award is not established, fio amount of money will be due. If it is established, then it has to be found out, _albeit,_ it may be by mere calculation, as to what is the amount due. H For finding it out, is not necessary that there should be a dispute as to the aniount of money due also. The fourth kind of dispute which we #### have indicated above obviously and literally will be covered by the SUPREME COURT REPORTS (1978] 2 S.C.R. A phrase "amount of money due." A dispute as to all such questions or any of them would attract the provisions of section 33C(2J of the Act and make the remedy available to the workman concerned. B ### c D E F It is not necessary to elaborately discuss the various authorities of this C..ourt on the point. To our mind the view we have expressed above is plainly and squarely covered by the principles of law enunciated by this Court in several decisions; to wit, _The Central Bank of India_ _Ltd._ v. _P._ _S._ _Raiagopalan_ _etc.(')._ _R. B. Bansilal Abirchand Mills Co._ _Ltd._ v. _Labour Court Nagpur_ & _Ors._ (2) and _Sahu_ _Minerals and Pro-_ _perties Ltd._ v. _Presiding Officer, Labour Court and others.(_ _[3]_ _)_ Learned counsel for the respondent company endeavoured to support the judgment of the High Court with reference to the provision of sub-·s(~ction (1) of section 33C of the Act. Coonsel submitted that if there is a dispute as to any amount due, it is to be decided by the appropriate Government under the said provision of law and not by the Labour Court under sub-section (2), which is mainly concerned with the computation of the amount. Such an argument is too obviously wrong to be accepted. A detailed discussion is not necessary to reject it. The satisfaction of the appropriate Government which is spoken of in sub-section ( J ) is their _prima_ _facie_ satisfaction when a claim is made by any workman before the Government for issuance of a cer1ificate by the Collector for realisation of the amount due. lt the appropriate Government finds that the amount claimed by the workman 1s due and there is rto such dispute which needs any adjudication by the Labour Court in accordance with sub-·section (2) or the dispute raised is not _bona_ _fide,_ theu the Government shall issue a certificate for the amount due to the Collector who shall proceed to recover the same in the manner as an arrear of land revenue. Tho decision of this Court in _Puniab National Bank Limited_ v. _K._ _L._ _Khar-_ _banda(•)_ does not help the respondent ai all in support of the interpreta1ion sought to be put by it to sub-section (1) of section 33C. For the reasons stated above, we allow the appeal with costs, set aside the order of the High Court and restore that of the Labour Court. S.R. (1) [1964] 3 S.C.R. 140. (2) [1972[ 2 S.C.R. 580. (3) A.LR. 1975 S.C. 1745. (4) [1962]2 Suppl. SC.R. 9i7. _Appeal allowed._