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HIGH COURT OF DELHI
Date of Decision: 24th JANUARY, 2023 IN THE MATTER OF:
UNITED POLY ENGINEERING PVT LTD ..... Appellant
Through: Ms. Anushree Malaviya, Advocate
Through: Mr. Rama Shankar, Mohd Haris Taslim, Avocates for R-2
HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD
JUDGMENT
1. Aggrieved by an Order dated 04.08.2022 passed by the learned Single Judge in CM APPL.32749/2022 of W.P.(C) 4471/2021, allowing the application filed by Respondent No.2/workman under Section 17B of the Industrial Disputes Act, the instant LPA has been filed.
2. It is stated that Respondent No.2/workman was employed with the Appellant at the post of Pressman from 21.11.2011. It is stated that the services of the workman was terminated on 05.08.2015 by the Appellant.
3. Challenging his termination, which according to the workman was without serving any notice and without payment of salary, the workman approached the Labour Commissioner. It is stated that conciliation proceedings failed and the Deputy Labour Commissioner, Delhi exercising his powers under Section 10 (1) (c) and 12 (5) of the Industrial Disputes Act referred the following questions for adjudication:- "Whether Sh. Jawahar Lal S/o Sh. Bhagwan Das is absenting from duties without any information or his services have been terminated illegally and/or unjustifiably by the management; and if so, to what relief is he entitled and what directions are necessary in this respect"?
4. The Labour Court passed an Award dated 15.02.2020 directing reinstatement of the workman with full backwages along with continuity of service with all consequential benefits except for a period of 10 months.
5. The Award has been challenged by the Appellant by filing W.P.(C) 4471/2021. During the pendency of the writ petition, the workman filed an application bearing CM APPL.32749/2022 under Section 17B of the Industrial Disputes Act claiming full wages pending proceedings in the High Court stating that he has remained unemployed from the date of termination from the service and that he is not gainfully employed, neither is he engaged in any vocation. An affidavit affirming the same has also been filed along with application under Section 17B of the Industrial Disputes Act.
6. The material on record discloses that the application under Section 17B of the Industrial Disputes Act was filed on 31.08.2021 and the said application was opposed by the Appellant contending that the application has been filed belatedly without there being any proper explanation for the unreasonable delay.
7. The learned Single Judge by the order impugned herein allowed the application under Section 17B of the Industrial Disputes Act. The said order has been challenged by the Appellant/management.
8. Ms. Anushree Malviya, learned Counsel for the Appellant, contends that the averments made by the workman in the application do not satisfy the requirements of Section 17B of the Industrial Disputes Act. She further contends that the application was filed with considerable delay and there was no proper explanation given for the delay. It is also contended that the management had requested and had made several offers the workman to join the services but Respondent No.2/workman did not join.
9. Learned Counsel for the Appellant relies on a Division Bench judgment of this Court in Municipal Corporation of Delhi & Ors. v. Santosh Kumari & Ors., MANU/DE/4960/2012 and drawn the attention of this Court to Paragraph 26 of the said judgment, relevant portion of which reads as under:-
10. Per contra, learned Counsel for Respondent No.2/workman supports the order impugned herein.
11. Heard, the learned Counsel for the parties and perused the material on record.
12. The short question which arises for our consideration is as to whether the order impugned herein passed by the learned Single Judge allowing the application under Section 17B of the Industrial Disputes Act requires interference or not.
13. Material on record discloses that the Labour Court by its Award dated 15.02.2020 has directed reinstatement of the workman with full backwages along with continuity of service with all consequential benefits except for a period of 10 months. The said Award has been challenged by the Appellant/management by filing a writ petition bearing W.P.(C) 4471/2021. The Writ Petition is pending. The Respondent No.2/workman filed an application under Section 17B of the Industrial Disputes Act which has been allowed by the learned Single Judge.
14. Section 17B of the Industrial Disputes Act provides that when a Labour Court or a Tribunal through its award directs the reinstatement of any workman, and the employer prefers any proceedings against such award in the High Court or in the Supreme Court, the employer shall be liable to pay compensation during the period of such proceedings in the High Court or in the Supreme Court; full wages last drawn by the workman including maintenance allowance under any rule had the workman not been employed in any establishment during such period and an affidavit by such workman has been filed to that effect in such Court. Section 17B of the Industrial Disputes Act also postulates that if it is proved to the satisfaction of the High Court or the Supreme Court that such workman had been employed and had been receiving adequate remuneration during such period or part thereof, the Court can direct that no wages shall be payable under this Section.
15. The purport of Section 17B of the Industrial Disputes Act has been explained by the Apex Court in Dena Bank v. Ghanshyam, (2001) 5 SCC 169, wherein the Apex Court observed that the Statement of Objects and Reasons under Section 17B of the Industrial Disputes Act indicates that when Labour Courts or Tribunal pass awards of reinstatement and they are often contested by employers in higher courts, in order to mitigate the hardship that is caused because of delay in implementation of the award, it was proposed to provide for payment of wages last drawn by the workman concerned from the date of the award till the dispute of the parties is finally decided by the superior courts. The Apex Court observed that in the event of the employer not reinstating the workman and not seeking any relief in respect of the award directing reinstatement of the workman or in a case where the court is not inclined to stay such award, then the legislature mandates the employer to pay the workman the last wages drawn by the workman without prejudice to the result of the proceedings initiated by the employer against the award till he is reinstated or the proceedings are terminated in his favour, whichever is earlier.
16. The contention of learned Counsel for the Appellant that the affidavit filed by the workman is not in accordance with Section 17B of the Industrial Disputes Act cannot be accepted. The relevant portion of the application filed by Respondent No.2/workman reads as under:-
17. The said application has been supported by an affidavit and the affidavit reads as under:-
18. A reading of the application under Section 17B of the Industrial Disputes Act and the affidavit in support of the said application shows that the workman has in no uncertain terms stated that he is not gainfully employed and is not engaged in any vocation despite his best efforts to secure alternative gainful employment, he has not got any employment. A perusal of the same shows that all the ingredients of Section 17B of the Industrial Disputes Act have been pleaded and the Appellant has not been able to produce any material to show that the workman was employed.
19. The second contention of the learned Counsel for the Appellant is that the application is belated and ought not to be considered. Reliance placed by the learned Counsel for the Appellant on the judgment passed by this Court in Santosh Kumari (supra) has no application on the facts of this case. In that case, there was a delay of five years in filing the application under Section 17B of the Industrial Disputes Act whereas in the present case, the application has been filed immediately by the person whose services had been illegally terminated. The dictum of the said judgment cannot be said to be made applicable to the facts of the present case at all.
20. This Court in LPA 507/2021 titled as Surender Kumar v. North Delhi Municipal Corporation, decided on 17.10.2022, while dealing with the issue whether the benefit of Section 17B of the Industrial Disputes Act should be given from the date of the award or from the date of application under Section 17B of the Industrial Disputes Act, if there is a considerable delay in filing an application under Section 17B of the Industrial Disputes Act had observed as under:-
ground that he filed the application three years after the writ petition was filed by the DTC. The entitlement of the workman to wages under Section 17B hinges on whether in fact he remained unemployed since his termination. That it is a question of fact. In light of the unrebutted claim of the workman to that effect in the instant case, his application under Section 17B ID Act had to be allowed. " After noticing the said judgments, the Division Bench in Santosh Kumari (supra) has observed as under:
workman would be paid wages with effect from the date of the award. It should be in those cases where application is filed with promptitude and immediately on notice of writ petition staying the operation of the order of reinstatement or proceedings against such an award. It should be within reasonable period. Thereafter, that would mean that such an application should normally be filed with the filing of the counter affidavit or reply to an application for interim relief and in the case of absence of such counter affidavit or reply, within the reasonable period from the date when workman has appeared himself or through counsel in the writ proceedings. This would be so even when the management has delayed in filing the writ petition challenging the award inasmuch as with such a delay, it cannot deprive the workman under Section 17B from the date of award. Thus, the expression “during the pendency of proceedings before the High Court” under Section 17B of the ID Act would not mean from the date of filing the writ petition. However, if there is a long or abnormal delay in filing application under Section 17B of the ID Act, we are of the opinion that in such an eventuality, it becomes an obligation of the workman to satisfactorily explain the delay. It would become relevant consideration for deciding as to whether the benefit is to be accorded from the date of application or the award. In case, it is unreasonable and unexplained delay, it would be within the discretion of the writ Court to direct payment of wages from the date of the application. There could be several reasons for adopting this course of action. One of us (Rajiv Sahai Endlaw, J.) had taken the justification by providing following reasons: “12.3…….
(1978) 4 SCC 224: AIR 1979 SC 25 held that principles of socialism and social justice cannot be pushed to such an extreme so as to ignore completely or to a very large extent the interests of the employer. "" (emphasis supplied)
10. A perusal of the abovementioned judgment shows that the general rule is that the workman is entitled to the benefits under Section 17B of the Act from the date of passing of award unless it is shown that the workman has been indolent and negligent in not pursuing the relief under Section 17B of the Act and has filed his application under Section 17B of the Act after considerable delay or at his whim and fancy.
11. In view of the above, the law is clear that ordinarily the payment of wages under Section 17B of the Act would be from the date of passing of award and only in cases of undue delay on the part of the workman in approaching the Court, the payment can be directed to be made from the date of filing of application under Section 17B of the Act.
12. As stated earlier, the Apex Court in Dena Bank (supra) has held that the Statement of Objects and Reasons for inserting Section 17B of the Act is to ensure that the workman does not continue to live in penury and await the final outcome of the challenge to the award of reinstatement. Once the award of reinstatement has been passed, the employer should reinstate the workman. The employer cannot be permitted to keep the workman in limbo just by challenging the award and even if the employer fails to get a stay of the award, the employer cannot be permitted to not allow the workman from working and at the same time he also cannot be permitted not to pay wages to the workman as this would go against the purpose of inserting Section 17B of the Act.
13. It is settled law that the words of the Statute must be understood in their natural and ordinary sense according to their grammatical meaning unless such conclusion leads to absurdity unless there is something in the context or in the object of the Statute to suggest to the contrary.
14. The Apex Court in Gurudev Datta VKSSS Maryadit & Ors. v. State of Maharashtra & Ors., (2001) 4 SCC 534, has observed as under:-
15. Similarly, the Apex Court in Dr. Jaishri Laxmanrao Patil v. State of Maharashtra, (2021) 8 SCC 1, has observed as under:-
16. In the facts of the instant case, the award was passed on 31.08.2019 and the employer, i.e. the Municipal Corporation of Delhi, which is an instrumentality of State, has taken more than four-anda-half-months in filing the Writ Petition, being W.P.(C) 535/2020. There is no finding by the learned Single Judge as to whether the copy of the Writ Petition was supplied to the Appellant herein/workman or not. The Appellant herein appeared for the first time in the Writ Petition in the month of February, 2020 and has filed an application under Section 17B of the Act in November, 2020, i.e. after a period of nine months. Government is expected to be a fair litigant and cannot be expected to act like a private employer. The employer who himself has filed the Writ Petition after a delay of four months cannot be expected to object to the delay of nine months in filing the application under Section 17B by the Appellant herein. The Division Bench of this Court in Santosh Kumari (supra) has only stated that the workman cannot, after a long delay, which in that case was about 10 years, burden the employer with a liability to pay for the wages.”
21. Material on record shows that the application under Section 17B of the Industrial Disputes Act is dated 31.08.2021 though it was moved in July,
2022. The finding of the learned Single Judge that there is no unreasonable and unexplained delay on the part of the workman to file the application under Section 17B of the Industrial Disputes Act, therefore, does not require any interference.
22. The contention raised by learned Counsel for the Appellant that the workman has not joined the services despite asking him to report is also unsustainable.
23. The memo of parties shows that the workman stays at B-323, Gali No.4, Mandanpur Khadar Vistar, Delhi-110076. The Appellant has filed a letter dated 24.08.2015 which shows that purportedly, a notice had been sent to the workman asking him to join his duties at Gali No.5, Mandanpur Khadar Vistar, New Delhi-110076, which is not the address as given in the memo of parties, i.e. B-323, Gali No.4, Mandanpur Khadar Vistar, Delhi-
110076.
24. Similarly, notice dated 31.08.2015 had been sent to Gali No.5, Madanpur Khadar Vistar, New Delhi-110076 and the memo of parties shows that the workman stays in B-323, Gali No.4, Mandanpur Khadar Vistar, Delhi-110076. No tracking report has been filed along with the two letters.
25. A third letter dated 14.12.2015 addressed to Labour Officer has been filed by the Appellant with copies of the same marked to the workman at Village Beerpur, Manpur Hari, District Mainpuri, Uttar Pradesh; House No.75, Atmatpur, Faridabad, Haryana; and B-323, Gali No.4, Madanpur Khadar Vistar, Delhi. This notice has not been directed to the workman and was addressed to the Labour Officer. A tracking report has been filed along with the appeal which does not show that the notice was served on the address shown in the memo of parties.
26. The first two notices had been sent to the wrong addresses and the third one is intimation to the Labour Officer with copies marked to the workman with a tracking report which is also not conclusive as to whether the notice addressed to the Labour Officer has been served on the workman. A fourth letter dated 15.01.2016 has not filed which is a reply to a letter received from the union which was representing the workman in the conciliation has also been filed by the Appellant.
27. By no stretch of imagination it cannot be termed that the workman has not been resuming his duties. The Appellant has not been able to substantiate its case before us that the workman was not willing to resume his duties after being asked to do so. This argument is only a cover up and a ruse on the part of the Appellant which is not inclined to comply with the mandate of Section 17B of the Industrial Disputes Act. This Court, therefore, does not find any reason to interfere with the order dated 04.08.2022 passed by the learned Single Judge in CM APPL.32749/2022.
28. The Appellant is directed to comply with the mandate of Section 17B of the Industrial Disputes Act forthwith. However, in view of the fact that the writ petition has been filed in the year 2021, the learned Single Judge is requested to decide the writ petition as expeditiously as possible.
29. The LPA is dismissed with the above observations, along with pending application(s), if any.
SATISH CHANDRA SHARMA, C.J. SUBRAMONIUM PRASAD, J JANUARY 24, 2023