Assistant Labour Commissioner is not the Competent Authority to decide matters on Workmen’s compensation Act : Madhya Pradesh High Court

Case Title : The Factory Manager Rccpl Through Uttam … vs The State Of Madhya Pradesh 

Case no : Writ Petition  No. 16946 of 2021

Order no : 2nd April, 2024

Quorum : Justice GurpFactory Manager Rccpl And Anr vs. the State Of Madhya Pradesh And Others.Factory Manager Rccpl And Anr vs. the State Of Madhya Pradesh And Others.Factory Manager Rccpl And Anr vs. the State Of Madhya Pradesh And Others.al Singh Ahluwalia 

FACTS OF THE CASE

The Petitioners under Article 226 of the Constitution filed a writ petition in the High Court of Madya Pradesh, challenging the order which was given in the case  No.36/2020 which was passed on 6th August 2021 by the Assistant Commissioner, Rewa Division Santa. The order states that a compensation of amount Rs.70,46,638/- was supposed to be deposited by the petitioner within a period of 30 days from the date of receipt of impugned order as it was held that the petitioners had paid less overtime to 142 employees. 

ISSUES

Whether the factum of payment of less overtime than the minimum rates of wages was the specific dispute or not ? 

LEGAL PROVISIONS

  1. Article 226 of the Indian Constitution : Clearly states that every High Court has the powers throughout the territories in relation to which it exercises jurisdiction to issue writ or any order to any person or authority.
  2. Section 20 of  Workmen’s Compensation Act, 1923.

CONTENTION OF THE PETITIONERS

The Petitioners contended that the order was passed by the Assistant Labour Commissioner, who is not the competent authority to do so under the Minimum Wages Act. The Petitioners further submitted that the complaint which was filed was regarding non- payment of minimum wages and not less payment of overtime.They contended that the impugned order was unlawful.  

CONTENTION OF THE RESPONDENT

In contrast to the Petitioners arguments the State contends that all the commissioners appointed under the Workmen’s Compensation Act have all the powers under Minimum Wages Act and further stated that the notice which was issued to the petitioners regarding less payment of overtime to the workers include non-payment of minimum wages also hence there was no prejudice caused

COURT ANALYSIS AND JUDGMENT

 The court after looking at the contentions of both the parties ruled that the Assistant Labour Commissioner was not the competent person to pass the order regarding compensating the workers for less payment of overtime. 

The court further stated that as the complaint was filed in a vague manner and the order passed was without proper authority, so the court set aside the said order and stated the competent authority to take up the issue.

The court further ordered the petitioners to appear before court without any further notice and directed the Workmen Compensation to decide the matter by conducting the proceedings de novo without relying upon any evidence by the Assistant Labour Commissioner.

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JUDGMENT REVIEWED BY – Nagashree N M

Primelegal Team

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