HOTEL AND RESTAURANT KARAMCHARI SANGH Vs. GULMARG HOTEL

JUDGEMENT

(1.) Challenge in this appeal is to the order passed by a learned single Judge of the Allahabad High Court allowing the Writ Petition filed by respondent No.1 (hereinafter referred to as the employer).

(2.) The High Court by the impugned order quashed the order passed by the Deputy Labour Commissioner, Lucknow Region, Lucknow. The said authority had issued a certificate for recovery of Rs.60,810.76 from respondent No.1 in terms of Uttar Pradesh Industrial Peace (Timely Payment of Wages) Act, 1978 (in short the Act).

(3.) Background facts filtering out unnecessary details are as follows : On the basis of a complaint received from the appellant, the Assistant Labour Commissioner issued a notice to respondent No.1 stating that it had not paid outstanding wages to the employees/workmen of the establishment amounting to more than Rs.60,000/-. The authority asked the respondent No.1-employer to show cause as to why recovery under the Act shall not be made as arrears of land revenue by issuance of certificate of recovery. Respondent No.1-employer submitted a reply stating that nine employees were absconding and out of total 22 employees, 8 employees had been paid their wages and the amount to be payable was less than Rs.50,000/-. It was, therefore, submitted that the provisions of the Act cannot be applied. The Assistant Labour Commissioner considered the plea of the employer and rejected the same by holding that the claim was instituted on 16-10-2000, notice was issued on 19-10-2000 and the response was filed on 14-12-2000. At the time of initiation of the proceedings, the amount was admittedly more than Rs.50,000/-. Merely because a part of the amount claimed had been paid subsequently, that cannot affect the jurisdiction of concerned authority to issue a certificate for recovery. The employer filed a Writ Petition before the Allahabad High Court questioning correctness of the order. The High Court came to hold that at the time of adjudication, the amount in default did not exceed Rs.50,000/- and, therefore, proceedings were not maintainable. Reference was made to a decision of this Court in Modi Industries Ltd. vs. State of U.P. and Ors. [(1994) 1 SCC 159] to hold that the certificate for recovery could not have been issued. The writ petition was accordingly allowed.