Decided on December 10,1954



- (1.)This revision application arises out of an. application filed by the petitioners under Section 15(2), Payment of Wages Act for arrears of wages for a period 1-11350 to 21-9-1951, and also in the-case of some workers for bonus for the years 1947-48, it appears that the factory which employed the petitioners was owned by the opponent up to 7-1-1947. On that date a limited company was incorporated in England in the name of Caulfield Holland & Co., which took over the business of the exponent's factory which was being run in the name of Holland & Co. By an agreement dated 16-1-1947, the opponent was, appointed the managing director of the company and was put in charge of the company's-business which was being done previously by Holland & Co. A man by the name of Hudson was the local manager of this factory and under the Factories Act he was named as the manager. On 6-9-1951, the opponent gave notice to the employees of closure of business and their services were terminated on 21-9-51, when the factory closed down its business. It may be pointed out that the notice was also served on Hudson and Hudson ceased to be in the employ of the factory from 21-9-1951.
(2.)Now, it is not disputed that the amount of wages and bonus is due to the petitioners. The contention of the oppouent is that he is not liable to pay this amount. The Payment of Wages Authority ordered the defendant to pay this amount. The opponent appealed to the Small Causes Court and the learned Chief Judge has held that there is no liability upon the opponent to pay this amount, and the petitioners have now come in revision. 3 When we turn to the Payment of Wages Act, Section 3 provides that every employer shall be lespuusible lor the payment to persons employed by him oi alt wages required to he paid under this Act. There is a proviso to this section & we are con-terncd with Sub-clause (a) of that proviso which lays down that in the case of persons; employed in factories, if a person has been named as the manager of the factory under clause (f) of Sub-section (1) of Section 7 of the Factories Act, 1948, then he shall be responsible for such payment. Therefore, in the case of a factory the person responsible for the payment of wages and who is looked upon as an employer is the person pamea as the manager. Then we come to Section 15 and Sub-section (2) deals with the application to be made by the employee for delayed wages or for deduction from wages, and Subsection
(3.)provides that when any application under Sub-section (2) is entertained, the Authority shall hear the applicant and the employer or other person responsible for the payment of wages under Section 3.

Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.