Payal Electronics vs Arun Vasant Pawar And Anr.
2002 Latest Caselaw 842 Bom

JUDGMENT

R.J. Kochar, J.

1. The petitioner employer is aggrieved by the Order dated 9-10-1995 passed by the Presiding Officer of 4th Labour Court in Application IDA No. 182 of 1994 filed by the respondent workman claiming overtime wages from 1-12-1988 till 31-12-1993 to the tune of Rs. 65,488/-. According to the respondent workman-Applicant during his employment he was required to do overtime work for two hours every day and he was therefore entitled to get overtime wages which was not paid by the petitioner employer.

Writ Petition No. 6483 of 1995 decided on 16-8-2002. (Bombay)

The respondent workman filed the said application after his dismissal from employment. The Labour Court considered the pleadings and evidence of both the parties and allowed the application filed by the respondent workman partly to the tune of Rs. 58,840/- towards the claim of the workman for overtime wages. The Labour Court has also awarded 15% interest per annum on the said amount from the date of filing of the application till its realization.

2. According to the petitioner, the respondent workman had not done any overtime work and was not entitled to any overtime wages. The petitioner also pleaded that the workman had taken a loan from the petitioner to the tune of Rs. 49,300/-. The petitioner employer also sought adjustment of that amount if the overtime claim was granted by the Labour Court.

3. The Labour Court has considered the evidence and material on record and has computed the overtime wages on the basis of the said evidence. It is not possible for me to enter into the factual aspect of the evidence which has been appreciated by the Labour Court that the respondent workman had performed overtime work and that he was entitled to get overtime wages to the tune of Rs. 58,840/-. The Labour Court has appreciated the fact that for some period it was not possible that the respondent workman was required to perform any overtime work. The Labour Court has deducted that amount from the total claim of the workman. The Labour Court has further found that the petitioner did not maintain any record and that the entire burden was on the petitioner employer to have proved the fact that the respondent workman had not done any overtime and that he was not required to do overtime work. The Labour Court has accepted the evidence of the workman that he had performed overtime work. In that case the entire burden shifted on the petitioner employer to rebut the said evidence. Sitting under Article 226 of the Constitution of India it is not possible for me to reappreciate the entire evidence and come to any different conclusion. The Labour Court has computed the amount of overtime to the tune of Rs. 58,840/-which the respondent workman is to be held entitled too. I do not wish to interfere with the said findings of the fact recorded by the Labour Court under the extraordinary writ jurisdiction of this Court.

4. It would however not be in the interest of justice to allow the workman the benefit of loan which he had taken from the petitioner employer to the tune of Rs. 49,300/-. Not to adjust the said amount of loan would be to encourage dishonesty that one can borrow from the employer and can refuse to pay. There is no serious dispute about the fact that the respondent workman had taken the aforesaid loan of Rs. 49,300/- for which he had also passed receipts in favour of the petitioner. It is not possible for this Court under Articles 226 and 227, the equity jurisdiction under the Constitution of India to refuse to adjust the loan amount admittedly payable by the workman and to drive the petitioner employer to file a suit for recovery of the said amount and at the same time allow the respondent to get the benefit of overtime claim granted by the Court. That would also amount to encourage multiplicity of litigation. In my opinion the petitioner employer is entitled to get the adjustment of the loan to the tune of Rs. 49,300/-from the amount of overtime claim granted by the Labour Court. While determining and computing the amount of money due to the workman the Labour Court can consider the plea of the employer about adjustment of the amounts

such as advances or loans given to the workman to arrive at the net amount of due payable to the workman. It is not proper and not in the spirit of the settlement of the disputes to direct the employer to pay to the workman the whole amount of dues and to leave the employer with his civil remedy to recover his amount due from the workman. Very often the civil remedies also get barred by law of limitation. The entitlement of the workman mean the net entitlement to recover his dues from the employer.

5. As far as the grant of interest at the rate of 15% on the overtime wages is concerned under Section 33(c)(2) of the Industrial Disputes Act the Labour Court has no jurisdiction and power to grant any interest on the determined and computed amount as due from the employer. The Labour Court's jurisdiction is restricted to the extent of determination and computation of the money due or the benefits which are capable of computation in terms of money on the basis of the existing right of the workman. There is no existing right to get interest on the amount of dues and as an executing court the Labour Court cannot add anything more than the amount of money due. In my opinion the Labour Court was therefore wrong in awarding interest at the rate of 15% p.a. from the date of application till the date of realization on the amount of overtime computed by the Labour Court. The Order of the Labour Court therefore is quashed and set aside to the extent of grant of interest at the rate of 15% on the amount of overtime wages.

6. At the time of hearing of admission of the petition the petitioner employer deposited an amount of Rs. 60,000/- in this Court which was ordered to be invested in a fixed deposit. From the record it appears that the said amount of Rs. 60,000/- was invested in a fixed deposit for the period of three years. I am informed by Shri Gehani that as on 21-4-2001 the total amount of deposit would be Rs. 96,277/- after addition of interest accrued.

7. As held by me the petitioner is entitled to adjust the amount of loan of Rs. 49,300/- from the total claim of Rs. 58,840/-. The respondent workman is entitled to withdraw the balance amount which comes to the tune of Rs. 9540/-. This amount can be rounded off as Rs. 10,000/-. The respondent workman would get the benefit of accrued interest on this amount of Rs. 10,000/-. Without entering into any calculations and considering approximately the accrued interest on the amount of Rs. 10,000/- I allow the respondent workman to withdraw the sum of Rs. 17,000/- from the total amount of deposit. The petitioner employer would be at liberty to withdraw the balance amount after the amount of Rs. 17,000/- is withdrawn by the respondent workman. Rule is partly allowed. Writ Petition is disposed of as above.

8. The office to act on an ordinary copy of this order duly authenticated by the Sheristedar of this Court.