Madras High Court
The Management vs The Deputy Commissioner Of Labour I on 6 March, 2025
Author: M.Dhandapani
Bench: M.Dhandapani
W.P.Nos.15148 to 15152 of 2015
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 06.03.2025
CORAM
THE HONOURABLE MR.JUSTICE M.DHANDAPANI
W.P.Nos.15148 to 15152 of 2015
And
M.P.Nos.1, 2, 2, 2 and 2 of 2015
The Management
Hotel Abu Palace
No.926, Poonamallee High Road
Chennai 600 084. ... Petitioner in all the W.Ps.
Vs.
1.The Deputy Commissioner of Labour I
DMS Compound
Teynampet
Chennai 600 006. ... Respondent in all the W.Ps.
2.P.Rajinikanth ... Respondent in W.P.15148/2015
2.G.Kalidass ... Respondent in W.P.15149/2012
2.I.Mujibur Rahman ... Respondent in W.P.15150/2012
2.M.Christopher Solomon ... Respondent in W.P.15151/2012
2.S.Arul Manavalan ... Respondent in W.P.15152/2012
Common Prayer:
Petitions filed under Article 226 of the Constitution of India to
issue a Writ of Certiorarified Mandamus, calling for the concerned
records from the first respondent, quash the order of the first
respondent dated 27.04.2015 bearing Na.Ka.No.B2/2149/15 in not
entertaining the petition to set aside the exparte order as illegal,
arbitrary and contrary to law and consequently direct the first
1/11
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W.P.Nos.15148 to 15152 of 2015
respondent to entertain the petition dated 09.03.2015 filed in
P.W.Case Nos.20, 21, 22, 23 and 24 of 2014 respectively, to set aside
the exparte order dated 18.02.2015 and decide the same on its merits
and in accordance with law.
For Petitioner : Mr.Balan Haridass
for M/s.T.R.Sivakumarnath
For Respondents : Mr.K.Surendran for R1
Additional Government Pleader
Mr.R.Sachithanandan for R2
for M/s.K.Udayakumar &
DJ.Adinarayanan
COMMON ORDER
The writ petitions have been filed seeking issuance of Writ of
Certiorarified Mandamus, calling for the records from the first
respondent, quash the order of the first respondent dated 27.04.2015
bearing Na.Ka.No.B2/2149/15 in not entertaining the petition to set
aside the exparte order as illegal, arbitrary and contrary to law and
consequently direct the first respondent to entertain the petition dated
09.03.2015 filed in P.W.Case Nos.20, 21, 22, 23 and 24 of 2014
respectively, to set aside the exparte order dated 18.02.2015 and
decide the same on its merits and in accordance with law.
2.Since the issue involved in these writ petitions are interrelated,
they are heard together and disposed of by way of a common order.
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W.P.Nos.15148 to 15152 of 2015
3.The learned counsel appearing for the petitioner submitted
that the respective second respondent filed petition under Section
15(2) of the Payment of Wages Act, 1936 in P.W.Case Nos.20, 21, 22,
23 and 24 of 2014 respectively, before the first respondent. P.W.Case
No.20 of 2014 was filed by P.Rajinikanth claiming a sum of
Rs.1,06,670/- for non payment of salary, earn leave encashment,
bonus and compensation for non payment of salary; P.W.Case No.21
of 2014 was filed by G.Kalidass claiming a sum of Rs.84,000/- for non
payment of salary, bonus and compensation for non payment of
salary; P.W.Case No.22 of 2014 was filed by I.Mujibur Rahman
claiming a sum of Rs.1,06,667/- for non payment of salary, earn leave
encashment, bonus and compensation for non payment of salary;
P.W.Case No.23 of 2014 was filed by M.Christopher Solomon claiming
a sum of Rs.3,33,000/- for non payment of salary and compensation
for non payment of salary; and P.W.Case No.24 of 2014 was filed by
S.Arul Manavalan claiming a sum of Rs.2,20,000/- for non payment of
salary and compensation for non payment of salary.
4.The learned counsel appearing for the petitioner further
submitted that the first respondent passed an exparte order dated
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W.P.Nos.15148 to 15152 of 2015
18.02.2015 allowing the claim of the respective second respondent.
Aggrieved by the same, the petitioner filed petition before the first
respondent seeking to set aside the exparte order, however, the first
respondent passed the impugned order returning the petition filed by
the petitioner.
5.The learned counsel appearing for the petitioner further
submitted that it is true that the petitioner not paid salary, however,
the compensation for non payment of salary awarded to the respective
second respondent is ten times the unpaid salary, which is highly
excessive. Hence, this Court may fix minimum compensation in terms
of the order passed by this Court in W.P.No.587 of 2007 dated
02.01.2012 [Mohandas Vs. Authority under the Minimum
Wages Act, 1948 – 2/ Deputy Commissioner of Labour – 2 and
two others]. The learned counsel further submitted that during the
pendancy of the writ petitions, the petitioner deposited a sum of
Rs.1,17,337/- before the first respondent vide cheque bearing
no.727680 dated 15.06.2015.
6.Per contra, the learned counsel appearing for the respective
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W.P.Nos.15148 to 15152 of 2015
second respondent submitted that the petitioner Management did not
disburse salary to the respective second respondent and hence, they
filed petition under Section 15(2) of the Payment of Wages Act, 1936
in P.W.Case Nos.20, 21, 22, 23 and 24 of 2014 respectively, before
the first respondent and the first respondent exercised its discretionary
power under Section 15 (3) of the Payment of Wages Act and allowed
the claim made by the respective second respondent.
7.Heard the arguments advanced on either side and perused the
materials available on record.
8.Admittedly, the petitioner Management did not disburse salary
to the respective second respondent and hence, they filed petition
under Section 15(2) of the Payment of Wages Act, 1936 in P.W.Case
Nos.20, 21, 22, 23 and 24 of 2014 respectively, before the first
respondent and the first respondent allowed the claim made by the
respective second respondent. The grievance of the petitioner is that
the compensation for non payment of salary awarded to the respective
second respondent is ten times the unpaid salary and the same is
highly excessive.
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W.P.Nos.15148 to 15152 of 2015
9.Similar issue has already been considered by this Court in
W.P.No.587 of 2007 dated 02.01.2012 [Mohandas Vs. Authority
under the Minimum Wages Act, 1948 – 2/ Deputy
Commissioner of Labour – 2 and two others], the relevant portion
of which reads as follows:
“10.In normal circumstances, when the
Act gives power to the authority to levy penalty
and also gives the discretion to levy penalty
depending upon the fact situation and the
authority exercise statutory power, it may not
be proper for this Court to interfere with the
quantum of penalty. Non-payment of wages
notified under the Minimum Wages Act will
result in forced labour prohibited under Article
23 of the Constitution of India. In People's
Union for Democratic Rights Vs. Union of India
reported in AIR 1982 SC 1473 as well as in
Sanjit Vs. State of Rajasthan reported in AIR
1983 SC 328, the Supreme Court emphasised
the High Courts and Subordinate Courts to be
sensitive in the matters of non-payment of
Minimum Wages Act and also held that the
Courts should not treat penalties as trivial and
appropriate penalties must be imposed on the
employer for default in payment of minimum
wages.
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W.P.Nos.15148 to 15152 of 2015
11.In any event, in the order impugned
in the writ petition, the authority had not given
any reason for levying the maximum penalty
because the penalty ranges from amount
equivalent to the non payment of Minimum
Wages and go up to the maximum of 10 times
and therefore, when there is a discretion
vested with the authority, he should normally
exercise the discretion in a particular manner.
Therefore, going by the principle adopted by
the Supreme Court in the judgment in Prerna
Sahygo Vs. Authority under Minimum Wages
and others reported in (2001) 9 SCC 247, this
Court is of the view that instead of remanding
the matter for a decision on the question of
penalty (for which reliance was placed upon
the judgment in the case of C.G.Igarashi
Motors Ltd., Tambaram Vs. Deputy
Commissioner of Labour II, Chennai and
another reported in 2006 Vol 3 LLJ 733), it will
further delay the issue. Hence, this Court
decides to order the compensation as per the
ratio laid down by the Supreme Court in the
Prerna Sahygo Vs. Authority under Minimum
Wages and others reported in (2001) 9 SCC
247. If the penalty is ordered by the authority
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W.P.Nos.15148 to 15152 of 2015
is upheld, ultimately, the monies will have to
be credited to the Tamil Nadu Labour Welfare
Fund Board created by the State Government
in Notification No.36/1972 in terms of Section
3(2)(i) of the Minimum Wages Act, 1948 and
by that process, no useful purpose will be
served to the employees covered by the
impugned order. Therefore, reducing the
penalty amount equivalent to the amount
computed by the authority, the penalty thus,
will also commensurate with the Minimum
Wages.”
10.The decision cited supra makes it clear that the authority
must assign valid reason for awarding maximum compensation of ten
times the unpaid salary, however, in the present case, the first
respondent has not assigned any valid reason for awarding maximum
compensation of ten times the unpaid salary. Hence, this Court is
inclined to reduce the compensation awarded for unpaid salary. This
Court awards three times the unpaid salary, however, the amount of
Rs.1,17,337/- already deposited by the petitioner need not be
refunded to the petitioner.
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W.P.Nos.15148 to 15152 of 2015
11.Accordingly, the petitioner Management is directed to
deposit;
(a)a sum of Rs.50,670/- [Rs.8,000/- + Rs.10,670/- + Rs.8,000/-
+ Rs.24,000/- = Rs.50,670/-] to the credit of P.W.Case No.20 of 2014
on the file of the first respondent, within a period of four weeks from
the date of receipt of a copy of this order;
(b)a sum of Rs.35,000/- [Rs.7,000/- + Rs.7,000/- + Rs.21,000/-
= Rs.35,000/-] to the credit of P.W.Case No.21 of 2014 on the file of
the first respondent, within a period of four weeks from the date of
receipt of a copy of this order;
(c)a sum of Rs.50,667/- [Rs.8,000/- + Rs.10,667/- + Rs.8,000/-
+ Rs.24,000/- = Rs.50,667/-] to the credit of P.W.Case No.22 of 2014
on the file of the first respondent, within a period of four weeks from
the date of receipt of a copy of this order;
(d)a sum of Rs.1,20,000/- [Rs.30,000/- + Rs.90,000/- =
Rs.1,20,000/-] to the credit of P.W.Case No.23 of 2014 on the file of
the first respondent, within a period of four weeks from the date of
receipt of a copy of this order; and
(e)a sum of Rs.80,000/- [Rs.20,000/- + Rs.60,000/- =
Rs.80,000/-] to the credit of P.W.Case No.24 of 2014 on the file of the
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W.P.Nos.15148 to 15152 of 2015
first respondent, within a period of four weeks from the date of receipt
of a copy of this order.
12.On such deposit being made, the first respondent shall
disburse the amount in favour of the respective second respondent and
the first respondent shall also disburse the amount of Rs.1,17,337/-
already deposited by the petitioner vide cheque bearing no.727680
dated 15.06.2015 along with interest accrued thereon to the
respective second respondent proportionately, within a period of four
weeks from the date on which the petitioner makes the deposit.
13.The writ petitions are disposed of with the above terms. No
costs. Consequently, connected miscellaneous petitions are closed.
06.03.2025
pri
Index: Yes/ No
Speaking Order: Yes/ No
NCC: Yes/ No
To
1.The Deputy Commissioner of Labour I
DMS Compound
Teynampet
Chennai 600 006.
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W.P.Nos.15148 to 15152 of 2015
M.DHANDAPANI,J.
pri
W.P.Nos.15148 to 15152 of 2015
And
M.P.Nos.1, 2, 2, 2 and 2 of 2015
06.03.2025
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