MODI INDUSTRIES LTD. versus STATE OF UTTAR PRADESH AND ORS.

MODI INDUSTRIES LTD. versus STATE OF UTTAR PRADESH AND ORS.

Where genuine dispute exists as to entitlement of workmen to wages, involving factual or legal investigation, the Labour Commissioner under Section 3 cannot adjudicate and must refer parties to appropriate industrial adjudication.

Parties
Appellant: Modi Industries Ltd.; Respondents: State of Uttar Pradesh and others
Jurisdiction
India
Judgment Date
14 October 1993
Procedural Posture
Civil Appeal / Appeal From Writ Petition Decision of Allahabad High Court
Outcome
Appeal allowed; High Court order modified; certificate issued by Labour Commissioner set aside
Legal Topics
U.p. Industrial Peace (timely Payment of Wages) Act, 1978—section 3, Payment of Wages During Production Halt, Powers and Duties of Labour Commissioner, Requirement of Reasons in Quasi Judicial Orders

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Parties

Modi Industries Ltd.

Appellant

State of Uttar Pradesh and others

Respondents

Procedural Posture

Civil Appeal / Appeal From Writ Petition Decision of Allahabad High Court

  1. 1 Whether the Labour Commissioner can adjudicate disputed claims regarding entitlement to wages under U.P. Industrial Peace (Timely Payment of Wages) Act, 1978, Section 3
  2. 2 Whether the Labour Commissioner must give reasons for orders under Section 3
  3. 3 What is the scope of Labour Commissioner’s powers under Section 3

Ratio Decidendi

Where genuine dispute exists as to entitlement of workmen to wages, involving factual or legal investigation, the Labour Commissioner under Section 3 cannot adjudicate and must refer parties to appropriate industrial adjudication.

Court Disposition

Appeal allowed; High Court order modified; certificate issued by Labour Commissioner set aside

Orders

  • Respondent-State of Uttar Pradesh to refer dispute regarding entitlement to wages for period December 21, 1990 to March 3, 1991 for adjudication under U.P. Industrial Disputes Act, 1947 within four weeks
  • Appellant-company to pay workmen additional 25% of wages as found due by Labour Commissioner under impugned certificate; subject to outcome of adjudication