Payment of Wages Act, 1936 — Sections 15(3), 2(18) & 1(6)

May 1st, 2013

Payment of Wages Act, 1936 — Sections 15(3), 2(18) & 1(6) — Compensation — Grant of, pre-requisites for, scope — Compensation cannot be awarded when there is no bona fide dispute about amount payable — Respondent filed a suit against LIC for fixing his age of retirement at 58 years — Said suit was decreed and the appeal of LIC resulted in dismissal — However, pending second appeal before High Court respondent moved authorities for payment of compensation — Award of compensation in favour of respondent — Question of payability of an amount arises only when somebody is entitled to an amount — Proviso makes it clear that when there is no bona fide dispute about the amount payable, compensation cannot be awarded — Undisputedly there is dispute about the entitlement of the claimant — Matter is pending before the High Court — Therefore, the High Court’s view holding the claimant to be entitled to compensation is clearly untenable — Accordingly, the amount awarded as compensation is set aside — However, pursuant to the directions given a sum of Rs.1,28,000/- has been deposited and a sum of Rs.60,000/- has been withdrawn by the legal heirs of the claimant, said amount not to be recovered — U.P. Dookan Aur Vanijya Adhishtan Adhiniyam, 1962 — Sections 2(6), 14, 15, 16 & 18.

L.I.C. of India v. Anwar Khan[Bench Strength 2], Civil Appeal No. 6288-6289/2000(23/04/2007), 2007(5) SCR 450: 2007(11) SCC 25: 2007(6) SCALE 34: 2007(5) SLT 575: 2007(7) SRJ 53: 2007(2) LLJ 1027: 2007(5) SLR 233 [Arijit Pasayat, J.: Lokeshwar Singh Panta, J.]

Entry Filed under: Judgements,Labour Laws