Shri Ambica Mills Co., Ltd. Vs. Shri
S. B. Bhatt & ANR  INSC 286 (12 December 1960)
GUPTA, K.C. DAS
CITATION: 1961 AIR 970 1961 SCR (3) 220
CITATOR INFO :
RF 1963 SC1626 (7) R 1964 SC 743 (21) RF 1969
SC 590 (9)
Wages, Payment of-Jurisdiction of
Authority-Scope and extent-High Court's power to issue writ--Payment of Wages
Act, 1936 (4 of 1936), ss. 15, 16-Constitution of India, Arts. 226 and 227.
An award, called the Standardisation Award,
fixing the wages for different categories of workers in the textile mills at
Ahmedabad was made by the Industrial Tribunal. The wages of clerks were,
however, settled by a subsequent agreement between the Ahmedabad Mill Owners'
Association and the Textile 221 Labour Association. Clauses 2 and 5 of the said
agreement were as follows," 2. That this agreement shall apply to all the
Clerks employed in the local mills, i. e., persons doing clerical work, that is
those who do routine work of writing, copying or making calculations and shall
also include compounders and assistant compounders who are qualified and who
are employed in the local mills.
5. A separate scale for those of the
employees who occupy the position lower than that of a full fledged Clerk but
higher than that of an operative will be provided as under: Rs.
40-3-70-EB-4-90-5-105 This scale will be applicable in case of ticket-checker,
coupons-seller, tally-boy, scale-boy, production-checker, third counter, cloth measurer
or yard-counter, fine reporter, cloth/ yarn-examiner, department store man, cut
looker and those others who have not been included above but who can properly
fall under the above category." The respondents moved the Authority under
s. 16 of the Payment of Wages Act, 1936 (4 of 1936), for an order against the
appellant for payment of. their delayed wages. They claimed to be semi-clerks,
lower than full-fledged clerks but higher than operatives, and as such governed
by cl. 5 of the agreement. The Authority held against them and the appellate
Authority affirmed its decision holding that Cl. 2 Of the agreement determined
the applicability of cl. 5 and since the respondents did not come within Cl. 2
they could not maintain their claim under cl. 5. The High Court, on an
application under Art. 226 and Art. 227 of the Constitution, took a contrary
view and set aside the orders of the Authorities and directed a rehearing. In
this Court the appellant mills urged that (1) the High Court had exceeded its
jurisdiction under Arts. 226 and 227 in setting aside the order of the
appellate Authority and (2) the Authority had itself exceeded its jurisdiction
under s. 15 of the Act in entertaining the applications of the respondents made
under s. 16 of the Act.
Held, that both the contentions must be
The High Court has power under Art. 226 of
the Constitution to issue a writ of certiorari not only in cases of illegal
exercise of jurisdiction but also to correct errors of law apparent on the face
of the record, although not errors of fact even though so apparent. No
unfailing test can, however, be laid down when an error of law is an error
apparent on the face of the record and the rule that it must be self-evident,
requiring no elaborate examination of the record, is a satisfactory practical
test in a large majority of cases.
Rex v. Northumberland Compensation Appeal
Tribunal,  1 K.B. 338 and Nagendra Nath Bora V. Commissioner of Hills
Division and Appeals, Assam,  S.C.R. 1340, referred to.
222 Viswanath Tukaram v. The General Manager,
Central Railway, V. T., Bombay, (1957) 59 Bom. L.R. 892, considered.
A look at the two clauses is enough to show
that the appellate Authority in construing them in the way it did committed an
obvious and manifest error of law. It was clear that the two clauses applied to
two distinct categories of persons and persons falling under cl. 5 could not be
governed by cl. 2 and were not expected to satisfy the test prescribed by it.
Under s. 15 of the Payment of Wages Act, 1936,
the Authority in exercising its jurisdiction, made exclusive by S. 22 of the
Act, has necessarily to consider various questions incidental to the claims
falling there under and, although it would be inexpedient to lay down any hard
and fast rule for determining the scope of such questions, care should be taken
not to unduly extend or curtail its jurisdiction.
Whether a particular employee was an
operative or one above the rank of an operative and below that of clerk arid,
therefore within cl. 5 of the agreement, was a question intimately and
integrally connected with wages as defined by the Act and as such fell within
the jurisdiction of the Authority under s. 15 of the Act.
There could, therefore, be no substance in
the contention that an employee falling within the category of those others
mentioned in the last part of cl. 5, to whom no designation was attached, could
not apply under s. 15 of the Act.
A. V. D'Costa v. B. C. Patel,  1 S.C.R.
1353, referred to.
Anthony Sabastin Almeda v. R. M. T. Taylor,
(1956) 58 Bom.
L.R. 899, distinguished.
CIVIL APPELLATE JURISDICTION: Civil Appeal
No. 243 of 1959.
Appeal by special leave from the judgment and
order dated April 24, 1958, of the Bombay High Court in Special Civil
Application No. 874 of 1958.
M. C. Setalvad, Attorney-General for India,
G. P. Vyas and I. N. Shroff, for the appellant Vithalbhai Patel, S. S. Shukla,
C. T. Daru and E. Udayarathnam, for the respondent No. 1.
1960. December 12. The Judgment of the Court
was delivered by GAJENDRAGADKAR, J.-The principal question which this appeal by
special leave raises for our decision relates to the nature and extent of the
jurisdiction conferred on the authority by s. 15 of the 223 Payment of Wages
Act, 1936 (Act 4 of 1936) (hereafter called the Act). This question arises in
this way. The appellant Shri Ambica Mills Co. Ltd., is a textile mill' working
at Ahmedabad. Three of its employees named Punamchand, Shamaldas and
Vishnuprasad made an application to the authority under s. 16 of the Act and
prayed for an order against the appellant to pay them their delayed wages. In
order to appreciate the( contentions raised by the appellant disputing the
validity of the respondents' claim it is necessary to set out the background of
the dispute in some detail. It appears that an award called the Standardisation
Award which covered the mill industry in Ahmedabad was pronounced by the
Industrial Tribunal on April 21, 1948, in Industrial Reference No. 18 of 1947.
This award fixed the wages for different categories of workers working in the
textile mills at Ahmedabad, but left over the question of clerks for future
decision. Amongst the operatives whose wages were determined by the award the
case of hand-folders was specifically argued before the Industrial Tribunal.
The Labour Association urged that the rate of Rs. 36-9-0 awarded to them was
too low and it was pointed out on their behalf that they did the same work as
cut-lookers did in Bombay where a head cut-looker was given Rs. 52 and a
cut-looker Rs. 42-4-0. On the other hand the mill owners contended that the
rate should have been fixed at Rs. 34-2-0 instead of Rs. 36-9-0. The Tribunal
found it difficult to decide the point because enough evidence had not been
produced before it to show the kind of work that hand-folders were doing at
Ahmedabad; that is why the Tribunal was unable to raise the wage of
hand-folders to that of out-lookers in Bombay. However, it made a significant
direction in that behalf in these words: "At the same time", it was
observed, "we desire to make it clear that if there are persons who are
doing cut-looking as well as folding, they should be paid the rate earned by
the out-lookers in Bombay". This question has been considered by the
Tribunal in paragraph 16 of its award.
The question of clerks, the decision of which
had been adjourned by the Tribunal was later considered 224 by it and an award
pronounced in that behalf. However, the said award was later terminated by the
clerks in 1949, and that led to an agreement between the Ahmedabad Mill Owners'
Association and the Textile Labour Association in the matter of wages payable
to clerks. This agreement was reached on June 22, 1949. Clauses 2 and 5 of this
agreement are material for the purpose of this appeal. Let us therefore read
the two clauses:
"2. That this agreement shall apply to
all the Clerks employed in the local mills, i.e., persons doing clerical work,
that is those who do routine work of writing, copying or making calculations
and shall also include compounders and assistant compounders who are qualified
and who are employed in the local mills.
5. A separate scale for those of the
employees who occupy the position lower than that of a full-fledged Clerk but
higher than that of an operative will be provided as under: Rs.
This scale will be applicable in case of
ticket-boy, ticket-checker, coupons-seller, talley-boy, scale-boy,
production-checker, thread-counter, cloth-measurer or yard counter,
fine-reporter, cloth/yarn-examiner, department store man, cut-looker and those
others who have not been included above but who can properly fall under the
above category." After this agreement was thus reached persons doing the
work of cut-lookers began to feel that they were entitled to the benefit of cl.
5 and some claims were put forth on that basis against the employers.
Vishnuprasad and Punamchand applied before the authority (Applications Nos. 39
and 40 of 1954) and claimed delayed wages against the appellant on the ground
that they were entitled to higher wages under paragraph 16 of the award in
Reference No. 18 of 1947. This claim was resisted by the appellant. The
appellant urged that the applications were not maintainable under the Act, that
they were barred in view of an arbitration award which was then in operation
and that on the merits the applicants were not doing 225 the work of
cut-looking. All these contentions were rejected by the authority. It examined
the duties performed by the applicants, and it came to the conclusion that both
the applicants were folders doing cut-looking, and consequently they were
entitled each to Rs. 42-4-0 per month; in other words, the authority came to
the conclusion that the applicants properly, fell under the category specified
in paragraph 16 of the award referred to above and as such they were entitled
to recover the difference between Rs. 36-9-0 per month which was paid to each
one of them and Rs. 42-4-0 which was due to each one of them. This decision was
announced on September 2, 1954.
On July 11, 1955, the present respondents
moved the authority under s. 16 of the Act. They urged that they were
semi-clerks and occupied a position lower than that of a full-fledged clerk and
higher than that of an operative, and as such they were governed by cl. 5 of
the agreement and were entitled to increment provided by the said clause.
This claim was resisted by the appellant on
It was urged that the present applications
were barred by res judicata, that the authority had no jurisdiction to
entertain the applications, and that on the merits the respondents were not
semi-clerks as contemplated by cl. 5 of the agreement. On these contentions the
authority raised four issues. It held against the respondents and in favour of
the appellant on issues 1 and 2 which related to the plea of res judicata and
the status of the respondents. In view of the said findings it thought it
unnecessary to decide the two remaining issues which dealt with the quantum of
amount claimed by the respondents. It appears that the question of
jurisdiction, though urged in its pleading by the appellant, was not raised as
an issue and has not been considered by the authority. The finding of res
judicata was recorded against Punamchand and Vishnuprasad. Shamaldas had not
made any previous application and so no question of res judicata arose against
his application. His application was dismissed only on the ground that he could
not claim the status of a 29 226 semi-clerk. The same finding was recorded
against the two other respondents. It appears that at the trial before the
authority the parties filed a joint Pursis which enumerated the duties
performed by the respondents in paragraphs 2 to
7. The authority took the view that "the
duties performed by them cannot be said to be the duties of persons doing the
routine work of writing, copying and making calculations".
In the result it was held that the
respondents were governed by the Standardisation Award and did not fall under
the subsequent agreement.
This decision was challenged by the
respondents before the District Judge who was the appellate authority under the
Act. The appellate authority also was asked to consider the question of
jurisdiction. It examined the relevant provisions of the Act and held that the
authority had jurisdiction to entertain the applications made before it by the
respondents. On the question of res judicata it agreed with the finding of the
authority, and held that the claims made by Punamchand and Vishnuprasad were
barred by res judicata. Similarly, on the question of the status of the
respondents it agreed that they were not semi clerks. It is clear from the
judgment of the appellate authority that in determining the status of the
respondents, the appellate authority applied the same test as was invoked by
the authority, and it considered the question as to whether the duties
performed by the respondents were similar to the duties performed by clerks. It
is obvious that the tests applied are tests relevant to the employees falling
under cl. 2 of the agreement, and since the application of the said tests led
to the conclusion that the respondents did not fall under el. 2 the appellate
authority held that el. 5 was inapplicable to them; in other words, the
judgments of both the authority and the appellate authority clearly show that
they took the view that el. 2 was wholly determinative of the issue, and that
unless an. employee fell under cl. 2 he cannot claim to be covered by any part
of the agreement including el. 5. That is why the appeals preferred by 227 the
respondents were dismissed by the appellate authority on September 2, 1954.
These appellate decisions were challenged by
the respondents by filing a writ petition under Arts. 226 and 227 of the
Constitution before the Bombay High Court. The Bombay High Court has held that
the decision of the appellate authority was patently erroneous in law in that
it proceeded on the assumption that unless cl. 2 of the agreement was satisfied
cl. 5 would be inapplicable. It also held that the finding concurrently
recorded by the authorities below on the question of res judicata against two
of the respondents was manifestly erroneous. On these findings the High Court
allowed the writ petition filed by the respondents, set aside the orders of the
authorities below and sent the case back to the authority for dealing with it
in accordance with law in the light of the judgment delivered by the High
Court. It is against this decision that the appellant has preferred the present
appeal by special leave.
The first contention which the learned
Attorney-General has raised before us on behalf of the appellant is that the
High Court has exceeded its jurisdiction under Arts. 226 and 227 in interfering
with the decision of the appellate authority.
He 'contends that at the highest the error
committed by the appellate authority is one of law but it is not an error
apparent on the face of the record, and he argues that it was not within the
competence of the High Court to sit in appeal over the judgment of the
appellate authority and examine meticulously the correctness or the propriety
of the conclusions reached by it.
The question about the nature and extent of
the jurisdiction of the High Courts in issuing a writ of certiorari under Art.
226 has been the subject-matter of several decisions of this Court. It is now
well settled that the said writ can be issued not only in case,% of illegal
exercise of jurisdiction but also to correct errors of law apparent on the face
of the record. In this connection it may be pertinent to refer to the
observations made by Denning, L.J., in Rex v. Northumberland Compensation
Appeal Tribunal The (1)  1 K.B. 338.
228 writ has been supposed to be confined to
the correction of excess of jurisdiction", observed Lord Justice Denning,
"and not to extend to the correction of errors of law; and several judges
have said as much. But the Lord Chief Justice has, in the present case,
restored certiorari to its rightful position and shown that it can be used to
correct errors of law which appear on the face of the record even though they
do not go to jurisdiction". There is no doubt that it is only errors of
law which are apparent on the face of the record that can be corrected, and
errors of fact, though they may be apparent on the face of the record, cannot
be corrected [Vide: Nagendra Nath Bora v. The Commissioner of Hills Division
and Appeals, Assam (1)]. It is unnecessary for us to consider in the present
appeal whether or not a certiorari can issue to correct an error of fact on the
ground that the impugned finding of fact is not supported by any legal
evidence. Thus it would be seen that the true legal position in regard to the
extent of the Court's jurisdiction to issue a writ of certiorari can be stated
without much difficulty. Difficulty, however, arises when it is attempted to
lay down tests for determining when an error of law can be said to be an error
apparent on the face of the record. Sometimes it is said that it is only errors
which are self-evident, that is to say, which are evident without any elaborate
examination of the merits that can be corrected, and not those which can be
discovered only after an elaborate argument. In a sense it would be correct to
say that an error of law which can be corrected by a writ of certiorari must be
self-evident; that is what is meant by saying it is an error apparent on the
face of the record, and from that point of view, the test that the error should
be self-evident and should not need an elaborate examination of the record may
be satisfactory as a working test in a large majority of cases; but,, as
observed by Venkatarama Ayyar, J., in Hari Vishnu Kamath v. Syed Ahmad Ishaque,
(2) "there must be cases in which even this test might break down because
judicial opinions also differ, and an error that may be considered by one (1)
 S.C.R. 1240.
(2)  1 S.C.R. 1104, 1123.
229 judge as self-evident might not be so
considered by another". Judicial experience, however, shows that, though
it cannot be easy to lay down an unfailing test of general application it is
usually not difficult to decide whether the impugned error of law is apparent.
on the face of the record or not.
What then is the error apparent on the face
of the( record which the High Court has corrected by issuing a writ of
certiorari in the present case? According to the High Court the construction
placed by the appellate authority on cls. 2 and 5 of the agreement is patently
and manifestly erroneous.
The appellate authority held on a
construction of the said two clauses that cl. 2 was the determinative clause,
and that unless an employee satisfied the requirements of the said clause he
could not claim the benefit of cl. 5. In deciding whether the High Court should
have issued the writ or not it is necessary to examine the said two clauses. On
looking at the two clauses it seems to us that the conclusion is inescapable
that the error committed by the appellate authority is manifest and obvious.
Clause 2 applies to clerks employed in the local mills, and as such it
describes the nature of the work which is required to be done by persons
falling under that clause. Clause 5, on the other hand, obviously provides for
a separate scale for those employees who are not clerks nor operatives; these
employees occupied a position higher than that of an operative and below that
of a full-fledged clerk. Therefore there is no doubt that persons falling under
cl. 5 cannot fall under el. 2, and should not therefore be expected to satisfy
the test prescribed by the said clause. A bare perusal of the list of employees
specified by designation as falling under el. 5 will show that the application
of the test which is relevant under el. 2 would in their case be wholly
inappropriate and irrelevant. Therefore, in our opinion, the error committed by
the appellate authority was of such a manifest character that the High Court
was justified in correcting the said error by the issue of a writ of
certiorari. The question involved in the decision of the dispute is not so much
of construction of the document as of giving effect to the plain terms of the
230 document. If el. 5 expressly provides for employees ,,not falling under el.
2, and if that intention is clarified by the list of designations which fall
under el. 5 and yet the appellate authority reads that clause as subject to cl.
2, that must be regarded as an error patent on the face of the record. It is
not a case where two alternative conclusions are possible; it is a case of
plain misreading of the two provisions ignoring altogether the very object with
which the two separate provisions were made. In our opinion, therefore, the
contention raised by the learned Attorney General that by issuing the writ the
High Court has exceeded its jurisdiction is not well-founded.
That takes us to the second and in fact the
principal, contention which has been seriously argued before us by the learned
Attorney-General. He urged that the applications made by the respondents' Union
on behalf of the three employees were incompetent under s. 15 of the Act and
the authority exceeded its jurisdiction in entertaining them.
It is true that this point was not
specifically urged before the authority, but it appears to have been argued
before the appellate authority and the High Court, and it is this contention
which raises the problem of construing s. 15 of the Act. The case for the
appellant is that the jurisdiction conferred on the authority under s. 15 is a
limited jurisdiction, and it would be unreasonable to extend it on any
inferential ground or by implication.
The scheme of the Act is clear. The Act was
intended to regulate the payment of wages to certain classes of persons
employed in industry, and its object is to provide for a speedy and effective
remedy to the employees in respect of their claims arising out. of illegal
deductions or unjustified delay made in paying wages to them. With that object
s. 2(vi) of the Act has defined wages. Section 4 fixes the wage period. Section
5 prescribes the time of payment of wages; and s. 7 allows certain specified
deductions to be made. Section 15 confers jurisdiction on the authority
appointed under the said section to hear and decide for any specified area
claims arising out of deductions 231 from wages, or delay in payment of wages,
of persons employed or paid in that area. It is thus clear that the only claims
which can be entertained by the authority are claims arising out of deductions
or delay made in payment of wages. The jurisdiction thus conferred on the
authority to deal with these two categories of claims is exclusive; for s. 22
of the Act provides that matters which lie within the jurisdiction' of the
authority are excluded from the jurisdiction of ordinary civil courts. Thus in
one sense the jurisdiction conferred on the authority is limited by s. 15, and
in another sense it is exclusive as prescribed by s. 22.
In dealing with claims arising out of
deductions or delay made in payment of wages the authority inevitably would
have to consider questions incidental to the said matters. In determining the
scope of these incidental questions care must be taken to see that under the
guise of deciding incidental matters the limited jurisdiction is not
unreasonably or unduly extended. Care must also be taken to see that the scope
of these incidental questions is not unduly limited so as to affect or impair
the limited jurisdiction conferred on the authority. While considering the
question as to what could be reasonably regarded as incidental questions let us
revert to the definition of wages prescribed by s. 2(vi). Section 2(vi) as it
then stood provided, inter alia, that 'wages' means all remuneration capable of
being expressed in terms of money which would, if the terms of the contract of
employment, express or implied, were fulfilled, be payable to a person employed
in respect of his employment or of work done in such employment, and it
includes any bonus or other additional remuneration of the nature aforesaid
which would be so payable and any sum payable to such person by reason of the
termination of his employment. It also provided that the word "wages"
did not include five kinds of payments specified in clauses (a) to (e). Now, if
a claim is made by an employee on the ground of alleged illegal deduction or
alleged delay in payment of wages several relevant facts would fall to be
considered. Is the applicant an employee of the opponent?;
232 and that refers to the subsistence of the
relation between the employer and the employee. If the said fact is admitted,
then the next question would be: what are the terms of employment? Is there any
contract of employment in writing or is the contract oral? If that is not a
point of dispute between the parties then it would be necessary to enquire what
are the terms of the admitted contract. In some cases a question may arise
whether the contract which was subsisting at one time had ceased to subsist and
the relationship of employer and employee had come to an end at the relevant
period. In regard to an illegal deduction a question may arise whether the
lock-out declared by the employer is legal or illegal. In regard to contracts
of service sometimes parties may be at variance and may set up rival contracts,
and in such a case it may be necessary to enquire which contract was in
existence at the relevant time. Some of these questions have in fact been the
subject-matter of judicial decisions. (Vide: A. R. Sarin v. B. C. Patil (1),
Vishwanath Tukaram v. The General Manager, Central Railway, V. T. Bombay (2);
and Maharaja Sri Umaid Mills, Ltd. v. Collector of Pali (5)); but we do not
propose to consider these possible questions in the present appeal, because, in
our opinion, it would be inexpedient to lay down any hard and fast or general
rule which would afford a determining test to demarcate the field of incidental
facts which can be legitimately considered by the authority and those which
cannot be so considered. We propose to confine our decision to the facts in the
What are the facts in the present case? The
relationship of employer and employee is not in dispute. It is admitted that
the three workmen are employed by the appellant, and do the work of
bleach-folders. These folders are classified into Uttarnars and Chadhavnars.
Indeed, the items of work assigned to these categories of folders are admitted.
The appellant contends that the employment of the three workmen is governed by
the Award which is in operation, (1) (1951) 53 Bom. L.R. 674. (2) 
(3)  11 L.L.J. 364.
233 whereas the respondent Union contends
that they are governed by cl. 5 of the subsequent agreement. It is common
ground that both the Award and the agreement are in operation in respect of the
persons governed respectively by them, so that it is not disputed by the
appellant that the persons who are specified by their designation under cl. 5
would be entitled to, the benefit of the said clause and would not be governed
by the Award. If an employee is called a cut-looker by any mill he would
naturally fall under cl. 5; in other words, all the specified categories of
employees named by designation in that clause would not be governed by the
Award though at one stage they were treated as operatives but they would be
governed by cl. 5 of the agreement; and if a person bearing that designation
applied under s. 15 of the Act his application would be competent. The
appellant's argument, however, is that when the last part of el. 5 refers to
other employees "who have not been included above but who can properly
fall under the above category" no designation is attached to that class,
and in such a case it would be necessary to enquire whether a particular
employee can properly fall under the said category, and that, it is urged,
means that such an employee cannot apply under s. 15 but must go to the
industrial court under the ordinary industrial law. Thus the controversy
between the parties lies within a very narrow compass. An employee designated
as a cut-looker can apply under s. 15 and obtain relief from the authority; an
employee not so designated but falling under the said category by virtue of the
work assigned to him, it is said, cannot apply under s. 15 because the
authority cannot deal with the question as to whether the said employee
properly falls under the said category or not.
In our opinion, on these facts, the question
as to whether a particular employee is an operative falling under the Award or
one who is above an operative and below the clerk falling under cl. 5 is a
question which is so intimately and integrally connected with the problem of
wages as defined under s. 2(vi) that it would be unreasonable 30 234 to exclude
the decision of such a question from the jurisdiction of the authority under s.
15. If a contract of employment is admitted and there is a dispute about the
construction of its terms, that obviously falls within s. 15 of the Act. If
that is so, what is the difference in principle where a contract is admitted,
its terms are not in dispute, and the only point in dispute is which of the two
subsisting contracts applies to the particular employee in question. If the
appellant's argument were to prevail it would lead to this anomalous position
that if a general contract of employment provides for payment of wages to
different categories of employees and describes the said categories by
reference to the duties discharged by them, none of the employees can ever
avail himself of the speedy remedy provided by s. 15 of the Act. In such a case
every time a dispute may arise about the duties assigned to a particular
employee before his wages are determined. In our opinion, to place such an
artificial limitation on the limits of the jurisdiction conferred on the
authority by s. 15 is wholly unreasonable. That is the view taken by the High
Court in the present case and we see no reason to differ from it.
The question about the nature and scope of
the limited jurisdiction conferred on the authority under s. 15 has been
considered by this Court in the case of A. V. D'Costa v. B. C. Patel (1). In
that case the scheme of the Act has been examined by Sinha, J., as he then was,
who spoke for the majority view, and it has been held that "if an employee
were to say that his wages were Rs. 100 per month which he actually received as
and when they fell due but that he would be entitled to higher wages if his
claims to be placed on the higher wages scheme had been recognised and given
effect to, that would not be a matter within the ambit of the authority's
jurisdiction. The authority has the jurisdiction to decide what actually the
terms of the contract between the parties were, that is to say, to determine
the actual wages; but the authority has no jurisdiction to determine the
question of potential wages".
The Court took the view that the employee's
(1)  1 S.C.R. 1353.
235 complaint in that case fell within the
It would thus be seen that according to this,
decision the authority has jurisdiction to determine what the terms of contract
between the parties are, and if the terms of the contract are, admitted and the
only dispute is whether or not a particular employee falls within one category
or another, that would be( incidental to the decision of the main question as
to what the terms of the contract are, and that precisely is the nature of the
dispute between the parties in the present case.
The learned Attorney-General has relied very
strongly on the decision of the Bombay High Court in Anthony Substain Almeda v.
R. M. T. Taylor(1). In that case the employer and the employee went before the
Court on the basis of different contracts and the Court held that it was not
within the jurisdiction of the authority to decide which of the two contracts
held the field, which of them was subsisting, and under which of them the
employer was liable to pay wages.
It would be clear from the facts in that case
that two rival contract, were pleased by the parties, according to whom only
one contract was subsisting and not the other, and so the question for decision
was which contract was really subsisting. We do not propose to express any
opinion on the correctness of the view taken by the Bombay High Court on this
question. All we are concerned to point out is that in the present appeal the
dispute is substantially different.
Both contracts admittedly are subsisting. The
only point of dispute is: do the three workmen fall within the category of
cut-lookers or do they not If they do then cl. 5 applies; if they do not the
Award will come into operation. That being so, we do not see how the decision
in Almeda's case (1) can really assist the appellant.
In this connection we may point out that it
is common ground that in Ahmedabad textile mills do not have a class of
employees called cut-lookers as in Bombay. The work of cut looking along with
other kind of work is done by bleach folders and other (1) (1956) Bom. L.R.
236 folders. That was the finding made by the
authority on an earlier occasion when Punamchand and Vishnuprasad had moved the
authority under s. 15 of the Act. The learned Attorney General has strenuously
contended that it is unfair to give the same pay to the three workmen who are
doing the work of cut-lookers only for a part of the time and were
substantially doing the work of bleach-folders; that, however, has no relevance
in determining the present dispute. The only point which calls for decision is
whether or not the work done by the three respondents takes them within the
category of cut-lookers specified under cl. 5, and as we have already pointed
out, on an earlier occasion the authority has found in favour of two of the
three respondents when it held that they were folders doing cut looking. If the
said finding amounts to res judicata it is in favour of the two respondents and
not in favour of the appellant; that is why the learned Attorney-General did not
seriously dispute the correctness of the decision of the High Court on the
question of res judicata.
In the result the appeal fails and is
dismissed with costs.