Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | provident fund |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Employees' Provident Funds and Miscellaneous Provisions Act, 1952 Sections 2(b) and 6-"Basic wages for the time being payable''-lnterpretation of-Award under Industrial Disputes Act-Gives revised pay scales to employees with retrospective effect-A"ears of wages paid to employees. Provident fund-Contribution-Employers liability to pay-Deduction from wage arrears of employees-Whether arises A dispute regarding wages and other conditions of service arose between the State Electricity Board-Respondent. No.1, and its workmen. The parties arrived at a settlement as a result of which the dispute was referred to the arbitrators under the Industrial Disputes Act. The arbitrators entered upon the reference and gave an award dated May 20, 1980, according to which various categories of workmen were to be paid higher wages with effect from April 1, 1980. The arrears of pay and other benefits accrued to the workmen were to be paid in four equal instalments. The first instalment was payable on December 1, 1985 and the remaining three at an interval of six months each . The Provident Fund authorities issued directions that the provident fund contributions be deducted from .the arrears paid to the workmen. Accordingly, when the first instalment was disbursed, the Board deducted the employees contribution and also made its own contribution as required under the Provident Fund Act. However, at the time of the second instalment, the Board filed a Writ Petition under Article 226 challenging the directions of the Provident Fund authorities, contending that arrears payable to the employees as a result of the award of the arbitrators were not the "basic wages" under section 2(b) of the Provident Fund Act.A Single Judge of the High Court dismissed the Writ Petition, but on appeal a Division Bench set aside the judgment and allowed the Writ petition, holding that the contribution is to be paid on wages 'for the time being payable to the employees' and not on wages, the payment of which, even at a future date, is undecided and does not arise out of the contract of employment, and that wages payable under an award of the arbitrators cannot be termed as deferred wages so as to mean that they had accrued at a particular time but were payable at a later date according to the terms of the contract. Two appeals were filed against the judgment of the Division Bench to this Court, one by the Regional Provident Fund Commissioner and the other by the. workmen of the Board. |
Judge | Hon'ble Mr. Justice Kuldip Singh |
Neutral Citation | 1992 INSC 124 |
Petitioner | Prantiya Vidhut Mandal Mazdoor Federation Etc. Etc. |
Respondent | Rajasthan State Electricity Board And Ors. Etc. Etc. |
SCR | [1992] 2 S.C.R. 757 |
Judgement Date | 1992-04-23 |
Case Number | 1790 |
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