Amity Law School
Amity Law School
Labour Law II
Dr. Sheeba Ahad
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Amity Law School
Module I
PROCEDURE FOR HEARING AND DECIDING
CLAIMS
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Claims - section 20
Amity Law School
• Section 20 deals with the provisions relating to the appointment of authorities to
decide claims arising out of this Act. Under this section appropriate Government
has the power to appoint by way of notification in official Gazette, the authority to
hear and decide claims for any specified area. This section can be divided into two
parts. First part relates to the persons who can be appointed as the authority to
decide claims arising out of the Act. Second part of it deals with the claims which
shall be decided by the authority appointed for the purpose.
• According to sub-section (1) of section 20, the following persons may be appointed
to decide claims arising out of the Act
• (a) any Commissioner for Workmen's Compensation ; or
• (b)any officer of the Central Government exercising functions as aLabour
Commissioner for any region; or
• (c) any officer of the State Government not below the rank of a Labour
Commissioner; or so
• (d)by any other officer with experience as a Judge of a Civil Court or as a
Stipendiary Magistrate
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Contd.. Amity Law School
• The following claims shall be decided by the authority-
• (i) any claim arising out of payment of less than the minimum rates of wages ; or
• (ii) any claim in respect of payment of remuneration for days of rest; or
• (iii) any claim in respect of payment of remuneration for work doneon such days
under clause (b) or (c) of section 13(1); or
• (iv)any claim of wages at the overtime rate under section 14, to employee employed
or paid in that area.
• Sub-section (2) of section 20 lays down the list of persons who can make an
application to the authority for a direction. These persons are -
• (a) the employee himself; or
• (b) any legal practitioner authorised in writing to act on his behalf ;or
• (C) any official of a registered Trade Union authorised in writing to act on behalf of
the employee ; or
• (d)any inspector ; or
• (e) any person acting with the permission of the authority.
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Limitation Period
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• The proviso attached to subsection (2) provides that every much application shall be
presented within six months from the date on which the minimum wage or other
amount became payable. It is further provided that any application may be admitted
after the said period of six month when the applicant satisfies the Authority that he
had sufficient cause for not making the application within such period
• In Executive Engineer, Rural Works Division, Mayurbhanj v. Addl. District
Magistrate, Mayurbhanj 2005 LLR 121, there was delay in filing applicatum
beyond limitation period. Claimant submitted that they were pursuing their
grievance before labour officer, Only when they failed, they approached the
authority. It was held that the delay has been rightly condoned.
• In Spandan Sphoorty Financial Ltd., Hyderabad v. Joint Commissioner of
Labour Zone 2 2013 IIILLJ 796, it has been held by the Andhra Pradesh High
Court that in the case of condonation of delay when both parties have not adduced
any evidence and when no other material in placed before the court, the applications
have to be decided basing on the pleading and the facts and circumstances of the
case,
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Procedure for deciding claims under
M.W. Act. Amity Law School
• Section 20(3) lay down the procedure to be followed by the authority for deciding
claims. According to sub-section (3) of section 20, when any application under sub-
section (2) is entertained, the Authority shall hear the applicant and the employer, or
give them an opportunity of being heard, and after such further inquiry, if any, as it
may consider necessary, may, without prejudice to any other penalty to which the
employer may be liable under this Act, direct-
• (i) in the case of a claim arising out of payment of less than the minimum rates of
wages, the payment to the employee of the amount by which the minimum wages
payable to him exceed the amount actually paid, together with the payment of such
compensation as the Authority may think fit, not exceeding ten times the amount of
such excess;
• (ii) in any other case, the payment of the amount due to the employee, together with
the payment of such compensation as the Authority may think fit, not exceeding ten
rupees.
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Contd.
Amity Law School
• It further lays down that the Authority may direct payment of such compensation in
cases where the excess or the amount due » paid by the employer to the employee
before the disposal of the application.
• In Hindustan Steel Ltd., v. A.K. Roy A,I,R 1970SC1401 Supreme Court has held
that failure to raise objection before the claims authority regarding the imposition of
maximum penalty for payment of wages less than minimum wages will be fatal and
that the Court will not be inclined to sustain such a plea in the argument stage.
• In B. Ramdas v. The Authority under Minimum Wages Act, Guntur 1987 Lab IC
1493, it has been held that while making the enquiry into the claim petition under
section 20 of the Act, the authority acts in quasi judicial capacity and ipso facto
should ensure that no prejudice is caused to the employer by failure to follow the
rules of natural justice.
• In Pabbojan Tea Co. Ltd, V D,C Lakhimpur AIR 1968 SC 271, Patna High Court
has laid down that the minimum wages becoming payable can be claimed by an
application presented within six months from the date on which it became payable
and if presented after the expiry of the period of limitation, the applicant has to
satisfy the authority that he had sufficient cause for not making the application
within such period. Penalty for vexatious claims 7
Penalty for Vexatious claims
Amity Law School
• Sub-section (4) of section 20 provides that if the Authority hearing any application
under this section is satisfied that it was either malicious or vexatious, it may direct
that a penalty not exceeding fifty rupees be paid to the employer by the person
presenting the application.
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Recovery of amount by the Authority
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• Sub-section (5) of section 20 provides that any amount directed to be paid under
this section may be recovered
• (a) if the Authority is a Magistrate, by the authority as if it were a fine imposed by
the Authority as a Magistrate, or
• (b) if the Authority is not a Magistrate, by any Magistrate to whom the Authority
makes application in this behalf, as if it were a fine imposed by such Magistrate.
• According to section 20(6), every direction of the authority under this section shall
be final. However, it does not exclude the jurisdiction of the Civil Court when the
challenge is as to the applicability of the Act to a certain class of workers.
• Sub-section (7) of section 20 lays down that every Authority appointed under sub-
section (1) shall have all the powers of a civil court under the Code of Civil
Procedure, 1908 (5 of 1908), for the purpose of taking evidence and of enforcing
the attendance of witnesses and compelling the production of documents, and every
such Authority shall be deemed to be a labour and Industrial Laws civil court for all
the purpose of section 195 and Chapter XXXV of the Code of Criminal Procedure.
1898 (6 of 1898). The authority under the Act, while deciding claims under section
20. exercises quasi judicial functions and is vested with powers of civil court.
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Contd. Amity Law School
• In view of the above, it is clear that the authority appointed under sub-section (1)
has all the powers of a civil court for the purpose of-
• (1) taking evidence;
• (2) enforcing the attendance of witness; and
• (3) compelling the production of documents.
• It has been held Chief Warden ,NIT ,Mangalore V Labour Enforcement Officer
(Central)2013ILLJ82 by the Karnataka High Court that claim for overtime wages
requiring adjudication as to number of days and hours of work cannot be decided by
authority under Minimum Wages Act, 1948.
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