M/S BOMBAY CHEMICAL INDUSTRIESversusDEPUTY LABOUR COMMISSIONER & ANR.

                       [2022] 1 S.C.R. 523                            523


            M/S BOMBAY CHEMICAL INDUSTRIES                            A
                                v.
         DEPUTY LABOUR COMMISSIONER & ANR.
                  (Civil Appeal No. 813 of 2022)
                       FEBRUARY, 04 2022                              B

         [M. R. SHAH AND B. V. NAGARATHNA, JJ.]
      Industrial Disputes Act, 1947: s.33C(2) – Recovery of money
due from an employer – Serious dispute that respondent no.2 had
worked as an employee of appellant – Jurisdiction of Labour Court     C
– Respondent No.2 filed an application before Labour Court under
s.33(C)(2) demanding difference of wages from 01.04.2006 to
31.03.2012 – It was the case of respondent No.2 that he was working
with the appellant as a salesman – However, the appellant took a
categorical stand that respondent No.2 was never engaged by the
appellant – Held: Once there was a serious dispute raised by the      D
appellant that respondent No.2 was not in employment as a salesman
as claimed by respondent No.2, thereafter, it was not open for the
Labour Court to entertain disputed questions and adjudicate upon
the employer-employee relationship between the appellant and
respondent No.2 – As per the settled proposition of law, in an        E
application under s.33(C)(2), the Labour Court has no jurisdiction
and cannot adjudicate dispute of entitlement or the basis of the
claim of workmen – It can only interpret the award or settlement on
which the claim is based – The labour court’s jurisdiction under
s.33(C)(2) is like that of an executing court – As per the settled
preposition of law without prior adjudication or recognition of the   F
disputed claim of the workmen, proceedings for computation of the
arrears of wages and/or difference of wages claimed by the workmen
shall not be maintainable under s.33(C)(2) of the Act.
      Allowing the appeal, the Court
                                                                      G
      HELD: When there was no prior adjudication on the issue
whether respondent No.2 was in employment as a salesman as
claimed by respondent No.2 and there was a serious dispute
raised that respondent No.2 was never in employment as a
salesman and the documents relied upon by respondent No.2 were
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524             SUPREME COURT REPORTS                            [2022] 1 S.C.R.


A     seriously disputed by the appellant and it was the case on behalf
      of the appellant that those documents are forged and/or false,
      thereafter the Labour Court ought not to have proceeded further
      with the application under Section 33(C)(2) of the Industrial
      Disputes Act. The Labour Court ought to have relegated
      respondent No.2 to initiate appropriate proceedings by way of
B
      reference and get his right crystalized and/or adjudicate upon.
      Therefore, the order passed by the Labour Court was beyond
      the jurisdiction conferred under Section 33(C)(2) of the Industrial
      Disputes Act. The High Court has not appreciated the facts and
      has confirmed the same without adverting to the scope and ambit
C     of the jurisdiction of the Labour Court under Section 33(C)(2) of
      the Industrial Disputes Act. [Para 7][527-G-H; 528-A-C]
              Municipal Corporation of Delhi v. Ganesh Razak and
              Anr. (2006) 9 SCC 292 : [2006] 3 SCR 48; Union of
              India and another v. Kankuben (Dead) by LRs. and
D             Others (1995) 1 SCC 235 : [1994] 4 Suppl. SCR 617 –
              relied on.
                               Case Law Reference
      [2006] 3 SCR 48                  relied on                 Para 3.1

E     [1994] 4 Suppl. SCR 617          relied on                 Para 6
              CIVIL APPELLATE JURISDICTION: Civil Appeal No.813 of
      2022.
            From the Judgment and Order dated 14.11.2018 of the High Court
      of Judicature at Allahabad in Writ-C No.33482 of 2018.
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              Vishal Yadav, Ajay Pal, Advs. for the Appellant.
           Dr. Vinod Kumar Tewari, Pramod Tiwari, Vivek Tiwari, Ms.
      Priyanka Dubey, D. N. Dubey, Manindra Dubey, Advs. for the
      Respondents.
G             The Judgment of the Court was delivered by
              M. R. SHAH, J.
            1. Feeling aggrieved and dissatisfied with the impugned judgment
      and order dated 14.11.2018 passed by the High Court of Judicature at

H
    M/S BOMBAY CHEMICAL INDUSTRIES v. DEPUTY LABOUR                             525
             COMMISSIONER [M. R. SHAH, J.]

Allahabad in Writ Petition No.33482 of 2018, by which the High Court            A
has dismissed the said writ petition preferred by the appellant herein and
has confirmed the order passed by the Presiding Officer, Labour Court
IV, U.P., Kanpur Nagar, under Section 33(C)(2) of the Industrial Disputes
Act, the original writ petitioner has preferred the present appeal.
       2. That respondent No.2 herein moved an application before the           B
Labour Court under Section 33(C)(2) of the Industrial Disputes Act in
Misc. Case No.26 of 2012 demanding the difference of wages from
01.04.2006 to 31.03.2012. The said application was contested by the
appellant herein denying any relationship of employee-employer. It was
the categorical stand of the appellant that respondent No.2 herein was
never engaged by it. Before the Labour Court respondent No.2 herein             C
relied upon the documents exhibit W-1 to W-6 in support of his case that
he had worked in the establishment as a salesman. That by order dated
28.11.2017 the learned Presiding Officer, Labour Court allowed the said
application and directed the appellant herein to pay the difference of
wages from 01.04.2006 to 31.03.2012 as claimed in the application.              D
       2.1 Feeling aggrieved and dissatisfied with the impugned order
passed by the learned Presiding Officer, Labour Court under Section
33(C)(2) of the Industrial Disputes Act, the appellant herein preferred a
writ petition before the High Court. By the impugned judgment and order
the High Court has dismissed the said writ petition which has given rise        E
to the present appeal.
       3. Shri Vishal Yadav, learned counsel appearing on behalf of the
appellant has vehemently submitted that in the facts and circumstances
of the case the High Court has erred in dismissing the writ petition and
confirming the order passed by the Labour Court under Section 33(C)(2)          F
of the Industrial Disputes Act.
       3.1 It is submitted by Shri Yadav appearing on behalf of the appellant
that the High Court ought to have appreciated that when there was a
serious issue raised with respect to the employer-employee relationship
between the appellant and respondent No.2 and that it was seriously             G
disputed that respondent No.2 was at any point of timein employment as
a salesman, the Labour Court ought not to have entertained/allowed the
application under Section 33(C)(2) of the Industrial Disputes Act as the
same could have been decided in the reference under Section 10 of the
Industrial Disputes Act. It is therefore submitted that the order passed
by the Labour Court is completely without jurisdiction. Therefore, the          H
526             SUPREME COURT REPORTS                           [2022] 1 S.C.R.


A     High Court ought to have set aside the same. Reliance is placed on the
      decisions of this Court in the case of Municipal Corporation of Delhi
      Vs. Ganesh Razak and Anr., (1995) 1 SCC 235 and Union of India
      and another Vs. Kankuben (Dead) By Lrs. and Others, (2006) 9
      SCC 292, in support of his submissions that in a proceeding under Section
      33(C)(2) of the Industrial Disputes Act, the Labour Court cannot
B
      adjudicate the dispute of entitlement or the basis of the claim and it can
      only interpret the award or settlement on which the claim is based.
            3.2 Making the above submissions and relying on the above
      decisions, it is prayed to allow the present appeal.
C          4. The present appeal is vehemently opposed by Dr. Vinod Kumar
      Tewari, learned counsel appearing on behalf of the respondent(s).
            4.1 It is submitted that in the present case respondent No.2 placed
      on record voluminous record namely exhibit W-1 to W-6 to show that
      respondent No.2 was working as a salesman with the appellant. It is
D     submitted that the appellant came out with a false case to get out of the
      obligation difference in salary to be paid as claimed in the application. It
      is therefore submitted that when on appreciation of evidence and
      considering the material available on record the Labour Court held that
      respondent No.2 was employed as a salesman and thereafter directed
      the appellant to pay the difference of wages it cannot be said that the
E     Labour Court exceeded in its jurisdiction.
             4.2 It is submitted that when on the face of the record available it
      was found by the Labour Court that respondent No.2 was in employment
      of the appellant as a salesman, and in the claim before the Labour Court
      there was found a difference in the salary/pay for the period from
F     01.04.2006 to 31.03.2012, the Labour Court has not committed any error.
      The High Court has rightly dismissed the writ petition.
            5. We have heard the learned counsel appearing on behalf of the
      respective parties at length.
             6. At the outset it is required to be noted that respondent No.2
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      herein filed an application before the Labour Court under Section 33(C)(2)
      of the Industrial Disputes Act, demanding difference of wages from
      01.04.2006 to 31.03.2012. It was thus the case on behalf of respondent
      No.2 that he was working with the appellant as a salesman. However,
      the appellant had taken a categorical stand that respondent No.2 was
H     never engaged by the appellant. It was specifically the case on behalf of
    M/S BOMBAY CHEMICAL INDUSTRIES v. DEPUTY LABOUR                            527
             COMMISSIONER [M. R. SHAH, J.]

the appellant that respondent No.2 had never worked in the establishment       A
in the post of salesman. Therefore, once there was a serious dispute
that respondent No.2 had worked as an employee of the appellant and
there was a very serious dispute raised by the appellant that respondent
No.2 was not in employment as a salesman as claimed by respondent
No.2, thereafter, it was not open for the Labour Court to entertain disputed
                                                                               B
questions and adjudicate upon the employer-employee relationship
between the appellant and respondent No.2. As per the settled proposition
of law, in an application under Section 33(C)(2) of the Industrial Disputes
Act, the Labour Court has no jurisdiction and cannot adjudicate dispute
of entitlement or the basis of the claim of workmen. It can only interpret
the award or settlement on which the claim is based. As held by this           C
Court in the case of Ganesh Razak and Anr. (supra), the labour court’s
jurisdiction under Section 33(C)(2) of the Industrial Disputes Act is like
that of an executing court. As per the settled preposition of law without
prior adjudication or recognition of the disputed claim of the workmen,
proceedings for computation of the arrears of wages and/or difference
                                                                               D
of wages claimed by the workmen shall not be maintainable under Section
33(C)(2) of the Industrial Disputes Act. (See Municipal Corporation
of Delhi Vs. Ganesh Razak and Anr. (1995) 1 SCC 235).
       In the case of Kankuben (supra), it is observed and held that
whenever a workman is entitled to receive from his employer any money
or any benefit which is capable of being computed in terms of money            E
and which he is entitled to receive from his employer and is denied of
such benefit can approach Labour Court under Section 33-C(2) of the
ID Act. It is further observed that the benefit sought to be enforced
under Section 33-C (2) of the ID Act is necessarily a pre-existing benefit
or one flowing from a pre-existing right. The difference between a pre-        F
existing right or benefit on one hand and the right or benefit, which is
considered just and fair on the other hand is vital. The former falls within
jurisdiction of Labour Court exercising powers under Section 33-C (2)
of the ID Act while the latter does not.
      7. Applying the law laid down by this Court in the aforesaid             G
decisions to the facts of the case on hand, when there was no prior
adjudication on the issue whether respondent No.2 herein was in
employment as a salesman as claimed by respondent No.2 herein and
there was a serious dispute raised that respondent No.2 was never in
employment as a salesman and the documents relied upon by respondent
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528              SUPREME COURT REPORTS                          [2022] 1 S.C.R.


A     No.2 were seriously disputed by the appellant and it was the case on
      behalf of the appellant that those documents are forged and/or false,
      thereafter the Labour Court ought not to have proceeded further with
      the application under Section 33(C)(2) of the Industrial Disputes Act.
      The Labour Court ought to have relegated respondent No.2 to initiate
      appropriate proceedings by way of reference and get his right crystalized
B
      and/or adjudicate upon. Therefore, the order passed by the Labour Court
      was beyond the jurisdiction conferred under Section 33(C)(2) of the
      Industrial Disputes Act. The High Court has not appreciated the aforesaid
      facts and has confirmed the same without adverting to the scope and
      ambit of the jurisdiction of the Labour Court under Section 33(C)(2) of
C     the Industrial Disputes Act.
             8. In view of the above and for the reasons stated above the
      present appeal succeeds. The impugned judgment and order passed by
      the High Court as well as that of the order passed by the Labour Court
      under Section 33(C)(2) of the Industrial Disputes Act in Misc. Case
D     No.26 of 2012 are hereby quashed and set aside. Respondent No.2 is
      relegated to avail any other remedy which may be available under the
      Industrial Disputes Act, including that of reference to adjudicate his right
      as an employee of the appellant as claimed by him. As and when such
      proceedings are initiated the same to be considered in accordance with
      law and on its own merits and without in anyway being influenced by the
E     present order, as this Court has not expressed anything in favour of
      either of the parties on the aspect of employer-employee relationship
      between the appellant and respondent No.2. The present appeal is
      allowed with the above observations and to the aforesaid extent. No
      costs.
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      Devika Gujral                                                 Appeal allowed.




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