# SHRI AMBICA MILLS CO., LTD v. SHRI S. B. BHATT AND ANOTHER

- **Citation:** [1961] 3 S.C.R. 220
- **Court:** Supreme Court of India
- **Decided:** 1961
- **Case number:** Civil Appeal No. 243of1959
- **Bench:** P. B. Gajendragadkar, K. N. Wanchoo, K. c. DAS GUPTA
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/shri-ambica-mills-co-ltd-v-shri-s-b-bhatt-and-another-1967
- **Pages:** 17

## Headnote

Wages, Payment of-furisdictio" of Authority-Scope and
extent-High Court's power, to issue writ-Payment of Wages
Act, z936 (4 of r936), ss. z5, r6-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
I
3 S.C.R. SUPREME COURT REPORTS
221
Labour Association. Clauses 2 and 5 of the said agreement were
r960
as follows.-
"2. That this agreement shall apply to all the Clerks Shd Ambica Mills
employed in the local mills, i.e., persons doing clerical work,
Co., Lid.
that is those who do routine work of writing, copying or making
v.
calculations and shall also include compounders and assistant Sbi s: B. B4ott
compounders who are qualified and who are employed in the
.S- ,1,..,4,,
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-ro5
This scale will be applicable in case of ticket-checker,
coupons-seller, tally-boy, scale-boy, production-checker, thirdcounter, cloth measurer or yard-counter, fine-reporter, cloth/
yarn-examiner, department storeman, 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
lo be semi-clerks, lower than full-fledged clerks but higher than
operatives, and as such governed by cl. 5 of the agreement.
Tho Authority held against them and the app'ellate 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 thev could not maintain their claim
under cl. 5. The High Couri, 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 (r) the High
Court had exceeded its jurisdiction under Arts. 226 and 227 in
setting aside the order ot 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 negatived.
The High Court has power under A rt. 226 of the Constitution to issue a ·writ of ce.-tiorari 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 lace of the record and
the rule that it must be self-evident, requiting no elaborate
examination of the record, is a satisfactory practical test in a
large majority of cases.
Rex v. NorlhumberlaKd Compensation Appeal Tribunal, (1952]
l K.B. 338 and 'NageKdra Nath Bora v. Commissioner of HiUs
Division aKd Appeals, Assam, [1958] S.C.R. 1340, referred to.
222
SUPREME COURT REPORTS
[1961]
196•
Viswanath Tukaram v. The General Manager, Central Railway,
. -.
. V. T., Bombay, (I9S7) S9 Born. L.R. 892, considered.
Shri Amb~~ Mills
A look at the two clauses is enough to show that the appelCo.,
1 •
late Authority in construing them in the way it did committed
•·
an obvious and manifest error of law. It was clear that the two
Shri s. B. Bhatt
l
l" d
d" ·
c auses app 1e to two 1stmct categories of persons and persons
.;. dnoth"
falling under cl. S could not be governed by cl. 2 and were not
expected to satisfy the test prescribed by it.
Under s. IS of the Payment of Wages Act; 1936, the

## Text

220
SUPREME COURT REPORTS
[1961]
'960
been clearly proved. The charge was that he had
n
L 7H . • plotted and hatched a conspiracy for assaulting the
~ .. ~;1, ;;,~,,,. General Superintendent, Weaving Master, Chief Engi-
•·
neer,. Factory Manager and the Controller of Produc111 WorA•n
tion. The details of the charge were specified, and at
. -
the enquiry it was held that these charges had been
G•J••'••1•'••• J. proved. There is no doubt that these charges, if proved, deserve the punishment of dismissal under the
relevant standing orders. The Tribunal, however, purported to examine the propriety of the finding recorded against HM' Prasad and came to the conclusion
that the said finding was not justified on the merits.
As' we have already pointed out the Tribunal had no
jurisdiction to sit in appeal over the findings of the
enquiry as it has purported to do. The result is that
the conclusion of the Tribunal in regard to all the
workmen is unjustified and without jurisdiction.
1960
The appeal is accordingly allowed, the order passed
by the Tribunal is set aside, and approval is accorded
to the action taken by the appellant under s. 6E.
There will be no order as to costs.
Appeal allowed.
SHRI AMBICA MILLS CO., LTD.
v.
SHRI S. B. BHATT AND ANOTHER
(P. B. GAJENDRAGADKAR, K. N. WANCHOO and
K. c. DAS GUPTA, JJ.)
Wages, Payment of-furisdictio" of Authority-Scope and
extent-High Court's power, to issue writ-Payment of Wages
Act, z936 (4 of r936), ss. z5, r6-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
I
3 S.C.R. SUPREME COURT REPORTS
221
Labour Association. Clauses 2 and 5 of the said agreement were
r960
as follows.-
"2. That this agreement shall apply to all the Clerks Shd Ambica Mills
employed in the local mills, i.e., persons doing clerical work,
Co., Lid.
that is those who do routine work of writing, copying or making
v.
calculations and shall also include compounders and assistant Sbi s: B. B4ott
compounders who are qualified and who are employed in the
.S- ,1,..,4,,
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-ro5
This scale will be applicable in case of ticket-checker,
coupons-seller, tally-boy, scale-boy, production-checker, thirdcounter, cloth measurer or yard-counter, fine-reporter, cloth/
yarn-examiner, department storeman, 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
lo be semi-clerks, lower than full-fledged clerks but higher than
operatives, and as such governed by cl. 5 of the agreement.
Tho Authority held against them and the app'ellate 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 thev could not maintain their claim
under cl. 5. The High Couri, 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 (r) the High
Court had exceeded its jurisdiction under Arts. 226 and 227 in
setting aside the order ot 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 negatived.
The High Court has power under A rt. 226 of the Constitution to issue a ·writ of ce.-tiorari 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 lace of the record and
the rule that it must be self-evident, requiting no elaborate
examination of the record, is a satisfactory practical test in a
large majority of cases.
Rex v. NorlhumberlaKd Compensation Appeal Tribunal, (1952]
l K.B. 338 and 'NageKdra Nath Bora v. Commissioner of HiUs
Division aKd Appeals, Assam, [1958] S.C.R. 1340, referred to.
222
SUPREME COURT REPORTS
[1961]
196•
Viswanath Tukaram v. The General Manager, Central Railway,
. -.
. V. T., Bombay, (I9S7) S9 Born. L.R. 892, considered.
Shri Amb~~ Mills
A look at the two clauses is enough to show that the appelCo.,
1 •
late Authority in construing them in the way it did committed
•·
an obvious and manifest error of law. It was clear that the two
Shri s. B. Bhatt
l
l" d
d" ·
c auses app 1e to two 1stmct categories of persons and persons
.;. dnoth"
falling under cl. S could not be governed by cl. 2 and were not
expected to satisfy the test prescribed by it.
Under s. IS 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 thereunder and, although it would be inexpe·
dient 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 aud,
therefore within cl. S of the agreement, was a question intimately and integrally connected with wages as defined hy the Act
and as such fell within the jurisdiction of the Authority under
s. rs 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, [1955] I S.C.R. r3s3. referred
to.
·'
Anthony,Sabastin Almeda v.R. M. T. Taylor, (r9S6) 58 Born.
L.R. 899, distinguished.
CIVIL APPELLATE JURISDICTION: Civil Appeal No.
243of1959.
·
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. O. Setalvad, Attorney-General for India, G. P.
Vyas and I. N. Shroff, for the appellant
Vitkalbhai Patel, 8. 8. Bbulcla, 0. T. Daru and E.
Udayarathnam, for the respondent No. I.
1960. December 12. The Judgment of the Court
was delivered by
Gaje3 dragadAar J.
GAJENDRAGAD.KAR,
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
3 S.C.R. SUPREME COURT REPORTS
223
Payment of Wages Act, 1936 (Act 4 of 1936) (hereafter
19~o
called the Act). This question arises in this way. The Sh . A-;:-
M.11
appellant Shri Amhica Mills Co. Ltd., is a textile mill "c:.. ~t~. ' '
working at Ahmedabad. Three of its employees named
v.
Punamchand, Shamaldas and Vishnuprasad made an Shri s. B. Bhtt
application to the authority under s. 16 of the Act
.s- Anothtr
and prayed for an order against the appellant to pay
. -
them their delayed wages. In order to appreciate the Ga1endragadkar J.
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 Ahmeda.bad; that is why the Tribunal was unable
to raise the wage of hand-folders to that of cut-lookers
in Bombay. However, it ma.de & significant direction
in that behalf in these wonb: "At the same time",
it was observed, "we desire to make it clear that if
there are persons who a.re doing cut-looking as well as
folding, they should be pa.id the rate earned by the
cut-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
SUPREME COURT REPORTS
[1961)
1960
by it and an award pronounced in that behalf. Hows'., -b. M'I ever, the said award was later terminated by the clerks
nrl nm "a
•I 5 '
d h
J d
b
co .. Ltd.
m 1949, an t at e
to an agreement
etween the
~.
Ahmedabad Mill Owners' Association and the Textile
Shri s. B. Bhatt Labour Association in the matter of wages payable to
b A•otMr
clerks. This agreement was reached on June 22, 1949.
-
.
Clauses 2 and 5 of this agreement are material for the
Gaj..,dragaakar).
f h'
J
L
h
,.
d h
purpose o t 1s appea.
et us t ereiore rea · t e 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 separ<Lte scale for those of the employees
who occupy t.he 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-boy,
ticket-checker, coupons-sell!Jr, talley-boy, scale-boy,
production-checker, thread-counter, cloth-measurer
or yard-counter, fine.reporter, cloth/yarn-examiner,
department storeman, 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 ~ 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 main·
tainable 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
3 S.C.R. SUPREME COURT REPORTS
225
the work of cut-looking. All these contentions were
i96o
rejected by the authority. It examined the duties 5
. 4 --;:-
IWll
performed by the applicants, and it came to the conhn (;0~ ~,:.
'
'
clusion that both the applicants were folders doing
·v.
cut-looking, and consequently they were entitled each SMi s. B. Bhatt
to Rs. 42-4-0 per month; in other words, the authority
©- Anoth"
came to the conclusion that the applicants properly
.
-
.c 11
d
1
"fi d ·
h 16
fGa1endragadkar j.
ie
un er tie category spem e
111 paragrap
o.
.
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-fl.edged 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 several grounds. 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 n(lt 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 authoPity. The-finding of res judicata
was recorded against Punamchand and Vishnuprasad.
Shamalda.s 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.
•9
226
SUPREME COURT REPORTS
[1961]
1960
semi-clerk. The same finding was recorded against the
-
two other respondents. ft appears that at the trial
Sliri Ambica Mills b i:
h
th "t th
t"
fi} d
· ·
P
·
c
Ltd
eiore t e au on y
e par ies
e
a JOrnt
urs1s
o.,v. ·
which enumerated the duties performed by the responShri s. s. Bhatt dents in paragraphs 2 to 7.
The authority took the
& Another
view that "the duties performed by them cannot be
--
said to be the duties of persons doing the routine work
Gaj•nd•agadka• J. 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
applicationH 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 semiclerks. 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 per:formed
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 cl. 2 the appellate authority held that
cl. 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
cl. 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 cl. 5. That is why the appeals perferred by
3 s.c.R. SUPREME COURT REPORTS
227
the respondents were dismissed by the appellate
r96o
authority on September 2, 1954.
.
Shri A;;:; Mills
These appellate decisions were challenged by the
co., Lt~.
respondents by filing a writ petition under Arts. 226
v.
and 227 of the Constitution before the Bombay High Shri s. B. Bhatl
Court. The Bombay High Court has held that the
& Another
decision of the appellate authority was patently erro- G . d--dk 1
.
.
d d
h
.
a1en 1aga
ar .
neous m law m that it procee e
011 t e assumpt10n
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 judic,ata 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 AttorneyGeneral has raised before us on behalf of the appellant is that the High Court has exceeded its juri~dic
tion 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 cases
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 CompenBation Appeal Tribunal (1).
"The
(t) [1952] I K.B. 338.
228
SUPREME COURT REPORTS
[1961]
z96o
writ has been supposed to be confined to the correcs' . A-b. M.
11 tion of excess of jurisdiction", observed Lord Justice
"" m >ea
1 'D
'
d
d
h
.
f
Co., Ltd.
ennmg, "an
not to exten
to t e correction o
v.
errors of law; and several judges have said as much.
So•i s. B." Bhatt But the Lord Chief Justice has, in the present case,
&. Another
restored certiorari to its tightful position and shown
. d-dk 1 that it can be used to correct errors of law which apGa;e11 raga
ar . pear 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(')].
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
clown tests for determining when an error of law can
be said to be an error apparent on th~ 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 he 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 he 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, (') "there must be cases in whieh even this
test might break down because judicial opinions also
differ, and an error that may be considered by one
(1) (195BJ s.c.R. 1240.
(2) (1955] I S.C.R. 1104. 1123.
3 S.C.R. SUPREME COURT REPORTS
229
judge as self-evident might not be so considered by
'960
another". Judicial experience, however, shows that Shri Ambica Mills
though it cannot be easy to lay down an unfailing test
co., Ltd.
of general application it is usually not difficult to
v.
decide whether the impugned error of law is apparent Shri s. B. Bhatt
on the face of the record or not.
& Another
What then is the error apparent on the face of ~he Gajend;;;;:,dkar J.
record which the High Court has corrected by issumg
a writ of certiorari in the present case? According to
the High Court the construction placed by the a ppellate authority on els. 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 fequirements 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 em.
ployees occupied a position higher than that of an
operative and below that. of a full.fledged clerk.
Therefore there is no don ht that persons falling under
cl. 5 cannot fall under cl. 2, and should not tlierefore
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 cl. 5 will show
that the application of the test which is relevant
under cl. 2 would in their ca~e 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
SUPREME COURT REPORTS
[1961]
r960
document. If cl. 5 expressly provides for employees
. not falling under cl. 2, and if that intention is clarified
Shri Ambico Mills b
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a un er c . 5 an
v.
yet the appellate authority reads that clause as subShri s. B. Bhau ject to cl. 2, that must be regarded as an error patent
& Another
on the face of the record. It is not a case where two
. -
alternative conclusions are possible; it is a case of
G•J••dragadkar J. 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 :.vage 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
3 S.C.R. SUPREME COURT REPORTS
231
from wages, or delay in payment of wages, of persons
z960
employed or paid in that area. It is thus clear that h . A--:-
.
.
h. h
b
. d b
h S ••
mb"a M•lls
the only claims w JC
can
e entertame
y t e
c
Lid
authority are claims arising out of de~uc.tio?s .or delay
•··•. ·
made in payment of wages. The Junsd1ct10n thus Shri s. B. Bhall
conferred on the authority to deal with these two
& Another
categories of claims is exclusive; for s. 22 of the Act
.
~
.
h' h }'
'th' th • • d • t'
Ga;endragadkar J
provides that matters w 10
1e w1 m . e 1ur~s _1c 10n
·
of the authority are excluded from the JUnsdict10n 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
bys. 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 marie 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
SUPREME COURT REPORTS
[1961)
r960
and that refers to the subsistence of the relation bet-
. -. . ween the employer and the employee. If the said
5h" ~mb~c~ M•lls fact is admitted, then the next question would be:
0··v.
1
•
wha1; are the terms of employment? Is there any
Shri s. B. Bhatt contract of employment in writing or is the contract
& Anolhor
oral? If that is not a point of dispute between the
.
-
parties then it would be necessary to enquire what
Ga;enaragadkar J ·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 some times 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('),
Vishwanath Tukaram v. The General Manager, Central
Railway, V. T. Bombay('); and Maharaja Sri Umaid
Mills, Ltd. v. Collector of Pali(')); 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 present case.
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 work-
• men is governed by the Award which is in operation,
(1) (t95I) 53 Bom. L.R. 674.
(2) [1957) Bom.L.R. 89._
(3) [1¢o]ll t.L.J. 364.
[
=i •
(
3 S.C.R. SUPREME COURT REPORTS
233
whereas the respondent Union _contends that they a.re
1960
governed by cl. 5 of the subsequent agreement. It is h .• ~
M" I
d h
b h h
A
rd
d h
S r> n"'bieo
d S
. common groun t at ot t e
wa
an
t e agreeco
Ltd
ment are in operation in respect of the persons govern-
··•. ·
ed respectively by them, so that it is not disputed Shri s. B. Blatt
by the appellant that the persons who are specified
©- llno111n
by their designation under cl. 5 would be entitled to G .
-
the benefit of the said clause and would not be govern- •7•n4••g•4""' J.
ed 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 bilt 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 la.st part of cl. 5
refers to other employees "who have not been included above but who can properly fall under the above
category" no designation is atta.ched 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 fa.lie 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 Awa.rd or one
who is above an operative and below the olerk 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
SUPREME COURT REPORTS
[1961)
1960
to exclude the decision of such a question from the
--
· jurisdiction of the authority under s. 15. If a contract
Shri Ambica Mills f
1
t ·
d · t I
d
}
·
d'
t
c
Ltd
o . emp oymen is a nut e( an
t 1ere 1s a 1spn e
0
"v.
·
about the construction of its terms, that obviously
Shri s. B. Bhatt falls within s. 15 of the Act. If that is so, what is the
& Another
difference in principle where a contract is admitted,
. -
· its terms are not in dispute, and the only point in
Ga;•ndragadkar J. 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 descharged 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('). In that case the
scheme of the Act has been examined by Sinha, J., s,s
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
011 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 Yiew that the employee's
(1) [1955] I S.C.R 1353.
3 S.C.R. SUPREME COURT REPORTS
235
complaint in that case fell within the latter illustra-
~~
tion. It would thus be seen that according to this s hri Ambico Mw,
decision the authority has jurisdiction to determine
co. Lid.
what the terms of contract between the parties are,
v.
and if the terms of the contract are admitted and the Shri s. B. BA011
only dispute is whether or not a ·particular employee
& Anoth"
falls within one category or another, that would be G,,j,nd,-;;-;,;dk•• J.
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 Sabastin Almeda v. R. M. T. Taylor('). 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 ih t.hat case
that two rival contracts were pleaded 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 ex press 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 t.hree 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(') can really
assist the appellant.
In this connection we may point out that it is com.
mon 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
(I) (<956) Bom. L.R. 899.
.....
236
SUPREME COURT REPORTS
[1961]
,960
folders. That was the finding made by the authority
on an earlier occasion when Punamchand and Vishnuc
Sh•i Ambic• Mills prasad had moved the authority under s. 15 of the
<;o.~-Lld.
Act. The learned Attorney-General has strenuously
Slri s. B. Bhatt contended that it is unfair to give the same pay to the
b Anoth"
three workmen who &re doing the work of cut.lookers
. -
only for a part of the time· and were substantially
.<i•1•ndragadAa• J. 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 wc 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 judic.ata it is in favour of the two respondents
and not in favour of the appella.nt; 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 judic.ata.
In the result the appeal fails and is dismissed with
costs.
Appeal dismissed.
THE INCOME-TAX OFFICER, ALWAYE
v.
THE ASOK TEXTILES LTD., ALWAYE
(J. L. KAPUR, M. HIDAYATULLAH and
J. c. SHAH, JJ.)
Income-tax-Rectification, scope of-If can be equated with
review under the Code-Advance payment of tax-Penal interest due
to additional tax on rectification, if could be imposcd-~Code of Civil
Procedure (V of i908), 0. 47, r. I-Indian Income-lax Act, I922
(Ir of i922), SS. rBA (8), 35·
After the respondents 'net assessable income for the years
1952-53 was determined, it declared dividends which attracted
provisions of the Finance Act, ry52, and became liable to the