# SITARAM RAMCHARAN ETC v. M. N. NAGARSHANA & OTHERS

- **Citation:** [1960] 1 S.C.R. 875
- **Court:** Supreme Court of India
- **Decided:** 1960
- **Case number:** Civil Appeals Nos. 9 to 28 of 1957
- **Bench:** B. P. Sinha, P. B. Gajendragadkar, K. N. Wanchoo
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/sitaram-ramcharan-etc-v-m-n-nagarshana-others-1837
- **Pages:** 15

## Headnote

Payment of l-V ages-Application claiming overtime wages-Bar
of limitatron-Condonation of delay-Applicant, if must show
sufficient cause for delay till presentation-Payment of Wages Act,
r936, (4 of r936), s. r5(2), second proviso.
The appellants, who were employees in the Watch and Ward
Department of various textile Mills of Ahmedabad, applied for
overtime wages under s. r5(2) of the Payment of Wages, r936.
The applications were presented to the authority under that Act
between July 22, r953, to October 6, 1953, claiming overtime
wages for the period between January r95r, to December, r95r,
beyond the period of six months prescribed by the first proviso
to that sub-section. Their case as made in the applications for
condonation of delay under the second proviso, in substance, was
that they were unaware of their rights under s. 70 of the Bombay
Shops and Establishments Act, r948, until that section was for
September 25
876
SUPREME COURT REPORTS (1960(1)]
r959
the first time correctly interpreted in the Ruby Mills case (Vide
Bombay Labour Gazette dated January 1953, Vol. 32, No. 5,
Sitaram
p. 521.) on May 2, 1952, as making s. 59 of the Factories Act,
Rameilar•n Etc, 1948, applicable to them and that they were diligently prosecuting
v.
their remedy in the industrial Court which held against them.
M.N. Nagarshana The authority held against the appellants and the High Court
and Others
refused to interfere under Arts. 226 and 227 of the Constitution.
The authority found that the appellants had failed to prove
sufficient cause for the delay even after the decision in Ruby
Mills Case.
The second_proviso to s. 15(2) of the Payment of
Wages Act, 1936, provides as follows,-
" Provided further that any application may be admitted
after the said period of six months when the applicant satisfies
the authority that he had sufficient canse for not making the
application within such period." It was contended on behalf of
the appellants in this Court that once it was proved that there
was snfficient cause for not making the application within the
prescribed period; and in the present cases the ignorance of the
true scope and effect of s. 70 of the Bombay Shops and Establishments Act, 1948, was such a canse, the bar of limitation was
wholly out of the way and the ·application could be filed at any
time.
Held, that the contention must fail.
The second proviso to s. 15(2) of the Payment of Wages Act,
1948, was in substance similar to the provision of s. 5 of the
Indian Limitation Act and could be availed of only by proving
sufficient cause for the entire delay till the presentation of the
application.
Ram Narain Joshi v. Parmeswar Narain Makta, (1903) I.L.R.
30 Cal. 309, referred to.
Lingley v, Thomas Firth & Sons, Ltd., (1921) l K.B. 655,
Powell v. The Main Colliery Co. Ltd., 1900 A.C. 366, J. Hogan v.
Gafur Ramzan, XXXV B.L.R. n43, Salamat v. A/(ent, East Indian
Railway; (1938) I.L.R. 2 Cal. 52 and Kamarhatti Co. Ltd. v. Abdul
Samad, (1952) I L.L.J. 490, distinguished and held· inapplicable.
The finding of the authority that the appellants had failed
to prove sufficient cause for the delay subsequent to the decision
in Ruby Mill• Case was a finding of fact and could not be challenged in this Court.

## Text

S.C.R.
SUPREME COURT REPORTR
875
their case of benami acquisitJon of these propertiesI959
a case which is not now questioned-the fact that the K
-
signatures of Prahlad Rai and others on some relative edar Nath Motani
documents were not their own, cannot disentitle the
Prahl:~ Rai
plaintiffs-appellants to a decree. The exceptions to
the rule contained in the maxim were not considered Hidayatullah J.
by the High Court, which proceeded entirely upon
the supposition that every illegality or fraud disentitled a plaintiff to a judgment. That, however, is not
the law. We accordingly hold that the appellants
were entitled to a decree in their favour, and with
respect, it was wrongly disallowed by the High
Court.
\Ve set aside the judgment and decree of the High
Court of Patna, and restore those of the Subordinate
Judge, Motihari. In the circumstances of this case,
we think that we should make no order about costs
of this appeal.
Appeal allowed.
SITARAM RAMCHARAN ETC.
v.
M. N. NAGARSHANA & OTHERS
(B. P. SINHA, P. B. GAJENDRAGADKAR and
K. N. WANCHOO, JJ.)
Payment of l-V ages-Application claiming overtime wages-Bar
of limitatron-Condonation of delay-Applicant, if must show
sufficient cause for delay till presentation-Payment of Wages Act,
r936, (4 of r936), s. r5(2), second proviso.
The appellants, who were employees in the Watch and Ward
Department of various textile Mills of Ahmedabad, applied for
overtime wages under s. r5(2) of the Payment of Wages, r936.
The applications were presented to the authority under that Act
between July 22, r953, to October 6, 1953, claiming overtime
wages for the period between January r95r, to December, r95r,
beyond the period of six months prescribed by the first proviso
to that sub-section. Their case as made in the applications for
condonation of delay under the second proviso, in substance, was
that they were unaware of their rights under s. 70 of the Bombay
Shops and Establishments Act, r948, until that section was for
September 25
876
SUPREME COURT REPORTS (1960(1)]
r959
the first time correctly interpreted in the Ruby Mills case (Vide
Bombay Labour Gazette dated January 1953, Vol. 32, No. 5,
Sitaram
p. 521.) on May 2, 1952, as making s. 59 of the Factories Act,
Rameilar•n Etc, 1948, applicable to them and that they were diligently prosecuting
v.
their remedy in the industrial Court which held against them.
M.N. Nagarshana The authority held against the appellants and the High Court
and Others
refused to interfere under Arts. 226 and 227 of the Constitution.
The authority found that the appellants had failed to prove
sufficient cause for the delay even after the decision in Ruby
Mills Case.
The second_proviso to s. 15(2) of the Payment of
Wages Act, 1936, provides as follows,-
" Provided further that any application may be admitted
after the said period of six months when the applicant satisfies
the authority that he had sufficient canse for not making the
application within such period." It was contended on behalf of
the appellants in this Court that once it was proved that there
was snfficient cause for not making the application within the
prescribed period; and in the present cases the ignorance of the
true scope and effect of s. 70 of the Bombay Shops and Establishments Act, 1948, was such a canse, the bar of limitation was
wholly out of the way and the ·application could be filed at any
time.
Held, that the contention must fail.
The second proviso to s. 15(2) of the Payment of Wages Act,
1948, was in substance similar to the provision of s. 5 of the
Indian Limitation Act and could be availed of only by proving
sufficient cause for the entire delay till the presentation of the
application.
Ram Narain Joshi v. Parmeswar Narain Makta, (1903) I.L.R.
30 Cal. 309, referred to.
Lingley v, Thomas Firth & Sons, Ltd., (1921) l K.B. 655,
Powell v. The Main Colliery Co. Ltd., 1900 A.C. 366, J. Hogan v.
Gafur Ramzan, XXXV B.L.R. n43, Salamat v. A/(ent, East Indian
Railway; (1938) I.L.R. 2 Cal. 52 and Kamarhatti Co. Ltd. v. Abdul
Samad, (1952) I L.L.J. 490, distinguished and held· inapplicable.
The finding of the authority that the appellants had failed
to prove sufficient cause for the delay subsequent to the decision
in Ruby Mill• Case was a finding of fact and could not be challenged in this Court.
CIVIL APPELLATE JURISDICTION: Civil Appeals Nos.
9 to 28 of 1957.
Appeals from the judgment and order dated June 22,
1954, of the Bombay High Court, in Sp(ll:Jial Civil
Applications Nos. 285, 348, 1214 to 1221, and 2356 to
2365of1954,
S.C.R.
SUPREME COURT REPORTS
877
N. V. Pha.dke, S. S. Shukla and Mrs. Udayaratnam,
z959
for the appellants.
Silaram
M. 0. Setalvad, Attorney-General for India, J. B. Ramcharan Etc.
Mehta, .!. B. Dadachanji, S. N. Andley and Rameshv.
war Nath, for respondent No. 2 (in C. As. Nos. 9-14, M. N. dNaOgharshana
16-20 and 22-28).
an
1 ers
B. K. B. Naidu and J. N. Shroff, for respondent No.
2 (in C.A. No. 15 of 1957).
1959. September 25. The Judgment of the Court
was delivered by
GAJENDRAGADKAR J.-This group of consolidated Gajendragadkar J.
appeals has come before this Court with a certificate
granted by the High Court at Bombay, under Art. 133
of the Constitution ; the certificate shows that according to the High Court the amount of the value of the
subject-matter in dispute involved in these consolidated
appeals exceeds Rs. 20,000 and they raise a substantial question of law.
The 385 appellants concerned in these 20 appeals
are employees in the Watch & Ward Department of
various textile mills in Ahmedabad. They had filed
20 applications between July 22, 1953, to October 6,
1953, before the authority under the Payment of
Wages Act (hereinafter called the authority) and had
claimed overtime wages for
the period between
January, 1951, to December, 1951, and June-July,
1953.
These applications \Yere
accompanied by
another set of 20 applications in which they prayed
for condonation of delay made in putting forward the
claim for overtime wages under the second proviso to
s. 15(2) of the Payment of Wages Act 4 of 1936 (here.
inaner called the Act). The authority considered the
case made out by the appellants for condonation of
delay and held that they had failed to prove sufficient
cause for not making their applications within the
prescribed period. The appellants then moved the
High Court at Bombay under Arts. 226 and 227 of the
Constitution. These applications also failed and were
dismissed;
Then the appellants moved the High
Court for a certificate, and a certificate was granted to
Ill
878
SUPREME COURT REPORTS (1960(1)]
1959
them, It is with this certificate that they have come
to this Court.
Sitar am
Rameharan Etc.
It is necessary at first t.o set out the circumstances
v.
under which the appellants have made their claim for
M.N. Nagarshanaovertime wages in their present applications. Section
and Others
59 of the Factories Act, 1948 (63 of 1948) which came
.
-k 1 into force on September 23, 1948, provides for the
Ga1endragad ar
.
f
,.
.
payment o extra wages ior overtime to persons who
are workers as defined by s. 2( 1) of the Act. It is
common ground that the appellants are not workers
under the said section ; and so they did not claim any
of the benefits conferred on workers by the provisions
of the Factories Act.
The Bombay Shops and
Establishments Act, 1948 (Bombay Act 79 of 1948)
came into force in the State of Bombay on January 11
1949 ; and it is not denied that the appellants are employees under s. 2(6) of the said Act. S. 70 of this Act
provides for the application of s. 59 of the Factories
Act to all employees working in factories like the
appellants, but the words used in s. 70 are not very
clear and the effect of its provisions was a matter of
doubt which was finally resolved by the decision of
this Court in the case of Shri B. P. Hira, Works
Manager, Central Railway, Parel, Bombay, etc. v. Shri
C. M. Prarlhan etc., (~) on May 8, 1959. It is because
the true effect of this section was not appreciated by
the appellants that the present difficulty has arisen.
Not knowing that they were entitled to the benefits
of the relevant provisions of the Factories Act. by
virtue of s. 70 of the Bombay Shops and Establishments Act, the representative union of the appellants
raised an industrial dispute by a notice on September
20, 1949, claiming some of the amenities provided by
the Factories Act (Ref. (IC) No. 192 of 1949).
While
delivering its award on this reference on November 25
1950, the Full Bench of the Industrial Tribunal
observed that the employees did not appear to be
covered by the Factories Act and on that basis it
awarded to them a nine-hour day, two holidays per
month and a limited provision for overtime wages. It
is clear that this award proceeded on the assumption
(1) (1960] I S.C.R. 3"
B.C.R.
SUPREME COURT REPORTS
879
that the relevant provisions of the Factories Act did
z959
not apply to the appellants. On May 2, 1952, the
Sitaram
appellate decision delivered by the Chief Judge of the Ramcharan Etc.
Court of Small Causes, in the case of Ruby Mills (1),
v.
however, construed s. 70 of the Bombay Shops and M. N. Nagarshana
Establishments Act and held that the employees falland Others
ing under the provisions of the said section were G . d-adk 1
.
.
.
d
9
f
h
a;en rag
ar .
entitled to claim overtime wages un er s. 5
o t e
Factories Act. In other words, this decision for the
first time properly construed s. 70 of the Bombay Act
and held that the said section in substance extended
the provisions of s. 59 of the Factories Act to the employees covered by s. 70.
When the appellants' union come to know about this
decision it moved the Minister of Labour, Bombay, on
October 30, 1952, and requested him to persuade the
Ahmedabad mills to extend the benefits of the Factories Act to their Watch & Ward staff; on November 1,
1952, the union received a reply from the Minister
stating that he had drawn the attention of the factories Department to the judgment in the Ruby Mills'
case (1 ).
Thereafter the secretary of the union requested the Chief Inspector of Factories, Ahmedabad, to
enforce the above decision in Ahmedabad. Subsequent correspondence followed between the union, the
factory authorities and the Mill Owners' Association,
Ahmedabad. In May, 1953, the Mill Owners' Association accepted the position that the appellants were
covered by the Factories Act and in .July, 1953, the
appellants were for the first time paid for overtime at
the rate provided under the ]factories Act. Some mills
paid the overtime wages with effect from January, 1953,
some from May, 1953, and some from July, 1953.
In August, 1953, the secretary of the new union,
which the appellants had joined in the meanwhf'le,
wrote to the employers requesting them to pay overtime
wages for the prior period ; and when this request did
not receive a synpathctic response from the employers
the present applications were tiled before the authority
making a claim for overtime wages for the period
already mentioned.
(I) Vide Bombay Labour Gazette dated January 1953, Vol. 32, No. 5,
p . .;zr.
880
SUPREME COURT REPORTS [1960(l)J
'959
In their applications for the condonation of delay
Sita.am
the appellants alleged that they had bona fide believed
Ramcharan Etc. that neither the Factories Act nor the Bombay Shops
v.
and Establishments Act applied to the Watch & ward
M. N. Nagarshan• staff, and so they had moved the industrial court for
•.nd Others
redress of their grievances. The step thus taken by
G . nd- dk 1 the appellants shows that in asserting their rights they
a;• ••g• •• · were exercising due diligence and care. The employers conceded the position that the appellants were
entitled to claim overtime· wages only in May, 1953,
and then the appellants tried to negotiate with them
for the payment of the overtime wages claimed in the
present applications. It is on these grounds that the
appellants prayed that the delay made in presenting
the claim should be condoned.
This claim was resisted by the employers on two
grounds; it was urged hy them that the main ground
alleged by the appellants for claiming condouat10n of
delay amounted to a plea of ignorance of law and
that ignorance of law cannot be a sufficient cause
under the relevant proviso. It was also contended
that no sufficient or satifactory reasons had been
given by the appellants for the delay made by them
in filing the present applications subsequent to May 2,
1952, when s. 70 of the Bombay Act had been
authoritatively considered by the appellate court in
the case of Ruby Mills (1); and so the employers
argued that the appellants were not entitled to ask
for condonation of delay.
The authority upheld
both these contentions
raised by the employers. It considered the judicial
decisions cited before it and held that even if the
appellants were ignorant of the rights that they got
under s. 70 of the Bombay Act such ignorance of
law cannot be said to be a sufficient cause. It also
examined the conduct of the appellant subsequent
to the date of the decision in the Ruby Mills
case (') and held that ihe said conduct did not
justify the appellants' claim \hat they were acting
bona. .fide
and with due diligence
in asserting
(I) Vide Bombay Labour Gazette, dated January 1953, Vol. 32, No. 5,
p. 521.
S.C.R.
SUPREME COURT REPORTS
881
their rights. In dealing with this latter question
z959
the authority observed that the appellants did
Sitaram
not specify when they came to know about the Ramcharan Etc.
decision in the case of Ruby Mills (1), and no satisv.
factory explanation: had been given by them as to M. N. Nagarshana
why, immediately after coming to know of the said
and Others
decision, they did not move the authority. Thee . d-dk
1
.
l
. d
h
d
h
a1en raga ar
•
authority a so examme
t e correspon ence t at
passed between the parties after the decision in the
Ruby Mills' case (1) and found that the appellants
were even then claiming the benefit of the Factories
Act prospectively and not retrospectively. In the
absence of any affidavit explaining the conduct of
the appellants after May 2, 1952, when the Ruby
Mills' case (1) was decided, the authority came to
the conQlusion that the inaction of the appellants
was not at all satisfactorily explained, and so no
sufficient cause could be said to have been shown
by them to justify the condonation of delay. As a
result of these two findings the authority refused to
excuse delay, and so the claim made by the appellants
for overtime wages for a period beyond the prescribed
period of limitation was rejected.
When this decision was challenged by the appellants before the High Court by their petitions under
Arts. 226 and 227 apparently the only point urged
before the High Court was that the authority was in
error in holding that an error of law cannot be a sufficient cause under the relevant proviso to· s. 15 (2) of
the Act. It does not appear that the attention of the
High Cour~ was drawn to the second finding made by
the authority, and so, that aspect of the matter has
not been considered in the judgment of the High
Court. Dealing with the point raised before it the
High Court agreed with the view taken by the
authority, and held that ignorance of law cannot constitute a sufficient cause.
"Ignorance of law",
observed the High Court, " is ignorance of the rights
of a party which the law confers upon him, whereas
mistake of Jaw is mistake in establishing those rights
(r) Vide Bombay Labour Gazette, dated January 1953, Vol. 32, No. 5.
p. 52r.
882
SUPREME COURT REPORTS [1960(1))
'959
by, for instance, going to one forum instead of another."
Sitaram
The High Court has observed that in cases where there
Ramcharan Etc. is a mistake of law courts have altnost uniformly taken
v.
the view that the time taken up by asserting the
M. N. Nagarshana rights in a wrong court or a wrong forum should be
••d Others
excused, and in coming to this conclusion they had
Gajendragadkar 1. been largely influenced by the principle underlying
s. 14 of the Limitation Act. That is how the petitions
filed by the appellants in the High Court were dismissed.
Before dealing with the merits of the contentions
raised by Mr. Phadke in the present appeals it is
necessary to read the relevant provisions of s. 15 of
the Act. S. 15(1) provides for the appointment of the
authority to hear and decide for any specified area all
claims arising out of deductions from the wages, or
delay in payment of the wages of persons employed or
paid in that area. Sub·s. (2) provides, inter alia, that
if any deduction has been made from the wages of an
employed person contrary to the provisions of the Act
or any payment of wages has been delayed, such person may apply to such authority for a direction under
sub-s. (3). It is under this sub-section that the present
applications have been made.
The firnt proviso to
sub-s. (2) prescribes limitation, and says that every
such application shall be presented within six months
from the date on which the cause of action accrued.
It is the second proviso with which we are directly
concerned in the present appeals. This proviso lays
down further that any application may be admitted
after the said period of six months when the applicant
satisfies the authority that he had sufficient cause for
not making the application within such period. The
principal question which has been agitated in the
High Court and before the authority was whether
ignorance of law can be said to constitute sufficient
cause within the meaning of this proviso.
Mr. Phadke contends that. this proviso confers wide
discretion on the authority and Legislature has deliberately not circumscribed or regulated in any mo,nner
the exercise of the sai(l discretion. He concedes that
it has to be exercised judicially but he protests o,gainst
-
S.O.R.
SUPREME COURT REPORTS
883
the imposition of any rigid rule, or, as he called it,
z959
self-denying ordinance, by which the authority would
invariably refuse to treat ignorance of law as falling Ram;~:::nmEte.
within the expression " sufficient cause " under the
v.
proviso. According to him there is no rule in IndiaM. N. Nagarshana
that ignorance of law cannot be a sufficient cause for
and Others
explaining the delay made in instituting legal proceed-
. -
ings; and he strongly urged that even if such a rule Ga1mdragadkar J.
applies to ordinary legal proceedings it would be singularly inappropriate in the interpretation of the provisions of welfare legislation like the Act.
In support of this argument Mr. Phadke has invited
our attention to the decision of the House of Lords in
Hyman v. Rose (1) as well as the decision of this Court
in Namdeo Lokman Lodhi v. Narmadabai (2). Both
these decisions dealt with the question of the discretion vested in the courts to grant relief against
forfeiture, and .Mr. Phadke's argument was that the
relevant words used in that behalf in conferring discretion on the courts have been construed in their widest
denot1J,tion and are similar to those in the proviso with
which we are concerned; and so the same construction
should be adopted in interpreting it. He has also
strongly relied on the decision of the Privy Council in
Brij Indar Singh v. Kanshi Ram (3) where their Lordships have considered the trend of judicial decisions in
India which interpreted s. 5 of the Indian Limitation
Act, 1908, and have observed that there appeared to bea
uniform practice in the Indian High Courts under
which a mistake in law was in proper cases treated as
sufficient cause for excusing delay. "Now ifthe matter
were entirely open", said Lord Dunedin in delivering
the judgment of the Board, " in as much as a mere
mistake in law is not per se sufficient reason for asking
the court to exercise its discretion under s. 5, there
would be a good deal to be said in argument in favour
of making the rule universal . . . ... But the matter
is not open. To interfere with a rule which after all
is only a rule of procedure which has been laid down
as a general rule by Full Benches in .all the Courts of
(1) [1912] A.C. 623.
(2) [1.953] S.C.R. 1009; 1027.
(3) (1917.) L.R. 44 I.A. 218.
884
SUPREME COURT REPORTS [1960(1)]
'959
India, and acted on for many years, would cause great
Sitaram
inconvenience, and their Lordships do not propose so
Ramcharan Etc. to interfere". Mr. Phadke argues that this decision is
v.
an authority for the proposition that in a proper• case
M. N. Nazarshana a mistake of law or ignorance of law may constitute a
and Others
sufficient cause under s. 5 of the Limitation Act, and
according to him, the same principle should apply in
Gajendragadkar J. construing the proviso in question. We do not propose
to deal with this argument because, as we will presently
point out, we have come to the conclusion that the
appellants would fail even if we were to uphold Mr.
Phadke's present contention.
As we have already noticed the authority has held
against the appellants on two grounds, one that ignorance of law cannot be a sufficient cause, and second
that, even if it was, in fact the appellants had not
explained the delay made by them in making the
present applications after they knew of the decision in
the case of Ruby Mills(') on May 2, 1952. This latter
conclusion is a finding on a question of fact and its
propriety or validity could not have been challenged
before the High Court and cannot be questioned before
us in the present appeals.
Unfortunately it appears
that the attention of the learned judges of the High
Court was not drawn to this finding ; otherwise they
would have considered this aspect of the matter before
they proceeded to deal with the interesting question of
law raised before them.
Mr. Phadke fairly .conceded that he could not effectively challenge the finding of the authority that no
satisfactory explanations had been given for the delay
in question. He, however, argued that the said finding
would not effect the final decision because, according
fo him, once it is held that ignorance of law can
be a sufficient cause, then the period until May 2, 1952,
.,.
would be covered by the appellants' ignorance about
the true scope and effect of th.!l provisions of s. 70 of
the Bombay Shops and Establishments Act. This position may be conceded. It is true that the true effect of
the said section was not appreciated by either the
(1) Vide Bombay Labottr Gazette, dated January 19,53. Vol. 32, No. 5,
p, 521.
S.C.R.
SUPREME COURT REPORTS
885
workmen and their union or the employers or the
1 ?so
authorities under the Factories Act, or even by the
Sitaram
industrial courts.
But the question still remains Ranicharan Ft".
whether the appellants are not required to expla.in the
v.
delay made by them after May 2, 1952.
Mr. Phadke M. N: :Vagarshana
says that it is not necessary for his clients to explain
anu Othe1s
this delay.
His argument is that what the relevant Gajendra•adkar J.
proviso really means is that if sufficient cause has been
°
.
shown for not making the application within the prescribed period of six months then the application can
be made any time thereafter.
The statutory bar
created by the prescribed limitation is removed once
it is shown that there was sufficient cause for not
making the application within the said period; and
once that bar is removed, there is no further question
of limitation and the applicant cannot be called upon
to explain the subsequent delay. That is the effect of
the argument urged by Mr. Phadke on the relevant
proviso.
This argument is substantially founded on the decision of the Court of Appeal in Lingley v. Thomas Firth
& Sons Ltd. (1 ). In that case the court had to construe
the words "reasonable cause" used in proviso (b) to
s. 2, sub-s. (1) of the Workmen's Compensation Act,
1906 (6 Edw. 7, C. 58).
S. 2 (1) prescribes a limitation
of six months for the making of a claim for compensation arising out of an accidt'nt caused to the workmen
falling within its purview, and proviso (b1 lays down
that the "failure to make a clann within the period
above specified shall not be a bar to the maintenance
of such proceedings if it is found that the' failure was
occasioned by mistake, absence from the United
Kingdom or other reasonable cause." In the case of
Lingley {1 ) the claim had been admittedly made beyond
the period of six months and within a. couple of months
thereafter an application for arbitra.1 ioll for compensation was filed. The County Court Judge was s<tt.isfil'd
that there was reasonable cauRe within 8. 2, sub-s. (1)
for the applicant's failure to make a claim within the
prescribed period, and he held that whee once the
bar to the proceedings had been surmounted by the
(I} (1921) I K.B. 655.
112
886
SUPREME COURT REPORTS (1960(1)]
r959
establishment of reasonble cause, there was no
further limited period within which the claim must
Sita ram
l
Romch•r•n Etc. be made. According y, compensation was awarded
v.
to the, applicant. The employer appealed against
M. N. Nagarshana this award and his appeal was allowed. The Court
and Others
of Appeal reversed the finding of the County Court
-
Judge on the first point, and held that for the
G_oj..,dragadhar ]. applicant's failure to make the claim within six
months she. had not shown any reasonable cause, and
that naturally led to the reversal of the award. Even
so, in considering the question of the construction of
s. 2(1), proviso (b), the learned judges observed that if
sufficient cause had been established by the applicant
she would have succeeded in obtaining compensation,
b<>cause they agreed. that, if the bar imposed by the
statutory period of six months prescribed for the
making of the claim had been raised, the claim of the
applicant could not be subjected to any further bar of
limitation. It is this view on which Mr. Phadke
relies, and he contends that the same principle should
be applied in construing the relevant proviso to s. 15
of the Act. In this connection Mr. Phadke has invited
our attention to three Indian decisions-J. Hogan v.
Gafur Ramzan(1), Salamat v. Agent, East Indian Railway (9), and Kamarhatti Oo. Ltd. v. Abdul Samad(').
These decisions were concerned with claims for compensation made under s. 10 of the Workmen's Compensation Act (VIII of 1923), the first two under s. 10 as it
stood prior to its amendment in 1938, and the last one
under the said section as it was amended in 1938. It
may be added that all the three decisions purport to
adopt the view taken by the Court of Appeal in the
case of Lingley ( • ).
Now in order to appreciate the effeot of the decision in
the case of Lingley(') it would be relevant to emphasize
that in that case the Court of Appeal was really giving
effect to an earlier dePision of the House of Lords in
Powell v. The Main Colliery Co. Ltd.(') and, as the
judgments of all the learned judges indicate, they were
following the said decision with some reluctance.
(1) XXXV B.L.R. JJ4).
(3) (1952) I L.L.J. 490, 49z.
(2) \1938) I.L.R. 2Cal. 5z, 58.
14) (1921) 1 K.B. 655.
(5) (1900) A.C. 366.
•
S.C.R.
SUPREME COURT REPORTS
887
In the case of Powell (1) the House of Lords had held
r959
thet the claim for compensation specified in s. 2(1) of
Sitarani
the English Act does not mean initiation of the proRamcharan Etc.
ceedinga before the tribunal by which compensation is to
v.
be assessed, but a notice of claim of compensation sentM. N. Nagarsl1ana
to the workman's employer. In other words, according
ana Others
tho tha
2
t(
1
decisi1
?n, thehlimita:tionfof1
s~x moh~thhs presckribed Gajentlragatlkar J.
y s.
) app ies tot e notice o c aim w w a wor man
has to give to his employer; it had no reference to the
proceedings which a workman would institute before
the tribunal claiming to recover the said compensation. The notice of claim had to be served on the
employer within six months after the date of the
accident, and after serving such notice, proceedings
had to be initiated before the tribunal claiming compensation. The effect of the two English decisions,
therefore, is that if a workman shows sufficient. cause
for the delay· made by him in serving the notice of
claim on the employer there was no question of calling upon him to explain any further delay made by
him in instit,uting the proceedings before the tribunal
for the recovery of compensation. In fact, for the
institution of such proceedings there was no statutory
limitation at all.
Let us now turn to s. 10 of our Workmen's Compensation Act. S. 10(1) as it originally stood prescribed
a period of six months for the making of the claim
for compensation. It also required that notice of the
accident had to be given as soon as practicable after
the happening thereof and before the workman had
voluntarily left the employment in which he was
injured. The second proviso to s. 10(1) lays down
that the Commissioner may admit and decide any
claim to compensation notwithstanding that the
notice had not been given or the claim had not been
instituted in due time as provided by the sub-section
if he is satisfied that the failure so to give notice or to
institute the claim as the case may be was due to
sufficient cause. It appears that in construing the
material terms of this proviso it was thought that the
position under the proviso was similar to the position
(1) [1900] A.C. 366.
888
SUPREME COURT REPOHTS [1960(1))
'959
under the proviso (b) of s. 2(1) of the English Act. It
is open to argument whether that is really so; but, in
Sitaram
Ramchamn Etc. any case, after s. 10 was amended in 1938, the position
v.
is clearly different and distinguishable from the posiM. N. Naga,;hana tion of the English section. The relevant proviso
and Othm
under the amended section lays down that a CommisG . d-dh 1 sioner may entertain a.nd decide any claim for com-
•J'" .aga ar • pensation in any case notwithstanding that notice has
·
not been given, or the claim has not been preferred
before it in due time as provided bys. 10, sub.a. (1), if
he is satisfied that the failure so to give the notice or
prefer the claim as the case may·be was due to sufficient cause. It is significant that s. 10(1) requires the
notice of accident to be given as soon as practicable
and the claim to be preferred before the Commissioner
within six months.
This period has subsequently
been enlarged to a period of one year; but that is
another matter. Thus the position und~r s. 10 as
amended clearly is that the six months' limitation has
been prescribed for preferring the application for
compensation before the Commissioner; and so there
can be no analogy between the limitation thus prescribed and the limitation prescribed by s. 2(1) of the
l<Jnglish Act. With respect, we may add that in the
case of Kamarhatti Co., Ltd. (1) where the learned
judges held that the decision in Lingley's case(') was
applicable to the case before them, their attention was
not drawn to the material change made by the
amendment of s. 10 of the Indian Act.
But the view
expressed by the eourb in that case on the poi'nt of
law is clearly obiter.
The actual decision was that no
sufficient cause had been shown by the chimant even
on the liberal construction of the proviso, and so the
order directing the employer to pay compensation to
his workmen was set aside. Thus it would be clear
that the decisions on which Mr. Phadke founds his
argument were concerned with a statutory provision
as to limitation which is essentially different from the
provision made by the proviso with which we are
concerned.
(1) (1952) I L.L.J. 490, 492.
(2) (1921) l K.B. 655.
·-
S.C.R.
SUPREME COURT REPORTS
889
The proviso with which we are concerned has pres-
. z959
cribed the limitation of six mo11ths for the institution
of the application itself, and so the principle laid
Ram~~;;;;: Etc.
down in Lingley's case (1) can have no application to
v.
the question which we have to decide.
Indeed, the M. N. Nagarshana
present proviso is in subst,a.nce similar to the provision
and Othm
in s. 5 of the Limitation Act and Mr. Phadke has
fairly conceded that there is consensus of judicial Gaje .. aragadkar J.
opinion on the question of the construction of s. 5. It
cannot be disputed th<~t in doaling which t.he question
of condoning delay under s. 5 of the Limitation Act
the party has to satisfy the court that he had sufficient
cause fol' ·not preferring the appeal or making the
. application within the prescribed time, and this has
always been understood to mean that the explanation
has to cover the whole of the period of delay (Vide
Ram Narain Joshi v. Parame.swar Narain Mehta (2)).
Therefore the finding recorded by the authority that
the aprellants have failed to establish sufficient. cause
for tl:· ir inaction between l\Iay 2, 1952, and the respective dates on which they filed their present applications is fatal to their claim. That is why wc think it
unnecessary to consider the larger question of law
whinh Mr. Phadke sought to raise before us.
We would like to add that the leamed AttomeyGeneral had raised a prelimiuary objection against
the validity of the certificate granted by the High Court
in the present appeals. He wanted to urge that the
High Court was in error in considering the total value
of the consolidated appeals· for the purpose of granting certificate under Art. 133.
We have, however,
not thought it necessary to consider this argument.
The result is the appeals fail and are dismissed. The
respondent has fairly not pressed for his costs, and so
we direct that the parties should bear their own costs
in this Court. No order as to Court fees.
l1..J1J1eals dismissed.
(l) (1921) l K.B. 655.
(2) [1903] I.L.R. 30 Cal. 309.