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Employee’s Satisfaction with Wages Not Absolute, Doesn’t Preclude Them from Claiming Higher Wages [Majithia Wage Board Recommendations]: MP High Court

Case title: Dainik Bhaskar v. The State Of Madhya Pradesh

Case no.: Misc. Petition No. 5093 Of 2022

Order on: 22nd April 2024

Quorum: Justice G.S. Ahluwalia

FACTS OF THE CASE

In the realm of employment disputes, the case law referenced above stands as a beacon, shedding light on the nuances of burden of proof, the significance of pleadings, and the weight of evidence in adjudicating matters of contention between employers and employees. Let’s delve deeper into the case, examining its facts, submissions, issues, court’s analysis, and eventual judgment.

The case revolves around a petition filed under Article 226 of the Indian Constitution, seeking to quash an order passed by the Labour Court and subsequent recovery proceedings. The respondent, an employee, claimed disparity in wages compared to the recommendations of the Majithia Wage Board. The petitioner, the employer, contested these claims, arguing jurisdictional issues, non-compliance, and the validity of the reference order.

CONTENTIONS OF THE PETITIONERS

The petitioner, an employer, contests a claim filed by the respondent under Section 17(2) of The Working Journalists and Other Newspaper Employees Act, 1955. The respondent alleges wage disparity, claiming entitlement to higher wages based on the recommendations of the Majithia Wage Board. The petitioner denies the claim, citing jurisdictional issues, non-compliance, and the validity of the reference order. The Labour Court rules in favor of the respondent, directing the petitioner to pay the disputed amount. The petitioner challenges the decision, arguing various grounds including lack of pleading regarding wage satisfaction, jurisdictional issues, and failure to frame issues on the respondent’s declaration. The court evaluates the burden of proof, emphasizing the importance of pleadings and evidence. Despite the absence of pleading by the respondent, the court concludes that the petitioner failed to discharge the burden of proving the good faith of the transaction, ultimately upholding the Labour Court’s decision. The case underscores the significance of procedural compliance and burden of proof in employment disputes.

The Supreme Court in the case of Anil Rishi v. Gurbaksh Singh, reported in (2006) 5 SCC 558 has held as under: There is another aspect of the matter which should be borne in mind. A distinction exists between burden of proof and onus of proof. The right to begin follows onus probandi. It assumes importance in the early stage of a case. The question of onus of proof has greater force, where the question is, which party is to begin.

Burden of proof is used in three ways: (i) to indicate the duty of bringing forward evidence in support of a proposition at the beginning or later; (ii) to make that of establishing a proposition as against all counter-evidence; and (iii) an indiscriminate use in which it may mean either or both of the others. The elementary rule in Section 101 is inflexible. In terms of Section 102 the initial onus is always on the plaintiff and if he discharges that onus and makes out a case which entitles him to a relief, the onus shifts to the defendant to prove those circumstances, if any, which would disentitle the plaintiff to the same.

CONTENTIONS OF THE RESPONDENTS

The respondent, representing the employee, argued that the employer’s reliance on the employee’s declaration of satisfaction was untenable. They contended that the clause in question did not grant employers the authority to enforce lower wages through employee declarations. Instead, it ensured that employees retained the option of receiving higher wages as recommended by the Wage Board.

The petitioner contends that the respondent failed to specify their category or the classification of the Hoshangabad Unit in their statement of claim. They argue that the respondent’s claim of being a Dy./Assistant News Editor (DNE) would not fall under the recommendations of the Majithia Wage Board because DNEs, responsible for bringing out the city edition, hold different duties. The petitioner, conceding that this objection wasn’t raised in the Labour Court, argues that it’s a legal question admissible in this court.

However, the court rejects this argument, stating that the classification of the respondent’s role isn’t purely legal but factual. They highlight that the definition of DNE encompasses duties beyond assisting the news editor, potentially including city edition responsibilities. The court notes the absence of evidence supporting the petitioner’s claim about the respondent’s duties, emphasizing that job titles alone don’t determine roles. Without proof of supervisory responsibilities or workers under the respondent, the court dismisses the petitioner’s argument.

The case law of Avishek Raja Vs. Sanjay Gupta (2017) 8 SCC 435 addressed the contentious issue of Clause 20(j) of the Award in conjunction with the provisions of the Act regarding newspaper employees’ wages. The Supreme Court clarified that the Act guarantees newspaper employees wages as recommended by the Wage Board and approved by the Central Government, which supersedes existing wage contracts. However, Section 16 allows employees to accept benefits more favorable than those notified under the Act. The court emphasized that the Act does not provide an option to receive less than what is due under the Act, as such an option would pertain to the doctrine of waiver.

The court also referred to the legislative history and purpose of the Act, highlighting its aim to provide minimum, if not fair, wages to newspaper employees. It drew a parallel with the decision in Bijay Cotton Mills Ltd. v. State of Ajmer, which held that wages notified under the Minimum Wages Act, 1948, were non-negotiable. The court quoted Para 4 of the Bijay Cotton Mills Ltd. report, which stressed the importance of securing living wages for labourers, considering it conducive to the public interest and consistent with the directive principles of State policy in the Constitution. The court underscored that imposing restraints on freedom of contract to ensure minimum wages is justified to protect labourers from exploitation, even if they are willing to work for lower wages due to poverty and helplessness.

LEGAL PROVISIONS

  1. Section 17 of the Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955: This section deals with the recovery of money due from an employer and the resolution of disputes related to wages. Subsections (1) and (2) were particularly relevant in determining the jurisdiction of the Labour Court to adjudicate the dispute.
  1. Clause 20(j) of the Recommendations of Majithia Wage Board: This clause pertains to declarations made by respondents regarding certain matters related to wage board recommendations. While not explicitly cited as a legal provision, it forms the basis of the dispute regarding the respondent’s declaration.
  1. Form C of The Working Journalists (Conditions of Service) And Miscellaneous Provisions Rules, 1955: This form outlines the procedure for filing an application under Section 17(1) of the Act, 1955. Although not directly cited as a legal provision, it was referenced to argue about the necessity of giving prior notice to the employer.
  2. Industrial Disputes Act: While not explicitly mentioned, the Industrial Disputes Act, particularly Section 10(1)(c) and 12(5), was referenced to argue about the jurisdiction of the Labour Court in relation to disputes over wages.

ISSUE

  • Whether the respondent after giving a declaration that he is satisfied with the wages which he is getting, is estopped from claiming higher wages as per recommendations of Majithia Wage Board?
  • Whether the Labour Court had jurisdiction to try the reference, or the jurisdiction was with Industrial Tribunal?

COURT’S ANALYSIS AND JUDGEMENT

The court determined that the respondent did not hold a managerial, administrative, or supervisory position based on the lack of evidence proving such roles. They emphasized that job titles alone do not determine the nature of duties performed and that the petitioner failed to provide evidence supporting their claim.

The court invoked Section 114 of the Evidence Act, allowing for adverse inference when a party withholds evidence that could be unfavorable to them. They cited previous Supreme Court rulings to support this inference and concluded that the petitioner’s failure to produce relevant documents warranted adverse inference.

The court addressed the jurisdictional question, ruling that the Labour Court had the authority to adjudicate the dispute under Section 17(2) of the Act, 1955. They clarified that the simultaneous exercise of power under other sections of the Industrial Disputes Act did not affect the Labour Court’s jurisdiction. The court dismissed the petitioner’s argument regarding the requirement of prior notice, stating that Section 17(2) of the Act, 1955 does not mandate such notice. They concluded that the petitioner’s contention lacked legal basis.

Regarding the alleged calculation error based on the wrong employee’s data, the court found that while there was a discrepancy in the annexed calculation chart, the Labour Court had considered the correct employee’s claim. Thus, they deemed the matter not requiring remittance.

The court rejected the petitioner’s claim of prejudice due to separate registration of cases, noting that neither party objected to this procedure, and separate consideration of each case was warranted.

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Judgement Reviewed by – Chiraag K A

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Delhi High court rejected the Review petition filed by Statesman Limited seeks to review the judgement passed by the high court.

Title: The StatesMan Limited vs Govt. of NCT of Delhi & Ors.

Decision: 04.07.23

+ REVIEW PET. 516/2019 and CM APPL. 53531/2019, CM APPL. 12275/2022 in W.P.(C) 9497/2015

CORAM: HON’BLE MR. JUSTICE C. HARI SHANKAR

Introduction

The Delhi High court rejected the Review petition filed by Statesman Limited seeks to review the judgement passed by the high court dated 18.11.19 on the grounds that it does not address the issue of jurisdiction of the Authority under the Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955, (“the Working Journalists Act”) to pass the order dated 21 July 2015 forming subject matter of challenge in WP (C) 9497/2015.

Facts of the case

The application made under Section 17(1) of the Working Journalists Act by a few members of the Statesman Mazdoor Union is resolved by the order dated July 21, 2015. The stated applicants requested payment of arrears in accordance with the Majithia Wage Board’s recommendations. The petitioner-Statesman disputed their obligation to pay the applicants in accordance with the Wage Board’s recommendations on the grounds that they had incurred significant cash losses three years prior to the implementation of those recommendations, exempting them from the requirement to pay arrears. The Court has carefully considered the applicants’ case and rejected the petitioner’s argument that it was not the petitioner’s responsibility to pay the applicants as recommended by the wage board.

The petitioner conceded to the Authority’s authority and objected to its need to compensate the applicants-workers on a merits-based basis. After losing before the Authority, the petitioner used the current writ petition to appeal to this Court.

Analysis and Decision of the court

The Delhi High Court held that Even in the current writ suit, there is not even the slightest hint of a challenge to the Authority’s authority to hear the workmen’s claims and issue the ruling of July 21, 2015. Instead, extensive and numerous submissions have been made in an effort to prove that the petitioner was, in fact, experiencing significant losses three years prior to the Wage Board’s recommendations and was not, therefore, required to pay the applicants-workmen in accordance with those recommendations. The petitioner submitted a response to the writ petition after the respondents submitted a counter affidavit. There isn’t even a claim that the Authority lacked the authority to decide the applications of the journalists in the response. Instead, the response outlines how the petitioner believes the Authority should have resolved the aforementioned arguments.

The order dated July 21, 2015 lists the errors under the heading “Grounds for Setting Aside Impugned Order” in paragraph 11 of that document. In the aforementioned paragraph, the petitioner first explains why, in its opinion, it had actually experienced losses for three years; second, it explains why the petitioner’s net current assets could not be taken into account when determining whether the losses suffered by the petitioner were heavy; and third, it makes reference to Supreme Court decisions that, in the petitioner’s opinion, established the guidelines for identifying “heavy losses.”

Therefore, the written submissions do not only fail to raise any objections to the Authority’s competence or jurisdiction. decision on the petitions submitted by the applicant-journalists, but they also go so far as to assert that the Authority should have handled the cases differently than how it did. Therefore, there is a favourable claim regarding the Authority’s ability and authority to rule on the journalists’ application.

The petitioner also had approached the hon’ble SC with an SLP (C) 36133/2015 The Supreme Court did not interfere with the direction, of the learned Division Bench, to decide the writ petition expeditiously, and merely modified the order of pre-deposit by reducing it to ₹ 30 lakhs. This indicates that the argument of want of jurisdiction of the Authority to adjudicate on the claims of the respondent-workmen was not canvassed either before the Division Bench or even before the Supreme Court.

Even after reserving the judgement in 2018, the petitioner failed to file any written submission when given opportunity for the same. As a result, there was no challenge made to the Authority’s competence or jurisdiction to decide on the claims of the respondent-workmen in the writ petition’s only written submission.

Thus, neither the writ petition nor the response nor the written representations submitted by the petitioner contested the Authority’s competence or authority to decide on the claims of the respondent-journalists. In contrast, the petitioner made specific allegations in the written submissions it submitted to this court about how it believed the Authority should have handled the situation, even going so far as to request a remand to make sure the Authority handled the situation again properly. These allegations cannot be reconciled with the claim that the Authority lacked the authority to determine the respondents’ petitions; in fact, they are diametrically opposed to one another. It was in these circumstances that, in the judgment under review, this Court did not return any findings regarding the competence of the Authority to pass the order dated 21 July 2015.

In light of the above, this Court conducted a merits review of the case and determined that the defence of three years of continuous loss as a justification for not adhering to the Majithia Wage Board’s Award was inadmissible.

Ultimately, the Delhi High Court dismissed the petition and miscellaneous applications were disposed of accordingly.

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Written By – Shreyanshu Gupta

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