Find a Lawyer

Appeal No. 17 of 1985, decided on 31st July, 1986.

West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance (VI of 1968)‑‑

‑‑‑S.O. 12(9)‑‑Workmen's Compensation Act (VIII of 1923), S.30‑ Payment of Wages Act (IV of 1936), Ss.15 a 17‑‑Appeal, competency of‑‑Recovery of gratuity and group life insurance‑‑Procedure for‑‑Forum for recovery of gratuity and group life insurance, held, was specified in Ordinance VI of 1968 whereby cases of workmen's payment could be taken to Commissioner under provisions of Workmen's Compensation Act‑‑ Any order under Act VIII of 1923 would be appeal-able only before Labour Appellate Tribunal under S.30 thereof and not before Labour Court‑‑Impugned order could not be deemed to have been passed under S.15 of Payment of Wages Act so no appeal would tie before Labour Court under S.17 thereof‑‑Appeal being incompetent was dismissed in consequence.

M. Aqil for Appellant. M. Bashir Awan for Respondent

This appeal is directed against order, dated 14‑4‑1985 passed by Authority under Payment of Wages Act/ Commissioner, Workmen's Compensation, Hyderabad, whereby directions have been made to the appellants to deposit a sum of Rs.21,461 towards Group Life Insurance and gratuity, for distribution amongst the legal heirs of deceased worker Murad Bux.

Facts giving rise to this appeal in brief are that Murad Bux was employed on 1‑3‑1960 and he died on 2‑7‑1980. He was drawing Rs.497 per month as his wages. He was said to be entitled to gratuity for 20 years service to the extent of Rs.6,461 and group life insurance in the sum of Rs.15,000 which amount was said to have been refused by the management. Accordingly, an application was moved on 13‑9‑1980 by the respondent being the son of the deceased worker. The application shows that it was moved before the Authority under Payment of Wages Act, and Commissioner Workmen's Compensation, Hyderabad, under section 15 of P.W.A. and section 8 of Workmen's Compensation Act. The impugned order also shows having been passed by the Officer exercising the powers under P.W.A., as well as Workmen's Compensation Act. The case of the appellant /opponent before the lower Court was that the deceased was an employee of M.P.O., WAPDA. He along with his co‑workers proceeded on strike on 8‑4‑1963 which strike was subsequently declared as illegal. Accordingly, the said worker was removed from service along with others. However, the said termination order was set aside on 30‑5‑1979 and the deceased was ordered to be re‑instated but without back benefits. After his re‑instatement on 4‑5‑1980 the deceased worked only on one day i.e. 5‑5‑1980 and thereafter continuously remained absent till his death. It has also been pleaded that since the worker worked only for one day with the appellant, it having come into existence in 1974, it would not be liable to pay the same as advanced before the lower Court. It has also been pleaded that since re‑instatement was without back benefits, he would not be entitled to any gratuity.

After evidence the impugned order was passed and which has now been assailed in this appeal under section 17 of Payment of Wages Act. I have accordingly heard Mr. M. M. Aqil, Advocate for the appellant, and Mr. M. Bashir Awan, counsel for the respondent.

It has been contended by Mr. Aqil that the impugned order is a nullity in law mainly on the ground that one Officer has exercised his powers under two different enactments though these two enactments provided a separate procedure and jurisdiction. On merits, however, Mr. Aqil conceded that the appellant would be liable to pay group life insurance because it was the responsibility of the management to insure the worker. However, he submits that since the worker did not perform duties from 1963 till 1980, he would not be entitled to gratuity at least for this period.

Mr. Awan, submits that the appeal itself is incompetent in law. According to him, the group life insurance and gratuity are payable under the provisions of Standing Order Ordinance and if these amounts are not paid, the gratuity shall be recovered by the dependants of the deceased worker under subsection (9) of Standing Order 12 by approaching the Commissioner under Workmen's Compensation Act. The group life insurance is also recoverable under subsection (5) of Standing Order 10‑B by approaching the same Authority viz. Commissioner for Workmens Act. In view of this specific provision the application by the dependant of the deceased worker shall be deemed to have been moved under the provisions of Compensation Act and so the impugned order would be considered to have been passed under the same Act. Accordingly, no appeal shall be competent before this Court or under the provisions of P.W.A. On merits, Mr. Bashir submits that since the deceased was re‑instated in service, he will be deemed to have been continuous worker from the date of his termination in the year 1963 and so the gratuity is to be calculated on the basis of the wages admissible to him in the last month of service for every completed years of service in continuity from the date of his appointment till his death.

I have examined the legal proposition in regard to the maintainability of this appeal and I am of the firm view that his appeal is incompetent before this Court as submitted by Mr. Awan. The forum for recovery of gratuity and group life insurance is specified in the S.O. Ordinance and according to it cases of non‑payment can be taken to the Commissioner under the provisions of the Workmen's Compensation Act. Any order passed under this Act would be appeal-able only before the Labour Appellate Tribunal under section 30 thereof and not before this Court. The impugned order cannot be deemed to have been passed under section 15 of P.W.A. and so no appeal lies under section 17 of the said Act. This appeal is accordingly dismissed on this score alone. Accordingly the stay earlier granted in this appeal is hereby vacated. The R. &. P. be sent back forthwith.

A. A.

Find a Lawyer Near You

Dealing with a matter like this? Connect with a verified advocate in your city — free on SJP Lawyers Directory.