PAYMENT OF WAGES ACT 1936.

15. CLAIMS ARISING OUT OF DEDUCTIONS FROM WAGES OR DELAY IN PAYMENT
OF WAGES AND PENALTY FOR MALICIOUS OR VEXATIOUS CLAIMS
(1) The State Government may, by notification in the Official Gazette, appoint a presiding
officer of any Labour Court or Industrial Tribunal constituted under the Industrial Disputes
Act 1947 (14 of 1947) or under any corresponding law relating to the investigation and
settlement of industrial disputes in force in the State or any Commissioner for Workmen’s
Compensation or other officer with experience as a Judge of a Civil Court or as a Stipendiary
Magistrate to be 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 including all matters incidental to such claims :
Provided that where the State Government considers it necessary so to do it may appoint
more than one authority for any specified area and may by general or special order provide
for the distribution or allocation of work to be performed by them under this Act.
(2) Where contrary to the provisions of this Act any deduction has been made from the wages
of an employed person or any payment of wages has been delayed such person himself or
any legal practitioner or any official of a registered trade union authorised in writing to
act on his behalf or any Inspector under this Act or any other person acting with the
permission of the authority appointed under sub-section (1) may apply to such authority
for a direction under sub-section (3) :
Provided that every such application shall be presented within twelve months from the
date on which the deduction from the wages was made or from the date on which the
payment of the wages was due to be made as the case may be :
Provided further that any application may be admitted after the said period of twelve
months when the applicant satisfies the authority that he had sufficient cause for not
making the application within such period.
(3) When any application under sub-section (2) is entertained the authority shall hear the
applicant and the employer or other person responsible for the payment of wages under
section 3, or give them an opportunity of being heard and after such further inquiry
(if any), as may be necessary, may without prejudice to any other penalty to which such
employer or other person is liable under this Act direct the refund to the employed person
of the amount deducted or the payment of the delayed wages together with the payment
of such compensation as the authority may think fit not exceeding ten times the amount
deducted in the former case and not exceeding twenty-five rupees in the latter and even if
the amount deducted or the delayed wages are paid before the disposal of the application
COMMERCIAL & INDUSTRIAL LAWS A 237
direct the payment of such compensation as the authority may think fit not exceeding
twenty-five rupees :
Provided that no direction for the payment of compensation shall be made in the case of
delayed wages if the authority is satisfied that the delay was due to—
(a) A bona fide error or bona fide dispute as to the amount payable to the employed
person or
(b) The occurrence of an emergency or the existence of exceptional circumstances such
that the person responsible for the payment of the wages was unable though exercising
reasonable diligence to make prompt payment or
(c) The failure of the employed person to apply for or accept payment.
(4) If the Authority hearing an application under this section is satisfied—
(a) That the application was either malicious or vexatious the authority may direct that a
penalty not exceeding fifty rupees be paid to the employer or other person responsible
for the payment of wages by the person presenting the application; or
(b) That in any case in which compensation is directed to be paid under sub-section (3)
the applicant ought not to have been compelled to seek redress under this section the
authority may direct that a penalty not exceeding fifty rupees be paid to the State
Government by the employer or other person responsible for the payment of wages.
(4A) Where there is any dispute as to the person or persons being the legal representative
or representatives of the employer or of the employed person the decision of the
authority on such dispute shall be final.
(4B)Any inquiry under this section shall be deemed to be a judicial proceeding within the
meaning of sections 193 219 and 228 of the Indian Penal Code (45 of 1860).
(5) Any amount directed to be paid under this section may be recovered—
(a) If the authority is a Magistrate by the authority as if it were a fine imposed by him as
Magistrate and
(b) If the authority is not a Magistrate by any Magistrate to whom the authority makes
application in this behalf as if it were a fine imposed by such Magistrate.
16. SINGLE APPLICATION IN RESPECT OF CLAIMS FROM UNPAID GROUP
(1) Employed persons are said to belong to the same unpaid group if they are borne on the
same establishment, and if deductions have been made from their wages in contravention
of this Act for the same cause and during the same wage-period or periods, or if their
wages for the same wage-period or periods have remained unpaid after the day fixed by
section 5.
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(2) A single application may be presented under section 15 on behalf or in respect of any
number of employed persons belonging to the same unpaid group and in such case every
person on whose behalf such application is presented may be awarded maximum
compensation to the extent specified in sub-section (3) of section 15.
(3) The Authority may deal with any number of separate pending applications, presented
under section 15 in respect of persons belonging to the same unpaid group, as a single
application presented under sub-section (2) of this section and the provisions of that subsection
shall apply accordingly.
17. APPEAL
(1) An appeal against an order dismissing either wholly or in part an application made under
sub-section (2) of section 15, or against a direction made under sub-section (3) or subsection
(4) of that section, may be preferred within thirty days of the date on which the
order or direction was made in a Presidency-town before the Court of Small Causes and
elsewhere before the District Court—
(a) by the employer or other person responsible for the payment of wages under section
3 if the total sum directed to be paid by way of wages and compensation exceeds three
hundred rupees or such direction has the effect of imposing on the employer or the
other person a financial liability exceeding one thousand rupees, or
(b) by an employed person or any legal practitioner or any official of a registered trade
union authorised in writing to act on his behalf or any Inspector under this Act or
any other person permitted by the authority to make an application under subsection
(2) of section 15, if the total amount of wages claimed to have been with held
from the employed person exceeds twenty rupees or from the unpaid group to
which the employed person belongs or belonged exceeds fifty rupees, or
(c) by any person directed to pay a penalty under sub-section (4) of section 15.
(1A)No appeal under clause (a) of sub-section (1) shall lie unless the memorandum of appeal
is accompanied by a certificate by the authority to the effect that the appellant has deposited
the amount payable under the direction appealed against.
(2) Save as provided in sub-section (1) any order dismissing either wholly or in part an
application made under sub-section (2) of section 15 or a direction made under sub-section
(3) or sub-section (4) of that section shall be final.
(3) Where an employer prefers an appeal under this section the authority against whose
decision the appeal has been preferred may and if so directed by the court referred to in
sub-section (1) shall pending the decision of the appeal withhold payment of any sum in
deposit with it.
(4) The court referred to in sub-section (1) may if it thinks fit submit any question of law for
the decision of the High Court and if it so does shall decide the question in conformity
with such decision.
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17A. CONDITIONAL ATTACHMENT OF PROPERTY OF EMPLOYER OR OTHER
PERSON RESPONSIBLE FOR PAYMENT OF WAGES
(1) Where at any time after an application has been made under sub-section (2) of section 15
the Authority or where at any time after an appeal has been filed under section 17 by an
employed person or any legal practitioner or any official of a registered trade union
authorised in writing to act on his behalf or any Inspector under this Act or any other
person permitted by the Authority to make an application under sub-section (2) of section
15, the Court referred to in that section is satisfied that the employer or other person
responsible for the payment of wages under section 3 is likely to evade payment of any
amount that may be directed to be paid under section 15 or section 17, the Authority or the
Court as the case may be except in cases where the Authority or Court is of opinion that
the ends of justice would be defeated by the delay after giving the employer or other
person an opportunity of being heard may direct the attachment of so much of the property
of the employer or other person responsible for the payment of wages as is in the opinion
of the Authority or Court sufficient to satisfy the amount which may be payable under the
direction.
(2) The provisions of the Code of Civil Procedure, 1908 (5 of 1908) relating to attachment
before judgment under that Code shall so far as may be apply to any order for attachment
under sub-section (1).
18. POWERS OF AUTHORITIES APPOINTED UNDER SECTION 15
Every Authority appointed under sub-section (1) of section 15, shall have all the powers of a
civil court under the Code of Civil Procedure, 1908 (5 of 1908) for the purpose of taking evidence
and of enforcing the attendance of witnesses and compelling the production of documents and
every such Authority shall be deemed to be a Civil Court for all the purposes of section 195 and
of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).
19. POWER TO 3RECOVER FROM EMPLOYER IN CERTAIN CASES
[Repealed by Act 53 of 1964]
20. PENALTY FOR OFFENCES UNDER THE ACT
(1) Whoever being responsible for the payment of wages to an employed person contravenes
any of the provisions of any of the following sections namely section 5 except sub-section
(4) thereof section 7 section 8 except sub-section (8) thereof , section 9 section 10 except
sub-section (2) thereof and section 11 to 13 both inclusive shall be punishable with fine
which shall not be less than two hundred rupees but which may extend to one thousand
rupees.
(2) Whoever contravenes the provisions of section 4 sub-section (4) of section 5 section 6 subsection
(8) of section 8 sub-section (2) of section 10 or section 25 shall be punishable with
fine which may extend to five hundred rupees.
(3) Whoever being required under this Act to maintain any records or registers or to furnish
any information or return—
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(a) fails to maintain such register or record; or
(b) willfully refuses or without lawful excuse neglects to furnish such information or
return; or
(c) willfully furnishes or causes to be furnished any information or return which he knows
to be false; or
(d) refuses to answer or willfully gives a false answer to any question necessary for
obtaining any information required to be furnished under this Act shall for each such
offence be punishable with fine which shall not be less than two hundred rupees but
which may extend to one thousand rupees.
(4) Whoever—
(a) willfully obstructs an Inspector in the discharge of his duties under this Act; or
(b) refuse or willfully neglects to afford an Inspector any reasonable facility for making
any entry, inspection, examination, supervision, or inquiry authorised by or under
this Act in relation to any railway, factory or industrial or other establishment; or
(c) willfully refuses to produce on the demand of an Inspector any register or other
document kept in pursuance of this Act; or
(d) prevents or attempts to prevent or does anything which he has any reason to believe
is likely to prevent any person from appearing before or being examined by an Inspector
acting in pursuance of his duties under this Act;
shall be punishable with fine which shall not be less than two hundred rupees but which may
extend to one thousand rupees.
(5) If any person who has been convicted of any office punishable under this Act is again
guilty of an offence involving contravention of the same provision he shall be punishable
on a subsequent conviction with imprisonment for a term which shall not be less than one
month but which may extend to six months and with fine which shall not be less than five
hundred rupees but which may extend to three thousand rupees.
Provided that for the purpose of this sub-section no cognizance shall be taken of any
conviction made more than two years before the date on which the commission of the
offence which is being punished came to the knowledge of the Inspector.
(6) If any person fails or willfully neglects to pay the wages of any employed person by the
date fixed by the Authority in this behalf, he shall without prejudice to any other action
that may be taken against him be punishable with an additional fine which may extend to
one hundred rupees for each day for which such failure or neglect continues
21. PROCEDURE IN TRIAL OF OFFENCES
(1) No court shall take cognizance of a complaint against any person for an offence under
sub-section (1) of section 20 unless an application in respect of the facts constituting the
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offence has been presented under section 15 and has been granted wholly or in part and
the authority empowered under the latter section or the appellate Court granting such
application has sanctioned the making of the complaint.
(2) Before sanctioning the making of a complaint against any person for an offence under
sub-section (1) of section 20 the Authority empowered under section 15 or the Appellate
Court as the case may be shall give such person an opportunity of showing cause against
the granting of such sanction and the sanction shall not be granted if such person satisfies
the Authority or Court that his default was due to –
(a) a bona fide error or bona fide dispute as to the amount payable to the employed person
or
(b) the occurrence of an emergency or the existence of exceptional circumstances such
that the person responsible for the payment of the wages was unable though exercising
reasonable diligence to make prompt payment or
(c) the failure of the employed person to apply for or accept payment.
(3) No Court shall take cognizance of a contravention of section 4 or of section 6 or of a
contravention of any rule made under section 26 except on a complaint made by or with
the sanction of an Inspector under this Act.
(3A)No Court shall take cognizance of any offence punishable under sub-section (3) or subsection
(4) of section 20 except on a complaint made by or with the sanction of an Inspector
under this Act.
(4) In imposing any fine for an affiance under sub-section (1) of section 20 the court shall take
into consideration the amount of any compensation already awarded against the accused
in any proceedings taken under section 15.
22. BAR OF SUITS
No Court shall entertain any suit for the recovery of wages or of any deduction from wages in
so far as the sum so claimed—
(a) forms the subject of an application under section 15 which has been presented by the
plaintiff and which is pending before the authority appointed under that section or of an
appeal under section 17; or
(b) has formed the subject of a direction under section 15 in favour of the plaintiff; or
(c) has been adjudged in any proceeding under section 15 not to be owned to the plaintiff; or
(d) could have been recovered by an application under section 15.
22A. PROTECTION OF ACTION TAKEN IN GOOD FAITH
No suit prosecution or other legal proceeding shall lie against the government or any officer of
the Government for anything which is in good faith done or intended to be done under this
Act.
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23. CONTRACTING OUT
Any contract or agreement whether made before or after the commencement of this Act whereby
an employed person relinquishes any right conferred by this Act shall be null and void in so
far as it purports to deprive him of such right.
24. APPLICATION OF ACT TO RAILWAYS AIR TRANSPORT SERVICES MINES AND
OILFIELDS
The powers by this Act conferred upon the State Government shall, in relation to railways air
transport services mines and oilfields be powers of the Central Government.
25. DISPLAY BY NOTICE OF ABSTRACTS OF THE ACT
The person responsible for the payment of wages of persons employed in a factory or an
industrial or other establishment shall cause to be displayed in such factory or industrial or
other establishment a notice containing such abstracts of this Act and of the rules made there
under in English and in the language of the majority of the persons employed in the factory, or
industrial or other establishment as may be prescribed.
25A. PAYMENT OF UNDISBURSED WAGES IN CASE OF DEATH OF EMPLOYED
PERSON
(1) Subject to the other provisions of the Act all amounts payable to an employed person as
wages shall if such amounts could not or cannot be paid on account of his death before
payment or on account of his whereabouts not being known –
(a) Be paid to the person nominated by him in this behalf in accordance with the rules
made under this Act; or
(b) Where no such nomination has been made or where for any reasons such amounts
cannot be paid to the person so nominated be deposited with the prescribed authority
who shall deal with the amounts so deposited in such manner as may be prescribed.
(2) Where in accordance with the provisions of sub-section (1) all amounts payable to an
employed person as wages—
(a) Are paid by the employer to the person nominated by the employer person; or
(b) Are deposited by the employer with the prescribed authority, the employer shall be
discharged of his liability to pay those wages
26. RULE-MAKING POWER
(1) The State Government may make rules to regulate the procedure to be followed by the
authorities and courts referred to in sections 15 and 17.
(2) The State Government may, by notification in the Official Gazette make, rules for the
purpose of carrying into effect the provisions of this Act.
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(3) In particular and without prejudice to the generality of the foregoing power rules made
under sub-section (2) may—
(a) require the maintenance of such records registers returns and notice as are necessary
for the enforcement of the Act prescribe the form thereof and the particulars to be
entered in such registers or records;
(b) require the display in a conspicuous place on premises where employment is carried
on of notices specifying rates of wages payable to persons employed on such premises;
(c) Provide for the regulate inspection of the weights measures and weighing machines
used by employers in checking or ascertaining the wages of persons employed by
them;
(d) prescribe the manner of giving notice of the days on which wages will be paid;\
(e) prescribe the Authority competent to approve under sub-section (1) of section 8 acts
and omissions in respect of which fines may be imposed;
(f) prescribe the procedure for the imposition of fines under section 8 and for making of
the deductions referred to in section 10;
(g) prescribe the conditions subject to which deductions may be made under the proviso
the sub-section (2) of section 9;
(h) prescribe the authority competent to approve the purposes on which the proceeds of
fines shall be expended;
(i) prescribe the extent to which advances may be made and the installments by which
they may be recovered with reference to clause (b) of section 12;
(ia) prescribe the extent to which loans may be granted and the rate of interest payable
thereon with reference to section 12A;
(ib) prescribe the powers of Inspectors for the purposes of this Act;
(j) regulate the scales of costs which may allowed in proceedings under this Act;
(k) prescribe the amount of court-fees payable in respect of any proceedings under this
Act
(l) prescribe the abstracts to be contained in the notices required by section 25;
(la) prescribe the form and manner in which nominations may be made for the
purposes of sub-section (1) of section 25A the cancellation or variation of any
such nomination or the making of any fresh nomination in the event of the
nominee predeceasing the person making nomination and other matters
connected with such nominations;
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(lb) specify the authority with whom amounts required to be deposited under clause
(b) of sub-section (1) of section 25A shall be deposited and the manner in which
such authority shall deal with the amounts deposited with it under that clause;
(m) provide for any other matter which is to be or may be prescribed.
(4) In making any rule under this section the State Government may provide that a
contravention of the rule shall be punishable with fine which may extend to two hundred
rupees.
(5) All rules made under this section shall be subject to the condition of previous publication
and the date to be specified under clause (3) of section 23 of the General Clauses Act 1897
(10 of 1897) shall not be less than three months from the date on which the draft of the
proposed rules was published.
(6) Every rule made by the Central Government under this section shall be laid as soon as
may be after it is made before each House of Parliament while it is in session for a total
period of thirty days which may be comprised in one session or in two or more successive
sessions and if before the expiry of the session immediately following the session or the
successive sessions aforesaid both Houses agree in making any modification in the rule or
both Houses agree that the rule should not be made the rule shall thereafter have effect
only in such modified form or be of no effect as the case may be; so however that any such
modification or annulment shall be without prejudice to the validity of anything previously
done under that rule.