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CHAPTER IX Appointment Powers and Duties etc., of the authority to hear and decide claims relating to Wages etc., of employees in Establishments


50. Appointment of authority to hear and decide claims relating to wages etc. :- The Government may, by notification appoint an 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 or service compensation payable under this Act to employees in any establishment in that area.

51. Claims arising out of deductions from wages or delay in payment of wages etc., and penalty for malicious or vexatious claims :- (1) Where, contrary to the provisions of this Act, any deduction has been made from the wages of an employee in an establishment or any payment of wages or service compensation to him has been delayed, such employee himself, or if he is dead any of his dependants or any legal practioner, or any official of a registered Trade Union authorised in writing to act on behalf of such employee or dependant, or any Inspector under this Act or any other person acting with the permission of the authority appointed under Section 50 may apply to such authority for a direction under sub section (2):

Provided that every such application shall be presented within one year from the date on which the deduction from the wages was made or from the date on which the payment of the wages or service compensation was due to be made, as the case may be:

Provided further that any application may be admitted after the said period of one year when the applicant satisfies the authority that he had sufficient cause for not making the application within such period.

(2) When any application under sub section (1) is entertained the authority shall, hear the applicant and the employer or give them an opportunity of making representation either in person or through an authorised representative, and after such further inquiry, if any, as may be necessary, may, without prejudice to any other penalty to which such employer is liable under this Act, direct the refund to the employee of the amount deducted, or the payment of the delayed wages or the service compensation together with the payment of such compensation as the authority may think fit, not exceeding ten times the amount deducted or the amount of delayed wages and not exceeding ten rupees in case of service compensation:

Provided that, no direction for the payment of compensation shall be made in the case of delayed wages or service compensation if the authority is satisfied that the delay was due to

(a) a bonafide error or a bonafide dispute as to the amount payable to the employee; or

(b) the existence of exceptional circumstances such that the employer was unable, though exercising reasonable diligence, to make prompt payment; or

(c) the failure of the employee to accept payment.

(3) If the authority hearing any application under this section is satisfied that it was either malicious or vexatious, the authority may direct that a penalty not exceeding five rupees be paid to the employer by the person presenting the application.

(4) 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 an application in this behalf, as if it were a fine imposed by such Magistrate.

Explanation :- For the purposes of this section, the term employee shall include part time employee also.

52. Single application in respect of claims from unpaid group :- (1) Employees are said to belong to the same unpaid group if they are borne on the same establishment and if their wages or service compensation for the same period or periods have remained unpaid after the day on which they were due.

(2) A single application may be presented under Section 51 on behalf, or in respect, of any number of employees belonging to the same unpaid group, and in such case the maximum compensation that may be awarded under sub section (2) of that section shall be ten rupees per head.

(3) The authority may deal with any number of separate pending applications, presented under Section 51 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 sub section shall apply accordingly.

53. Appeal :- (1) An appeal against an order dismissing either wholly or in part an application made under sub section (1) of Section 51 or against a direction made under sub section (2) or sub section (3) of that section may be preferred before the authority to be notified by Government within thirty days of the date on which the order or direction was served on the applicant or the employer, as the case may be

(a) by the employer, if the total sum directed to be paid by way of wages, service compensation and compensation exceeds three hundred rupees, or

(b) by the person who had applied under sub section (1) of Section 51 if the total amount of wages or service compensation claimed to have been withheld from the employee or from the unpaid group to which he belonged exceeds fifty rupees; or

(c) by any person directed to pay a penalty under sub section (3) of Section 51.

(2) Save as provided in sub section (1) any order dismissing either wholly or in part an application made under sub section (1) of Section 51 or a direction made under sub section (2) or sub section (3) of that section shall be final.

54. Conditional attachment of property of employer :- (1) Where at any time after an application has been made under sub section (1) of Section 51, or where at any time after an appeal has been filed under Clause (b) of sub section (1) of Section 53, the authority referred to in those sections is satisfied that the employer is likely to evade payment of any amount that may be directed to be made under Section 51 or Section 53, the Authority, except in cases where it is of opinion that the ends of justice would be defeated by the delay, after giving the employer an opportunity of making representation may direct the attachment of so much of the property of the employer as is in the opinion of the authority sufficient to satisfy the amounts which may be payable under the direction.

(2) The provisions of the Code of Civil Procedure, 1908 (Central Act 5 of 1908) relating to attachment before judgment under that Code, shall, so far as may be, apply to any direction for attachment under sub section (1).

55. Power of authority appointed under Section 50 (Central Act 5 of 1908) :- Every authority appointed under Section 50 shall have all the powers of a Civil Court under the Code of Civil Procedure, 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 (Central Act 2 of 1974).

56. Power of Government to prescribe costs and Court fees for proceedings under this Chapter :- The Government may prescribe the scales of costs which may be allowed and the amount of Court fees which shall be payable in respect of any proceedings under this Chapter.



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