12 December 1960
Supreme Court
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SHRI AMBICA MILLS CO., LTD. Vs SHRI S. B. BHATT AND ANOTHER

Case number: Appeal (civil) 243 of 1959


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PETITIONER: SHRI AMBICA MILLS CO., LTD.

       Vs.

RESPONDENT: SHRI S. B. BHATT AND ANOTHER

DATE OF JUDGMENT: 12/12/1960

BENCH: GAJENDRAGADKAR, P.B. BENCH: GAJENDRAGADKAR, P.B. WANCHOO, K.N. GUPTA, K.C. DAS

CITATION:  1961 AIR  970            1961 SCR  (3) 220  CITATOR INFO :  RF         1963 SC1626  (7)  R          1964 SC 743  (21)  RF         1969 SC 590  (9)

ACT: Wages,  Payment   of-Jurisdiction  of  Authority-Scope   and extent-High  Court’s power to issue writ--Payment  of  Wages Act,  1936  (4 of 1936), ss. 15, 16-Constitution  of  India, Arts. 226 and 227.

HEADNOTE: An award, called the Standardisation Award, fixing the wages for different categories of workers in the textile mills  at Ahmedabad was made by the Industrial Tribunal.  The wages of clerks were, however, settled by a subsequent agreement bet- ween the Ahmedabad Mill Owners’ Association and the Textile 221 Labour  Association.  Clauses 2 and 5 of the said  agreement were as follows,- "   2.  That this agreement shall apply to  all  the  Clerks employed  in the local mills, i. e., persons doing  clerical work, that is those who do routine work of writing,  copying or  making calculations and shall also  include  compounders and  assistant  compounders who are qualified  and  who  are employed in the local mills. 5.   A separate scale for those of the employees who  occupy the  position  lower than that of a full fledged  Clerk  but higher than that of an operative will be provided as under:- Rs. 40-3-70-EB-4-90-5-105 This  scale  will be applicable in case  of  ticket-checker, coupons-seller,  tally-boy,  scale-boy,  production-checker, third   counter,  cloth  measurer  or  yard-counter,   fine- reporter,  cloth/ yarn-examiner, department store man,  cut- looker and those others who have not been included above but who can properly fall under the above category." The  respondents  moved  the Authority under s.  16  of  the Payment of Wages Act, 1936 (4 of 1936), for an order against the  appellant  for payment of. their delayed  wages.   They claimed  to be semi-clerks, lower than  full-fledged  clerks but higher than operatives, and as such governed by cl. 5 of the  agreement.   The Authority held against  them  and  the

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appellate Authority affirmed its decision holding that Cl. 2 Of  the agreement determined the applicability of cl. 5  and since  the respondents did not come within Cl. 2 they  could not maintain their claim under cl. 5. The High Court, on  an application under Art. 226 and Art. 227 of the Constitution, took  a  contrary  view  and set aside  the  orders  of  the Authorities  and  directed a rehearing.  In this  Court  the appellant  mills urged that (1) the High Court had  exceeded its  jurisdiction under Arts. 226 and 227 in  setting  aside the  order of the appellate Authority and (2) the  Authority had itself exceeded its jurisdiction under s. 15 of the  Act in  entertaining  the applications of the  respondents  made under s. 16 of the Act. Held, that both the contentions must be negatived. The High Court has power under Art. 226 of the  Constitution to  issue a writ of certiorari not only in cases of  illegal exercise  of jurisdiction but also to correct errors of  law apparent  on the face of the record, although not errors  of fact  even  though  so apparent.   No  unfailing  test  can, however,  be  laid  down when an error of law  is  an  error apparent on the face of the record and the rule that it must be  self-evident, requiring no elaborate examination of  the record, is a satisfactory practical test in a large majority of cases. Rex v. Northumberland Compensation Appeal Tribunal, [1952] 1 K.B.  338  and Nagendra Nath Bora V. Commissioner  of  Hills Division  and Appeals, Assam, [1958] S.C.R.  1340,  referred to. 222 Viswanath  Tukaram v. The General Manager, Central  Railway, V.   T., Bombay, (1957) 59 Bom.  L.R. 892, considered. A look at the two clauses is enough to show that the  appel- late  Authority  in  construing  them  in  the  way  it  did committed  an  obvious and manifest error of  law.   It  was clear   that  the  two  clauses  applied  to  two   distinct categories of persons and persons falling under cl. 5  could not  be governed by cl. 2 and were not expected  to  satisfy the test prescribed by it. Under s. 15 of the Payment of Wages Act, 1936, the Authority in  exercising its jurisdiction, made exclusive by S. 22  of the  Act,  has  necessarily to  consider  various  questions incidental to the claims falling thereunder and, although it would be inexpedient to lay down any hard and fast rule  for determining  the  scope of such questions,  care  should  be taken not to unduly extend or curtail its jurisdiction. Whether a particular employee was an operative or one  above the  rank  of  an operative and below that  of  clerk  arid, therefore  within  cl. 5 of the agreement,  was  a  question intimately and integrally connected with wages as defined by the  Act  and as such fell within the  jurisdiction  of  the Authority under s.  15 of the Act. There  could, therefore, be no substance in  the  contention that an employee falling within the category of those others mentioned in the last part of cl. 5, to whom no  designation was attached, could not apply under s. 15 of the Act. A.   V.  D’Costa  v.  B. C. Patel,  [1955]  1  S.C.R.  1353, referred to. Anthony  Sabastin Almeda v. R. M. T. Taylor, (1956) 58  Bom. L.R. 899, distinguished.

JUDGMENT: CIVIL APPELLATE JURISDICTION: Civil Appeal No. 243 of 1959. Appeal  by special leave from the judgment and  order  dated

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April  24, 1958, of the Bombay High Court in  Special  Civil Application No. 874 of 1958. M.   C. Setalvad, Attorney-General for India, G. P. Vyas and I. N. Shroff, for the appellant Vithalbhai   Patel,  S.  S.  Shukla,  C.  T.  Daru  and   E. Udayarathnam, for the respondent No. 1. 1960.  December 12.  The Judgment of the Court was delivered by GAJENDRAGADKAR, J.-The principal question which this  appeal by  special  leave raises for our decision  relates  to  the nature  and  extent  of the jurisdiction  conferred  on  the authority by s. 15 of the 223 Payment of Wages Act, 1936 (Act 4 of 1936) (hereafter called the Act).  This question arises in this way.  The  appellant Shri  Ambica Mills Co. Ltd., is a textile mill’  working  at Ahmedabad.    Three  of  its  employees  named   Punamchand, Shamaldas  and  Vishnuprasad  made  an  application  to  the authority  under  s. 16 of the Act and prayed for  an  order against  the appellant to pay them their delayed wages.   In order to appreciate the( contentions raised by the appellant disputing  the  validity  of the respondents’  claim  it  is necessary  to set out the background of the dispute in  some detail.  It appears that an award called the Standardisation Award  which  covered  the mill industry  in  Ahmedabad  was pronounced by the Industrial Tribunal on April 21, 1948,  in Industrial  Reference No. 18 of 1947.  This award fixed  the wages  for  different categories of workers working  in  the textile  mills at Ahmedabad, but left over the  question  of clerks  for future decision.  Amongst the  operatives  whose wages were determined by the award the case of  hand-folders was specifically argued before the Industrial Tribunal.  The Labour Association urged that the rate of Rs. 36-9-0 awarded to  them was too low and it was pointed out on their  behalf that  they  did the same work as cut-lookers did  in  Bombay where  a head cut-looker was given Rs. 52 and a  cut-looker Rs.  42-4-0.   On the other hand the mill  owners  contended that  the rate should have been fixed at Rs. 34-2-0  instead of  Rs. 36-9-0.  The Tribunal found it difficult  to  decide the  point  because enough evidence had  not  been  produced before  it to show the kind of work that  hand-folders  were doing  at Ahmedabad; that is why the Tribunal was unable  to raise the wage of hand-folders to that of  out-lookers  in Bombay.   However, it made a significant direction  in  that behalf in these words: "At the same time", it was  observed, "we  desire to make it clear that if there are  persons  who are  doing  cut-looking as well as folding, they  should  be paid  the rate earned by the out-lookers in  Bombay".   This question has been considered by the Tribunal in paragraph 16 of its award. The  question  of  clerks, the decision of  which  had  been adjourned by the Tribunal was later considered 224 by it and an award pronounced in that behalf.  However,  the said  award was later terminated by the clerks in 1949,  and that led to an agreement between the Ahmedabad Mill  Owners’ Association and the Textile Labour Association in the matter of  wages payable to clerks.  This agreement was reached  on June  22,  1949.   Clauses 2 and 5  of  this  agreement  are material  for the purpose of this appeal.  Let us  therefore read the two clauses:               "2. That this agreement shall apply to all the               Clerks  employed  in the  local  mills,  i.e.,               persons doing clerical work, that is those who               do routine work of writing, copying or  making

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             calculations    and   shall    also    include               compounders and assistant compounders who  are               qualified  and who are employed in  the  local               mills.               5.      A  separate  scale for  those  of  the               employees  who occupy the position lower  than               that  of a full-fledged Clerk but higher  than               that  of  an  operative will  be  provided  as               under:-               Rs. 40-3-70-EB-4-90-5-105.               This  scale  will  be applicable  in  case  of               ticket-boy,  ticket-checker,   coupons-seller,               talley-boy,   scale-boy,   production-checker,               thread-counter,   cloth-measurer   or    yard-               counter,  fine-reporter,  cloth/yarn-examiner,               department  store  man, cut-looker  and  those               others  who have not been included  above  but               who   can  properly  fall  under   the   above               category." After this agreement was thus reached persons doing the work of cut-lookers began to feel that they were entitled to  the benefit  of  cl. 5 and some claims were put  forth  on  that basis  against the employers.  Vishnuprasad  and  Punamchand applied before the authority (Applications Nos. 39 and 40 of 1954) and claimed delayed wages against the appellant on the ground  that  they  were  entitled  to  higher  wages  under paragraph 16 of the award in Reference No. 18 of 1947.  This claim  was resisted by the appellant.  The  appellant  urged that  the applications were not maintainable under the  Act, that they were barred in view of an arbitration award  which was then in operation and that on the merits the  applicants were not doing 225 the  work  of  cut-looking.   All  these  contentions   were rejected by the authority.  It examined the duties performed by  the applicants, and it came to the conclusion that  both the   applicants   were  folders  doing   cut-looking,   and consequently  they  were  entitled each to  Rs.  42-4-0  per month; in other words, the authority came to the  conclusion that  the  applicants  properly,  fell  under  the  category specified in paragraph 16 of the award referred to above and as such they were entitled to recover the difference between Rs. 36-9-0 per month which was paid to each one of them  and Rs. 42-4-0 which was due to each one of them.  This decision was announced on September 2, 1954. On  July  11,  1955,  the  present  respondents  moved   the authority under s. 16 of the Act.  They urged that they were semi-clerks  and  occupied a position lower than that  of  a full-fledged clerk and higher than that of an operative, and as  such  they were governed by cl. 5 of the  agreement  and were  entitled  to increment provided by  the  said  clause. This claim was resisted by the appellant on several grounds. It  was urged that the present applications were  barred  by res  judicata,  that the authority had  no  jurisdiction  to entertain  the  applications,  and that on  the  merits  the respondents were not semi-clerks as contemplated by cl. 5 of the  agreement.  On these contentions the  authority  raised four issues.  It held against the respondents and in  favour of the appellant on issues 1 and 2 which related to the plea of res judicata and the status of the respondents.  In  view of the said findings it thought it unnecessary to decide the two remaining issues which dealt with the quantum of  amount claimed by the respondents.  It appears that the question of jurisdiction, though urged in its pleading by the appellant, was  not raised as an issue and has not been  considered  by

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the  authority.   The finding of res judicata  was  recorded against Punamchand and Vishnuprasad.  Shamaldas had not made any previous application and so no question of res  judicata arose   against  his  application.   His   application   was dismissed  only  on the ground that he could not  claim  the status of a 29 226 semi-clerk.   The same finding was recorded against the  two other respondents.  It appears that at the trial before  the authority the parties filed a joint Pursis which  enumerated the  duties performed by the respondents in paragraphs 2  to 7. The authority took the view that "the duties performed by them  cannot be said to be the duties of persons  doing  the routine  work of writing, copying and making  calculations". In the result it was held that the respondents were governed by  the  Standardisation Award and did not  fall  under  the subsequent agreement. This  decision was challenged by the respondents before  the District  Judge  who was the appellate authority  under  the Act.  The appellate authority also was asked to consider the question   of  jurisdiction.   It  examined   the   relevant provisions  of  the  Act and held  that  the  authority  had jurisdiction to entertain the applications made before it by the respondents.  On the question of res judicata it  agreed with the finding of the authority, and held that the  claims made  by  Punamchand  and Vishnuprasad were  barred  by  res judicata.   Similarly, on the question of the status of  the respondents it agreed that they were not semi clerks.  It is clear  from the judgment of the appellate authority that  in determining  the  status of the respondents,  the  appellate authority  applied  the  same test as  was  invoked  by  the authority, and it considered the question as to whether  the duties  performed  by the respondents were  similar  to  the duties  performed by clerks.  It is obvious that  the  tests applied  are tests relevant to the employees  falling  under cl.  2  of the agreement, and since the application  of  the said  tests led to the conclusion that the  respondents  did not fall under el. 2 the appellate authority held that el. 5 was  inapplicable to them; in other words, the judgments  of both the authority and the appellate authority clearly  show that they took the view that el. 2 was wholly  determinative of the issue, and that unless an. employee fell under cl.  2 he  cannot claim to be covered by any part of the  agreement including el. 5. That is why the appeals preferred by 227 the respondents were dismissed by the appellate authority on September 2, 1954. These appellate decisions were challenged by the respondents by  filing  a writ petition under Arts. 226 and 227  of  the Constitution before the Bombay High Court.  The Bombay  High Court has held that the decision of the appellate  authority was  patently erroneous in law in that it proceeded  on  the assumption that unless cl. 2 of the agreement was  satisfied cl. 5 would be inapplicable.  It also held that the  finding concurrently  recorded  by  the  authorities  below  on  the question of res judicata against two of the respondents  was manifestly  erroneous.   On these findings  the  High  Court allowed  the  writ petition filed by  the  respondents,  set aside the orders of the authorities below and sent the  case back to the authority for dealing with it in accordance with law  in  the  light of the judgment delivered  by  the  High Court.   It is against this decision that the appellant  has preferred the present appeal by special leave. The first contention which the learned Attorney-General  has

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raised before us on behalf of the appellant is that the High Court has exceeded its jurisdiction under Arts. 226 and  227 in interfering with the decision of the appellate authority. He ’contends that at the highest the error committed by  the appellate  authority  is one of law but it is not  an  error apparent  on the face of the record, and he argues  that  it was  not within the competence of the High Court to  sit  in appeal  over  the judgment of the  appellate  authority  and examine meticulously the correctness or the propriety of the conclusions reached by it. The question about the nature and extent of the jurisdiction of  the  High Courts in issuing a writ of  certiorari  under Art. 226 has been the subject-matter of several decisions of this  Court.  It is now well settled that the said writ  can be  issued  not  only  in  case,%  of  illegal  exercise  of jurisdiction  but also to correct errors of law apparent  on the  face  of  the record.  In this  connection  it  may  be pertinent  to  refer to the observations  made  by  Denning, L.J., in Rex v. Northumberland Compensation Appeal  Tribunal The (1)  [1952] 1 K.B. 338. 228 writ  has been supposed to be confined to the correction  of excess of jurisdiction", observed Lord Justice Denning, "and not  to  extend  to the correction of  errors  of  law;  and several  judges  have  said as much.   But  the  Lord  Chief Justice has, in the present case, restored certiorari to its rightful  position and shown that it can be used to  correct errors  of law which appear on the face of the  record  even though  they do not go to jurisdiction".  There is no  doubt that it is only errors of law which are apparent on the face of  the  record that can be corrected, and errors  of  fact, though  they  may  be apparent on the face  of  the  record, cannot  be  corrected  [Vide:  Nagendra  Nath  Bora  v.  The Commissioner of Hills Division and Appeals, Assam (1)].   It is  unnecessary  for us to consider in  the  present  appeal whether or not a certiorari can issue to correct an error of fact on the ground that the impugned finding of fact is  not supported by any legal evidence.  Thus it would be seen that the  true  legal  position in regard to the  extent  of  the Court’s  jurisdiction to issue a writ of certiorari  can  be stated without much difficulty.  Difficulty, however, arises when it is attempted to lay down tests for determining  when an  error of law can be said to be an error apparent on  the face  of the record.  Sometimes it is said that it  is  only errors  which  are self-evident, that is to say,  which  are evident without any elaborate examination of the merits that can be corrected, and not those which can be discovered only after an elaborate argument.  In a sense it would be correct to say that an error of law which can be corrected by a writ of certiorari must be self-evident; that is what is meant by saying  it is an error apparent on the face of  the  record, and from that point of view, the test that the error  should be self-evident and should not need an elaborate examination of  the  record may be satisfactory as a working test  in  a large  majority of cases; but,, as observed  by  Venkatarama Ayyar, J., in Hari Vishnu Kamath v. Syed Ahmad Ishaque,  (2) "there  must  be cases in which even this test  might  break down  because  judicial opinions also differ, and  an  error that may be considered by one  (1) [1958] S.C.R. 1240. (2) [1955] 1 S.C.R. 1104, 1123. 229 judge  as  self-evident  might  not  be  so  considered   by another".  Judicial experience, however, shows that,  though

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it  cannot be easy to lay down an unfailing test of  general application  it is usually not difficult to  decide  whether the  impugned error of law is apparent. on the face  of  the record or not. What  then is the error apparent on the face of the(  record which  the  High Court has corrected by issuing  a  writ  of certiorari in the present case?  According to the High Court the construction placed by the appellate authority on cls. 2 and 5 of the agreement is patently and manifestly erroneous. The  appellate authority held on a construction of the  said two  clauses  that cl. 2 was the determinative  clause,  and that  unless an employee satisfied the requirements  of  the said  clause  he could not claim the benefit of  cl.  5.  In deciding whether the High Court should have issued the  writ or not it is necessary to examine the said two clauses.   On looking  at  the  two  clauses  it  seems  to  us  that  the conclusion  is inescapable that the error committed  by  the appellate  authority  is  manifest and  obvious.   Clause  2 applies  to clerks employed in the local mills, and as  such it describes the nature of the work which is required to  be done by persons falling under that clause.  Clause 5, on the other  hand,  obviously provides for a  separate  scale  for those employees who are not clerks nor operatives; these em- ployees occupied a position higher than that of an operative and below that of a full-fledged clerk.  Therefore there  is no doubt that persons falling under cl. 5 cannot fall  under el.  2, and should not therefore be expected to satisfy  the test  prescribed by the said clause.  A bare perusal of  the list of employees specified by designation as falling  under el.  5 will show that the application of the test  which  is relevant  under  el.  2  would  in  their  case  be   wholly inappropriate  and irrelevant.  Therefore, in  our  opinion, the error committed by the appellate authority was of such a manifest  character  that the High Court  was  justified  in correcting  the  said  error  by the  issue  of  a  writ  of certiorari.   The question involved in the decision  of  the dispute is not so much of construction of the document as of giving effect to the plain terms of the 230 document.   If el. 5 expressly provides for employees  ,,not falling  under el. 2, and if that intention is clarified  by the list of designations which fall under el. 5 and yet  the appellate  authority reads that clause as subject to cl.  2, that must be regarded as an error patent on the face of  the record.  It is not a case where two alternative  conclusions are  possible; it is a case of plain misreading of  the  two provisions  ignoring altogether the very object  with  which the  two  separate provisions were made.   In  our  opinion, therefore,  the contention raised by the  learned  Attorney- General that by issuing the writ the High Court has exceeded its jurisdiction is not well-founded. That  takes  us to the second, and in  fact  the  principal, contention which has been seriously argued before us by  the learned  Attorney-General.  He urged that  the  applications made  by  the  respondents’ Union on  behalf  of  the  three employees  were incompetent under s. 15 of the Act  and  the authority  exceeded its jurisdiction in  entertaining  them. It is true that this point was not specifically urged before the authority, but it appears to have been argued before the appellate  authority  and  the High Court, and  it  is  this contention  which raises the problem of construing s. 15  of the   Act.   The  case  for  the  appellant  is   that   the jurisdiction  conferred  on the authority under s. 15  is  a limited jurisdiction, and it would be unreasonable to extend it on any inferential ground or by implication.

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The  scheme  of the Act is clear.  The Act was  intended  to regulate the payment of wages to certain classes of  persons employed  in  industry, and its object is to provide  for  a speedy  and effective remedy to the employees in respect  of their   claims  arising  out.  of  illegal   deductions   or unjustified  delay made in paying wages to them.  With  that object  s.  2(vi) of the Act has defined wages.   Section  4 fixes  the  wage period.  Section 5 prescribes the  time  of payment  of  wages;  and  s.  7  allows  certain   specified deductions  to be made.  Section 15 confers jurisdiction  on the  authority appointed under the said section to hear  and decide  for  any  specified  area  claims  arising  out   of deductions 231 from  wages,  or  delay  in payment  of  wages,  of  persons employed  or paid in that area.  It is thus clear  that  the only  claims which can be entertained by the  authority  are claims arising out of deductions or delay made in payment of   wages.  The  jurisdiction thus conferred on the  authority to  deal with these two categories of claims  is  exclusive; for s. 22 of the Act provides that matters which lie  within the  jurisdiction’  of the authority are excluded  from  the jurisdiction  of ordinary civil courts.  Thus in  one  sense the jurisdiction conferred on the authority is limited by s. 15, and in another sense it is exclusive as prescribed by s. 22. In  dealing with claims arising out of deductions  or  delay made in payment of wages the authority inevitably would have to  consider questions incidental to the said  matters.   In determining  the  scope of these incidental  questions  care must  be  taken  to see that under  the  guise  of  deciding incidental   matters   the  limited  jurisdiction   is   not unreasonably or unduly extended.  Care must also be taken to see  that  the scope of these incidental  questions  is  not unduly  limited  so  as  to affect  or  impair  the  limited jurisdiction conferred on the authority.  While  considering the  question  as to what could be  reasonably  regarded  as incidental  questions  let us revert to  the  definition  of wages  prescribed  by s. 2(vi).  Section 2(vi)  as  it  then stood   provided,  inter  alia,  that  ’wages’   means   all remuneration  capable of being expressed in terms  of  money which  would,  if the terms of the contract  of  employment, express  or implied, were fulfilled, be payable to a  person employed  in  respect of his employment or of work  done  in such  employment,  and  it  includes  any  bonus  or   other additional remuneration of the nature aforesaid which  would be  so payable and any sum payable to such person by  reason of the termination of his employment.  It also provided that the  word  "wages" did not include five  kinds  of  payments specified in clauses (a) to (e).  Now, if a claim is made by an  employee on the ground of alleged illegal  deduction  or alleged  delay  in payment of wages several  relevant  facts would  fall to be considered.  Is the applicant an  employee of the opponent?; 232 and  that refers to the subsistence of the relation  between the  employer  and  the  employee.   If  the  said  fact  is admitted,  then  the next question would be:  what  are  the terms of employment?  Is there any contract of employment in writing or is the contract oral?  If that is not a point  of dispute  between the parties then it would be  necessary  to enquire  what  are the terms of the admitted  contract.   In some  cases a question may arise whether the contract  which was  subsisting  at one time had ceased to subsist  and  the relationship of employer and employee had come to an end  at

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the  relevant period.  In regard to an illegal  deduction  a question  may  arise whether the lock-out  declared  by  the employer  is  legal or illegal.  In regard to  contracts  of service some times parties may be at variance and may set up rival  contracts, and in such a case it may be necessary  to enquire  which  contract was in existence  at  the  relevant time.   Some  of  these  questions have  in  fact  been  the subject-matter of judicial decisions. (Vide: A. R. Sarin  v. B. C. Patil (1), Vishwanath Tukaram v. The General  Manager, Central  Railway, V. T. Bombay (2); and Maharaja  Sri  Umaid Mills, Ltd. v. Collector of Pali (5)); but we do not propose to consider these possible questions in the present  appeal, because, in our opinion, it would be inexpedient to lay down any  hard  and  fast or general rule which  would  afford  a determining test to demarcate the field of incidental  facts which  can be legitimately considered by the  authority  and those which cannot be so considered.  We propose to  confine our decision to the facts in the present case. What are the facts in the present case?  The relationship of employer  and  employee is not in dispute.  It  is  admitted that the three workmen are employed by the appellant, and do the  work of bleach-folders.  These folders  are  classified into  Uttarnars and Chadhavnars.  Indeed, the items of  work assigned  to these categories of folders are admitted.   The appellant contends that the employment of the three  workmen is governed by the Award which is in operation, (1) (1951) 53 Bom.  L.R. 674.  (2) [1957] Bom.L.R. 892. (3) [1960] 11 L.L.J. 364. 233 whereas the respondent Union contends that they are governed by  cl. 5 of the subsequent agreement.  It is common  ground that  both the Award and the agreement are in  operation  in respect  of  the persons governed respectively by  them,  so that  it is not disputed by the appellant that  the  persons who are specified by their designation under cl. 5 would  be entitled to, the benefit of the said clause and would not be governed  by  the Award.  If an employee is called  a  cut-- looker  by any mill he would naturally fall under cl. 5;  in other words, all the specified categories of employees named by  designation in that clause would not be governed by  the Award  though at one stage they were treated  as  operatives but they would be governed by cl. 5 of the agreement; and if a person bearing that designation applied under s. 15 of the Act  his  application would be competent.   The  appellant’s argument,  however,  is  that when the last part  of  el.  5 refers to other employees "who have not been included  above but  who  can  properly fall under the  above  category"  no designation is attached to that class, and in such a case it would be necessary to enquire whether a particular  employee can  properly fall under the said category, and that, it  is urged, means that such an employee cannot apply under s.  15 but  must  go  to the industrial court  under  the  ordinary industrial  law.  Thus the controversy between  the  parties lies  within a very narrow compass.  An employee  designated as a cut-looker can apply under s. 15 and obtain relief from the  authority;  an employee not so designated  but  falling under  the said category by virtue of the work  assigned  to him,  it  is  said, cannot apply under  s.  15  because  the authority  cannot deal with the question as to  whether  the said employee properly falls under the said category or not. In our opinion, on these facts, the question as to whether a particular employee is an operative falling under the  Award or one who is above an operative and below the clerk falling under  cl.  5  is  a question which  is  so  intimately  and integrally  connected with the problem of wages  as  defined

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under s. 2(vi) that it would be unreasonable 30 234 to  exclude  the  decision  of  such  a  question  from  the jurisdiction of the authority under s. 15.  If a contract of employment  is  admitted and there is a  dispute  about  the construction of its terms, that obviously falls within s. 15 of  the  Act.   If that is so, what  is  the  difference  in principle where a contract is admitted, its terms are not in dispute,  and the only point in dispute is which of the  two subsisting  contracts applies to the particular employee  in question.   If the appellant’s argument were to  prevail  it would  lead  to this anomalous position that  if  a  general contract  of  employment provides for payment  of  wages  to different  categories  of employees and describes  the  said categories  by reference to the duties discharged  by  them, none  of the employees can ever avail himself of the  speedy remedy  provided by s. 15 of the Act.  In such a case  every time  a  dispute may arise about the duties  assigned  to  a particular employee before his wages are determined.  In our opinion,  to  place  such an artificial  limitation  on  the limits of the jurisdiction conferred on the authority by  s. 15  is wholly unreasonable.  That is the view taken  by  the High  Court  in  the present case and we see  no  reason  to differ from it. The  question  about  the nature and scope  of  the  limited jurisdiction conferred on the authority under s. 15 has been considered by this Court in the case of A. V. D’Costa v.  B. C.  Patel (1).  In that case the scheme of the Act has  been examined  by  Sinha, J., as he then was, who spoke  for  the majority  view,  and it has been held that "if  an  employee were  to say that his wages were Rs. 100 per month which  he actually  received  as and when they fell due  but  that  he would be entitled to higher wages if his claims to be placed on  the  higher wages scheme had been recognised  and  given effect  to, that would not be a matter within the  ambit  of the   authority’s  jurisdiction.   The  authority  has   the jurisdiction  to  decide  what actually  the  terms  of  the contract  between  the  parties were, that  is  to  say,  to determine  the  actual  wages;  but  the  authority  has  no jurisdiction to determine the question of potential  wages". The Court took the view that the employee’s (1)  [1955] 1 S.C.R. 1353. 235 complaint in that case fell within the latter  illustration. It  would thus be seen that according to this, decision  the authority  has jurisdiction to determine what the  terms  of contract  between the parties are, and if the terms  of  the contract  are, admitted and the only dispute is  whether  or not  a  particular  employee falls within  one  category  or another,  that would be( incidental to the decision  of  the main question as to what the terms of the contract are,  and that  precisely  is the nature of the  dispute  between  the parties in the present case. The learned Attorney-General has relied very strongly on the decision of the Bombay High Court in Anthony Sabastin Almeda v.  R. M. T. Taylor(1).  In that case the employer  and  the employee  went  before the Court on the basis  of  different contracts  and  the Court held that it was  not  within  the jurisdiction  of  the authority to decide which of  the  two contracts held the field, which of them was subsisting,  and under  which of them the employer was liable to  pay  wages. It would be clear from the facts in that case that two rival contract,%  were pleaded by the parties, according  to  whom only  one contract was subsisting and not the other, and  so

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the  question  for decision was which  contract  was  really subsisting.  We do not propose to express any opinion on the correctness  of the view taken by the Bombay High  Court  on this question.  All we are concerned to point out is that in the  present appeal the dispute is substantially  different. Both contracts admittedly are subsisting.  The only point of dispute is: do the three workmen fall within the category of cut-lookers or do they not If they do then cl. 5 applies; if they do not the Award will come into operation.  That  being so, we do not see how the decision in Almeda’s case (1)  can really assist the appellant. In this connection we may point out that it is common ground that  in  Ahmedabad  textile mills do not have  a  class  of employees called cut-lookers as in Bombay.  The work of cut- looking  along  with other kind of work is done  by  bleach- folders and other (1)  (1956) Bom.  L.R. 899. 236 folders.   That was the finding made by the authority on  an earlier occasion when Punamchand and Vishnuprasad had  moved the authority under s. 15 of the Act.  The learned Attorney- General has strenuously contended that it is unfair to  give the same pay to the three workmen who are doing the work  of cut-lookers   only  for  a  part  of  the  time   and   were substantially  doing  the  work  of  bleach-folders;   that, however,  has  no  relevance  in  determining  the   present dispute.  The only point which calls for decision is whether or  not  the work done by the three respondents  takes  them within  the category of cut-lookers specified under  cl.  5, and  as we have already pointed out, on an earlier  occasion the  authority  has  found in favour of  two  of  the  three respondents  when it held that they were folders doing  cut- looking.  If the said finding amounts to res judicata it  is in  favour of the two respondents and not in favour  of  the appellant; that is why the learned Attorney-General did  not seriously  dispute  the correctness of the decision  of  the High Court on the question of res judicata. In the result the appeal fails and is dismissed with costs. Appeal dismissed.                    ___________________