Thursday, March 27, 2008

Definition of Workman under ID Act

case law on the subject of how to determine whether an employee is a workman or not

The case law on the subject of how to determine whether an employee is a workman or not has been discussed in considerable detail in K.H. Pandhi vs. Presiding Officer, CW No.1224 of 1978 decided on 5th February 2004.

The Constitution Bench of the Supreme Court in H.R. Adyanthaya vs. Sandoz (India) Ltd., (1994) 5 SCC 737

The question that arose in T.P. Srivastava vs. M/s National Tobacco Co. of India Ltd, AIR 1991 SC 2294 was whether a Section Salesman was a workman or not.

Enforcement of a part of the arbitral award

"Can a part of the arbitral award be enforced during the pendency of an application under Section 34 of the Arbitration & Conciliation Act, 1996 (for short the `Act') seeking the setting aside of the other part of the award", is the short but important question which we have been called upon to answer in the present appeal.

We are clearly of the opinion that that part of the award which is not under challenge has become final and is enforceable under Section 36 of the Act irrespective of the pendency of the application under Section 34 of the Act challenging and seeking the setting aside of the other part of the award

Termination of Service due to Absence

Dharmarathmakara Raibahadur Arcot Ramaswamy Mudaliar Educational Institution vs. Educational Appellate Tribunal & Anr., (1997) 7 SCC 332

"The contention of learned counsel for the respondent is confined that there was no enquiry in terms of Section 6 of the said Act. There is no submission of any defence on merit. Even before us when we granted learned counsel an opportunity to give any prima facie or plausible explanations on record to defend her actions, nothing could be placed before us. Giving of opportunity or an enquiry of course is a check and balance concept that no one's right be taken away without giving him/her opportunity or without enquiry in a given case or where the statute requires. But this cannot be in a case where allegation and charges are admitted and no possible defence is placed before the authority concerned. What enquiry is to be made when one admits violations? When she admitted she did not join M.Phil. course, she did not report back to her duty which is against her condition of leave and contrary to her affidavit which is the charge, what enquiry was to be made? In a case where the facts are almost admitted, the case reveals itself and is apparent on the face of the record, and in spite of opportunity no worth while explanation is forthcoming as in the present case, it would be not be a fit case to interfere with the termination order."

Friday, March 14, 2008

Leave encashment not included in wages for PF calculation

The term 'basic wage' which includes all emoluments
which are earned by an employee while on duty or on leave or
on holidays with wages in accordance with the terms of the
contract of employment can only mean weekly holidays,
national holidays and festival holidays etc. In many cases the
employees do not take leave and encash it at the time of
retirement or same is encashed after his death which can be
said to be uncertainties and contingencies. Though provisions
have been made for the employer for such contingencies
unless the contingency of encashing the leave is there, the
question of actual payment to the workman does not take
place. In view of the decision of this Court in Bridge Roof's
case (supra) and TI Cycles's case (supra) the inevitable
conclusion is that basic wage was never intended to include
amounts received for leave encashment.

Monday, March 3, 2008

Company law and arbitration law

In view of our conclusion, we are satisfied that the appellant has wrongly based its arguments on matters such as ouster of jurisdiction, over-riding effect of special statute over general statute, over-riding effect of subsequent statute etc. Since they have no application whatsoever to the matter in issue, there is no need to refer various decisions in those aspects. Ouster of jurisdiction arises only in regard to original jurisdiction and it cannot have any application to appellate jurisdiction as the one provided in Section 50 of the Arbitration Act. The appeal is a statutory remedy and it can lie only to the specified forum. The appellate forum cannot be decided on the basis of cause of action as applicable to original proceedings such as suit which could be filed in any court where part of cause of action arises. In such circumstances, we are unable to accept the lengthy arguments advanced on the above-mentioned subject by learned senior counsel for the appellant. Likewise, the submission of the appellant, namely, the Arbitration Act being a special and subsequent statute has no relevance to the present case.