Trace Your Case

ISSUE:

Whether "full wages last drawn" under Section 17-B of the Industrial Disputes Act, 1947, means wages at the time of termination or wages that would have been drawn at the time of reinstatement?

Whether the High Court erred in directing payment of revised wages under subsequent bipartite settlements instead of wages last drawn?

RULE:

The expression "full wages last drawn" in Section 17-B must be given its plain and material meaning—wages actually drawn at the time of termination. It does not extend to increments, revised pay scales, or benefits that would have accrued had the workman remained in service. Expanding its meaning would amount to enforcing the award during the pendency of proceedings, which is not the legislative intent.

Section 17-B provides a limited statutory right to mitigate hardship, not to grant the full relief of reinstatement before adjudication is complete. Since payments made under Section 17-B are not recoverable if the award is later set aside, requiring employers to pay wages beyond those last drawn would impose an undue burden without final adjudication.

While constitutional courts retain discretionary powers, Section 17-B does not permit denial of statutory wages last drawn. However, higher payments may be ordered in exceptional cases, subject to conditions for refund or recovery.

Subscribe to Read More.
Login Join Now