Section 17B of Industrial Disputes Act 1947: Full Wages Pending Proceedings in Higher Courts
Section 17B protects a workman whose reinstatement has been ordered by a Labour Court, Tribunal or National Tribunal when the employer challenges that award before a High Court or the Supreme Court. Subject to the statutory conditions, the employer must pay the workman the full wages last drawn during the pendency of those proceedings.
Text and meaning of Section 17B
Section 17B - Payment of full wages to workman pending proceedings in higher courts.
Where a Labour Court, Tribunal or National Tribunal directs reinstatement of a workman by an award and the employer institutes proceedings against that award in a High Court or the Supreme Court, the employer is liable, during the pendency of those proceedings, to pay the workman the full wages last drawn by him, including any maintenance allowance admissible under a rule, if the workman was not employed in any establishment during that period and files an affidavit to that effect before the Court.
The proviso permits the Court to deny Section 17B wages for a period or part of a period if the employer proves to the satisfaction of the High Court or Supreme Court that the workman was employed and was receiving adequate remuneration during that time.
The provision is intended to reduce the hardship caused to a workman when implementation of an award of reinstatement is delayed because the employer challenges the award in a constitutional court. The statutory payment is linked to the workman's last-drawn wages and is distinct from final relief on the merits of the challenge.
Conditions for claiming wages under Section 17B
- There must be an award of a Labour Court, Tribunal or National Tribunal directing reinstatement of the workman.
- The employer must have challenged that reinstatement award in proceedings before a High Court or the Supreme Court.
- The workman must claim the statutory benefit and file an affidavit stating that he or she was not employed in any establishment during the relevant period.
- The liability operates during the pendency of the employer's proceedings, subject to the proviso concerning gainful employment and adequate remuneration.
What does "full wages last drawn" mean?
In Dena Bank v. Kiritikumar T. Patel, (1999) 2 SCC 106, the Supreme Court held that the expression "full wages last drawn" refers to the wages actually drawn by the workman at the time of termination of employment. Section 17B does not, by itself, convert the statutory amount into the wages that the workman would have earned had he continued in service with later increments or revisions.
The Supreme Court also explained that the Section 17B amount is not refundable or recoverable merely because the reinstatement award is ultimately set aside. At the same time, the constitutional powers of the High Court and Supreme Court are not confined by Section 17B; an appropriate court may, in the interests of justice, direct a higher interim payment outside Section 17B and may impose suitable conditions concerning refund or recovery.
Effect of employment during the court proceedings
The proviso to Section 17B protects the employer where the workman has obtained employment and is receiving adequate remuneration. The employer must establish the relevant employment and remuneration to the satisfaction of the Court. If established, the Court must direct that Section 17B wages are not payable for the corresponding period or part of the period.
Affidavit by the workman
The statutory language expressly requires an affidavit by the workman stating that he or she had not been employed in any establishment during the relevant period. The affidavit therefore forms an essential part of a Section 17B claim. The employer may oppose the claim by placing material before the Court to show employment and adequate remuneration within the proviso.
Section 17B application should be decided promptly
In Workmen represented by Hindustan V.O. Corporation Ltd. v. Hindustan Vegetable Oils Corporation Ltd., (2000) 9 SCC 534, the Supreme Court directed that an application under Section 17B should be disposed of with great promptitude and before disposal of the principal writ petition. This reflects the interim and subsistence-oriented purpose of the provision.
Section 17B at a glance
| Requirement | Legal effect |
|---|---|
| Reinstatement award | The Labour Court, Tribunal or National Tribunal must have directed reinstatement. |
| Employer's challenge | The award must be under challenge by the employer before a High Court or the Supreme Court. |
| Workman's affidavit | The workman states on affidavit that he or she was not employed in any establishment during the relevant period. |
| Amount under Section 17B | Full wages last drawn, including admissible maintenance allowance under any rule. |
| Gainful employment | If the employer proves employment with adequate remuneration, no Section 17B wages are payable for that period or part. |
| Nature of relief | Interim statutory protection during the employer's challenge; it does not decide the merits of the award itself. |
Related provisions
Section 17B should be read in the context of the provisions governing awards under Chapter IV of the Industrial Disputes Act, 1947. Section 17 deals with publication of reports and awards, while Section 17A deals with commencement of an award. Section 17B specifically addresses interim wage protection when an award directing reinstatement is challenged before a higher court.
Practical point
A Section 17B claim is tied to the statutory preconditions. The exact relief in an individual case can depend on the terms of the reinstatement award, the affidavit filed by the workman, evidence of subsequent employment and remuneration, and any interim directions passed by the High Court or Supreme Court.