SHRI H.D. SHARMAversusNORTHERN INDIA TEXTILE RESEARCH ASSOCIATION

476                SUPREME[2018]
                           COURT 14REPORTS
                                   S.C.R. 476                 [2018] 14 S.C.R.


A                     SHRI H.D. SHARMA
                                 v.
        NORTHERN INDIA TEXTILE RESEARCH ASSOCIATION
                  (Civil Appeal No. 3168 of 2010)
                       DECEMBER 03, 2018
B
      [ABHAY MANOHAR SAPRE AND INDU MALHOTRA, JJ.]
             Uttar Pradesh Industrial Disputes Act, 1947: ss.2(y), 6E(2)
      and its proviso – Respondent-employer moved an application under
      s.6E(2) seeking approval of dismissal of appellant-workman on
      charges of misconduct – Appellant-workman opposed the same on
C     the ground that there was short payment of Rs.110/- as he was paid
      only Rs.1103/- whereas his monthly wages was 1214/- and, therefore,
      the respondent did not ensure full compliance with the condition
      which was necessary for grant of approval to the dismissal order in
      terms of proviso to sub-section (2) of s.6E of the Act – Held: The
D     records showed that the respondent had paid Rs.110/- to the
      appellant in August 1986 by way of “interim relief” as an ex gratia
      payment – The said sum of Rs.110/- was paid only once in August
      1986 and not thereafter – Such payment cannot be termed either as
      wages or its component within the meaning of s.2(y) r/w s.6E(2) of
      the Act since any isolated one-time ex gratia payment made by way
E     of an interim relief neither satisfies the requirement of s.2(y) nor it
      satisfies the requirement of clauses (i) to (iii) of s.2(y) of the Act – In
      order to treat any payment as “wages”, it must be proved that it was
      being paid by the employer to his employee pursuant to the terms of
      his employment – It is only then a right is created in employee’s
F     favour to claim such amount from the employer – Appellant failed
      to adduce any evidence to prove that Rs.110/- was being paid to
      him every month by the respondent as a part of his term of the
      employment – High Court failed to examine the main question as to
      whether a payment of Rs.110/- was in the nature of “wages” or its
      component within the meaning of s.2(y) of the Act – Without deciding
G     this question, the High Court held that such amount could be
      adjusted against the payment made by the employer (respondent)
      to the appellant under “leave encashment” – It was not correct
      approach – Respondent’s application made under s.6E(2) of the
      Act is allowed by granting approval to the appellant’s dismissal –
H     Labour law.
                                        476
     SHRI H.D. SHARMA v. NORTHERN INDIA TEXTILE                         477
                RESEARCH ASSOCIATION

      Dismissing the appeal, the Court                                  A
      HELD : 1. Section 2(y) defines the term ‘wages’ whereas
Section 6E provides that condition of service of a workman has
to remain unchanged in certain circumstances. Proviso to Section
6E(2) says that no workman can be discharged or dismissed from
the services unless he has been paid wages for one month and an         B
application is made by an employee to an authority before whom
the proceedings are pending for approval of the action taken by
the employer against the workman. The appellant has relied on
the break up of his monthly wages. It is this amount which,
according to the appellant, should have been paid to him by the
respondent as a pre-condition to give effect to his dismissal order.    C
So far as the respondent is concerned, they relied on the details
of the appellant’s monthly wages payable/paid to him at the time
of his dismissal in full and final satisfaction. The word “wages”
defined in Section 2(y) of the Act is in peri materia with the
definition of word “wages” defined in Section 2(rr) of the Industrial   D
Disputes Act. [Paras 24-26, 29][484-D-F; 485-A-B, G-H]
      Bharat Electronics Limited v. Industrial Tribunal,
      Karnataka, Bangalore & Anr. (1990) 2 SCC 314 :
      [1990] 1 SCR 971 ; Syndicate Bank Limited v.
      Ramanath (1968) 1 SCR 327 – relied on                             E
        2.1 It came in evidence that the respondent had paid
Rs.110/- to the appellant in August 1986 by way of “interim relief”
as an ex gratia payment. It is not in dispute that a sum of
Rs.110/- was paid only once in August 1986 and not thereafter.
Such payment cannot be termed either as wages or its component          F
within the meaning of Section 2 (y) read with Section 6E (2) of the
Act. The reason is that any isolated one time ex gratia payment
made by way of an interim relief neither satisfies the requirement
of Section 2 (y) and nor it satisfies the requirement of clauses (i)
to (iii) of Section 2 (y) of the Act. If such amount had been paid
regularly by the respondent to the appellant in compliance with         G
his terms of employment, it would have been regarded as wages
or its component within the meaning of Section 2(y) of the Act.
In order that any payment is regarded as “wages”, it must be
proved that it was being paid by the employer to his employee
                                                                        H
478               SUPREME COURT REPORTS                  [2018] 14 S.C.R.


A     pursuant to the terms of his employment. It is only then a right is
      created in employee’s favour to claim such amount from the
      employer provided the employee proves that he has fulfilled the
      terms of his employment. [Paras 32-35][486-G-H; 487-A-D]
            Ghaziabad Zila Sahkari Bank Ltd. v. Additional Labour
B           Commissioner & Ors. (2007) 11 SCC 756 : [2007] 1
            SCR 1007 – relied on
            2.2 The respondent rightly paid Rs.1103.40 to the appellant
      by way of his wages for one month along with his dismissal order.
      Such payment was made strictly in accordance with the
C     requirements of Section 2(y) read with Section 6E (2) of the Act.
      On the other hand, the appellant failed to adduce any evidence to
      prove that Rs.110/- was being paid to him every month by the
      respondent as a part of his term of the employment and, if so,
      under which head. [Para 37][487-G-H]
D           Jaipur Zila Sahakari Bhoomi Vikas Bank Ltd. v. Ram
            Gopal Sharma & Ors. (2002) 2 SCC 244 : [2002] 1
            SCR 284 – relied on
                            Case Law Reference
      [2002] 1 SCR 284               relied on               Para 12
E
      [1990] 1 SCR 971               relied on               Para 30
      (1968) 1 SCR 327               relied on               Para 31
      [2007] 1 SCR1007               relied on               Para 36
            CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3168
F     of 2010.
            From the Judgment and Order dated 06.02.2009 of the High Court
      of Judicature at Allahabad in Writ Petition No. 2311 of 2009.
           Sanjay Parikh, Ms.Anitha Shenoy, Ritwik Parikh,
G     Ms.Srishti Agnihotri, Ms.Sanjana Srikumar, Advs. for the Appellant.
             Jitendra Mohan Sharma, Sr.Adv., Syed Hasan Isfahani, Syed Ali
      Murtaza, Rohit Kumar Singh, Ms.Stuti Mishra, Parveez Zaidi, Advs.
      for the Respondent.

H
    SHRI H.D. SHARMA v. NORTHERN INDIA TEXTILE                                479
 RESEARCH ASSOCIATION [ABHAY MANOHAR SAPRE, J.]

      The Judgment of the Court was delivered by                              A
      ABHAY MANOHAR SAPRE, J.
       1. This appeal is directed against the final judgment and order
dated 06.02.2009 passed by the High Court of Judicature at Allahabad
in Civil Misc. Writ Petition No.2311/2009 whereby the High Court allowed
the writ petition filed by the respondent herein and set aside the order of   B
the Industrial Tribunal.
        2. In order to appreciate the issues involved in this appeal, which
lie in a narrow compass, few facts need mention hereinbelow.
       3. The appellant (workman) was appointed on 26.05.1978 as              C
Duplicating Machine Operator-cum-Clerk by the respondent- Northern
India Textile Research Association, Ghaziabad (UP). On 24.04.1987,
the appellant was dismissed from service on five charges of misconduct
after holding a Departmental Enquiry.
       4. The respondent (employer) on 27.04.1987 moved an application        D
before the Presiding Officer, Industrial Tribunal at Meerut under Section
6E (2) of the UP Industrial Disputes Act, 1947 (hereinafter referred to
as “the Act”) read with Rule 31 (2) of the Rules (Adj case No. 53/1986)
and sought approval of the dismissal of the appellant. The respondent
contended that they have complied with all necessary pre-requisites for
seeking approval as provided in proviso to sub-Section (2) of Section 6E      E
of the Act.
       5. During the pendency of approval proceedings, the State
Government, on 03.08.1988, also made an Industrial Reference (31/1988)
to the Industrial Tribunal under Section 4K of the Act for deciding the
legality and correctness of the appellant’s dismissal order dated             F
24.04.1987.
       6. In the meantime, the appellant (workman) filed his reply to
approval proceedings (53/1986) filed by the respondent in the Industrial
Tribunal. The appellant opposed the respondent’s prayer for grant of
approval essentially on the ground that the respondent (employer) did         G
not ensure full compliance with the pre-requisites, which were necessary
for grant of approval to the dismissal order in terms of proviso to sub-
Section (2) of Section 6E of the Act. The appellant contended that in
terms of proviso to sub-Section (2) of Section 6E of the Act his services
could not have been discharged/dismissed unless he had been paid “wages
                                                                              H
480                 SUPREME COURT REPORTS                      [2018] 14 S.C.R.


A     for one month”. It was contended that the respondent though paid the
      wages for one month, but did not pay “full wages of one month” to the
      appellant.
              7. In other words, the grievance of the appellant was that the
      respondent was under legal obligation to pay to the appellant full wages
B     for one month so as to enable them to obtain approval for his dismissal
      as provided in sub-Section (2) of Section 6E of the Act but since there
      was a short payment of Rs.110/- in total monthly wages, the respondent
      could not be said to have ensured full compliance with the proviso to
      sub-Section (2) of Section 6E of the Act. It was contended that it is only
      after the full compliance with Section 6E is done which is held mandatory
C     by this Court, the respondent becomes entitled to claim its benefit else
      not. It was, therefore, contended that since the respondent failed to ensure
      full compliance with Section 6E of the Act, no approval could be accorded
      to the dismissal order as provided under Section 6E of the Act.
            8. The respondent filed rejoinder stating therein the break up of
D     the appellant’s monthly wages with a view to show that they had paid
      full monthly wages to the appellant as per the terms of employment
      along with the dismissal order and, therefore, there was a full compliance
      with proviso to sub-Section (2) of Section 6E of the Act entitling them to
      seek approval to the appellant’s dismissal order.
E            9. In the meantime, the respondent filed an application and sought
      permission of the Industrial Tribunal to allow them to withdraw their
      application which they had filed for obtaining approval to the dismissal
      order. According to the respondent, in view of the Industrial Reference
      No.31/1988 having already made by the State to the Industrial Tribunal
F     wherein the legality and correctness of the dismissal order was being
      examined, it was not necessary for them to seek any approval to such
      dismissal order, as required under Section 6E of the Act, from the
      Industrial Tribunal.
             10. By order dated 29.06.1990, the Industrial Tribunal dismissed
G     the respondent’s aforementioned application. The respondent felt
      aggrieved and filed a writ petition (W.P. No.18679/1990) in the High
      Court. By order dated 11.02.1998, the High Court allowed the writ
      petition and set aside the order dated 29.06.1990. It was held that two
      parallel proceedings in relation to the same matter cannot be allowed to
      be continued. Felt aggrieved, the appellant (workman) filed SLP(c) No.
H     8465/1998 in this Court.
    SHRI H.D. SHARMA v. NORTHERN INDIA TEXTILE                                 481
 RESEARCH ASSOCIATION [ABHAY MANOHAR SAPRE, J.]

       11. By order dated 28.03.2000, this Court allowed the appeal, set       A
aside the order of the High Court and remanded the case to the High
Court. This Court held that firstly, the scope of proceedings under the
two provisions was entirely different; and secondly, since the Act provided
separate rights, protection and remedies to the parties for prosecuting
these proceedings, the disposal of one proceedings would not bring to an
                                                                               B
end the other. The High Court was, therefore, requested to decide the
writ petition afresh on merits keeping in view the observations made.
        12. On remand, when the High Court took up the writ petition for
its disposal, the respondent did not press their withdrawal application in
view of the decision of the Constitution Bench in Jaipur Zila Sahakari
Bhoomi Vikas Bank Ltd. vs. Ram Gopal Sharma & Ors. (2002) 2                    C
SCC 244 wherein it was laid down that proviso to Section 33(2)(b) of
the Industrial Disputes Act, 1947, which is akin to Section 6E of the
Act, is unambiguous, clear and equally mandatory in nature for ensuring
its compliance. It was held that if the employer has failed to ensure
compliance with the provisions and the conditions stated therein, the          D
discharge or dismissal order passed by the employer would be void and
inoperative.
       13. Since Section 6E of the Act is in pari materia with Section
33(2)(b) of the Industrial Disputes Act, the interpretation of Section 33
(2)(b) made by this Court in Jaipur Zila Sahakari Bhoomi Vikas Bank            E
(supra) will have its full application to Section 6E of the Act. The writ
petition was accordingly dismissed as having rendered infructuous.
       14. The Industrial Tribunal thereafter proceeded to try the reference
on merits. An issue on the question of compliance with Section 6E
(2)(b) of the Act, as directed by the High Court in the order dated            F
02.03.2005 passed in W.P.No.13094/2005, was accordingly framed.
Parties adduced their evidence.
       15. So far as the appellant is concerned, he adduced the evidence
to prove that he was paid total sum of Rs.1103.30 by way of his monthly
wages in terms of proviso to sub-Section (2) of Section 6E of the Act          G
along with the dismissal order whereas his actual monthly wages payable
was Rs.1214.40 thereby leaving a deficit of Rs.110/-. The respondent
on their part produced the wages register to prove the appellant’s actual
monthly wages, its nature and also gave its break up.

                                                                               H
482                 SUPREME COURT REPORTS                        [2018] 14 S.C.R.


A            16. By order dated 24.07.2008, the Industrial Tribunal answered
      the reference in appellant’s favour. It was held that the respondent did
      not ensure full compliance with proviso to Section 6E (2) inasmuch as
      the respondent failed to pay full wages of one month to the appellant. In
      other words, it was held that there was a deficit of Rs.110/- in paying
      monthly wages by the respondent to the appellant along with the dismissal
B
      order and hence the appellant was held deemed to be in service as if no
      dismissal order had been passed.
             17. The respondent felt aggrieved by the order of the Industrial
      Tribunal and filed a writ petition in the High Court out of which this
      appeal arises. By impugned order, the High Court allowed the writ petition
C     and set aside the order of the Industrial Tribunal. It was held that assuming
      that there was a short payment of Rs.110/- while paying monthly wages
      to the appellant, yet since the respondent had also paid a sum of
      Rs.1618.30 to him towards leave encashment in his monthly wages, a
      sum of Rs.110/- could always be adjusted out of Rs.1618.30. It was
D     accordingly held that in this way, it can be held that the respondent has
      ensured full compliance with Section 6E(2) of the Act while paying
      monthly wages to the appellant along with his dismissal order. The High
      Court, therefore, accorded sanction to the respondent as required under
      Section 6E(2) of the Act and upheld the dismissal order as being legal.
E            18. The workman (appellant herein) felt aggrieved and has filed
      the present appeal by way of special leave in this Court.
             19. Three questions arise for consideration in this appeal. First,
      whether the High Court was justified in allowing the respondent’s writ
      petition and thereby was justified in setting aside the order of the Industrial
F     Tribunal; Second, whether an isolated payment of Rs.110/- made by the
      employer (respondent) to the employee (appellant) by way of interim
      relief (ex gratia) in August 1986 in monthly wages can be regarded as
      wages under Section 2(y) read with Section 6E(2) of the Act or in other
      words, whether such payment is a part of the appellant’s monthly wages;
      and third whether the respondent can be held to have paid wages for
G     one month to the appellant in compliance with the requirements of Section
      6E (2) of the Act so as to enable them to claim sanction to the appellant’s
      dismissal order.
            20. Heard Mr. Sanjay Parikh, learned counsel for the appellant
      and Mr. Jitendra Mohan Sharma, learned senior counsel for the
H     respondent.
    SHRI H.D. SHARMA v. NORTHERN INDIA TEXTILE                             483
 RESEARCH ASSOCIATION [ABHAY MANOHAR SAPRE, J.]

      21. Having heard the learned counsel for the parties at length and   A
on perusal of the record of the case, we are inclined to uphold the
conclusion arrived at by the High Court but we do so on our reasoning
given hereinbelow. In other words, though we uphold the conclusion
arrived at by the High Court, but not the reasoning of the High Court.
This we say for the following reasons.
                                                                           B
      22. In our view, the respondent’s application made under Section
6E(2) of the Act deserves to be allowed by granting them approval to
the appellant’s dismissal.
      23. Section 2 (y) and Section 6E (2) of the Act are relevant. They
are quoted below:                                                          C
                                 “Section 2(y)
      ‘Wages’ means all remuneration capable of being expressed
      in terms of money, which would, if the terms of employment,
      expressed or implied, were fulfilled, be payable to a
      workman in respect of his employment, or of work done in             D
      such employment, and includes:-
      (i)     such allowances (including dearness allowance) as the
              workman is for the time being entitled to;
      (ii)    the value of any house accommodation, or of supply
                                                                           E
              of light, water, medical attendance or other amenity
              or of any service or of any concessional supply of
              foodgrains or other articles;
      (iii)   any traveling concession, but does not include-
              (a)   any bonus;                                             F
              (b)   any contribution paid or payable by the employer
                    to any pension fund or provident fund or for the
                    benefit of the workman under any law for the
                    time being in force;
              (c)   any gratuity payable on the termination of his         G
                    service.
                                  Section 6E
      Conditions of service, etc. to remain unchanged in certain
      circumstances during the pendency of proceedings –
                                                                           H
484                 SUPREME COURT REPORTS                     [2018] 14 S.C.R.


A           (1)    ……………….
            (2)    During the pendency of any such proceeding in
                   respect of an industrial dispute, the employer may, in
                   accordance with the standing orders applicable to a
                   workman concerned in such dispute-
B                  (a)………………
                   (b) for any misconduct not connected with the dispute,
                   discharge or punish, whether by dismissal or
                   otherwise;

C           Provided that no such workman shall be discharged or
            dismissed, unless he has been paid wages for one month
            and an application has been made by the employer to the
            authority before which the proceeding is pending for
            approval of the action taken by the employer.”

D                                                        (emphasis supplied)
             24. Section 2(y) defines the term ‘wages’ whereas Section 6E
      provides that condition of service of a workman has to remain unchanged
      in certain circumstances. Proviso to Section 6E(2) says that no workman
      can be discharged or dismissed from the services unless he has been
      paid wages for one month and an application is made by an employee to
E
      an authority before whom the proceedings are pending for approval of
      the action taken by the employer against the workman.
            25. Coming to the facts of this case, to answer these three questions
      posed above, we find that the appellant has relied on the break up of his
      monthly wages. It is this amount which, according to the appellant,
F
      should have been paid to him by the respondent as a pre-condition to
      give effect to his dismissal order. The break up reads as under:
            Basic Salary                        Rs. 334.00
            F.D.A                               Rs. 108.00
G           F.D.A                               Rs. 62.00
            A.D.A                               Rs. 494.35
            Interim Relief                      Rs. 110.00
            H.R.A.                              Rs. 75.60
            C.C.A.                              Rs. 30.45
H                                               Rs.1214.40
    SHRI H.D. SHARMA v. NORTHERN INDIA TEXTILE                                485
 RESEARCH ASSOCIATION [ABHAY MANOHAR SAPRE, J.]

        26. So far as the respondent is concerned, they relied on the         A
details of the appellant’s monthly wages payable/paid to him at the time
of his dismissal in full and final satisfaction. It reads as under:
      1.    Salary for April from 1.4.87 to
            27.4.89 4 days under LWP
                                                                              B
            suspension                                          926.70
      2.    Increments from 25.11.86 to
            31.3.87                                             67.90
                                                                994.60
                                                                              C
            Less:PF/EPF deduction                               73.00
      3.    Leave encashment for 44 days                        1618.30
      4.    One months notice pay as per
            provision of UP Industrial                                        D
            Disputes Act Section 6E(2)(b)                       1103.40
                                                                3643.30
      27. According to the appellant, there was a short payment of
Rs.110/- because he was paid Rs.1103.40 whereas his monthly wages
                                                                              E
was Rs.1214.40.
       28. The stand of the respondent was that there was no short
payment because a sum of Rs.110/- was paid to the appellant only once
in August 1986 by way of ex gratia in the form of “interim relief”. This
sum, i.e., (Rs110/-), according to the respondent, was thereafter never
                                                                              F
paid to the appellant after August, 1986 till 24.04.1987 (date of dismissal
order). It is for this reason, the respondent contended that a sum of
Rs.110/- is neither a wage and nor its component and nor the appellant
has any right in law to claim such amount under the terms of his
employment from the respondent.
      29. What types of payment would constitute a wage or its                G
component within the meaning of the word “wages” as defined under
Section 2 (rr) of the Industrial Disputes Act has been the subject matter
of several decisions of this Court. The word “wages” defined in Section
2(y) of the Act is in peri materia with the definition of word “wages”
defined in Section 2(rr) of the Industrial Disputes Act.                      H
486                 SUPREME COURT REPORTS                       [2018] 14 S.C.R.


A            30. A question arose before the Three Judge Bench in the case of
      Bharat Electronics Limited vs. Industrial Tribunal, Karnataka,
      Bangalore & Anr. (1990) 2 SCC 314 as to whether “night shift
      allowance” would form part of “wages” in the context of Section 33 (2)
      (b) of the Industrial Disputes Act, 1947.
B            31. Justice M.M. Punchhi (as His Lordship then was and later
      CJI) speaking for the Bench examined the object of Section 33(2)(b) of
      the Industrial Disputes Act. After referring to earlier decision of this
      Court in Syndicate Bank Limited vs. Ramanath (1968) 1 SCR 327, it
      was held that the intention of the legislature in providing for such a
      contingency is not far to seek. It was held that the section was enacted
C     “to soften the rigour of unemployment that will face the workman against
      whom an order of discharge or dismissal has been passed”. This Court
      held that one month’s wages as thought and provided to be given are
      conceptually for the month to follow, the month of unemployment and in
      the context wages for the month following the date of dismissal and not
D     a repetitive wage of the month previous to the date of dismissal. This
      Court further held that if the converse is read in the context of the proviso
      to Section 33(2)(b), it inevitable would have to be read as double the
      wages as earned in the month previous to the date of dismissal and that
      would, in our view, be reading in the provision something which is not
      there, either expressly or impliedly. This Court held that we have to
E     blend the contextual interpretation with the conceptual interpretation to
      come to the view that night shift allowance could never be part of wages,
      and those would be due only in the event of working. It was held that the
      conclusion is inescapable that the workman had to earn night shift
      allowance by actually working in the night shift and his claim to that
F     allowance was contingent upon his reporting to duty and being put to
      that shift. It was held that the night shift allowance automatically did not
      form part of his wages and it was not such an allowance which flowed
      to him as his entitlement not restricted to his service.
             32. Now coming to the facts of this case, we find that it has come
G     in evidence that the respondent had paid Rs.110/- to the appellant in
      August 1986 by way of “interim relief” as an ex gratia payment. It is
      not in dispute that a sum of Rs.110/- was paid only once in August 1986
      and not thereafter.


H
    SHRI H.D. SHARMA v. NORTHERN INDIA TEXTILE                                    487
 RESEARCH ASSOCIATION [ABHAY MANOHAR SAPRE, J.]

        33. In our opinion, such payment cannot be termed either as wages         A
or its component within the meaning of Section 2 (y) read with Section
6E (2) of the Act.
      34. The reason is that any isolated one time ex gratia payment
made by way of an interim relief neither satisfies the requirement of
Section 2 (y) and nor it satisfies the requirement of clauses (i) to ( iii ) of   B
Section 2 (y) of the Act.
      35. If such amount had been paid regularly by the respondent to
the appellant in compliance with his terms of employment, it would have
been regarded as wages or its component within the meaning of Section
2(y) of the Act. In order that any payment is regarded as “wages”, it             C
must be proved that it was being paid by the employer to his employee
pursuant to the terms of his employment. It is only then a right is created
in employee’s favour to claim such amount from the employer provided
the employee proves that he has fulfilled the terms of his employment.
        36. A question arose before the Two Judge Bench in Ghaziabad              D
Zila Sahkari Bank Ltd. vs. Additional Labour Commissioner &
Ors. (2007) 11 SCC 756 as to whether any ex gratia payment made to
the employee by the Bank would be regarded as Bonus (production,
incentive or customary). This Court held that it was not. It was held that
it is not possible to employ a term of service on the basis of employment
contract. It was held that the payment made as ex gratia was neither in           E
the nature of production bonus nor incentive bonus nor customary bonus
and nor any statutory bonus. It cannot be regarded as part of the contract
“employment”. It was accordingly held that the ex gratia payment made
by the Bank cannot be regarded as remuneration paid or payable to the
employees in fulfillment of the terms of the contract of employment               F
within the meaning of definition of wage under Section 2 (rr) of the ID
Act.
       37. We are, therefore, of the considered opinion that the respondent
rightly paid Rs.1103.40 to the appellant by way of his wages for one
month along with his dismissal order. Such payment, in our view, was              G
made strictly in accordance with the requirements of Section 2(y) read
with Section 6E (2) of the Act. On the other hand, we find that the
appellant failed to adduce any evidence to prove that Rs.110/- was being
paid to him every month by the respondent as a part of his term of the
employment and, if so, under which head.
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488                   SUPREME COURT REPORTS                   [2018] 14 S.C.R.


A            38. In view of the foregoing discussion, we are of the view that
      the High Court was not justified in holding that such amount, even if,
      held to be the wages, the same could be adjustable against the payments
      made by the respondent under other head in the appellant’s monthly
      wages. The High Court, in our view, failed to examine the main question
      as to whether a payment of Rs.110/- was in the nature of “wages” or its
B
      component within the meaning of Section 2(y) of the Act. Without
      deciding this question, the High Court held that such amount could be
      adjusted against the payment made by the employer (respondent) to the
      appellant under “leave encashment”. In our opinion, it was not the correct
      approach.
C           39. In the light of afore-mentioned reasons, though we uphold the
      conclusion of the High Court but do not agree to the reasoning on which
      such conclusion is based.
            40. In view of the foregoing discussion, we find no merit in this
      appeal. It thus fails and is accordingly dismissed.
D
      Devika Gujral                                              Appeal dismissed.




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