Judgment:
1. The Textile Labour Association has moved this application for directing respondent No. 1, i.e. the Official Liquidator to pay to the workmen their dues of Rs. 24,03,366-55 being the amount payable to them in lieu of unenjoyed privilege leave standing to their credit, and also for directing the Official Liquidator to pay by way of remuneration Rs. 2,000/- to the clerks, who had prepared the statement of claim of the workmen at the instance of the Court.
2. So far as payment to be made to the clerks is concerned, the objection which has been raised on behalf of the secured creditor i.e. the State Bank of India, is that the amount of Rs. 22,000/- is on a higher side. It was also submitted that this amount being in the nature of costs, should be ordered to be paid only at the end, that is when the final orders are passed in the winding-up petition. As it was difficult for the workmen to prepare the statement of claim and the Official Liquidator also would have been put to much trouble, it was suggested to the TLA that they should get the said statement prepared. It is pursuant to the suggestion made by the Court that the said statement was prepared with the help of eight clerks. Therefore, there is no reason why an order for making payment to them should not be made at this stage. However, I find that there is some substance in the other objection raised on behalf of the secured creditor. Considering the nature of the work and the time taken in preparation of the said statement, I am of the opinion that it would be proper if each clerk is paid Rs. 1500 for the work done by him. In all eight clerks prepared the said statement and, therefore, the Official Liquidator is directed to pay Rs. 1500 to each clerk i.e. Rs. 12000 in all to them towards their remuneration for preparing the said statement.
3. As regards the wages payable in lieu of unenjoyed privilege leave, it was submitted by Mr. Vasavada, learned advocate appearing for the TLA, that under Section 529A of the Companies Act, workmen's dues are given priority along with the dues of the secured creditors over all other debts. He submitted that the workmen's dues would include wages payable to them in lieu of unavailed privilege leave standing to their credit and which has not lapsed. This provision of Section 529A is to apply notwithstanding anything contained in any of the provisions of the Act, or any other law, for the time being in force. The expression 'workmen's dues' is defined by Section 529. According to that definition, workmen's dues in relation to a company means the aggregate of the sums specified in clause (b) of sub-section (3) of that section, due for the company to its workmen. One of them is wages. The word 'wages' is not defined by the Companies Act. However, my attention was drawn to the definition of the word 'wages' in the Industrial Disputes Act and the Payment of Wages Act. Section 2(rr) of the Industrial Disputes Act, defines 'wages' as under :
'(rr) 'wages' means all remuneration capable of being expressed in terms of money, which would, if the terms of employment, express or implied, were fulfilled, be payable to a workman in respect of his employment, or of work done in such employment, and includes -
(i) such allowances (including dearness allowances) as the workman is for the time being entitled to;
(ii) the value of any house accommodation, or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of foodgrains or other articles;
(iii) any travelling concession;
(iv) any commission payable on the promotion of sales or business or both;
but does not include -
(a) any bonus;
(b) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the workmam under any law for the time being in force;
(c) any gratuity payable on the termination of his service;'
As can be seen from this definition, wages means all remuneration capable of being expressed in terms of money and payable to a workman in respect of his employment, or of work done in such employment. Thus, what has to be paid for not enjoying the earned leave would certainly amount to wages under the Industrial Disputes Act.
Section 2(vi) of the Payment of Wages Act defines the word 'wages' as under :
'(vi) 'wages' means all remuneration (whether by way of salary, allowances or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms 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 includes -
(a) any remuneration payable under any award or settlement between the parties or order of a Court;
(b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period;
(c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name);
(d) any sum which by reason of termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;
(e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force;
but does not include - .........'
Clause (b) of sub-section (vi) of Section 2 in terms refers the remuneration payable in respect of leave period. From the above two definitions, it becomes clear that the word 'wages' in the context of labour laws means wages payable in lieu of unavailed leave also. Therefore, while trying to determine what are the workman's dues for the purpose of Sections 529, 529A and 530 of the Companies Act, the word, 'wages' will have to be understood in the same manner in which it is understood under the labour laws. I, therefore, hold that the workman's dues for the purpose of Section 529 and 529A of the Companies Act will include wages payable to workmen for the unemployed privilege leave. Of course, the extent of wages payable would depend upon the leave standing to the credit of the workman and which has not lapsed. It may also be stated that this priority with respect to wages in lieu of unemployed privilege leave is restricted to workman as defined by Section 529(3)(a).
4. The Official Liquidator is, therefore, directed now to consider the claims of the workmen under the said head and deal with them in accordance with law and submit a report so as to enable this Court to pass appropriate orders thereafter.