QAISAR KHAN, J.-Telephone Industries of Pakistan Limited is a private limited company with its factory at Haripur Hazara where telephone apparatuses and their parts are manufactured and assembled. The head office of the company is at Karachi. The company has offices in a number of big cities known as Planning & Installation Branches. One such office is at Karachi under the charge of a manager. All the twelve respondents in these appeals are employed in the said branch at Karachi. M. A. Ghaffur respondent is employed as a draftsman while the rest as technical assistants Grade II.
Before the 1st of March 1969 draftsme n were in pay scale of Rs. 185-340 while technical assistants Grade 11 in pay scale of Rs. 275-450. Vide memo. No. 8(1)-815/69 dated the 21st February 1969 of the Ministry of Finance, Government of Pakistan, ad hoc relief was given to non---gazetted government servants drawing pay upto Rs. 500 per month at the following rates :--
(1) Those drawing pay upto and including20 % of the basic Rs. 100 p.m.Pay--
(2) Those drawing pay of Rs. 101 to15 % of the basic Rs. 200 p.m. Pay subject to a minimum of Rs. 20.
(3) Those drawing pay of Rs. 201 to10 % of the basic Rs. 500 p.m.Pay subject to a minimum of Rs. 30.
No part of this ad hoc relief was to be treated as pay and the relief was to be given with effect from the 1st of March 1969.
The respondents who were the employees of a private company were not eligible for this relief.
Their Union therefore made a number of demands from the employer, that is to say the appellant, including one for the grant of the ad hoc relief. According to an agreement dated the 19th of March 1969 between the Union and the Management the demand of ad hoc relief to the workers was acceded to and it was granted to them with effect from the 1st of March 1969 by revising and increasing their pay scales. The pay scale of draftsman was raised to Rs. 215-325 and that of technical assistants to Rs. 310-500.
It may be mentioned here that all the twelve respondents joined service after the 1st of March 1969, that is to say, they were recruited in the revised pay scales.
The Government of Pakistan vide Ministry of Finance Memo No. 1(2)--NC-TMP/71 dated the 8th of March 1972 introduced National Pay Scales with effect from the 1st of March 1972. Anticipating the demand from the workers for the introduction of the National Pay Scales the Management of the T.
I. P. Itself vide directive No. 34/ 1972 dated the 18th of December 1972 decided to introduce the National Pay Scales in its organisation with effect from the 1st of March 1972. According to this directive the draftsmen were placed in National Pay Scale No. 8 of Rs. 200-425 and technical assistants Grade 11 in National Pay Scales No. 10 of Rs. 250--540. Pay in the new scales was to be fixed according to para. 3 of the directive which runs as follows :- "3. In brief, the pay in the new pay scales will be fixed at the stage equal to or if there be no such stage at the stage next above the aggre--gate of the following :---
(a) The existing basic pay minus the element of ad hoc increase merged in the scales revised with effect from 1-3-1969 vide Management Directive No. 7/69 dated 28-3-1969 as admissible on 1-3- 1972.
(b) An amount of increase, to be determined in accordance with the percentage increase formula given below: PERCENTAGE INCREASE FORMULA New scale of pay in whichPercentage increase of the existing basic pay is to be pay. fixed.
1 & 240 --% subject to a minimum of Rs. 20 and maximum of Rs. 40.
3 & 430 % subject to a minimum of Rs. 20 and a maximum of Rs. 40.
5, 6 & 720 % subject to a minimum of Rs. 30 and a maximum of Rs. 60.
8, 9, 10 & 1115 % subject to a minimum of Rs. 30 and a maximum of Rs. 60.
12, 13, 14 & 1510 % subject to a minimum of Rs. 30 and a maximum of Rs. 60.
Where the aggregate of 3(a) and (b) above exceeds the maximum of the relevant New Pay Scale the excess will be allowed as personal pay subject to subsequent reduction."
The employees were given option either to retain the existing scales or to opt for the National Pay Scales in terms of the directive. All the twelve respondents, it is not denied, opted for the new scales and in December 1972 their pays in the new scales were fixed with effect from the 1st of March 1972 or any subsequent date on which they had joined service. Their fixation was done on the following form and the form handed over to each employee: PROVISIONAL No. EI/Inst.---- Dated. --------- INITIAL PAY STATEMENT
1. Name ---------
2. Designation----- --Department Installation -----------------------
3. Pay scale on 1-3-1972 including art hoc increase ------------------
4. Pay scale on 1-3-1972 excluding ad hoc increase : -----------------------
5. Pay on 1-4-1972 excluding ad hoc increase ------------------------------
6. New pay scale corresponding to scale mentioned in 4 above based upon National Pay Scale. --- --------------------
7. Fixation in New Pay Scale Pay vide 5 above Rs. ------------------ Add 15% increase Rs. ------------------ Total Rs.-------------------- 8 Pay fixed on--------------------in New Pay ScaleRs. ------------------
9. Date of next increment 1-12-1972.
Incharge Personnel Administration.
The respondents drew their pay as fixed above for more than a year but suddenly on the 18th of March 1974 the twelve respondents moved separate petitions under section 15 of the Payment of Wages Act before the authority appointed under the Act against the General Manager, T. I. P., and Manager Planning & Installation Karachi alleging that after obtaining options from them their pays were reduced and ad hoc relief was not paid to them. They prayed for the recovery of the amount of pay deducted until the 18th of March 1974 the date of filing of the petitions and the ad hoc relief which according to them had not been paid to them.
The respondent in the petitions, that is to say the present appellant contested the petitions and the learned authority in each case framed the following issues :----
(1) Whether the petition was maintainable under the Payment of Wages Act?
(2) Whether there was any deduction in wages?
(3) To what relief was the petitioner entitled, if any?
After recording such evidence of the parties as they wished to adduce the learned authority in each case by his order dated the 15th of April 1974 held that the petition was maintainable and that as according to the Government instructions ad hoc relief could not be merged with pay, the petitioner was entitled to the ad hoc relief which had not been paid to him. Each petitioner was granted a sum of Rs. 6'0 on account of ad hoc relief for the period 16-6-1972 to 18-3-1974 at the rate of Rs. 30 p.m. At the same time each petitioner was also granted compensation equivalent to four times the aforesaid amount.
It may be mentioned here that each petitioner had claimed deduction of pay and ad hoc relief from the date of his appointment which in some cases was before the 16th June 1972 and in some after the 16th of June 1972, but the learned authority granted relief to each petitioner from the 16th of June 1972 the date of appointment of one of them.
Twelve appeals were filed by the T. I. P. In the First Sind Labour Court at Karachi against the orders dated the 15th of April 1974 of the learned authority mentioned above. The learned Presiding Officer of the Labour Court by his order dated the 5th of May 1975 upheld the findings of the learned authority in each appeal and dismissed all the appeals. He held that the ad hoc relief could not be merged with pay and that by not paying the ad hoc relief the wages of the employees had been withheld. He however corrected the order of the authority to the extent that all the then petitioners, excepting M. A. Ghafoor mere held entitled toad hoc relief at the rate of Rs. 35 p.m. Instead of Rs. 30 p.m. As determined by the authority.
The T. I. P. Questioned the findings of the authority and the Labour Court in each case by a writ petition in the then High Court of Sind & Baluchistan at Karachi. A learned Single Judge in the High Court by a single order dated the 23rd of December 1975 dismissed all the petitions. He held that the petitions were competent and neither could the ad hoc relief be merged with pay according to the Statute (probably referring to the instructions of the Government) nor could it be kept out of consideration, after merger with pay, at the time of the fixation of the pays in the National Pay Scales.
The T. I. P. Filed 12 petitions for special leave to appeal against the aforesaid order dated the 23rd of December 1975 of the learned Single judge and leave to a appeal in each case was granted on the 25th of October 1976.
Learned counsel for the parties heard at length. The objection of the appellant before the authority as to the maintainability of the petitions under section 15 of the Payment of Wages Act, 1936 was two-fold which was reiterated before us as well. Firstly it was contended that since the petitioners before the authority were not employees of a factory they could not seek relief under the provisions of the Payment of Wages Act. Secondly it was contended that the authority under section 15 of the payment of Wages Act could only hear claims arising out of deductions room wages or delay in payment, of wages and that since in the case of the petitioners that is to say the present respondents there was neither deduction from wages nor delay in payment of wages, the authority could not therefore hear the petitions.
The authority, the Labour Court and the High Court all have held that the petitioners that is to say the present respondents were employees of a factory and that there had been deduction from their wages in the form of the withholding of the ad hoc relief from them and that thus they could seek relief under the Payment of Wages Act.
At the very outset we are constrained to remark that all the Courts have not at all understood the case. All the Courts have proceeded on the assumption that the respondents were governed by the instructions and rules of the Governments issued regarding ad hoc relief and National Pay Scales with respect to Government servants. This is however not the case. Learned counsel for the respondents could not deny the fact that the Government rules and instructions did not apply to the respondents and that the wages of the respondents were to be fixed on the basis of agreements between the employees and the employer. In this view of the matter we, need not go into the first contention of the learned counsel for the petitioner that the respondents were employed in a factory as the case can easily be decided on the second contention that is to say as to whether there; was any deduction from wages or not.
The respondents were not entitled to the ad hoc relief as of right under the instructions of the Government issued in relation to Government servants. Relief to them in this respect was given by the agreement dated the 19th of March 1969 by which they were bound. Learned counsel for the respondents could not deny that his clients were bound by the agreement. After the agreement the respondents could not therefore claim any ad hoc relief on the lines given to the Government servants and the question of granting them ad hoc relief after the agreement dated the 19th of March 1969 therefore did not arise.
The rules issued by the Government regarding the introduction fit' National Pay Scales in relation to Government servants again it was admitted did not apply to the respondents. The National Pay Scales were introduced by the T. I. P. In its organisation according to the directive dated the 18th of December 1972 and an option was given to every employee either to opt for the new scales in the terms of the directive or to retain the existing` scales. It is not denied that all the respondents opted for the new scales in the terms of the directive and their pays in the new scales were fixed accordingly. It is not the case of the respondents that the fixation of their pays according to the directive has not been done properly. They car, therefore have no grievance as regards the fixation of their pays in the National Pay Scale, and as a matter of fact they remained satisfied with it for a period of more than a year. It is therefore abundantly clear that there was no deduction of any kind from the pay of the respondents by the appellant. The respondents were therefore not entitled to any relief and as a matter of fact on that account they could not approach the authority under the Payment of Wages Act. These appeals are therefore accepted, the orders of the authority, the Labour Court and High Court are set aside and the petitions under section 15 of the Payment of Wages Act are dismissed. No order as to costs.