Section 15. Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims.

^2[(1) The appropriate Government may, by notification in the Official Gazette, appoint—

(a) any Commissioner for Workmen's Compensation; or

(b) any officer of the Central Government exercising functions as,—

(i) Regional Labour Commissioner; or

(ii) Assistant Labour Commissioner with at least two years‟ experience; or

(c) any officer of the State Government not below the rank of Assistant Labour Commissioner with at least two years‟ experience; or

(d) a presiding officer of any Labour Court or Industrial Tribunal, constituted under the Industrial Disputes Act, 1947 (14 of 1947) or under any corresponding law relating to the investigation and settlement of industrial disputes in force in the State; or

(e) any other officer with experience as a Judge of a Civil Court or a Judicial Magistrate,

as the authority to hear and decide for any specified area all claims arising out of deductions from the wages, or delay in payment of the wages, of persons employed or paid in that area, including all matters incidental to such claims:

Provided that where the appropriate Government considers it necessary so to do, it may appoint more than one authority for any specified area and may, by general or special order, provide for the distribution or allocation of work to be performed by them under this Act.]

(2) Where contrary to the provisions of this Act any deduction has been made from the wages of an employed person, or any payment of wages has been delayed, such person himself, or any legal practitioner or any official of a registered trade union authorised in writing to act on his behalf, or any Inspector under this Act, or any other person acting with the permission of the authority appointed under sub-section (1), may apply to such authority for a direction under sub-section (3):

Provided that every such application shall be presented within ^3[twelve months] from the date on which the deduction from the wages was made or from the date on which the payment of the wages was due to be made, as the case may be:

Provided further that any application may be admitted after the said period of ^3[twelve months] when the applicant satisfies the authority that he had sufficient cause for not making the application within such period.

^4[(3) When any application under sub-section (2) is entertained, the authority shall hear the applicant and the employer or other person responsible for the payment of wages under section 3, or give them an opportunity of being heard, and, after such further enquiry, if any, as may be necessary, may, without prejudice to any other penalty to which such employer or other person is liable under this Act, direct the refund to the employed person of the amount deducted, or the payment of the delayed wages, together with the payment of such compensation as the authority may think fit, not exceeding ten times the amount deducted in the former case and not exceeding three thousand rupees but not less than one thousand five hundred rupees in the latter, and even if the amount deducted or delayed wages are paid before the disposal of the application, direct the payment of such compensation, as the authority may think fit, not exceeding two thousand rupees:

Provided that a claim under this Act shall be disposed of as far as practicable within a period of three months from the date of registration of the claim by the authority:

Provided further that the period of three months may be extended if both parties to the dispute agree for any bona fide reason to be recorded by the authority that the said period of three months may be extended to such period as may be necessary to dispose of the application in a just manner:

Provided also that no direction for the payment of compensation shall be made in the case of delayed wages if the authority is satisfied that the delay was due to—

(a) abona fide error or bona fide dispute as to the amount payable to the employed person; or

(b) the occurrence of an emergency, or the existence of exceptional circumstances, the person responsible for the payment of the wages was unable, in spite of exercising reasonable diligence; or

^1[(4) If the authority hearing an application under this section is satisfied—

(a) that the application was either malicious or vexatious, the authority may direct that a penalty ^2[not exceeding three hundred seventy-five rupees] be paid to the employer or other person responsible for the payment of wages by the person presenting the application; or

(b) that in any case in which compensation is directed to be paid under sub-section (3), the applicant ought not to have been compelled to seek redress under this section, the authority may direct that a penalty ^2[not exceeding three hundred seventy-five rupees] be paid to ^3[appropriate Government] by the employer or other person responsible for the payment of wages.

(4A) Where there is any dispute as to the person or persons being the legal representative or representatives of the employer or of the employed person, the decision of the authority on such dispute shall be final.

(4B) Any inquiry under this section shall be deemed to be a judicial proceeding within the meaning of sections 193, 219 and 228 of the Indian Penal Code (45 of 1860).]

(5) Any Amount directed to be paid under this section may be recovered—

(a) if the authority is a Magistrate, by the authority as if it were a fine imposed by him as Magistrate, and

(b) if the authority is not a Magistrate, by the Magistrate to whom the authority makes application in this behalf, as if it were a fine imposed by such Magistrate.

STATE AMENDMENT

Karnataka

Amendment of section 15.—In section 15 of the principal Act.—

(1) in sub-section (2), after the word, brackets and figure “sub-section (3)”, the following shall be inserted, namely:— “and in case of death of the employed person, it shall be lawful for his legal representatives to make and application for such direction”;

(2) for sub-section (5), the following sub-section shall be substituted, namely:— “(5) Any amount directed to be paid under this section may be recovered by the authority as an arrear of land revenue and the authority shall for that purpose be deemed to be a public officer within the meaning of section 5 of the Revenue Recovery Act, 1890”. [Vide Karnataka Act 2 of 1977, s. 5].

Insertion of new section 15A.—After section 15 of the Principal Act, the following section shall be inserted, namely:—

“15A. Liability for payment of court fees.—(1) In any proceedings under section 15, the applicant shall not be liable to pay any court fees (other than fees payable for the service of process) in respect of such proceedings:

Provided that when the application is presented by an Inspector he shall not be liable to pay the process fees also.

(2) Where the applicant succeeds in such proceedings, the authority hearing the application shall calculate the amount of court fees which would have been payable by the applicant but for sub-section (1) and direct the employer or other person responsible for the payment of wages under section 3 to pay such amount to the State Government. Such amount shall, without prejudice to any other mode of recovery be recoverable as an arrear of land revenue.

(3) When an appeal is preferred under section 17 by a person making an application under section 15, the provisions of sub-sections (1) and (2) shall mutatis mutandis apply with the modification that such person, not being an Inspector, shall pay court fees of an amount of five rupees, but that such amount shall be refunded to him in the event of his succeeding in the appeal.” [Vide Karnataka Act 2 of 1977, s. 6].

STATE AMENDMENT

KARNATAKA

In section 15 for the words “Stipendiary Magistrate” the words “Judicial Magistrate” shall be substituted.

[Vide Karnataka Act 13 of 1965, s. 67 and Schedule]

View Act Footnotes

Note: In the legacy archives, footnotes are grouped by original PDF page numbers rather than by section.

Page 3

1. The Act has been extended to Goa, Daman and Diu by Reg. 12 of 1962, s. 3 and the Schedule to Dadra and Nagar Haveli byReg. 6 of 1963, s. 2 and the First Schedule to Pondicherry by Reg. 7 of 1963, s. 3 and the First Schedule and to Lakshadweepby Reg. 8 of 1965, s. 3 and the Schedule.
2. Subs. by Act 38 of 1982, s. 2 for “persons employed in industry” (w.e.f. 15-10-1982).
3. Subs. by the A.O. 1950, for sub-section (2).
4. The words “except the State of Jammu and Kashmir” omitted by Act 51 of 1970, s. 2 and the Schedule (w.e.f. 1-9-1971).
5. 28th March 1937, see Gazette of India, 1937, Pt. I, pg. 626.
6. Subs. by Act 38 of 1982, s. 3, for “factory and to persons” (w.e.f. 15-10-1982).
7. Ins. by s. 3, ibid. (w.e.f. 15-10-1982).
8. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
9. Subs. by Act 68 of 1957, s. 2, for “the Act” (w.e.f. 1-4-1958.)10. Subs. by Act 38 of 1982, s. 3, for “any industrial establishment or in any class or group of industrial establishments”(w.e.f. 15-10-1982).11. Subs. by Act 41 of 2005, s. 3, for “the Central Government or a State Government” (w.e.f. 9-11-2005).12. Subs. by Act 38 of 1982, s. 3, for the proviso (w.e.f. 15-10-1982).13. Subs. by Act 41 of 2005, s. 2, for sub-section (6) (w.e.f. 9-11-2005).14. Subs. by S.O. 2806 (E), dated 28-8-2017, for “eighteen thousand rupees”, see Gazette of India, Extraordinary, Part II, s. 3(ii).15. Ins. by s. 4, ibid. (w.e.f. 9-11-2005).

Page 4

1. Subs. by Act 53 of 1964, s. 3, for clause (i) (w.e.f. 1-2-1965).
2. Clauses (i), (ia) and (ib) renumbered as clauses (ia), (ib) and (ic) thereof by Act 41 of 2005, s. 4 (w.e.f. 9-11-2005).
3. Subs. by Act 38 of 1982, s. 4, for „ “industrial establishment” means‟ (w.e.f. 15-10-1982).
4. Subs. by Act 53 of 1964, s. 3, for sub-clause (a) (w.e.f. 1-2-1965).
5. Subs. by Act 68 of 1957, s. 3, for item (c) (w.e.f. 1-4-1958.)
6. Ins. by s. 3, ibid. (w.e.f. 1-4-1958.)
7. Ins. by Act 38 of 1982, s. 4 (w.e.f. 15-10-1982).
8. Subs. by Act 41 of 2005, s. 3, for “the Central Government or a State Government” (w.e.f. 9-11-2005).
9. Ins. by Act 53 of 1964, s. 3 (w.e.f. 1-2-1965).10. Subs. by s. 3, ibid., for clause (iii) (w.e.f. 1-2-1965).11. Subs. by Act 41 of 2005, s. 4, for clause (v) (w.e.f. 9-11-2005).

Page 5

1. Subs. by Act 68 of 1957, s. 3, for clause (vi) (w.e.f. 1-4-1958.)
2. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
3. Subs. by s. 5, ibid.,for section 3 (w.e.f. 9-11-2005).

Page 6

1. Subs. by Act 38 of 1982, s. 6, for “industrial establishment” (w.e.f. 15-10-1982).
2. Added by Act 53 of 1964, s. 5 (w.e.f. 1-2-1965).
3. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
4. Ins. by Act 53 of 1964, s. 5 (w.e.f. 1-2-1965).
5. Subs. by Act 41 of 2005, s. 3, for “the Central Government or a State Government” (w.e.f. 9-11-2005).
6. Subs. by Act 53 of 1964, s. 5, for “All payments” (w.e.f. 1-2-1965).

Page 7

1. Subs. by Act 1 of 2017, s. 2, for section 6 (w.e.f. 28-12-2016).
2. Subs. by Act 41 of 2005, s. 6, for “sub-section (2) of section 47 of the Indian Railways Act, 1890 (9 of 1890)” (w.e.f. 9-11-2005).
3. Explanation renumbered as Explanation I thereof by Act 68 of 1957, s. 5 (w.e.f. 1-4-1958).
4. Ins. by s. 5, ibid. (w.e.f. 1-4-1958).
5. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
6. Subs. by Act 68 of 1957, s. 5, for clause (d) (w.e.f. 1-4-1958).
7. The words “Governor-General in Council or” omitted by the A.O. 1937.
8. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
9. Subs. by Act 56 of 1974, s. 3 and the Second Schedule, for “this sub-clause” (w.e.f. 20-12-1974).

Page 8

1. Subs. by Act 53 of 1964, s. 6, for clause (f) (w.e.f. 1-2-1965).
2. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
3. Subs. by s. 6, ibid., for “in section 58A of the Indian Income-tax Act, 1922” (w.e.f. 9-11-2005).
4. The word “and” omitted by Ordinance 3 of 1940, s. 2.
5. Ins. by Act 42 of 1971, s. 6 (w.e.f. 4-12-1971).
6. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
7. Added by Ordinance 3 of 1940, s. 2
8. Subs. by Act 68 of 1957, s. 5, for clause (k) (w.e.f. 1-4-1958).
9. Ins. by Act 38 of 1982, s. 7 (w.e.f. 15-10-1982).

Page 9

1. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
2. Ins. by Act 29 of 1976, s. 4 (w.e.f. 12-11-1975).
3. Ins. by Act 19 of 1977, s. 2 (w.e.f. 30-6-1977).
4. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
5. Subs. by Act 41 of 2005, s. 6, for “the Indian Railways Act, 1890” (w.e.f. 9-11-2005).

Page 11

1. Subs. byAct 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
2. Subs. by Act 38 of 1982, s. 8, for “half-an-anna in the rupee” (w.e.f. 15-10-1982).
3. Subs. by Act 41 of 2005, s. 7, for “sixty days” (w.e.f. 9-11-2005).
4. Subs. by Act 38 of 1982, s. 8, for “industrial establishment” (w.e.f. 15-10-1982).
5. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
6. Added by Act 22 of 1937, s. 2 (w.e.f. 14-4-1937).

Page 12

1. Subs. by Act 53 of 1964, s. 7, for sub-section (1) (w.e.f. 1-2-1965).
2. The words “the Governor-General in Council or” omitted by the A.O. 1937.
3. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
4. Ins. by Act 53 of 1964, s. 8 (w.e.f. 1-2-1965).
5. Ins. by s. 9, ibid. (w.e.f. 1-2-1965).
6. Ins. by Ordinance 3 of 1940, s. 3.

Page 13

1. Ins. by Act 53 of 1964, s. 10 (w.e.f. 1-2-1965).
2. Subs. by Act 68 of 1957, s. 6, for “sub-section (1) of section 10 of the Factories Act, 1934” (w.e.f. 1-4-1958).
3. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005)
4. Subs. by Act 38 of 1982, s. 9, for “industrial establishments” (w.e.f. 15-10-1982).
5. Subs. by Act 53 of 1964, s. 11, for sub-section (4) (w.e.f. 1-2-1965).
6. Subs. by Act 38 of 1982, s. 9, for “industrial establishment” (w.e.f. 15-10-1982).
7. Subs. by s. 9, ibid., for “Code of Criminal Procedure, 1898” (w.e.f. 15-10-1982).
8. Subs. by s. 9, ibid.,for “section 98” (w.e.f. 15-10-1982).

Page 14

1. Ins. by Act 53 of 1964, s. 12 (w.e.f. 1-2-1965).
2. Subs. by Act 41 of 2005, s. 8, for sub-section (1) (w.e.f. 9-11-2005).
3. Subs. by Act 53 of 1964, s. 13, for “six months” (w.e.f. 1-2-1965).
4. Subs. by Act 41 of 2005, s. 8, for sub-section (3) (w.e.f. 9-11-2005).

Page 15

1. Subs. by Act 53 of 1964, s. 13, for sub-section (4) (w.e.f. 1-2-1965).
2. Subs. by Act 41 of 2005, s. 8, for “not exceeding fifty rupees” (w.e.f. 9-11-2005).
3.Subs. by s. 3, ibid., for “the State Government” (w.e.f. 9-11-2005).

Page 16

1. Ins. by Act 53 of 1964, s. 14 (w.e.f. 1-2-1965).
2. Subs. by s. 14, ibid., for “the maximum compensation that may be awarded under sub-section (3) of section 15 shall be tenrupees per head” (w.e.f. 1-2-1965).
3. Subs. by Act 68 of 1957, s. 7, for “An appeal against a direction made under sub-section (3) or sub-section (4) of section 15”(w.e.f. 1-4-1958).
4. Subs. by s. 7,ibid., for “the direction” (w.e.f. 1-4-1958).
5. The words “or in Rangoon” omitted by the A.O. 1937.

Page 17

1. Ins. by Act 53 of 1964, s. 15 (w.e.f. 1-2-1965).
2. Subs. by s.15, ibid., for clause (b) (w.e.f. 1-2-1965).
3. Subs. by Act 20 of 1937, s. 2 and the First Schedule, for “sub-section (5) (w.e.f. 14-4-1937).
4. Subs. by Act 68 of 1957, s. 7, for sub-section (2) (w.e.f. 1-4-1958).
5. Ins. by Act 53 of 1964, s. 15 (w.e.f. 1-2-1965).
6. Ins. by Act 68 of 1957, s. 8 (w.e.f. 1-4-1958).
7. Subs. by Act 53 of 1964, s. 16, for “any official of a registered trade union authorised in writing to act on his behalf"”(w.e.f. 1-2-1965).

Page 18

1. Subs. by Act 38 of 1982, s. 10, for “Chapter XXVI of the Code of Criminal Procedure, 1973” (w.e.f. 15-10-1982).
2. Subs. by Act 53 of 1964, s. 18, for “section 5 and sections 7 to 13” (w.e.f. 1-2-1965).
3. Subs. by Act 41 of 2005, s. 9, for “with fine which shall not be less than two hundred rupees but which may extend to onethousand rupees” (w.e.f. 9-11-2005).
4. Subs. by Act 53 of 1964, s.18, for “section 6” (w.e.f. 1-2-1965).
5. Subs. by Act 41 of 2005, s. 9, for “with fine which may extend to five hundred rupees” (w.e.f. 9-11-2005).
6. Ins. by Act 41 of 2005, s. 9 (w.e.f. 9-11-2005).
7. Ins. by Act 53 of 1964, s.18 (w.e.f. 1-2-1965).

Page 19

1. Subs. by Act 38 of 1982, s. 11, for “industrial establishment” (w.e.f. 15-10-1982).
2. Subs. by Act 41 of 2005, s. 9, for “with fine which shall not be less than two hundred rupees but which may extend to onethousand rupees” (w.e.f. 9-11-2005).
3. Subs. by s. 9, ibid., for “with fine which shall not be less than five hundred rupees but which may extend to three thousandrupees” (w.e.f. 9-11-2005).
4. Subs. by s. 9, ibid.,for “one hundred rupees” (w.e.f. 9-11-2005).
5. Ins. by Act 53 of 1964, s.19 (w.e.f. 1-2-1965).

Page 20

1. Ins. by Act 53 of 1964, s. 20(w.e.f. 1-2-1965).
2. Subs. by Act 41 of 2005, s. 10, for section 24 (w.e.f. 9-11-2005).

Page 21

1. Subs. by Act 38 of 1982, s. 12, for “employed in a factory” (w.e.f. 15-10-1982).
2. Subs. by s. 12, ibid., for “displayed in such factory” (w.e.f. 15-10-1982).
3. Subs. by s. 12, ibid.,for “in the factory” (w.e.f. 15-10-1982).
4. Ins. by s. 13, ibid. (w.e.f. 15-10-1982).
5. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
6. The words “subject to the control of the Governor-General in Council,” omitted by the A.O. 1937.
7. Subs. by Act 53 of 1964, s. 22, for “and prescribed the form thereof” (w.e.f. 1-2-1965).

Page 22

1. Ins. by Act 53 of 1964, s. 22 (w.e.f. 1-2-1965).
2. The word “and” omitted by Act 53 of 1964, s. 22 (w.e.f. 1-2-1965).
3. The word “and” omitted by Act 38 of 1982, s. 14 (w.e.f. 15-10-1982).
4. Ins. by s. 14, ibid. (w.e.f. 15-10-1982).
5. Subs. by Act 41 of 2005, s. 3, for “the State Government” (w.e.f. 9-11-2005).
6. Subs. by s. 11, ibid.,for “which may extend to two hundred rupees” (w.e.f. 9-11-2005).
7. Subs. by Act 38 of 1982, s. 14, for “two successive sessions” (w.e.f. 15-10-1982).
8. Subs. by s. 14, ibid.,for “in which it is so laid or the session immediately following” (w.e.f. 15-10-1982).
9. Ins. by Act 41 of 2005, s. 11 (w.e.f. 9-11-2005).