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Union of India & Anr. v. Avtar Chand Etc. Etc.

Civil Appeal · 2019 INSC 225Decided 19 Feb 2019
Civil Appeal Nos. 3416-3445 of 2010
Justice Abhay Manohar Sapre · Justice L. Nageswara Rao

Background

A group of skilled workers employed at a Union of India (GREF) workshop in Pathankot claimed they had been paid less than the minimum wages legally due to them under the Minimum Wages Act, 1948, for the period 2001-2004. The Specified Authority at Chandigarh upheld their claim and awarded each worker the wage shortfall plus 200% compensation, and the Punjab & Haryana High Court dismissed the Union of India's challenge to that order.

Decision Breakdown

The Supreme Court noted that in an identical, connected case involving similarly placed workers, the same High Court had earlier awarded only 100% compensation (a ruling that had since attained finality), yet gave no reasons for awarding double that rate, 200%, to the respondents in this case. Since courts must justify treating similarly situated workers differently, the Court held the High Court's order unsustainable on this point. It allowed the appeals in part, reducing the compensation from 200% to 100% of the wage shortfall and directing payment within three months.

Lesson Learnt

When a court or authority awards different outcomes to similarly placed people in parallel cases, it must record clear reasons for the difference: unexplained inconsistency in similar claims is itself a legal error that an appellate court can correct.

Official source (sci.gov.in)View Judgment (PDF)

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