Law:

Section:

Payment of Wages Act (IV of 1936)--- ----S. 15(3)---Constitution of Pakistan, Art.199---Constitutional petition---Compensation, determination of---Scope---Payment of G.P. Fund of employee was withheld against which he filed petition under S.15 of the Payment of Wages Act, 1936-Petitioner (employer) was directed to deposit the remaining amount of G.P. fund---Both the parties preferred appeal against the order of Authority before Labour Court---Employee filed appeal for grant of compensation under S.15 of the Payment of Wages Act, 1936---Both the appeals were dismissed holding that award of compensation was not mandatory and was discretionary, which the authority refused to exercise---Aggrieved by the same, the employee/respondent preferred revision before the Labour Appellate Tribunal, which was accepted and a compensation amounting to Rs.75,000 was awarded---Contention of the employer was that the orders passed by the Authority as well as the Labour Court as to the compensation were in accordance with law and they rightly refused to exercise discretion in favour of employee---Validity---When the Authority and Labour Court had come to the conclusion that payment was deliberately withheld, why they had not exercised their discretion for payment of compensation and in case they were not willing, at least reasons should have been given---When the Authority had come to the conclusion that employer was liable under S.15(3), apart from making order of payment of amount deducted, it was mandatory for the Authority to award compensation, which the Authority had thought fit, but shall not exceed 10 times of the amount deducted---Proviso to S.15(3) of the Act created an exception to the rule of award of compensation highlighting the circumstances where no direction for payment of compensation shall be made---Determination of question of award of compensation was mandatory for the courts below, which they failed to do, however, the Labour Appellate Tribunal rightly decided the question of compensation by way of awarding the same---Constitutional petition was dismissed in circumstances. ORDER FAISAL ZAMAN KHAN, J.--- Respondent No.1 had been working as Accounts Assistant…

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