Law:

Section:

Industrial Relations Ordinance (XXIII of 1969)-- ---S.51(2)--West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance (VI of 1968), Ss.3, 4 & S.0.12(6)-­Recovery of dues under settlement--Settlement providing that every employee would be paid gratuity due to closing of Mills and consequential termination of service--No G.P. Fund established--Claim for dues payable towards gratuity, held, was maintainable before Labour Court under S.51(2) of Industrial Relations Ordinance, 1969 and same allowed by Labour Court. ORDER Applicant has preferred a claim for the recovery of Rs.19,765.43, on account of the legal dues to be paid by the end of July 1985, as per clause-4 of the settlement but in spite of that commitment to pay the legal dues, the outstanding liability of the employer of Rs.19,765.43 becomes due, through judicial process. 2. Applicant was a superviser in the establishment from 7-5-1965 to 31-12-1984. The agreement was signed on 1-1-1985. It was agreed that on the closure of the establishment all the workmen will be paid legal dues. 3. This includes the gratuity as well on the last basic pay of Rs.1372.50 with a period of the service of 19 years. 4. Respondent has taken this objection that application u/s 51 is not maintainable. No outstanding liability against them. He has received the over payment of 6,612.6. He is not coming within the definition of workman. He was drawing wages of Rs.800 only. R E A S 0 N S: 1. If the settlement, is the basis, on which benefit is claimed, that what was agreed to be paid towards the legal dues, on the closure of the factory, the forum that is sought to vindicate the grievance or the recovery of claim is in subsection (2) of section 51 IRO, and the forum for the remedy sought through this execution process is rightly invoked. 2. Further, subsection (1) of section 51 if examined closely, finds to emphasize, on two other important aspects. Subsection (1), emphasizes on the competency of any person entitled, to seek this process of recovery provided he is entitled to receive money, under the settlement, decision of the court, if the Labour Court so directs. Subsection (2) emphasizes on the…

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