THE PAYMENT OF WAGES ACT, 1936
ACT NO. 4 OF 1936 1*
[23rd April, 1936.]
An Act to regulate the payment of wages to certain classes of
2*[employed persons].
WHEREAS it is expedient to regulate the payment of wages to
certain classes of 2*[employed persons];
It is hereby enacted as follows:--
1.
Short title, extent, commencement and application.
1. Short title, extent, commencement and application.-(1) This
Act may be called the Payment of Wages Act, 1936.
3*[(2) It extends to the whole of India 4***.]
(3) It shall come into force on such date 5*** as the Central
Government may, by notification in the Official Gazette, appoint.
(4) It applies in the first instance to the payment of wages to
persons employed in any 6*[factory, to persons] employed (otherwise
than in a factory) upon any railway by a railway administration or,
either directly or through a sub-contractor, by a person fulfilling a
contract with a railway administration. 7*[and to persons employed in
an industrial or other establishment specified in sub-clauses (a) to
(g) of clause (ii) of section 2]
(5) The State Government may, after giving three months' notice
of its intention of so doing, by notification in the Official Gazette,
extend the provisions of 8*[this Act] or any of them to the payment of
wages to any class of persons employed in 6*[any establishment or
class of establishments specified by the Central Government or a State
Government under sub-clause (h) of clause (ii) of section 2]
6*[Provided that in relation to any such establishment owned by
the Central Government, no such notification shall be issued except
with the concurrence of that Government.]
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1. For Statement of Objects and Reasons, see Gazette of India, 1935,
Pt. V. p. 20; for Report of Select Committee, see ibid., p. 77.
The Act has been extended to the whole of Madhya Pradesh by M.P.
Act 23 of 1958; to Goa, Daman and Diu by Reg. 12 of 1962, s. 3 and
Sch.; to Dadra and Nagar Haveli (w.e.f. 1-7-1965) by Reg. 6 of 1963,
s. 2 and Sch. I; to Pondicherry (w.e.f. 1-10-1963) by Reg. 7 of 1963,
s. 3 and Sch, I and to Laccadive, Minicoy and Amindivi Islands by Reg.
Amended in Jammu and Kashmir by J and K Act 6 of 1974.
Amended in Madhya Pradesh by M.P. Act 33 of 1976.
Amended in Tamil Nadu by T.N. Acts (47 of 1974 and 36 of 1972).
Amended in West Bengal by W.B. Acts (38 of 1974 and 26 of 1975).
Amended in Andhra Pradesh by A.P. Act 21 of 1968.
Amended in Kerala by Kerala Acts 34 of 1969 and 11 of 1977.
Amended in Assam by Assam Act 1 of 1970.
Amended in Rajasthan by Raj. Act 13 of 1970.
Amended in Pondichery by Pondichery Act 10 of 1970. 8 of 1965, s. 3
and Sch.
2. Subs. by Act 38 of 1982, s. 2 (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 Sch. (w.e.f. 1-9-1971).
5. 28th March, 1937, see Gazette of India, 1937, Pt. I, p. 626.
6. Subs. by Act 38 of 1982, s. 3 (w. e. f. 15-10-82).
7. Ins. by s. 3 ibid. (w.e.f. 15-10-1982).
8. Subs. by Act 68 of 1957, s. 2. for "the Act" (w.e.f. 1-4-1958).
96
(6) Nothing in this Act shall apply to wages payable in respect
of a wage-period which, over such wage-period, average 1*[2* one
thousand six hundred rupees] a month or more.
2.
Definitions.
2. Definitions.- In this Act, unless there is anything repugnant
in the subject or context,--
3*[(i) "employed person" includes the legal representative
of a deceased employed person;
(ia) "employer" includes the legal representative of a
deceased employer;
(ib) "factory" means a factory as defined in clause (m) of
section 2 of the Factories Act, 1948 (63 of 1948), and
includes any place to which the provisions of that Act
have been applied under sub-section (1) of section 85
thereof;]
(ii) 4*["industrial or other establishment" means]--
5*[(a) tramway service, or motor transport service
engaged in carrying passengers or goods or both by road
for hire or reward;
(aa) air transport service other than such service
belonging to, or exclusively employed in the military,
naval or air forces of the Union or the Civil Aviation
Department of the Government of India;]
(b) dock, wharf or jetty;
6*[(c) inland vessel, mechanically propelled;]
(d) mine, quarry or oilfield;
(e) plantation;
(f) workshop or other establishment in which
articles are produced, adapted or manufactured, with a
view to their use, transport or sale;
7*[(g) establishment in which any work relating to
the construction, development or maintenance of
buildings, roads, bridges or canals, or relating to
operations connected with navigation, irrigation or the
supply of water, or relating to the generation,
transmission and distribution of electricity or any
other form of power is being carried on;]
8*[(h) any other establishment or class of
establishments which the Central Government or a State
Government may, having regard to the nature thereof,
the need for protection of persons employed therein and
other relevant circumstances, specify, by notification
in the Official Gazette.]
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1. Subs. by Act 38 of 1982, s. 3 (w.e.f. 15-10-1982)
2. Subs. by Act 53 of 1964, s. 3, for cl. (i) (w.e.f. 1-2-1965).
3. Subs. by Act 38 of 1982, s. 4 (w.e.f. 15-10-1982).
4. Subs. by s. 3, ibid., for sub-clause (a) (w.e.f. 1-2-1965).
5. Subs. by Act 68 of 1957, s. 3, for sub-clause (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).
97
1*[(iia) "mine" has the meaning assigned to it in clause (j)
of sub-section (1) of section 2 of the Mines Act,
1952 (35 of 1952);]
2*[(iii) "plantation" has the meaning assigned to it in
clause (f) of section 2 of the Plantations Labour
Act, 1951 (69 of 1951);]
(iv) "prescribed" means prescribed by rules made under this
Act;
(v) "railway administration" has the meaning assigned to it
in clause (6) of section 3 of the Indian Railways Act,
1890 (9 of 1890); and
3*[(vi) "wages" means all remuneration (whether by way of
salary, allowances or otherwise) expressed in
terms of money or capable of being so expressed
which would, if the terms of employment, express
or implied, were fulfilled, be payable to a person
employed in respect of his employment or of work
done in such employment, and includes--
(a) any remuneration payable under any award
or settlement between the parties or order of a
Court;
(b) any remuneration to which the person
employed is entitled in respect of overtime work
or holidays or any leave period;
(c) any additional remuneration payable under
the terms of employment (whether called a bonus or
by any other name);
(d) any sum which by reason of the
termination of employment of the person employed
is payable under any law, contract or instrument
which provides for the payment of such sum,
whether with or without deductions, but does not
provide for the time within which the payment is
to be made;
(e) any sum to which the person employed is
entitled under any scheme framed under any law for
the time being in force;
but does not include--
(1) any bonus (whether under a scheme of
profit sharing or otherwise) which does not form
part of the remuneration payable under the terms
of employment or which is not payable under any
award or settlement between the parties or order
of a Court;
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1. Ins. by Act 53 of 1964, s. 3 (w.e.f. 1-2-1965).
2. Subs. by s. 3, ibid., for cl. (iii) (w.e.f. 1-2-1965).
3. Subs. by Act 68 of 1957, s. 3, for cl. (vi) (w.e.f. 1-4-1958).
98
(2) the value of any house-accommodation, or
of the supply of light, water, medical attendance
or other amenity or of any service excluded from
the computation of wages by a general or special
order of the State Government;
(3) any contribution paid by the employer to
any pension or provident fund, and the interest
which may have accrued thereon;
(4) any travelling allowance or the value of
any travelling concession;
(5) any sum paid to the employed person to
defray special expenses entailed on him by the
nature of his employment; or
(6) any gratuity payable on the termination
of employment in cases other than those specified
in sub-clause (d).]
3. Responsibility for payment of wages.- Every employer shall be
responsible for the payment to persons employed by him of all wages
required to be paid under this Act:
Provided that, in the case of persons employed (otherwise than by
a contractor)--
(a) in factories, if a person has been named as the manager
of the factory under 1*[clause (f) of sub-section (1)
of section 7 of the Factories Act, 1948 (63 of 1948)],
2*[(b) in industrial or other establishments, if there is a
person responsible to the employer for the supervision
and control of the industrial or other
establishments;]
(c) upon railways (otherwise than in factories), if the
employer is the railway administration and the railway
administration has nominated a person in this behalf
for the local area concerned;
the person so named, the person so responsible to the employer, or the
person so nominated, as the case may be, 2*[shall also be responsible]
for such payment.
4.
Fixation of wage-periods.
4. Fixation of wage-periods.- (1) Every person responsible for the
payment of wages under section 3 shall fix periods (in this Act
referred to as wage-periods) in respect of which such wages shall be
payable.
(2) No wage-period shall exceed one month.
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1. Subs. by Act 68 of 1957, s. 4, for "clause (e) of sub-section (1)
of section 9 of the Factories Act, 1934" (w.e.f. 1-4-1958).
2. Subs. by Act 38 of 1982, s. 5 (w.e.f. 15-10-1982).
3. Subs. by Act 53 of 1964, s. 4, for "shall be responsible" (w.e.f.
1-2-1965).
99
5.
Time of payment of wages.
5. Time of payment of wages.- (1) The wages of every person
employed upon or in--
(a) any railway, factory or 1*[industrial or other
establishment] upon or in which less than one thousand
persons are employed, shall be paid before the expiry
of the seventh day,
(b) any other railway, factory or 1*[industrial or other
establishment], shall be paid before the expiry of the
tenth day,
after the last day of the wage-period in respect of which the wages
are payable:
2*[Provided that in the case of persons employed on a dock, wharf
or jetty or in a mine, the balance of wages found due on completion of
the final tonnage account of the ship or wagons loaded or unloaded, as
the case may be, shall be paid before the expiry of the seventh day
from the day of such completion.]
(2) Where the employment of any person is terminated by or on
behalf of the employer, the wages earned by him shall be paid before
the expiry of the second working day from the day on which his
employment is terminated:
2*[Provided that where the employment of any person in an
establishment is terminated due to the closure of the establishment
for any reason other than a weekly or other recognised holiday, the
wages earned by him shall be paid before the expiry of the second day
from the day on which his employment is so terminated.]
(3) The State Government may, by general or special order,
exempt, to such extent and subject to such conditions as may be
specified in the order, the person responsible for the payment of
wages to persons employed upon any railway (otherwise than in a
factory) 3*[or to persons employed as daily-rated workers in the
Public Works Department of the Central Government or the State
Government] from the operation of this section in respect of the wages
of any such persons or class of such persons:
3*[Provided that in the case of persons employed as daily-rated
workers as aforesaid, no such order shall be made except in
consultation with the Central Government.]
(4) 4*[Save as otherwise provided in sub-section (2), all
payments] of wages shall be made on a working day.
6.
Wages to be paid in current coin or currency notes.
6. Wages to be paid in current coin or currency notes.- All wages
shall be paid in current coin or currency notes or in both:
5*[Provided that the employer may, after obtaining the written
authorisation of the employed person, pay him the wages either by
cheque or by crediting the wages in his bank account.]
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1. Subs. by Act 38 of 1982, s. 6 (w.e.f. 15-10-1982).
2. Added by Act 53 of 1964, s. 5 (w.e.f. 1-2-1965).
3. Ins. by s. 5, ibid. (w.e.f. 1-2-1965).
4. Subs. by s. 5, ibid., for "All payments" (w.e.f. 1-2-1965).
5. Ins. by Act 29 of 1976, s. 3 (w.e.f. 12-11-1975).
100
7.
Deductions which may be made from wages.
7. Deductions which may be made from wages.-(1) Notwithstanding
the provisions of sub-section (2) of section 47 of the Indian Railways
Act, 1890 (9 of 1890), the wages of an employed person shall be paid
to him without deductions of any kind except those authorised by or
under this Act.
1*[Explanation I].--Every payment made by the employed person to
the employer or his agent shall, for the purposes of this Act, be
deemed to be a deduction from wages.
2*[Explanation II].--Any loss of wages resulting from the
imposition, for good and sufficient cause, upon a person employed of
any of the following penalties, namely:--
(i) the withholding of increment or promotion (including the
stoppage of increment at an efficiency bar);
(ii) the reduction to a lower post or time scale or to a
lower stage in a time scale; or
(iii) suspension;
shall not be deemed to be a deduction from wages in any case where the
rules framed by the employer for the imposition of any such penalty
are in conformity with the requirements, if any, which may be
specified in this behalf by the State Government by notification in
the Official Gazette.]
(2) Deductions from the wages of an employed person shall be made
only in accordance with the provisions of this Act, and may be of the
following kinds only, namely:--
(a) fines;
(b) deductions for absence from duty;
(c) deductions for damage to or loss of goods expressly
entrusted to the employed person for custody, or for
loss of money for which he is required to account,
where such damage or loss is directly attributable to
his neglect or default;
3*[(d) deductions for house-accommodation supplied by the
employer or by Government or any housing board set up
under any law for the time being in force (whether the
Government or the board is the employer or not) or any
other authority engaged in the business of subsidising
house-accommodation which may be specified in this
behalf by the State Government by notification in the
Official Gazette;]
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1. Explanation re-numbered as Explanation I by Act 68 of 1957, s. 5
(w.e.f. 1-4-1958).
2. Ins. by s. 5, ibid. (w.e.f. 1-4-1958).
3. Subs. by s. 5, ibid., for cl. (d) (w.e.f. 1-4-1958).
101
(e) deductions for such amenities and services supplied by
the employer as the 1*** State Government 2*[or any
officer specified by it in this behalf] may, by general
or special order, authorise.
Explanation.--The word "services" in 3*[this clause] does
not include the supply of tools and raw materials
required for the purposes of employment;
4*[(f) deductions for recovery of advances of whatever
nature (including advances for travelling allowance or
conveyance allowance), and the interest due in respect
thereof, or for adjustment of over-payments of wages;
(ff) deductions for recovery of loans made from any fund
constituted for the welfare of labour in accordance
with the rules approved by the State Government, and
the interest due in respect thereof;
(fff) deductions for recovery of loans granted for house-
building or other purposes approved by the State
Government, and the interest due in respect thereof;]
(g) deductions of income-tax payable by the employed person;
(h) deductions required to be made by order of a Court or
other authority competent to make such order;
(i) deductions for subscriptions to, and for repayment of
advances from any provident fund to which the
Provident Funds Act, 1925 (19 of 1925), applies or any
recognised provident fund as defined in section 58A of
the Indian Income-tax Act, 1922 (11 of 1922), or any
provident fund approved in this behalf by the State
Government, during the continuance of such approval;
5***
(j) deductions for payments to co-operative societies
approved by the State Government 2*[or any officer
specified by it in this behalf] or to a scheme of
insurance maintained by the Indian Post Office; 6*[and]
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1. The words "Governor-General in Council or" omitted by the A. O.
1937.
2. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
3. Subs. by Act 56 of 1974, s. 3 and Second Schedule, for "this sub-
clause".
4. Subs. by Act 53 of 1964, s. 6, for cl. (f) (w.e.f. 1-2-1965).
5. The word "and" omitted by Ordinance 3 of 1940, s. 2.
6. Ins. by s. 2, ibid.
102
1*[2*[(k) deductions, made with the written authorisation of
the person employed for payment of any premium on
his life insurance policy to the Life Insurance
Corporation of India established under the Life
Insurance Corporation Act, 1956 (31 of 1956), or
for the purchase of securities of the Government
of India or of any State Government or for being
deposited in any Post Office Savings Bank in
furtherance of any savings scheme of any such
Government.]]
3*[(kk) deductions made, with the written authorisation of the
employed person, for the payment of his contribution to any fund
constituted by the employer or a trade union registered under the
Trade Unions Act, 1926 for the welfare of the employed persons or the
members of their families, or both, and approved by the State
Government or any officer specified by it in this behalf, during the
continuance of such approval;
(kkk) deductions made, with the written authorisation of the
employed person, for payment of the fees payable by him for the
membership of any trade union registered under the Trade Unions Act,
1926;]
4*[(l) deductions for payment of insurance premia on
Fidelity Guarantee Bonds;
(m) deductions for recovery of losses sustained by a railway
administration on account of acceptance by the employed
person of counterfeit or base coins or mutilated or
forged currency notes;
(n) deductions for recovery of losses sustained by a railway
administration on account of the failure of the
employed person to invoice, to bill, to collect or to
account for the appropriate charges due to that
administration; whether in respect of fares, freight,
demurrage, wharfage and cranage or in respect of sale
of food in catering establishments or in respect of
sale of commodities in grain shops or otherwise;
(o) deductions for recovery of losses sustained by a railway
administration on account of any rebates or refunds
incorrectly granted by the employed person where such
loss is directly attributable to his neglect or
default;]
5*[(p) deductions, made with the written authorisation of
the employed person, for contribution to the Prime
Minister's National Relief Fund or to such other Fund
as the Central Government may, by notification in the
Official Gazette, specify;]
6*[(q) deductions for contributions to any insurance scheme
framed by the Central Government for the benefit of its
employees.]
4*[(3) Notwithstanding anything contained in this Act, the
total amount of deductions which may be made under sub-section (2) in
any wage period from the wages of any employed person shall not
exceed--
(i) in cases where such deductions are wholly or partly made
for payments to co-operative societies under clause (j)
of sub-section (2), seventy-five per cent. of such
wages, and
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1. Ins. by Ordinance 3 of 1940, s. 2.
2. Subs. by Act 68 of 1957, s. 5, for cl. (k) (w.e.f. 1-4-1958).
3. Ins. by Act 38 of 1982, s. 7 (w.e.f. 15-10-1982).
4. Ins. by Act 53 of 1964, s. 6 (w.e.f. 1-2-1965).
5. Ins. by Act 29 of 1976, s. 4 (w.e.f. 12-11-1975).
6. Added by Act 19 of 1977, s. 2.
103
(ii) in any other case, fifty per cent. of such wages:
Provided that where the total deductions authorised under sub-
section (2) exceed seventy-five per cent, or, as the case may be,
fifty per cent. of the wages, the excess may be recovered in such
manner as may be prescribed.
(4) Nothing contained in this section shall be construed as
precluding the employer from recovering from the wages of the employed
person or otherwise any amount payable by such person under any law
for the time being in force other than the Indian Railways Act, 1890
(9 of 1890).]
8.
Fines.
8. Fines. (1) No fine shall be imposed on any employed person
save in respect of such acts and omissions on his part as the
employer, with the previous approval of the State Government or of the
prescribed authority, may have specified by notice under sub-section
(2).
(2) A notice specifying such acts and omissions shall be
exhibited in the prescribed manner on the premises in which the
employment is carried on or in the case of person employed upon a
railway (otherwise than in a factory), at the prescribed place or
places.
(3) No fine shall be imposed on any employed person until he has
been given an opportunity of showing cause against the fine, or
otherwise than in accordance with such procedure as may be prescribed
for the imposition of fines.
(4) The total amount of fine which may be imposed in any one
wage-period on any employed person shall not exceed an amount equal to
1*[three per cent.] of the wages payable to him in respect of that
wage-period.
(5) No fine shall be imposed on any employed person who is under
the age of fifteen years.
(6) No fine imposed on any employed person shall be recovered
from him by instalments or after the expiry of sixty days from the day
on which it was imposed.
(7) Every fine shall be deemed to have been imposed on the day of
the act or omission in respect of which it was imposed.
(8) All fines and all realisations thereof shall be recorded in a
register to be kept by the person responsible for the payment of wages
under section 3 in such form as may be prescribed; and all such
realisations shall be applied only to such purposes beneficial to the
persons employed in the factory or establishment as are approved by
the prescribed authority.
Explanation.--When the persons employed upon or in any railway,
factory or 1*[industrial or other establishement] are part only of a
staff employed
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1. Subs. by Act 38 of 1982, s. 8 (w.e.f. 15-10-1982).
104-104B
under the same management, all such realisations may be credited to a
common fund maintained for the staff as a whole, provided that the
fund shall be applied only to such purposes as are approved by the
prescribed authority.
9.
Deductions for absence from duty.
9. Deductions for absence from duty.-(1) Deductions may be made
under clause (b) of sub-section (2) of section 7 only on account of
the absence of an employed person from the place or places where, by
the terms of his employment, he is required to work, such absence
being for the whole or any part of the period during which he is so
required to work.
(2) The amount of such deduction shall in no case bear to the
wages payable to the employed person in respect of the wage-period for
which the deduction is made a larger proportion than the period for
which he was absent bears to the total period, within such wage-
period, during which by the terms of his employment, he was required
to work:
Provided that, subject to any rules made in this behalf by the
State Government, if ten or more employed persons acting in concert
absent themselves without due notice (that is to say without giving
the notice which is required under the terms of their contracts of
employment) and without reasonable cause, such deduction from any such
person may include such amount not exceeding his wages for eight days
as may be any such terms be due to the employer in lieu of due notice.
1*[Explanation.--For the purposes of this section, an employed
person shall be deemed to be absent from the place where he is
required to work if, although present in such place, he refuses, in
pursuance of a stay-in strike or for any other cause which is not
reasonable in the circumstances, to carry out his work.]
10.
Deductions for damage or loss.
10. Deductions for damage or loss.- 2*[(1) A deduction under
clause (c) or clause (o) of sub-section (2) of section 7 shall not
exceed the amount of the damage or loss caused to the employer by the
neglect or default of the employed person.
(1A) A deduction shall not be made under clause (c) or clause (m)
or clause (n) or clause (o) of sub-section (2) of section 7 until the
employed person has been given an opportunity of showing cause against
the deduction, or otherwise than in accordance with such procedure as
may be prescribed for the making of such deductions.]
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1. Added by Act 22 of 1937, s. 2.
2. Subs. by Act 53 of 1964, s. 7, for sub-section (1) (w.e.f. 1-2-
1965).
105
(2) All such deductions and all realisations thereof shall be
recorded in a register to be kept by the person responsible for the
payment of wages under section 3 in such form as may be prescribed.
11.
Deductions for services rendered.
11. Deductions for services rendered.- A deduction under clause
(d) or clause (e) of sub-section (2) of section 7 shall not be made
from the wages of an employed person, unless the house-accommodation
amenity or service has been accepted by him, as a term of employment
or otherwise, and such deduction shall not exceed an amount equivalent
to the value of the house-accommodation amenity or service supplied
and, in the case of a deduction under the said clause (e), shall be
subject to such conditions as 1*** the State Government may impose.
12.
Deductions for recovery of advances.
12. Deductions for recovery of advances.- Deductions under clause
(f) of sub-section (2) of section 7 shall be subject to the following
conditions, namely:--
(a) recovery of an advance of money given before employment
began shall be made from the first payment of wages in
respect of a complete wage-period, but no recovery
shall be made of such advances given for travelling-
expenses;
2*[(aa) recovery of an advance of money given after
employment began shall be subject to such conditions as
the State Government may impose;]
(b) recovery of advances of wages not already earned shall
be subject to any rules made by the State Government
regulating the extent to which such advances may be
given and the instalments by which they may be
recovered.
12A.
Deductions for recovery of loans.
3*[12A. Deductions for recovery of loans.- Deductions for recovery
of loans granted under clause (fff) of sub-section (2) of section 7
shall be subject to any rules made by the State Government regulating
the extent to which such loans may be granted and the rate of interest
payable thereon.]
13.
Deductions for payments to co-operative societies and insuranceschemes.
13. Deductions for payments to co-operative societies and
insurance schemes.- Deductions under clause (j) 4*[and clause (k)] of
sub-section (2) of section 7 shall be subject to such conditions as
the State Government may impose.
13A.
Maintenance of registers and records.
5*[13A. Maintenance of registers and records.-(1) Every employer
shall maintain such registers and records giving such particulars of
persons employed by him, the work
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1. The words "the Governor-General in Council or" omitted by the
A. O. 1937.
2. Ins. by Act 53 of 1964, s. 8 (w.e.f. 1-2-1965).
3. Ins. by s. 9, ibid. (w.e.f. 1-2-1965).
4. Ins. by Ordinance 3 of 1940, s. 3.
5. Ins. by Act 53 of 1964, s. 10 (w.e.f. 1-2-1965).
106
performed by them, the wages paid to them, the deductions made from
their wages, the receipts given by them and such other particulars and
in such form as may be prescribed.
(2) Every register and record required to be maintained under
this section shall, for the purposes of this Act, be preserved for a
period of three years after the date of the last entry made therein.]
14.
Inspectors.
14. Inspectors.- (1) An Inspector of Factories appointed under
1*[sub-section (1) of section 8 of the Factories Act, 1948 (63 of
1948)], shall be an Inspector for the purposes of this Act in respect
of all factories within the local limits assigned to him.
(2) The State Government may appoint Inspectors for the purposes
of this Act in respect of all persons employed upon a railway
(otherwise than in a factory) to whom this Act applies.
(3) The State Government may, by notification in the Official
Gazette, appoint such other persons as it thinks fit to be Inspectors
for the purposes of this Act, and may define the local limits within
which and the class of factories and 2*[industrial or other
establishments] in respect of which they shall exercise their
functions.
3*[(4) An Inspector may,--
(a) make such examination and inquiry as he thinks fit
in order to ascertain whether the provisions of this
Act or rules made thereunder are being observed;
(b) with such assistance, if any, as he thinks fit,
enter, inspect and search any premises of any
railway, factory or 2*[industrial or other
establishment] at any reasonable time for the
purpose of carrying out the objects of this Act;
(c) supervise the payment of wages to persons employed
upon any railway or in any factory or
2*[industrial or other establishment];
(d) require by a written order the production at such
place, as may be prescribed, of any register or
record maintained in pursuance of this Act and
take on the spot or otherwise statements of any
persons which he may consider necessary for
carrying out the purposes of this Act;
(e) seize or take copies of such registers or documents
or portions thereof as he may consider relevant in
respect of an offence under this Act which he has
reason to believe has been committed by an
employer;
(f) exercise such other powers as may be prescribed:
---------------------------------------------------------------------
1. 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).
2. Subs. by Act 38 of 1982, s. 9 (w.e.f. 15-10-1982).
3. Subs. by Act 53 of 1964, s. 11, for sub-section (4) (w.e.f. 1-2-
1965).
Provided that no person shall be compelled under this sub-section
to answer any question or make any statement tending to incriminate
himself.
(4A) The provisions of the 1*[code of Criminal Procedure, 1973
(2 of 1974)] shall, so far as may be, apply to any search or seizure
under this sub-section as the apply to any search or seizure made
under the authority of a warrant issued under 1*[section 94] of the
said Code.]
(5) Every Inspector shall be deemed to be a public servant within
the meaning of the Indian Penal Code (45 of 1860).
14A.
Facilities to be afforded to Inspectors.
2*[14A. Facilities to be afforded to Inspectors.- Every employer
shall afford an Inspector all reasonable facilities for making any
entry, inspection, supervision, examination or inquiry under this
Act.]
15.
Claims arising out of deductions from wages or delay in payment ofwages and
penalty for malicious or vexatious claims.
15. Claims arising out of deductions from wages or delay in
payment of wages and penalty for malicious or vexatious claims.- (1)
The State Government may, by notification in the Official Gazette,
appoint 3*[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] any
Commissioner for Workmen's Compensation or other officer with
experience as a Judge of a Civil Court or as a stipendiary Magistrate
to be 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, 4*[of persons employed or paid in that area, including
all matters incidental to such claims:
Provided that where the State 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):
---------------------------------------------------------------------
1. Subs. by Act 38 of 1982, s. 9 (w.e.f. 15-10-1982).
2. Ins. by Act 53 of 1964, s. 12 (w.e.f. 1-2-1965).
3. Ins. by s. 13, ibid. (w.e.f. 1-2-1965).
4. Subs. by s. 13, ibid., for "of persons employed or paid in that
area" (w.e.f. 1-2-1965).
108
Provided that every such application shall be presented within
1*[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 1*[twelve months] when the applicant satisfies the
authority that he had sufficient cause for not making the application
within such period.
(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 inquiry
(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 2*[not exceeding twenty-
five rupees in the latter, and even if the amount deducted or the
delayed wages are paid before the disposal of the application, direct
the payment of such compensation, as the authority may think fit, not
exceeding twenty-five rupees]:
Provided 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) a bona 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, such that the person
responsible for the payment of the wages was unable,
though exercising reasonable diligence, to make prompt
payment, or
(c) the failure of the employed person to apply for or
accept payment.
3*[(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 not exceeding
fifty
---------------------------------------------------------------------
1. Subs. by Act 53 of 1964, s. 13, for "six months" (w.e.f. 1-2-
1965).
2. Subs. by s. 13, ibid., for "not exceeding ten rupees in the
latter" (w.e.f. 1-2-1965).
3. Subs. by s. 13, ibid., for sub-section (4) (w.e.f. 1-2-1965).
108A
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 not exceeding
fifty rupees be paid to the State 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 any Magistrate
to whom the authority makes application in this behalf,
as if it were a fine imposed by such Magistrate.
16.
Single application in respect of claims from unpaid group.
16. Single application in respect of claims from unpaid group.-
(1) Employed persons are said to belong to the same unpaid group if
they are borne on the same establishment and if 1*[deductions have
been made from their wages in contravention of this Act for the same
cause and during the same wage-period or periods or if] their wages
for the same wage-period or periods have remained unpaid after the day
fixed by section 5.
(2) A single application may be presented under section 15 on
behalf or in respect of any number of employed persons belonging to
the same unpaid group, and in such case 2*[every person on whose
behalf such application is presented may be awarded maximum
compensation to the extent specified in sub-section (3) of section
15].
(3) The authority may deal with any number of separate pending
applications, presented under section 15 in respect of persons
belonging to the same unpaid group, as a single application presented
under
---------------------------------------------------------------------
1. Ins. by Act 53 of 1964, s. 14 (w.e.f. 1-2-1965).
2. Subs. by s. 14, ibid., for certain words, brackets and figures
(w.e.f. 1-2-1965).
108B
sub-section (2) of this section, and the provisions of that sub-
section shall apply accordingly.
17.
Appeal.
17. Appeal.- (1) 1*[An appeal against an order dismissing either
wholly or in part an application made under sub-section (2) of section
15, or against a direction made under sub-section (3) or sub-section
(4) of that section] may be preferred, within thirty days of the date
on which 2*[the order or direction] was made, in a Presidency-town
3*** before the Court of Small Causes and elsewhere before the
District Court--
(a) by the employer or other person responsible for the
payment of wages under section 3, if the total sum
directed to be paid by way of wages and compensation
exceeds three hundred rupees 4*[or such direction has
the effect of imposing on the employer or the other
person a financial liability exceeding one thousand
rupees], or
5*[(b) by an employed person on 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 permitted by the
authority to make an application under sub-section (2)
of section 15, if the total amount of wages claimed to
have been withheld from the employed person exceeds
twenty rupees or from the unpaid group to which the
employed person belongs or belonged exceeds fifty
rupees, or]
(c) by any person directed to pay a penalty under 6*[sub-
section (4)] of section 15.
4*[(1A) No appeal under clause (a) of sub-section (1) shall lie
unless the memorandum of appeal is accompanied by a certificate by the
authority to the effect that the appellant has deposited the amount
payable under the direction appealed against.]
7*[(2) Save as provided in sub-section (1), any order dismissing
either wholly or in part an application made under sub-section (2) of
section 15, or a direction made under sub-section (3) or sub-section
(4) of that section shall be final.]
---------------------------------------------------------------------
1. Subs. by Act 68 of 1957, s. 7, for certain words (w.e.f. 1-4-
1958).
2. Subs. by s. 7, ibid., for "the direction" (w.e.f. 1-4-1958).
3. The words "or in Rangoon" omitted by the A. O. 1937.
4. Ins. by Act 53 of 1964, s. 15 (w.e.f. 1-2-1965).
5. Subs. by s. 15, ibid., for cl. (b) (w.e.f. 1-2-1965).
6. Subs. by Act 20 of 1937, s. 2 and Sch. I, for "sub-section (5)".
7. Subs. by Act 68 of 1957, s. 7, for sub-section (2) (w.e.f. 1-4-
1958).
108C
1*[(3) Where an employer prefers an appeal under this section,
the authority against whose decision the appeal has been preferred
may, and if so directed by the court referred to in sub-section (1)
shall, pending the decision of the appeal, withhold payment of any sum
in deposit with it.
(4) The court referred to in sub-section (1) may, if it thinks
fit, submit any question of law for the decision of the High Court
and, if it so does, shall decide the question in conformity with such
decision.]
17A.
Conditional attachment of property of employer or other
personresponsible for payment of wages.
2*[17A. Conditional attachment of property of employer or other
persons responsible for payment of wages.- (1) Where at any time after
an application has been made under sub-section (2) of section 15 the
authority, or where at any time after an appeal has been filed under
section 17 by an employed person or 3*[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
permitted by the authority to make an application under sub-section
(2) of section 15] the Court referred to in that section, is satisfied
that the employer or other person responsible for the payment of wages
under section 3 is likely to evade payment of any amount that may be
directed to be paid under section 15 or section 17, the authority or
the Court, as the case may be, except in cases where the authority or
Court is of opinion that the ends of justice would be defeated by the
delay, after giving the employer or other person an opportunity of
being heard, may direct the attachment of so much of the property of
the employer or other person responsible for the payment of wages as
is, in the opinion of the authority or Court, sufficient to satisfy
the amount which may be payable under the direction.
(2) The provisions of the Code of Civil Procedure, 1908, (5 of
1908) relating to attachment before judgment under that Code shall,
so far as may be, apply to any order for attachment under sub-section
(1).]
18.
Powers of authorities appointed under section 15.
18. Powers of authorities appointed under section 15.- Every
authority appointed under sub-section (1) of section 15 shall have all
the powers of a Civil Court under the Code of Civil Procedure, 1908 (5
of 1908), for the purpose of taking evidence and of enforcing the
attendance of witnesses and compelling the production of documents,
and every such authority shall be deemed to be a Civil Court for all
the purposes of section 195 and of 4*[Chapter XXVI of the Code of
Criminal Procedure, 1973 (2 of 1974).]
---------------------------------------------------------------------
1. Ins. by Act 53 of 1964, s. 15 (w.e.f. 1-2-1965).
2. Ins. by Act 68 of 1957, s. 8 (w.e.f. 1-4-1958).
3. Subs. by Act 53 of 1964, s. 16, for certain words (w.e.f. 1-2-
1965).
4. Subs. by Act 38 of 1982, s. 10 (w.e.f. 15.10.1982).
108D
19.
[Repealed.]
19. [Power to recover from employer in certain cases.]- Rep. by
the Payment of Wages (Amendment) Act, 1964 (53 of 1964), s. 17 (w.e.f.
1-2-1965).
20.
Penalty for offences under the Act.
20. Penalty for offences under the Act.- (1) Whoever being
responsible for the payment of wages to an employed person contravenes
any of the provisions of any of the following sections, namely,
1*[section 5 except sub-section (4) thereof, section 7, section 8
except sub-section (8) thereof, section 9, section 10 except sub-
section (2) thereof, and sections 11 to 13], both inclusive, shall be
punishable with fine 2*[which shall not be less than two hundred
rupees but which may extend to one thousand rupees].
(2) Whoever contravenes the provisions of section 4, 3*[sub-
section (4) of section 5, section 6, sub-section (8) of section 8,
sub-section (2) of section 10] or section 25 shall be punishable with
fine which may extend to 2*[five hundred rupees].
4*[(3) Whoever being required under this Act to maintain any
records or registers or to furnish any information or return--
(a) fails to maintain such register or record; or
(b) wilfully refuses or without lawful excuse neglects to
furnish such information or return; or
(c) wilfully furnishes or causes to be furnished any
information or return which he knows to be false; or
(d) refuses to answer or wilfully gives a false answer to
any question necessary for obtaining any information
required to be furnished under this Act;
shall, for each such offence, be punishable with fine 2*[which shall
not be less than two hundred rupees but which may extend to one
thousand rupees].
(4) Whoever--
(a) wilfully obstructs an Inspector in the discharge of his
duties under this Act; or
(b) refuses or wilfully neglects to afford an Inspector any
reasonable facility for making any entry, inspection,
examination, supervision, or inquiry authorised by or
under this Act in relation to any railway, factory or
2*[industrial or other establishment]; or
(c) wilfully refuses to produce on the demand of an
Inspector any register or other document kept in
pursuance of this Act; or
---------------------------------------------------------------------
1. Subs. by Act 53 of 1964, s. 18, for "section 5 and sections 7 to
13" (w.e.f. 1-2-1965).
2. Subs. by Act 38 of 1982, s. 11 (w.e.f. 15-10-1982).
3. Subs. by s. 18, ibid., for "section 6" (w.e.f 1-2-1965).
4. Ins. by s. 18, ibid. (w.e.f. 1-2-1965).
108E
(d) prevents or attempts to prevent or does anything which
he has any reason to believe is likely to prevent any
person from appearing before or being examined by an
Inspector acting in pursuance of his duties under this
Act;
shall be punishable with fine 1*[which shall not be less than two
hundred rupees but which may extend to one thousand rupees]
(5) If any person who has been convicted of any offence
punishable under this Act is again guilty of an offence involving
contravention of the same provision, he shall be punishable on a
subsequent conviction with imprisonment for a term 1*[which shall not
be less than one month but which may extend to six months and with
fine which shall not be less than five hundred rupees but which may
extend to three thousand rupees]:
Provided that for the purpose of this sub-section, no cognizance
shall be taken of any conviction made more than two years before the
date on which the commission of the offence which is being punished
came to the knowledge of the Inspector.
(6) If any person fails or wilfully neglects to pay the wages of
any employed person by the date fixed by the authority in this behalf,
he shall, without prejudice to any other action that may be taken
against him, be punishable with an additional fine which may extend to
1*[one hundred rupees] for each day for which such failure or neglect
continues.]
21.
Procedure in trial of offences.
21. Procedure in trial of offences.- (1) No Court shall take
cognizance of a complaint against any person for an offence under sub-
section (1) of section 20 unless an application in respect of the
facts constituting the offence has been presented under section 15 and
has been granted wholly or in part and the authority empowered under
the latter section or the appellate Court granting such application
has sanctioned the making of the complaint.
(2) Before sanctioning the making of a complaint against any
person for an offence under sub-section (1) of section 20, the
authority empowered under section 15 or the appellate Court, as the
case may be, shall give such person an opportunity of showing cause
against the granting of such sanction, and the sanction shall not be
granted if such person satisfies the authority or Court that his
default was due to--
(a) a bona 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, such that the person
responsible for
---------------------------------------------------------------------
1. Subs. by Act 38 of 1982, s. 11 (w.e.f. 15-10-1982).
108F
the payment of the wages was unable, though exercising
reasonable diligence, to make prompt payment, or
(c) the failure of the employed person to apply for or
accept payment.
(3) No Court shall take cognizance of a contravention of section
4 or of section 6 or of a contravention of any rule made under section
26 except on a complaint made by or with the sanction of an Inspector
under this Act.
1*[(3A) No Court shall take congnizance of any offence punishable
under sub-section (3) or sub-section (4) of section 20 except on a
complaint made by or with the sanction of an Inspector under this
Act.]
(4) In imposing any fine for an offence under sub-section (1) of
section 20 the Court shall take into consideration the amount of any
compensation already awarded against the accused in any proceedings
taken under section 15.
22.
Bar of suits.
22. Bar of suits.- No Court shall entertain any suit for the
recovery of wages or of any deduction from wages in so far as the sum
so claimed--
(a) forms the subject of an application under section 15
which has been presented by the plaintiff and which is
pending before the authority appointed under that
section or of an appeal under section 17; or
(b) has formed the subject of a direction under section 15
in favour of the plaintiff; or
(c) has been adjudged, in any proceeding under section 15,
not to be owed to the plaintiff; or
(d) could have been recovered by an application under
section 15.
22A.
Protection of action taken in good faith.
2*[22A. Protection of action taken in good faith.- No suit,
prosecution or other legal proceeding shall lie against the Government
or any officer of the Government for anything which is in good faith
done or intended to be done under this Act.]
23.
Contracting out.
23. Contracting out.- Any contract or agreement, whether made
before or after the commencement of this Act, whereby an employed
person relinquishes any right conferred by this Act shall be null and
void in so far as it purports to deprive him of such right.
---------------------------------------------------------------------
1. Ins. by Act 53 of 1964, s. 19 (w.e.f. 1-2-1965).
2. Ins. by s. 20, ibid. (w.e.f. 1-2-1965).
108G
24.
Application of Act to railways, air transport services, mines andoilfields.
1*[24. Application of Act to railways, air transport services,
mines and oilfields.- The powers by this Act conferred upon the State
Government shall, in relation to 2*[railways], 3*[air transport
services,] mines and oilfields, be powers of the Central Government.]
25.
Display by notice of abstracts of the Act.
25. Display by notice of abstracts of the Act.- The person
responsible for the payment of wages to persons 4*[employed in a
factory or an industrial or other establishment] shall cause to be
4*[displayed in such factory or industrial or other establishment] a
notice containing such abstracts of this Act and of the rules made
thereunder in English and in the language of the majority of the
persons employed 4*[in the factory or industrial or other
establishment], as may be prescribed.
25A.
Payment of undisbursed wages in cases of death of employed person.
3*[25A. Payment of undisbursed wages in cases of death of
employed person.- (1) Subject to the other provisions of the Act, all
amounts payable to an employed person as wages shall, if such amounts
could not or cannot be paid on account of his death before payment or
on account of his whereabouts not being known,--
(a) be paid to the person nominated by him in this behalf in
accordance with the rules made under this Act; or
(b) where no such nomination has been made or where for any
reasons such amounts cannot be paid to the person so
nominated, be deposited with the prescribed authority
who shall deal with the amounts so deposited in such
manner as may be prescribed.
(2) Where, in accordance with the provisions of sub-section (1),
all amounts payable to an employed person as wages--
(a) are paid by the employer to the person nominated by the
employed person; or
(b) are deposited by the employer with the prescribed
authority,
the employer shall be discharged of his liability to pay those
wages.]
26.
Rule-making power.
26. Rule-making power.- (1) The State Government may make rules to
regulate the procedure to be followed by the authorities and Courts
referred to in sections 15 and 17.
(2) The State Government may, 6***, by notification in the
Official Gazette, make rules for the purpose of carrying into
effect the provisions of this Act.
(3) In particular and without prejudice to the generality of the
foregoing power, rules made under sub-section (2) may--
(a) require the maintenance of such records, registers,
returns and notices as are necessary for the
enforcement of the Act 7*[prescribe the form thereof
and the particulars to be entered in such registers or
records];
(b) require the display in a conspicuous place on premises
where employment is carried on of notices specifying
rates of wages payable to persons employed on such premises;
(c) provide for the regular inspection of the weights,
measures and weighing machines used by employers in
checking or ascertaining the wages of persons employed
by them;
(d) prescribe the manner of giving notice of the days on
which wages will be paid;
(e) prescribe the authority competent to approve under sub-
section (1) of section 8 acts and omissions in respect
of which fines may be imposed;
---------------------------------------------------------------------
1. Subs. by the A. O. 1937, for s. 24.
2. Subs. by the A. O. 1950, for "Federal railways (within the
meaning of the Government of India Act, 1935)"
3. Ins. by Act 53 of 1964, s. 21 (w.e.f. 1-2-1965).
4. Subs. by Act 38 of 1982, s. 12 (w.e.f. 15-10-1982).
5. Ins by s. 13, ibid. (w.e.f. 1-3-1994).
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 prescribe the form
thereof" (w.e.f. 1-2-1965).
108H
(f) prescribe the procedure for the imposition of fines
under section 8 and for the making of the deductions
referred to in section 10;
(g) prescribe the conditions subject to which deductions may
be made under the proviso to sub-section (2) of section
9;
(h) prescribe the authority competent to approve the
purposes on which the proceeds of fines shall be
expended;
(i) prescribe the extent to which advances may be made and
the instalments by which they may be recovered with
reference to clause (b) of section 12;
1*[(ia) prescribe the extent to which loans may be granted
and the rate of interest payable thereon with reference
to section 12A;
(ib) prescribe the powers of Inspectors for the purposes of
this Act;]
(j) regulate the scales of costs which may be allowed in
proceedings under this Act;
(k) prescribe the amount of court-fees payable in respect of
any proceedings under this Act, 2***;
(l) prescribe the abstracts to be contained in the notices
required by section 25; 1* 3*xxx
3*[(la) prescribe the form and manner in which nominations
may be made for the purposes of sub-section (1) of
section 25A, the cancellation or variation of any such
nomination, or the making of any fresh nomination in
the event of the nominee predeceasing the person making
nomination, and other matters connected with such
nominations:
(lb) specify the authority with whom amounts required to be
deposited under clause (b) of sub-section (1) of
section 25A shall be deposited, and the manner in which
such authority shall deal with the amounts deposited
with it under that clause;]
1*[(m) provide for any other matter which is to be or may be
prescribed.]
(4) In making any rule under this section the State Government
may provide that a contravention of the rule shall be punishable with
fine which may extend to two hundred rupees.
(5) All rules made under this section shall be subject to the
condition of previous publication, and the date to be specified under
clause (3) of section 23 of the General Clauses Act, 1897 (10 of
1897), shall not be less than three months from the date on which the
draft of the proposed rules was published.
1*[(6) Every rule made by the Central Government under this
section shall be laid, as soon as may be after it is made, before each
House of Parliament while it is in session for a total period of
thirty days which may be comprised in one session or in 5*[two or more
successive sessions], and if, before the expiry of the session
5*[immediately following the session or the successive sessions
aforesaid], both Houses agree in making
---------------------------------------------------------------------
1. Ins. by Act 53 of 1964, s. 22 (w.e.f. 1-2-1965).
2. The word "and" omitted by s. 22, ibid. (w.e.f. 1-2-1965).
3. 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 s. 14, ibid. (w.e.f. 15-10-1982).
108I
any modification in the rule, or both Houses agree that the rule
should not be made, the rule shall thereafter have effect only in such
modified form or be of no effect, as the case may be; so, however,
that any such modification or annulment shall be without prejudice to
the validity of anything previously done under that rule.]
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