ID Act |Right To Claim Interest Is Pre-Existing Right Only If Explicitly Provided In Contract Of Employment Or Service Conditions: Karnataka High Court
10 months, 2 weeks ago

ID Act |Right To Claim Interest Is Pre-Existing Right Only If Explicitly Provided In Contract Of Employment Or Service Conditions: Karnataka High Court

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The Karnataka High Court single bench of Justice Shivashankar Amarannavar held that the right to claim interest could be considered a pre-existing right or benefit only if explicitly determined in the contract of employment or in the resolutions governing service conditions. Furthermore, the bench held that an application under Section 33C of the Industrial Disputes Act, 1947 in the Labour Court would require a prior adjudication or recognition by an employer of the claim of the Workman to be paid wages at the rate which they claim. The High Court held that Section 33C proceedings are essentially execution proceedings which requires prior acknowledgment or adjudication by the employer of the Workman's claim for wages. The ingredients of Section 33C of ID Act clearly envisages that, it is in the nature of execution proceeding and the same envisages a prior adjudication or recognition by an employer of the claim of the workman to be paid wages at the rate which they claim.” Further, the High Court held that the claim for interest couldn't be considered a pre-existing right or benefit under Section 33C unless explicitly provided in the employment contract or regulations.

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