Retired Justice K Chandru  
Chennai

Lawfully yours: By Retired Justice K Chandru | Civil suits are the only remedy for managerial salary recoveries despite the Shops Act

Your legal questions answered by Justice K Chandru, former Judge of the Madras High Court. Do you have a question? Email us at citizen.dtnext@dt.co.in

Justice (Retd) K Chandru

I was employed on contract as a senior manager at a Chennai-based establishment. Following a dispute regarding courier charges for an official dispatch, the management withheld my salary for over two months, compelling my resignation. Upon approaching the labour authority, only a partial settlement was released after two years, featuring arbitrary deductions for the courier charges. The labour department subsequently closed my grievance, stating that because my monthly salary exceeds Rs 24,000, I am not covered under the Payment of Wages Act, 1936, and must file a civil suit.However, under Section 2(12) of the Tamil Nadu Shops and Establishments Act, 1947 (and its subsequent 1986 extensions), are high-salaried employees entirely excluded from labour tribunal jurisdictions for illegal deductions and non-payment of leave wages? Additionally, does a pending complaint before a labour authority condone or delay the statutory limitation period for seeking a civil remedy ?

— G Rengarajan

While the Tamil Nadu Shops and Establishments Act, 1947, provides a statutory appeal mechanism against illegal termination by an employer, it does not provide any parallel machinery to seek the recovery of illegally deducted or withheld amounts from one's salary.

For wage recoveries, an aggrieved individual must typically move the authority under the Payment of Wages Act, 1936 or the Industrial Disputes Act, 1947.

Both of these enactments restrict their application to defined salary thresholds and the nature of employment. Crucially, while the Shops Act initially excluded "persons in a position of management" from its purview, a subsequent TN notification removed this exclusion. By virtue of that, even senior managers can challenge an arbitrary termination before the appellate authority; however, no such forum exists under this Act for wage recoveries.

Consequently, you will have to file a recovery suit before a competent Civil Court, for which the limitation period is three years from the date the cause of action arose. Please note that pending administrative complaints do not automatically toll or delay this limitation period.

Furthermore, given that civil litigation is notoriously time-consuming and involves substantial court fees and legal expenses, you may well find that the financial and emotional cost of pursuing this remedy outweighs the actual recovery amount.

Governor lack powers to review government schemes independently despite status as state head

The Governor has once again stirred controversy over the constitutional limits of Lok Bhavan's powers. But if Governors are not legally empowered to conduct independent review meetings with district officials, why did administrative officers in Madurai participate in one? This marks the second such structural friction in Tamil Nadu. Can an elected government not legally mandate its bureaucracy to decline such meetings? What prevents public servants from seeking directions from the Chief Secretary or consulting their respective administrative departments, rather than allowing these parallel reviews to proceed only for the State to register its protests later? Otherwise, it merely amounts to shutting the stable door after the horse has bolted.

— R Srinivasan, Mandaveli

The Governor's administrative interference in routine governance remains a highly contested constitutional grey area. Under Article 154, the Governor is the executive head of the State, and all executive actions are formally taken in their name.

However, the Governor must exercise these powers solely on the advice of the Council of Ministers, headed by the Chief Minister.

Under the Rules of Business, the Governor is legally entitled to summon any officer to seek clarifications or information regarding government affairs, acting as a friend, philosopher, and guide to the administration.

By constitutional convention, however, Governors do not act as an independent parallel authority or conduct direct field reviews of governmental performance. When previous Governors crossed these boundaries, it led to significant public and political embarrassment.

Legally, the State government can issue administrative protocols directing officials to route all Raj Bhavan communications through the Chief Secretary.

To maintain federal harmony, the Governor should confine scrutiny to executive files transmitted to Lok Bhavan.

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