High Court / Supreme Court Judgements

Unfair Labour Practice – Non-payment of Wages – Bank Account Entries – Burden of Proof Short Summary

The Bombay High Court held that salary-credit entries appearing in an employee’s bank account cannot be treated as mere paper entries without supporting evidence. Where the bank statement also reflects subsequent withdrawals, such entries prima facie establish that the wages were available to and utilised by the employee. The Court ruled that the burden of proving that the wage entries were fictitious, or that the employee was prevented from withdrawing the credited amount, lies on the party making that allegation. Since the Industrial Court ignored the withdrawal entries and relied on assumptions, its finding of non-payment of wages and the consequential liability could not be sustained. The petitions were disposed of after accepting the petitioners’ undertaking to comply with the remaining monetary directions.