law: Payment of Wages Act, 1936
  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 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 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):
  Provided
  
   that every such application shall be
  
  presented within 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 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 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.
  (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 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.