Bombay High Court Clarifies Withholding Salary Or Emoluments is Illegal But Doesn’t Necessarily Amount to Cheating

The brief facts of the case include petitioners/ employer issuing notification of withholding 25% of the performance linked incentive of workmen without giving statutory notice of change under sec. 9A of the Industrial Disputes Act, 1947. The Bombay High Court declared notification to be illegal and ruled that the workmen will be entitled to the same benefits as before. This decision is challenged before the Supreme Court which is pending to date. Following this, the respondents, i.e., the workmen filed a criminal complaint against the employer against withholding of salary and allowances. The metropolitan magistrate observed that a prima facie case existed against the petitioners for the offence of cheating under sec. 420 of IPC, 1860. The employer aggrieved by the stance of the metropolitan magistrate approached Bombay High Court in W.P. No. 1013 of 2023 and the court held that for an offence of cheating the intention must be dishonest. The act of the employer to deduct the salary/emoluments was in exercise of its authority as an employer, such deduction may be illegal but cannot be termed as cheating.