BOMBAY DYEING &MANUFACTURING CO., LTD. vs THE STATE OF BOMBAY AND OTHERS

The Supreme Court held that Section 3(1) and Section 3(2)(b) of the Bombay Labour Welfare Fund Act (Bom. XL of 1953) contravene Article 31(2) of the Constitution, as they direct the payment of unpaid wages, which are the property of the employer. The Court ruled that the unpaid accumulation of wages remains the property of the appellant company and cannot be appropriated by the state. The Act was deemed invalid in this respect, affirming the principle that legislation cannot transfer debts without discharging the employer's liability.