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Ministry Of Labour And Rehabilitation And Another v. Tiffin's Barytes Asbestos And Paints Limited And Another

Ministry Of Labour And Rehabilitation And Another
v.
Tiffin's Barytes Asbestos And Paints Limited And Another

(Supreme Court Of India)

Civil Appeals No's. 589 of 1972 and 541-546 of 1973 | 16-07-1985


CHINNAPPA REDDY, J.

1. On October 16, 1968 the Government of India, Ministry of Labour, Employment and Rehabilitation, issued a notification, in exercise of their powers under section 5(1) (a) and 9 of the Minimum Wages Act, appointing a Committee "to hold enquiries and advise the Central Government regarding -

(a) the fixation of minimum rates of wages for the first time under the said Act, and

(b) the revision of minimum rates of wages already fixed by the Central Government under the said Act, "


in respect of the Employment in Manganese, Gypsum, Berytes and Bauxite Mines, Shri D. Venkatachalam, Chief Labour Commissioner (Central), New Delhi and Shri K.K. Bhatia, Director, Labour Bureau, Simla were appointed as independent members of the Committee while (i) Shri K.S. Mahaptra, Controller of Indian Bureau of Mines, Nagpur, (ii) Shri Dev Coomer Singhi, The Jhagrakhand Collieries Private Ltd., 14/4, Gariaghat Road, Calcutta-19, (iii) Dr. S.K.Das Gupta, Indian Aluminium Co. Ltd., 1, Middleton Street, Calcutta-16 (iv) Shri T.R. Goenka, Honorary Secretary G eneral, Federation of Indian Mining Industries, 7, N.D.S.E. Part I, New Delhi-3 and (v) Mr. S.G.A. Naidu, President of Mysore State Mine Owners' Association, Bangalore, were appointed as representatives of the employers. Five other gentlemen were appointed as members of the Committee to represent the employees. Thereafter, on May 19, 1969, after considering the advice of the Committee, the Government of India issued a notification fixing minimum rates of wages payable to certain categories of employees in the scheduled employment in Barytes, Bauxite, Manganese and Gypsum Mines. The notification fixing minimum wages was questioned by several owners of mines in writ petitions filed in the High Court of Andhra Pradesh. The notification was quashed by the High Court of Andhra Pradesh on the ground that the Committee on whose advice it was based was improperly constituted for two reasons: (1) Shri Venkatachalam and Shri K.K. Bhatia were Government employees in th e Labour Department and were, therefore, not truly "independent' so as to be eligible to be appointed to the Committee constituted under sections 5 and 9 of the Minimum Wages Act and; (2) The so called representatives of the employers on the Committee as appointed were not representatives of the Barytes, Bauxite, Manganese and Gypsum mining industries and they were therefore ineligible to be appointed to the Committee to represent the employers of the particular scheduled employments.We are afraid, we are unable to subscribe to the view taken by the High Court. In our opinion, Government employees, who are entrusted with the task of implementing the provisions of the Minimum Wages Act, cannot, for that reason, be dubbed as interested and not independent persons. It may be that in a case where the Government itself is the employer in the particular scheduled employment, it may be possible to urge that Government employees are not independent persons (we express no opinion on that) but in a case where the Government itself is not an employer, we do not see any justification for holding that Government employees who are interested in the implementation of the Minimum Wages Act, for that reason only, become 'interested persons' and cease to be independent. The 'independent persons' contemplated by s.9 of the are persons who belong neither to the category of employers nor to the category of employees, and there is no reason t o think that Government employees whose task is merely to implement Parliamentary Legislation made pursuant to Directive Principles of State Policy and the State's social obligations in that direction are excluded. The term 'independent persons', it must be emphasised, is used in the section in contra distinction to the words' persons representing employers and employees in the scheduled employments'. We disagree with the view expressed by the Madhya Pradesh High Court in Narotta mdas v. Gowarikar &Ors. [1961] 1 L.L.J. 442 and Calcutta High Court in Kohinoor Pictures (Pvt.) Ltd. v. State of West Bengal [1961] 2 L.L.J. 741 and the Andhra Pradesh High Court in Bansi Lal S. Patel v. State of Andhra Pradesh [1965] 1 L.L.J. 28. We agree with the view taken by the Punjab High Court in Jaswant Rai v. State of Punjab A.I.R. 1958 Punjab 425 and the Gujarat High Court in the Digvijaysingji Salt Works Ltd. v. State of Gujarat A.I.R. 1971 Gujarat 14. The decision of this Court in State of Rajasthan v. Hari Ram Nathwani &Ors. [1976] 1 S.C.R. 641 does not assist either party.There is equally no substance in the other contention which found favour with the High Court, namely, that the persons appointed to the Committee to represent the employers were ineligible to be appointed to the Committee as they did not represent employers in the particular scheduled employment. The scheduled employments with which we are concerned are employment in Gypsum mines, employment in Barytes mines, employment in Bauxite mines and employment in manganese mines. It is not explained why the persons appointed to the Committee to represent the employers are ineligible to represent employers in the scheduled employments. The High Court merely says "on a perusal of the names of the employers' representatives, we find that none of them can be said to be the representatives of the Barytes mines. When the minimum wages of the categories of employees are to be fixed in respect of Barytes mines, there is no point in appointing the representatives of other employments. The Government in its counter has not stated that any of the employers' representatives, who have been nominated to the Committee, are the representatives of the Barytes mines. The learned counsel appearing for the Central Government also has not been able to point out whether any one of those nominees of the Government as employers' representatives really represent the Barytes mines or has got expert knowledge of the employers and their working conditions in the scheduled employments of Barytes mines. We, therefore, hold that the composition of the Committee is defective in respect of the nominations of the employers representatives. This is sufficient to quash the notification which is based upon the advice of such a defectively and irregularly constituted Committee." We are afraid that the approach of the High Court was entirely wrong. For the purpose of appointing the Committee to represent the employers in a scheduled employment, it was not necessary that the persons appointed should be engaged for profit in the particular employment. It is enough if a nexus exists between the persons so appointed to represent the employers in the particular employment and the particular employment concerned. For example, it may be absurd to appoint persons engaged in the newspaper industry to a Committee to represent employers concerned in the employment of Barytes mines or Bauxite mines. The case before us is not one of that nature at all. There was no material before the High Court nor was the High Court in a position to say that the persons appointed to the Committee to represent the employers were entirely unconnected with or ignorant of the particular employments. We fail to understand how by merely looking at their names and the positions occupied by them, the High Court was able to sa y that they were incompetent to represent the employers in the particular employments. The first of them was the Controller of the Indian Bureau of Mines, another was the Secretary General of the Federation of Indian Mining Industries and yet another was the President of the Mysore State Mine Owners' Association. All of them are intimately connected with the mining industry and it has not been shown that they are unconnected with or ignorant of the particular scheduled employments in mines. We find it impossible to uphold the view of the High Court. The decision of this Court in Champak Lal Thakkar v. State of Gujarat [1980] 4 S.C.C.329, is of no assistance whatever. In the circumstances we allow the appeals, set aside the judgment of the High Court and dismiss the Writ Petitions filed in the High Court. We also wish to emphasise that notifications fixing minimum wages are not to be lightly interfered with under Article 226 of the Constitution on the ground of some irregularities in the Constitution of the Committee or in the procedure adopted by the Committee. It must be remembered that the Committee acts only as a recommendatory body and the final notification fixing minimum wages has to be made by the Government. Notification fixing minimum wages, in a country where wages are already minimum should not be interfered with under Article 226 of the Constitution except on the most substantial of grounds. The legislation is a social welfare legislation undertaken to further the Directive Principles of State Policy and action taken pursuant to it cannot be struck down on mere technicalities.

2. Appeals allowed.

Advocates List

G. Das, P.P. Singh, R.N.Poddar, R.N. Poddar, Mrs. Indira Sawhney, Dr. Anand Prakash, Naunit Lal, Kailash Vasdev, Mrs. Vinod Arya, Advocates.

For Petitioner
  • Shekhar Naphade
  • Mahesh Agrawal
  • Tarun Dua
For Respondent
  • S. Vani
  • B. Sunita Rao
  • Sushil Kumar Pathak

Bench List

HON'BLE JUSTICE O. CHINNAPPA REDDY

HON'BLE JUSTICE V. B. ERADI

HON'BLE JUSTICE V. KHALID

Eq Citation

(1985) AIR(SC) 1391

(1985) 2 CLR 261

(1985) 2 CurCC 421

(1985) 67 FJR 157

(1985) 51 FLR 256

(1985) LIC 1634

(1985) 2 LLJ 412

(1985) 2 LLN 611

(1985) MPLSR 239

(1985) MPWN 557

(1985) 2 SCALE 56

(1985) 3 SCC 594

(1985) SCC(L

S) 902

(1985) Sup2 SCR 302

(1986) 1 UJ(SC) 464

LQ/SC/1985/225

HeadNote

Labour Code — Minimum Wages Act, 1948 — Ss. 5(1)(a), 9 and 30 — Committee to fix minimum wages — Composition of — Government employees — Eligibility to be appointed as independent members — Held, Government employees, who are entrusted with the task of implementing the provisions of the Minimum Wages Act, cannot, for that reason, be dubbed as interested and not independent persons — The 'independent persons' contemplated by s. 9 of the Minimum Wages Act are persons who belong neither to the category of employers nor to the category of employees, and there is no reason to think that Government employees whose task is merely to implement Parliamentary Legislation made pursuant to Directive Principles of State Policy and the State's social obligations in that direction are excluded — The term 'independent persons', it must be emphasised, is used in the section in contra distinction to the words 'persons representing employers and employees in the scheduled employments' — In the instant case, held, Government employees appointed as independent members of the Committee constituted under Ss. 5 and 9 of the Minimum Wages Act, 1948, were not ineligible to be appointed as such — Labour Code — Minimum Wages Act, 1948, Ss. 5(1)(a), 9 and 30