2004(3) Supreme 190
SUPREME COURT OF INDIA
(Under Article 32 of the Constitution of India)
Y.K. Sabharwal & D.M. Dharmadhikari, JJ.
Express Publications (Madurai) Ltd. & Anr. -Petitioners
versus
Union of India & Anr. -Respondents
Writ Petition (C) No. 59 of 2001
Decided on 11-3-2004
Counsel for the Parties :
For the Petitioners : Anil B. Dewan, Sr. Advocate, B. Raghavan, Ms. Nina Gupta, Mrs. Vanita Bhargav, Ms. Bina Gupta, Advocates.
For the Respondents : N.N. Goswami, Sr. Advocate, S.W.A. Qadri, B.V. Balram Das, Advocates.
For the Intervenor : Arun Kathpalia, Amit Dhupar, Anant Kumar, Pradeep K. Baskhi, Advocates.
Held : The mere fact that the similar benefit even after lapse of about half a century has not been given to the employees of other industries will not make the benefit given to the newspaper industry discriminatory. The principle that a provision which may be constitutional when enacted may become unconstitutional later due to changed scenario, has no applicability whatsoever to the present case. Undoubtedly, the classification cannot be arbitrary. It has to be rational and must have a reasonable relation to the object sought to be achieved. The classification must be founded on an intelligible differentia. There is no difficulty in accepting these principles relied upon by Mr. Dewan. The difficulties generally do not arise in formation of principles under Article 14. But at times, difficulties do arise in the application of such principles to concrete cases. We may also notice the aspect of long delay in laying challenge to the validity of the impugned provisions. No hard and fast principle can be laid down that under no circumstances delay would be a relevant consideration in judging constitutional validity of a provision. It has to be remembered that the constitutional remedy under Article 32 is discretionary. In one case, this Court may decline discretionary relief if person aggrieved has slept over for long number of years. In another case, depending upon the nature of violation, court may ignore delay and pronounce upon the invalidity of a provision. (Paras 24 to 26)
In the present case, there is no satisfactory explanation for delay of over forty five years. The petition can be rejected by declining to exercise discretion in favour of petitioners only on this count. Further, as already noticed, a provision though constitutional when enacted, may with passage of time become unconstitutional, but the said principle has no applicability to the present case. The contention here is that the impugned provision was unconstitutional from its inception in the year 1956 since there was never any legal basis for classification of newspaper establishments as a separate class. (Para 28)
The definition of newspaper employee takes into its fold all the employees who are employed to do any work in, or relation to, any newspaper establishment. The decision in Express Newspaper s case amply answers the main contention about the Press Industry having been singled out, against the petitioners. This decision also holds that to provide social welfare legislation and grant benefit, a beginning had to be made somewhere without embarking on similar legislation in relation to other industries. The fact that even after about half a century similar benefit has not been extended to the employees of any other industry, will not result in invalidation of benefit given to employees of press industry. It is not for us to decide when, if at all, to extend the benefit to others. In view of aforesaid, we are unable to accept the contention that the impugned provision is violative of Article 14 on the ground that it singles out newspaper industry by excluding income test only in regard to the said industry. Apart from the fact that it may not be always possible to grant to everyone all benefits in one go at the same time, it seems that the impugned provision and the enacting of the Working Journalists Act was part of a package deal and that probably is the reason for other newspaper establishments not challenging it and petitioners also challenging it only after lapse of so many years. Further Section 2(i), 4 and Schedule I of Provident Fund Act shows how gradually the scope of the Act has been expanded by the Central Government and the Act and Scheme made applicable to various branches of industries. From whatever angle we may examine, the attack on the constitutional validity based on Article 14 cannot be accepted. (Paras 35 and 36)
JUDGMENT
Y.K. Sabharwal, J.-In this petition filed under Article 32 of the Constitution of India challenge is to the constitutionality of paragraph 80(2) of the Employees Provident Fund Scheme, 1952. The effect of the impugned paragraph is that the employees of newspaper industry, for the purposes of provident fund scheme, do not fall in the category of excluded employees despite their pay being above prescribed amount as notified by Government of India from time to time.
2. In order to appreciate the question involved, it is necessary to examine certain provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (for short, the PF Act ).
3. The PF Act was passed by the Parliament in the year 1952 to, inter alia, provide for the institution of provident fund for employees in factories and other establishments. Sub-section (3) of Section 1, inter alia, provides that the Act applies to every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are employed and to any other establishment employing twenty or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify in this behalf. The expression "basic wages" is defined in Section 2(b) and the expression "scheme" in Section 2(1). `Scheme means the Employees Provident Fund Scheme framed under Section 5 of the PF Act. The Central Government has been empowered to add to Schedule-I any other industry in respect of the employees whereof it is of opinion that a provident fund scheme should be framed under the Act and thereupon the industry so added shall be deemed to be an industry specified in Schedule I for the purposes of the Act. Section 5, inter alia, provides that the Central Government may, by notification in the Official Gazette, frame a Scheme to be called the Employees Provident Fund Scheme for the establishment of provident funds under the Act for employees or for any class of employees and specify the establishments or class of establishments to which the said Scheme shall apply and there shall be established as soon as may be after the framing of the Scheme, a Fund in accordance with the provisions of the Act and the Scheme.
4. In exercise of the powers conferred by Section 5 of the PF Act, the Central Government framed the Employees Provident Fund Scheme, 1952 (for short, the Scheme ). The employees to whom the provisions of the Scheme and the Act would not apply are defined as "excluded employee" in paragraph 2(f) of the Scheme. The said paragraph to the extent relevant for present purposes reads as under :
"2(f) `excluded employee means-
(i) .....
(ii) an employee whose pay at the time he is otherwise entitled to become a member of the Fund, exceeds six thousand and five hundred rupees per month;
Explanation.- Pay includes basic wages with dearness allowance, retaining allowance (if any) and cash value of food concessions admissible thereon;
5. The income ceiling mentioned in paragraph 2(f)(ii) has been substituted and suitably increased from time to time by issue of notification by the Central Government having regard to the fall in money value and increase in wages. The ceiling of Rs. 6,500/- per month was fixed by notification dated 4th May, 2001 w.e.f. 1st June, 2001. Earlier to 1st June, 2001, it was Rs. 5,000/- per month. Originally, an employee whose pay exceeded Rs. 300/- per month was placed into the category of an excluded employee . In 1957, the pay ceiling was increased to Rs. 500/- per month; in 1962, it was increased from Rs. 500/- to Rs. 1,000/-; in 1976, it was increased from 1,000/- to Rs. 1,600/-; in 1985, it was increased from Rs. 1,600/- to Rs. 2,500/-; in 1990, it was increased from Rs.2,500/- to Rs.3,500/-, in 1994, it was increased from Rs. 3,500/- to Rs. 5,000/-; and lastly to Rs. 6,500/- in the year 2001.
6. In so far as the employees of the newspaper ind
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