SUPREME COURT OF INDIA
S.M. SIKRI, G.K. MITTER, K.S. HEGDE, A.N. RAY AND P. JAGANMOHAN REDDY JJ.
Chandra Bhawan Boarding and Lodging, Bangalore, Appellant
Versus
State of Mysore and another, Respondents.
Civil Appeal No. 1617 of 1967 and Writ Petn. No. 207 of 1967, D/- 29-9-1969.
In Civil Appeal No. 1617 of 1967.
In W. P. No. 207 of 1967.
Advocates appeared
All Mysore Hotels Assocn. and another, Petitioners v. The State of Mysore and another, Respondents;
Chandra Bhawan Boarding and Lodging Bangalore, Intervener.
In C. A. No. 1917 of 1967; Mr. A. K. Sen, Sr. Advocate (Mr. R. Gopalakrishnan, Advocate with him), for Appellant; In W. P. No. 207 of 1967; Mr. S. T. Desai, Sr. Advocate (M/s. S. N. Prasad and R. B. Datar, Advocates with him), for Petitioners; In C. A. No. 1617 of 1967 and Respondent No. 1 in W. P. No. 207 of 1967; Mr. Niren De, Attorney General, for India, (M/s. S. S. Javali and S. P. Nayar, Advocates with him), for Respondents Nos. 1 and 2; In W. P. No. 207 of 1967; Mr. S. S. Khanduja Advocate, for Respondent No. 2; In W. P. No. 207 of 1967; Mr. R. Gopalakrishnan Advocate, for Intervener.
-held, dividing line between the two is quite thin and gradually being obliterated. Natural justice principle apply also to exercise of administrative power.
Judgment
HEGDE, J. :- The above-mentioned appeal by certificate as well as the petition under Art. 32 of the Constitution raise identical questions of law for decision. In both these proceedings the validity of the notification issued by the Government of Mysore in S. O. 1038, dated the 1st June, 1967 fixing the minimum wages of different classes of employees in residential hotels and eating houses in the State of Mysore, under the provisions of the Minimum Wages Act, 1948 (to be hereinafter referred to as the Act) is called into question. The Civil Appeal arises from the decision of the High Court of Mysore rejecting the various contentions advanced on behalf of some of the hotel owners questioning the validity of the impugned notification. The writ petition is filed by the All Mysore Hotels Association, Bangalore and the Madras Woodland Hotel raising these very contentions.
2. The impugned notification was challenged on several grounds before the High Court but in this Court only some of those grounds were pressed. The grounds urged in this Court are :
(1) Section 5 (1) of the Act is violative of Art. 14 of the Constitution as it confers unguided and uncontrolled discretion on the Government to follow either of the alternative procedures prescribed in clauses (a) and (b) of that sub-section.
(2) The provisions of the Act are unconstitutional as they confer arbitrary power without guidance to the Central and the State Governments concerned to fix minimum rates of wages and thus interfere with the freedom of trade guaranteed under Art. 19 (1) (g) of our Constitution.
(3) It was incumbent on the Government to appoint a Committee under Sec. 5 (1) (a) of the Act to inquire into and advise it in the matter of fixing minimum wages. Its failure to do so has resulted in fixing minimum wages arbitrarily.
(4) Fixing of minimum wages under the provisions of the Act being a quasi-judicial act, the Government s failure to observe the principles of natural justice has vitiated its decision.
(5) It was not permissible for the Government to fix different minimum wages in different industries.
(6) The division of the State into zones and fixing different rates of minimum wages for different zones was impermissible under the Act.
(7) The division of the State into zones was not done on any rational basis and
(8) The valuation of the food to be provided to the employees is unreasonably low and the same was done without the authority of law.
3. The Act came to be enacted to give effect to the resolutions passed by the minimum wages fixing Machinery Convention held at Geneva in 1928. The relevant resolutions of the Convention are embodied in Arts. 223 to 228 of the International Labour Code. The object of these resolutions as stated in Art. 224 was to fix minimum wages in industries "in which no arrangements exist for the effective regulation of wages by collective agreements or otherwise and wages are exceptionally low". The Central legislature enacted the Act in 1948 and it came into force on March 15, 1948. The long title to the Act says that it is an Act for fixing minimum rates of wages for certain employments. The preamble to the Act says that "it is expedient to provide for fixing minimum rates of wages in certain employments". Section 2 defines certain terms. Section 3 empowers the appropriate Government which expression is defined in Sec. 2 (b) to fix the minimum rates of wages payable to the employees employed in an employment specified in Part I or in part II of the Schedule and in any employment added to either part in exercise of the powers granted under Section 27 of the Act. Clause (b) of Sec. 3 (2) empowers the appropriate Government to review at such intervals as it may think fit, such intervals not exceeding five years, minimum rates of wages so fixed and revise the minimum rates, if necessary. Sub-section (3) of that section stipulates that in fixing or revising minimum rates of wages under that section different minimum rates of wages
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