SUPREME COURT OF INDIA
K. JAYACHANDRA REDDY AND G. N. RAY, JJ.
Hindustan Lever and others, Petitioners
Versus
Hindustan Lever Mazdoor Sabha and others, Respondents.
Spl. Leave Petn. (Civil) Nos. 7847 with 6893 of 1993
(with I. A. Nos. 3-4 & 5-6),
D/- 28-9-1993.
WITH
Batliboi and Co., Petitioners
Versus
Hindustan Lever Mazdoor Sabha and others, Respondents.
Maharashtra Workmens Minimum House Rent Allowance Act, 1983 - Section 13 - Industrial Disputes Act, 1947 - Bombay Industrial Relations Act, 1946 - Section 2(i) and 4(l) - Workmen employed - Payment of minimum house-rent allowance - Act was enacted in year which received assent of President and was published in Official Gazette - Act extends to State of Maharashtra and as notified by State Government, it was brought into force with effect - Act is made applicable Under S. I to every factory or establishment in an industry - For purpose of questions to be resolved, it may not be necessary to refer to all the Sections - Notwithstanding anything contained in this Act State Government may by order published in Official Gazette and subject to such conditions and restrictions if any, and for such period or periods, as may be specified in order, direct that provisions of this Act shall not apply to any specified factory or establishment or to any specified class of factories or establishments in any industry, if it is satisfied that it is just and proper to do so in public interest or for any special reasons having regard - Held, Assuming that such modification as per Notification is justifiable on some other grounds but that does not mean that substance of Notification conforms to requirements of S. 13 - Economic viability of a particular factory or establishment may be a relevant consideration but wages and ceiling thereof cannot form the basis nor can they be relevant for purpose - In other words, S. 4 is measure of liability which operates on factories or establishments which are units and benefit should go to all workmen in the unit - Likewise after requirements of S. 13 being satisfied, individual unit or units as a whole can be exempted - But such exemption cannot be on basis of workers and their wages differentiating between different classes of workmen of same unit - Learned counsel for respondents submitted that giving retrospective effect to Notification is arbitrary and workers cannot be made to refund house-rent allowance which has already been paid to them - But that was at an interlocutory stage when validity of Notification was not in issue - Therefore said order does not come in the way of respondents challenging Notification - Accordingly, both S.L.Ps. are dismissed - Since Court are confirming judgment of High Court, no further orders are necessary in I.A. Nos. 3,4,5 and 6 - Petitions dismissed.
Judgment
K. JAYACHANDRA REDDY, J. - Some of the employees unions, who figure as respondents herein; filed a batch of writ petitions challenging the validity of a Notification dated 9-10-92 issued by the Industries, Energy and Labour Department of the State Government of Maharashtra exercising the powers conferred by Section 13 of The Maharashtra Workmens Minimum House Rent Allowance Act, 1983 (Act for short). A Division Bench of the High Court declared the impugned Notification as invalid, unenforceable and accordingly quashed the same and also directed the employers, who figured as respondents before the High Court, to refund the amount recovered from the workmen on the basis of the impugned Notification. M / s Hindustan Lever Ltd., Batliboi & Co. and others (Companies for short) have filed these two S.L.Ps. questioning the judgment of the High Court. These S.L.Ps. are being disposed of at the admission stage itself. Some other Employees Unions have filed I. A. Nos. 3-4-5-6 for being impleaded as interveners.
2. With a view to provide for payment of minimum house-rent allowance to workmen employed in industries in Maharashtra and to provide for matters connected therewith, the Act was enacted in the year 1983 which received the assent of the President on 5-10-88, and was published in the Official Gazette on 17-10-88. The Act extends to the State of Maharashtra and as notified by the State Government, it was brought into force with effect from 1st January, 1991. This Act is made applicable Under S. I to every factory or establishment in an industry. For the purpose of the questions to be resolved, it may not be necessary to refer to all the Sections. Section 2(i) defines workmen as under :
"2. In this Act, unless the context otherwise requires-
xxx xxxx xxxx
(i) "workman" means a workman as defined in the Industrial Disputes Act, 1947 (XIV of 1947) or an employee as defined in the Bombay Industrial Relations Act, 1946 (Bom. XI of 1947) as the case may require.
xxxx xxxxxx xxxxx"
Section 2(i) gives the same meaning to the expression workman as defined in the Industrial Disputes Act or an employee as defined in the Bombay Industrial Relations Act. Section 4(l) reads thus :
"4. Responsibility for payment of house-rent allowance : ( 1) Every employer shall pay to every workman employed by him a house-rent allowance which shall not be less than five per cent. of the wages payable to the workman for his services during a month, or twenty rupees, whichever is higher."
3. Section 13 empowers the State Government to grant exemption in certain special cases from the application of the Act. Section 13 reads as follows :
" 13. Power to exempt in special cases-(1) Notwithstanding anything contained in this Act, the State Government may, by order published in the Official Gazette, and subject to such conditions and restrictions, if any, and for such period or periods, as may be specified in the order, direct that the provisions of this Act shall not apply to any specified factory or establishment or to any specified class of factories or establishments in any industry, if it is satisfied that it is just and proper to do so in the public interest or for any special reasons having regard to the more favourable conditions of employment in such factory or factories or establishment or establishments or to the financial position and other relevant circumstances of such factory or factories or establishments, as the case may be.
(2) Any order made under this section may be made so as to be retrospective to any date not earlier than the date on which the Act became applicable to that factory or factories or establishment or establishments, as the case may be."
Purporting to exercise powers under this Section, the impugned Notification was issued by the State Goverment which reads thus :
"No. BRA 3191/992/LAB/ %-A -- In exercise of the powers conferred by subsection (1) of Section 13 of the Maharashtra Workmens Minimum House-Rent Allowance Act, 1988 (Mah. XXIII
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