ELIPE DHARMA RAO, J.

( 1 ) THE petitioner, which is the Andhra pradesh Hotels Association, represented by its Secretary filed the present writ petition seeking Writ of Mandamus declaring the g. O. Ms. No. 53 Labour, Employment, training and Factories (Lab. II) dated 17-10-2000 as illegal, arbitrary and unconstitutional and to issue consequential directions to the respondent and pass such other order or orders as this Honourable court deems fit and proper in the circumstances of the case.

( 2 ) THE brief facts of the case are as follows: The petitioner is the Secretary of the Andhra Pradesh Hotels Association, which is registered association representing the hotels functioning in the State of andhra Pradesh. The respondent issued draft notification in G. O. Rt. No. 599 dated 23-3-1999 published in the Gazette proposing revision of minimum wages in the hotel industry under Section 5 (2) of the minimum Wages Act. The previous revision of minimum wages has taken place under G. O. Ms. No. 89 dt. 15-5-1991. The present revision was proposed by taking cost of living index at 309 points (base year 1982-100 series ). It was also proposed that for any rise in cost of price index over the 309 points the cost of living allowance shall be paid as shown in G. O. It was shown that rs. 3/- shall be the cost of living allowance in respect of basic wage of Rs. 500. 00 whenever there is an increase of a point in the cost of living index above 309 points. It was also proposed that for the basic wage above Rs. 500. 00 the cost of living allowance shall be calculated at the rate of Rs. 0. 25 for every Rs. 50. 00 of the basic wage subject to an upper limit of Rs. 10-50 for the basic wage of Rs. 2,000. 00. The employees were categorized into six categories, the post of manager carrying a basic wage of rs. 2,376/-, category-A drawing basic wage of Rs. 1,901. 00, category-B drawing rs. 1,663/-, category-C drawing rs. 1,496/-, category-D drawing rs. 1,426/- and category-E drawing rs. 1,320/ -. The petitioner-Association submitted its objections on 21-7-1999 in writing to the respondent raising various aspects to be considered by the Advisory board before finalizing the wage revision. It is further stated that the basic wage fixed in respect of the post of Manager in the final notification is Rs. 3,625. 00, a difference of rs. 1,259/- over the draft notification. In respect of the category-A employees the basic wage is fixed at Rs. 2,909. 00 which is rs. 1,008/- above the draft notification. In respect of category-B the basic wage is fixed at Rs. 2,544. 00 which is Rs. 881. 00 above the draft notification. The basic wage for category-C is fixed at Rs. 2,289. 00 which is rs. 893/- above the draft notification. The basic wage of category-D is fixed at rs. 2,182/- which is Rs. 756. 00 above the draft notification. The steep increase in the basic wage within a period of one and half years is unreasonable, excessive exorbitant and arbitrary. In the instant case, the time- gap is around one and half years and the fixation of basic wage at a very high figure is highly arbitrary. The basic wage for the purpose of final notification could be increased only by adding the basic wage as provided in the draft notification and the vda payable for the difference in the cost of living index between the date of draft notification and the final notification. Applying the said reasoning the basic wages as provided in the final notification are exorbitant and unrealistic. The mode of calculation of cost of living allowance under the draft notification and the final notification remained the same, but for the difference that the base point of the cost of living index has been taken at 411 points in the final notification whereas it was 309 points in the draft notification. The cost of living allowance is provided separately for the purpose of neutralizing the increase in the cost of living index beyond the date of the notification till the date of next notification. In order

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