Andhra Pradesh High Court
Judges : O.CHINNAPPA REDDY
Basti Ram Narain Das - Appellant
Versus
State OF A.P. - Respondent
Decided On : 02-28-68
MINIMUM WAGES ACT - FIXATION OF MINIMUM WAGES - DIVISION OF STATE INTO ZONES - VALIDITY - REVISION OF MINIMUM WAGES - DRAFT PROPOSALS - VARIATION - ADVISORY BOARD - INDEPENDENT ENQUIRIES - RELEVANT CONSIDERATIONS - CAPACITY OF EMPLOYER TO PAY - SETTLEMENT BETWEEN EMPLOYERS AND EMPLOYEES - EFFECT.
Fact of the Case:
The petitioners, Bidi Manufacturers in the Telangana area of Andhra Pradesh, challenged the validity of a Government Order (G.O.) revising the minimum rates of wages of workers engaged in Bidi Manufactory. The G.O. divided the State into two zones, Andhra Area and Telangana Area, and fixed different minimum rates of wages for each zone. The petitioners contended that such division into zones was not authorized by the Minimum Wages Act and that the Government was not justified in varying the minimum rates of wages mentioned in the draft proposals without giving them an opportunity to make representations.
Finding of the Court:
The Court held that the division of the State into zones was authorized by Section 3 of the Minimum Wages Act, which allowed for the fixation of different minimum rates of wages for different localities. The Court also held that the Government was not required to give the petitioners another opportunity to make representations before varying the minimum rates of wages mentioned in the draft proposals, as the draft proposals were only tentative and representations were received from both employers and employees.
Issues: 1. Whether the division of the State into zones for the purpose of fixing minimum wages was authorized by the Minimum Wages Act? 2. Whether the Government was justified in varying the minimum rates of wages mentioned in the draft proposals without giving the petitioners an opportunity to make representations? 3. Whether the Advisory Board and the Government took into account relevant considerations like the cost of living index and the capacity of the employer to pay?
Ratio Decidendi: 1. Section 3 of the Minimum Wages Act authorizes the fixation of different minimum rates of wages for different localities. The division of the State into zones for the purpose of fixing minimum wages is therefore valid. 2. Draft proposals for the fixation of minimum wages are only tentative and representations are received from both employers and employees. The Government is not required to give the petitioners another opportunity to make representations before varying the minimum rates of wages mentioned in the draft proposals. 3. The Advisory Board and the Government took into account relevant considerations like the cost of living index and the capacity of the employer to pay.
Final Decision: The Court dismissed all the Writ Petitions with costs.
( 1 ) THE petitioners in the several Writ Petitions are Bidi Manufacturers in the Telangana area of the State of Andhra Pradesh. All of them question the validity of G. O. Ms. No. 1617 Home (Labour II) dated 23-7-1966 by which the Government of Andhra Pradesh revised the minimum rates of wages of workers engaged in Bidi Manufactory. The facts necessary for the disposal of these writ petitions are as hereunder: G. O. Ms. No. 659 dated 22-3-1965 containing a draft proposal to revise, minimum rates of wages of workers, employed in Tobacco (including Bidi making ) Manufactory in the manner mentioned in the Schedule was published in the Andhra Pradesh Gazette on 24-3-1965 and by the same notification the Government invited all persons affected to make their representations before minimum Wages Act. The Schedule in so 1-6-1965 as required by Sec. 5 (1) (b) of the far as it is relevant was as follows: "schedule. SL. No. Category of Workers All inclusive minimum rates. Daily Monthly 1 2 3 II * * * Bidi Manufacture (including Gharkatha) 1. For rolling 1,000 bidis in Urban areas
( 2 ) FOR rolling 1,000 bidis in Rural areas * * * Rs. P. Rs. P. * * * 2-00 1-85 * * * Note: (1) For the purpose of this Notification, urban areas shall consist of Corporations, all District Head Quarters Towns, Municipalities under the District Municipalities Act, City and Town Municipalities in the Telangana Region, and the rural areas consist of the rest of the State. " Some time after the publication of this notification the Government of Andhra Pradesh constituted as Advisory Board in accordance with the provisions of Sec. 7 of the Act. The Board consisted of six independent members (independent meaning non-official and not belonging to the category of employers or employees, Vide AIR 1965 Andh Pra 128), six representatives of employers and six representatives of employees. Among the representatives of the employers was Sri Bansilal S. Patel, President of the Bidi Manufacturers and Tobacco Merchants Association Nizamabad. After consulting the Advisory Board and considering the objections received from the employers and the organizations of employees the Government was of the view that the adoption of a uniform rate not commensurate with labour and time involved, would adversely affect the Bidi industry in Andhra area, and therefore the rates notified by G. O. Ms. No. 659 required to be altered. The Government was advised that a fresh notification was necessary under Section 5 (1) (b) of the Act. Accordingly, the Government published fresh draft proposals (G. O. Ms. No. 331, dated 26-2-1966) in the Andhra Pradesh Gazette and invited representations from all persons before 5-5-1966. The Schedule to the notification was as follows: "the SCHEDULE" @@ ________________________________________________________________________________ Sl. No. Category of Workersall inclusive minimum rates. ________________________________________________________________________________ Dailymonthly ________________________________________________________________________________ 1. 2. 3. ________________________________________________________________________________ Bidi Manufactory (Including Gharkatha)Rs. P. Rs. P. 1. Rolling bidis (a) Andhra area: (I) For rolling 1,000 big size Zadi Bidis in Urban areas 2-00 (ii) For rolling 1,000 big size Zadi Bidis in Rural areas1- 85 (iii) For rolling 1,000 big size Zadi Bidis in Urban areas1- 92 (iv) For rolling 1,000 medium size Zadi Bidis in Rural areas1-77 (v) For rolling 1,000 sada bidis in Urban areas1- 62 (vi) For rolling 1,000 sada bidis in Rural areas1-48 (b) Telangana area: (I) For rolling 1,000 bidis in Urban areas (including Gharkatha)2-00 (ii) For rolling 1,000 bidis in Rural areas1-85 ******* __________________________________________________________________________________@@ Note: (1) For the purpose of this notification urban areas shall consist of Corporations, all Municipalities under the Andhra Pradesh M
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