IN THE HIGH COURT OF KARNATAKA AT BANGALORE
Vikramajit Sen and A.S. Bopanna, JJ.
Bharathiya Mazdoor Sangha Felix Pai Bazar Mangalore-575001 rep. by Sri Yogish Bhat, Yatindra S/o Subba Moolya, Jayaraj Shetty S/o. Rukku Shetty, Padmanabha Shetty S/o. Timmappa and Sharath Kumar Shetty S/o. Sadashiva Shetty —Appellant
Vs.
Union of India, rep. by its Secretary Department of Rural Development Krishi Bhavan, New Delhi, The State of Karnataka Department of Rural Development and Panchayat Raj M.S. Building, Bangalore rep. by its Secretary and Director National Rural Employment Guaranty Scheme Department of Rural Development and Panchayat Raj M.S. Building, Bangalore —Respondent
AND
C. Ramanjaneya S/o late Chikkahanumantaih, Rangaswamy S/o Govinda, Govindaraju S/o. Hanumanthiaiah and Hanumantharaju S/o Madhuraiah —Appellant
Vs.
Union of India rep. by its Secretary Department of Rural Development Krishi Bhavan, New Delhi, The State of Karnataka Department of Rural Development and Panchayat Raj. M.S. Building Bangalore, rep. by its Secretary, Director National Rural Employment Guaranty Scheme Department of Rural Development and Panchayat Raj M.S. Building, Bangalore, Karnataka State Employment Guarantee Council M.S. Building, Bangalore rep. by its Chairman and Committee on wage and labour standards M.S. Building, Bangalore rep. by its Secretary —Respondent
Writ Petition No. 30619/2009 c/w W.P. Nos. 29954-29958/2009,28685-28689 of 2009
Decided on : 23-09-2011
Wage Rate - Mahatma Gandhi National Rural Employment Guarantee Act, 2005 - Section 6(1) - [Section 6(1) of the Act 2005] - The court discussed the provisions of Section 6(1) of the Act 2005, which allows the Central Government to specify the wage rate, and its conflict with the Minimum Wages Act, 1948. The court highlighted the non-obstinate clause in Section 6(1) and its implications, as well as the constitutional rights guaranteed under Article 23 of the Constitution of India. The judgment declared that the wage rate notified by the Central Government shall not be less than the minimum wage fixed by the State Government under Section 3 of the MW Act, 1948, for agricultural labourers applicable to that area.
Fact of the Case:
The petition was filed in public interest regarding the fixation of the 'wage rate' under the Mahatma Gandhi National Rural Employment Guarantee Act, 2005. The petitioners contested the power retained by the Central Government under Section 6(1) of the Act to notify 'wage rate' less than the minimum wage payable, specifically in the State of Karnataka.
Finding of the Court:
The court found that the exercise of power by the Central Government to notify the 'wage rate' at a rate lesser than the minimum wages for agricultural labourers is not sustainable. It declared that the 'wage rate' notified shall not be less than the minimum wage fixed by the State Government under the Minimum Wages Act, 1948, for agricultural labourers applicable to that area.
Issues: The main issue was the conflict between the power of the Central Government to specify the wage rate under the Act 2005 and the minimum wage fixed by the State Government under the MW Act, 1948. The petitioners argued that the exercise of power under Section 6(1) was arbitrary and discriminatory, contrary to the rights guaranteed under Article 23 of the Constitution of India.
Ratio Decidendi: The court's decision was based on the conflict between the provisions of the Act 2005 and the MW Act, 1948, and the constitutional rights guaranteed under Article 23 of the Constitution of India. It emphasized that the wage rate notified by the Central Government should not be less than the minimum wage fixed by the State Government for agricultural labourers.
Final Decision: The notification dated 01.01.2009 notifying the wage rate for agricultural labourers in Karnataka at Rs.82/- was quashed, and it was held that the appropriate 'wage rate' shall not be less than the minimum wage fixed by the State Government. The subsequent revision of minimum wage shall be treated as the wage rate from the relevant date of fixation of the minimum wage. The respondents were directed to take steps for payment of the difference of the amount to the wage earners who had worked during the said period.
A.S. Bopanna, J.— The petition in W.P. No. 30619/2009 is filed in public interest raising certain grievances with regard to the fixation of the 'wage rate' as contemplated. The very same issues have been raised in W.P. Nos. 29954-958/2009 c/w 28685-689/2009 and 32502/2009 and the relief claimed therein is also similar. However, since the issue has been raised in public interest in the first of the above noted petitions, the same would relate to the other petitioners as well and as such the petitions are heard together and disposed of by this common order.
2. The petitioners are aggrieved only insofar as the power retained by the Central Government under Section 6(1) of the. Mahatma Gandhi National Rural Employment Guarantee Act, 2005 ('Act 2005' for short) to notify 'wage rate' less than the minimum wage payable. In exercise of the said power, the Central Government by its notification dated 01.01.2009 has notified the State wise wage rate for agricultural labourers. In this regard, the issue in the instant petitions relates to the fixation of the 'wage rate' insofar as the State of Karnataka at Rs.82/- per day. Though the rate has been subsequently increased, the grievance is that the said 'wage rate' notified by the Central Government is lesser than the minimum wage fixed by the State Government for agricultural labourers in exercise of the power under Minimum Wages Act. In this regard, it is the case of the petitioners that Section 6(2) of the Act 2005 at the first instance provided for the 'wage rate' to be fixed at the same rate as the minimum wage fixed by the State Government under Section 3 of the Minimum Wages Act, 1948 ('MW Act' for short). It is therefore contended that the power under sub-section (1) to Section 6 of the Act 2005 is arbitrary and discriminatory inasmuch as it provides for fixation of wage rate which would be lesser than the minimum wage prescribed under another central enactment. It is contended that the term 'wage rate' is defined in Section 2(s) of the Act 2005 to mean the 'wage rate' defined in Section 6 and further Section 3(2) provides that every person who has done the work given to him under the scheme would be entitled to receive wages at the 'wage rate'. Hence, the 'wage rate' with reference to Section 6 cannot be less than the minimum wages prescribed and therefore, the exercise of the power under Section 6(1) to reduce such wage in respect of persons undertaking work under the scheme provided under the Act would be contrary to the right guaranteed under Article 23 of the Constitution of India. Hence, Section 6(1) being contrary to the constitutional requirement is liable to be struck down is the contention. In that context, it is contended that the impugned notifications prescribing lesser wages than the minimum wages in exercise of such arbitrary power under Section 6(1) of the Act are also liable to be quashed and the difference of the 'wage rate' in comparison to the minimum wage as on the date of the notification is liable to be paid to the wage seekers.
3. While attempting to sustain the action of the respondents, it is the case of the respondents that the scheme of providing employment under the Act 2005 is for the purpose of enhancing the livelihood security of the household in rural areas of the country. Considering the basic feature of the Act 2005 and the scheme thereunder, there are other features, which are taken care by the Act 2005. It provides for atleast 100 days of guaranteed wage employment in every financial year to every household from which one adult member volunteers to do unskilled manual work. The Act 2005 also provides for payment of unemployment allowance and the other facilities indicated in Schedule I to the Act 2005. Further, the guaranteed employment and the wage paid thereunder is to supplement the income of the household where the other members of the family would be earning in the other employment. Since the entire scheme is envisaged by the Central Gov
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