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2016 Supreme(Kar) 662

IN THE HIGH COURT OF KARNATAKA
Raghvendra S. Chauhan, J.
Federation of Karnataka, Chambers of Commerce and Industries Federation House, Bengaluru and Others - Petitioners
Versus
The Government of Karnataka and Another - Respondents
Writ Petition Nos. 43384 to 43428 of 2016 (L-MW)
Decided on : 06-09-2016

Advocates:
Advocate Appeared:
For the Petitioner:Sri S. Santhosh Narayan, Advocate
For the Respondents:Sri D. Aswathappa, Additional Government Advocate

Headnote:MINIMUM WAGES ACT, 1948 – Section 5 – Fixation of minimum wages- Discretion of Government- Advice of committee does not bind Government as it is not mandatory – It is free to accept, modify or even reject recommendations of committee – Hence, it can fix minimum wages over and above those recommended by committee – It need not assign any reasons therefor.

       CONSTITUTION OF INDIA, 1950 – Articles 38(2), 43 & 47 – Fixation of minimum wages – State is required to keep in mind the requirements as contemplated under.

       CONSTITUTION OF INDIA, 1950 – Article 226 – Economic policy of state – Court can examine the legality and not soundness – High Court not expected to rush in where angels fear to tread.

ORDER :

Raghvendra S. Chauhan, J.

1. The petitioners have challenged the legality of the notification dated 4-8-2015 issued by the Government of Karnataka, whereby the Government has prescribed the minimum wages for the workers and staff officers who are working in the Agarbathi Industries in the State of Karnataka.

2. The brief facts of the case are the that minimum wages for the workers of the Agarbathi Industries was prescribed by notification dated 2-3-2009. Ever since 2009, the minimum wages were not revised. Therefore, considering the fact that minimum wages need not be revised periodically, by order dated 17-5-2014, the State Government constituted a sub-committee in order to review the minimum wages applicable to the workers of the Agarbathi Industries. Subsequently, the Additional Labour Commissioner, who is also the Secretary of the Karnataka State Minimum Wage Advisory Board, issued notices with regard to holding of the committee meetings in order to hear the views of the stakeholders. Consequently, the representatives of the employers, the representatives of various trade unions, and independent members held several rounds of discussions with regard to the proportionality of increase in the minimum wages.

3. The petitioners also submitted representations, dated 19-9-2014 and 11-11-2014, wherein they highlighted the difficulties faced by them, if there were increase in the wages of the workmen. According to the petitioners, they agreed to increase the minimum wages to a certain limit. Thereupon, the committee made its recommendations. According to the recommendations, the committee advised the Government to increase the minimum wages for the post of Supervisor, Lab Technician and Lab Assistant as Rs. 7,900/-, Rs. 7,600/- and Rs. 7,400/- per month respectively. However, notwithstanding the recommendations of the committee, by notification dated 4-8-2015, the State Government has increased the recommendations of the committee by Rs. 1,000/- in the cases of Supervisor, Lab Technician and Lab Assistant, and similarly, increased the minimum wages by Rs. 1,000/- from the recommendations of the committee for Office Staff and Driver. Hence, these petitions before this Court.

4. Mr. S. Santhosh Narayan, the learned Counsel for the petitioners, at the outset, submits the that petitioners are aggrieved only by increase in the minimum wages in the category of Supervisor, Lab Technician and Lab Assistant, and for increase of the minimum wages of Office Staff and Driver. They are not aggrieved by the minimum wages prescribed for the Agarbathi Grinders, Agarbathi Packers, Packets, Pouches and Bundle Packing. Therefore, their challenge is limited only to the categories specified above.

Secondly, according to Section 5 of the Minimum Wages Act, 1948 (for short, 'the Act'), the State is bound by the advice tendered by the committee, and especially so, when the advice was passed upon the understanding reached between the stakeholders and the committee.

Thirdly, no reason has been assigned by the Government for disagreeing with the recommendations of the committee, and for increasing the minimum wages by Rs. 1,000/- from the recommendations of the committee.

Fourthly, according to Section 5(2) of the Act, the notification prescribing the minimum wages shall come into effect on the expiry of three months from the date of its issuance. However, the impugned notification comes into effect retrospectively from 1-4-2016. Therefore, the notification deserves to be set aside.

5. Heard the learned Counsel for the petitioner, and perused the impugned notification.

6. Section 5 of the Act is an under:

"5. Procedure for fixing and revising minimum wages. -

(1) In fixing minimum rates of wages in respect of any scheduled employment for the first time under this Act or in revising minimum rates of wages so fixed, the appropriate Government shall either.-

(a) appoint as many committees and sub-committees as it considers necessary to hold enquiries and advise it













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