1970 Supreme(Bom) 85
IN THE HIGH COURT OF BOMBAY
IN THE HIGH COURT OF BOMBAY
(AT NAGPUR )
B.N.Deshmukh and Gatne, JJ.
Appellants: Chhotabhai Purushottam Patel and Ors.
Vs.
Respondent: The State of Maharashtra by Secretary, Industries and Labour Department, Sachivalaya, Bombay and Ors.
Special Civil Appln. Nos. 409 to 411 of 1968 and 391 to 393, 451, 453, 513 and 514 of 1969 Decided On: 17.07.1970
The legislative competence of Parliament to enact laws regulating the welfare of labour, including conditions of work, and the reasonableness of restrictions imposed by such laws on the fundamental rights of citizens.
Headnote:
Beedi and Cigar Workers (Conditions of Employment) Act, 1966 - Constitutional validity - Legislative competence - Reasonableness of restrictions - Interpretation of provisions - Scope and ambit of the Act.
Fact of the Case:
Numerous petitions were filed by various types of persons connected with the beedi industry challenging the constitutional validity of the Beedi and Cigar Workers (Conditions of Employment) Act, 1966, on grounds of legislative incompetence and unreasonableness of restrictions imposed on their fundamental rights. The petitioners sought a writ of mandamus prohibiting the enforcement of the Act and a declaration that its provisions were void and ineffective.
Finding of the Court:
The Court upheld the constitutional validity of the Act, finding that Parliament had legislative competence to enact the law under Entry 24 of List III in the Seventh Schedule of the Constitution, which deals with the welfare of labour, including conditions of work, provident funds, employer's liability, workmen's compensation, invalidity and old age pensions, and maternity benefits. The Court also held that the restrictions imposed by the Act were reasonable and in the public interest, as they aimed to regulate the contract system of work, license beedi and cigar industrial premises, and address issues such as health, working hours, rest periods, overtime, annual leave with pay, distribution of raw materials, and pilfering.
Issues: 1. Whether Parliament had legislative competence to enact the Beedi and Cigar Workers (Conditions of Employment) Act, 1966? 2. Whether the restrictions imposed by the Act were reasonable and in the public interest?
Ratio Decidendi: 1. The Court held that Parliament had legislative competence to enact the Act under Entry 24 of List III in the Seventh Schedule of the Constitution, which deals with the welfare of labour, including conditions of work, provident funds, employer's liability, workmen's compensation, invalidity and old age pensions, and maternity benefits. The Court noted that the Act was intended to regulate the contract system of work, license beedi and cigar industrial premises, and address issues such as health, working hours, rest periods, overtime, annual leave with pay, distribution of raw materials, and pilfering, all of which fell within the scope of Entry 24. 2. The Court held that the restrictions imposed by the Act were reasonable and in the public interest. The Court noted that the Act was enacted to address the specific problems faced by workers in the beedi industry, such as the prevalence of the contract system, double checking and rejection of beedis, and pilfering. The Court found that the Act sought to regulate these issues in a manner that balanced the interests of the workers and the employers, and that the restrictions imposed were necessary to achieve the objectives of the Act.
Final Decision: The Court dismissed the petitions, upholding the constitutional validity of the Beedi and Cigar Workers (Conditions of Employment) Act, 1966.
Deshmukh, J.
1. These are tea petitions filed by various types of persons connected with the beedi industry who could be described in the language of the impugned Act as principal employers, contractors and employees. For the various reasons detailed in the petitions, all of them seek a writ of mandamus prohibiting the respondents Nos. 1 to 4 from giving effect to the provisions of the Beedi and Cigar Workers (Conditions of Employment) Act, 1966 (No. 32 of 1966) (hereinafter referred to as the Act), and further seek a declaration that the provisions of the Act and the Rules made thereunder are void, ineffective and beyond the legislative competence of the Legislature and interfering unreasonably with fundamental rights of the petitioners.
2. Out of these petitioners, the petitioners in Special Civil Application Nos. 391. 392, 393 of 1969, No. 409 of 1968, and Nos. 451 and 453 of 1969, as also those in Special Civil Applications Nos. 513 and 514 of 1069 are the beedi manufacturers who could be appropriately described as principal employers in the language of the Act; the petitioner in Special Civil Application No. 410 of 1968 is a contractor, and the petitioner in Special Civil Application No, 411 of 1968 is an employee.
3. The provisions of the Act are impugned mainly on two grounds. It is urged that there was no legislative competence in Parliament in the matter of enacting this law and it is also urged that its provisions interfere with the freedom of contract and trade of the petitioners in a manner which is beyond the scope permitted by the reasonable restrictions in Clause (6) of Article 19 of the Constitution. It is also argued that assuming that the restrictions were to be considered as reasonable they are not in the interests of the general public. A faint attack is also made on the ground of infringement of Article 14, inasmuch as the provisions of the Act are styled as arbitrary, unreasonable, oppressive and discriminatory.
4. Before we go to the provisions of the Act and the attack of the petitioners against the general or specific provisions thereof, it may be noted that there seems to be a long history behind the dispute between the beedi manufacturers and the workers who arc employed in this industry. The attempts made by the authorities till now to give some benefit to the workers of this industry have proved abortive. This measure on an all India basis is therefore enacted with a view to provide for the welfare of the workers in the beedi and cigar establishments and to regulate the conditions of their work and for other matters connected therewith. This being so, it would be necessary, in our view, to make a brief resume of the history or this dispute, as also to notice the peculiar working conditions that seem to exist in this industry, for the purpose of understanding the provisions of the Act, as also the attack that is made against it. The history relating to the dispute, as also the facts that constitute the present nature of the working of that Industry, have to be gathered from judicial decisions. So far as the pleadings are concerned, they were not particularly helpful from that point of view. When arguments progressed in that behalf it was conceded at the Bar that the prior history relevant to the background of this litigation and the provisions relating to the welfare of beedi workers may be gathered from judicial decisions. At a later stage, the learned Assistant Government Pleader made available to us a report of the Minimum Wages Committee appointed by the Government of Maharashtra for inquiring into the conditions of employment in any tobacco manufactory including beedi-making. This was a tripartite Committee in which the manufacturers, the labour and the State were represented.
5. Though beedi industry may exist all over this country, it seems to be in existence on a very large scale in the States of Madras, Andhra Pradesh, Maharashtra and Madhya Pradesh. So far as the actual process of manuf