Sachchidanand Jha, J.

1. In these two writ petitions on behalf of North Bihar Chamber of Commerce and Industries which is an association of persons carrying on trade, business or industry, and two of its members who are partners in wholesale and retail cloth business having shops at Muzaffarpur, the petitioners are aggrieved by the revised rate of minimum wages fixed under the Minimum Wages Act, 1948 (in short the Act). Under challenge are the notification dated October 30, 1989 in CWJC No. 580 of 1990, and dated July 19, 1993, in CWJC No. 11130 of 1993, enclosed as Annexure-1 to the writ petitions in both the cases.

2. A brief introduction of the Act so far as relevant for the purpose of these cases may be appropriate at the outset. The Act has been enacted for fixing minimum rates of wages in the scheduled employments specified in the schedule appended to the Act under Sec. 3 which is the charging Section of the Act. The appropriate Government is empowered to fix minimum rates of wages payable to the employees employed in the scheduled employment, review at intervals not exceeding five years the rates of wages so fixed and revise the same if necessary. Sec. 4 provides that minimum rates may; consist of (i) a basic rate of wages and special allowance at a rate to be adjusted at such intervals and at such time the appropriate Government may direct in accord with, as nearly as practicable, variation in the cost of living index applicable to the workers, that is, the cost of living allowance; or (ii) a basic rate of wages with or without the cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concessional rates; or (iii) an all-inclusive rate comprising of the basic rate, cost of living allowance and the cash value of the concessions, if any. It may be mentioned that in the present case the rates of wages have been fixed under Clause (iii) i.e. all-inclusive rate which includes the cost of living allowance. The procedure for fixing and/or revising the minimum wages is laid down in Sec. 5 of the Act. Sec. 5 provides that in fixing or revising the minimum wages the Government may either appoint committees and sub-committees as it considers necessary to hold inquiries and advise it in respect of such fixation or revision, or publish proposals in the Official Gazette giving at least two months time for receipt of representations from the persons likely to be affected thereby. After considering the advice of the committee or the representations received, as the case may be, the Government may fix or revise the minimum wages by notification in the Official Gazette. In case of revision, however the Government is required to consult the Advisory Board. Sec. 7 provides for an Advisory Board to co-ordinate the work of the committee and sub-committees appointed under Sec. 5, and to advise the Government generally in the matter of fixing or revising the minimum wages. Sec. 9 provides for composition of the committees, sub-committees and the Advisory Board. I shall refer to some of these provisions later again in the judgment.

3. The case of the petitioners as presented at the stage of hearing is that where wages are proposed to be revised in accordance with Clause (b) of Sub-section (1) of Sec. 5 that is, after publication of the proposal, giving opportunity to the persons affected to file representations against such proposal, as was done in this case, consultation with the Advisory Board is mandatory. Such consultation was, in fact, made but as the Advisory Board was not properly constituted the impugned notifications, based as they are on the advice of the Advisory Board, cannot be said to be in accordance with law. Secondly, though the Advisory Board recommended neutralization of the price hike by 100% the revision in wages was more than 100%. Thirdly, the rate was fixed on the basis of population, which has no rational basis. In CWJC No. 11130/93 the further case of