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2023 Supreme(Cal) 837

IN THE HIGH COURT AT CALCUTTA
RAJA BASU CHOWDHURY, J.
Goodricke Group Limited & Ors. – Petitioners
Versus
The State of West Bengal & Ors. – Respondents
WPA 11701 of 2023
Decided On : 01-08-2023

Advocates Appeared:
For the Petitioners: Mr. Arijit Chaudhuri, Mr. Arunava Ghosh, Mr. Soumya Majumder, Mr. Sharmistha Ghosh, Mr. Amit Ghosh, Mr. Victor Chatterjee.
For the State : Mr. Joydeep Kar, Mr. Santanu Kumar Mitra, Mr. Amartya Pal.

The State Government has the authority to make interim arrangements for enhancing the wages of tea garden workers, pending finalization of the minimum wage settlement under the Minimum Wages Act, 1948, especially when the parties have consciously allowed the Government to decide on the matter of interim wage enhancement, taking note of the peculiar circumstances.

Headnote:

MINIMUM WAGES ACT, 1948 - WAGES - ADVISORY - JURISDICTION OF STATE GOVERNMENT - INTERIM ARRANGEMENT - DELAY IN FINALIZATION OF MINIMUM WAGE STRUCTURE: 1. The State Government has the authority to make interim arrangements for enhancing the wages of tea garden workers, pending finalization of the minimum wage settlement under the Minimum Wages Act, 1948. 2. Where the parties have consciously allowed the Government to decide on the matter of interim wage enhancement, taking note of the peculiar circumstances, the Government's action cannot be questioned by the parties later on. 3. The State Government should take immediate steps for finalization of the minimum wages for tea plantation workers within six months from the date of communication of the order.

Fact of the Case:

The petitioners, tea plantation owners, challenged an advisory issued by the Labour Commissioner, Government of West Bengal, raising the wages of daily rated workers in organized tea gardens. The petitioners contended that the Labour Commissioner lacked the authority to unilaterally raise the wage structure, especially when a Minimum Wages Advisory Committee had been set up by the Government to determine minimum wages.

Finding of the Court:

The Court held that the State Government had the authority to make interim arrangements for enhancing the wages of tea garden workers, pending finalization of the minimum wage settlement under the Minimum Wages Act, 1948. The Court also held that the petitioners, having accepted and implemented previous decisions regarding wage enhancements, could not question the authority of the Government to issue the advisory in question.

Issues: 1. Whether the State Government has the authority to make interim arrangements for enhancing the wages of tea garden workers, pending finalization of the minimum wage settlement under the Minimum Wages Act, 1948? 2. Whether the petitioners, having accepted and implemented previous decisions regarding wage enhancements, can question the authority of the Government to issue the advisory in question?

Ratio Decidendi: 1. The Minimum Wages Act, 1948 does not provide for any interim measure for wage enhancement. However, in the peculiar circumstances of the case, where the parties had consciously allowed the Government to decide on the matter of interim wage enhancement, the Government's action cannot be questioned by the parties later on. 2. The petitioners had accepted and implemented previous decisions regarding wage enhancements issued by the Government. Therefore, they cannot be permitted to question the authority of the Government to issue the advisory in question.

Final Decision: The Court dismissed the writ petition challenging the advisory issued by the Labour Commissioner, Government of West Bengal, raising the wages of daily rated workers in organized tea gardens. The Court also directed the State Government to take immediate steps for finalization of the minimum wages for tea plantation workers within six months from the date of communication of the order.

JUDGMENT :

(Raja Basu Chowdhury, J.) :

1. The present writ application has been filed, inter alia, praying for direction upon the respondents to forbear from giving effect to the Advisory dated 27th April, 2023, and for a declaration that the said Advisory signed by the respondent no.2 is illegal, void and of no effect.

2. The petitioners are owners or lessees of tea plantations in West Bengal and are carrying on business, inter alia, of growing, harvesting and manufacturing tea at such plantations. The petitioners contended that in usual course they employ workers for carrying out its business operations and that the provisions of the Minimum Wages Act, 1948 (hereinafter referred to as the “said Act”) apply in respect of such workers.

3. That the Government of West Bengal by a notification dated 17th February, 2015 had constituted a Minimum Wages Advisory Committee for the State of West Bengal (hereinafter referred to as the “said Committee”) in exercise of the powers conferred by clause (a) of sub-section (1) of Section 5 read with Section 9 of the said Act. The tenure of the said Committee was for a period of 2 (two) years from the date of the issue of the aforesaid notification. It is the petitioners’ case that prior to issue of the said notification, the wages of the workers of the tea plantations in West Bengal were fixed by tripartite settlements between the employers and the workers of such plantations. The settlements were entered into as per the provisions of the Industrial Disputes Act, 1947.

4. Last of such settlement was entered into on 20th February, 2015, and was to remain in force till wages were to be fixed in terms of the said Act. It is also the petitioners’ case that pending revision of minimum wages, in terms of the notification dated 17th February, 2015, the Government has from time to time issued Memoranda, enhancing the minimum wages of workers. Issuance of Memoranda to enhance the minimum wages is dehors the provisions of the said Act. It is, however, the case of the petitioners that the petitioners had accepted the aforesaid Memoranda and had paid such amount principally to avoid any industrial unrest. Since then, the petitioners’ financial condition had worsened and such fact was also notified on behalf of the petitioners, by a letter dated 10th June, 2022, addressed to the Chief Minister of the Government of West Bengal. Unfortunately, on 27th April, 2023, the Labour Commissioner, Government of West Bengal has issued an Advisory whereby the wages of daily rated workers of the organized tea gardens have been raised to Rs. 250/-per day, as a part of long term wage settlement with effect from 1st June, 2023, pending finalisation of the Charter of Demands, including finalisation of the revision of minimum wages of the workers in the employment of the plantations in West Bengal. It would appear that by a letter dated 8th May, 2023, the petitioners had questioned the said Advisory issued by the Government through their advocates letter and had called upon the Government to withdraw the said Advisory. Since, despite receipt of such letter the Advisory was not withdrawn, the present writ application has been filed.

5. Mr. Chaudhuri, learned senior advocate appearing on behalf of the petitioners, by referring to the provisions of the said Act, submits that the said Act does not recognize any authority of the State Government to unilaterally raise the wage structure, especially when an advisory committee has been set up by the Government to determine minimum wages. It has also been argued on behalf of the writ petitioners that the Labour Commissioner while issuing the advisory, was at best, enjoying the status of a conciliator. By referring to the provisions of the Industrial Disputes Act, 1947, elaborate submissions have been advanced, as regards the powers, the extent of duties and responsibilities of a Concili

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