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1979 Supreme(Guj) 170

Gujarat High Court
Judgename :S.B.MAJMUDAR, S.H.SHETH
RAJIV RAMANLAL - Appellant
Versus
ASHOK MILLS LIMITED - Respondent
CRIMINAL APPEAL 1072 of 1978
Decided On : 10/01/1979

Advocates Appeared: A.C.RATHOD, I.M.NANAVATI, P.M.RAVAL, S.R.SHAH

Headnote:

Bombay Labour Welfare Fund Act 1953 - Section 3 - Rules 3 - Unpaid accumulations – Wages and gratuity – Payments due to the employees – Before court enter upon examination contentions raised plaintiffs before us it is necessary to set history of litigation relating impugned provisions - Bombay Labour Welfare Fund as it was then was challenged in a group of writ petitions before High Court of Bombay ground that it was ultra - Was then there shall be constituted a fund called Bombay Labour Fund and notwithstanding anything contained in any other law time being in force sums specified in shall be paid into accumulations any voluntary donations any fund transferred any sum borrowed effect from amended provisions were brought into force fact remains that Amending Act itself came into - On that day upon which court have placed reliance was in force - In our opinion therefore it is open to us to rely order to determine constitutional validity provisions Labour Welfare Act - Has invited our attention decision Supreme Court in State of Bombay and another United Motors and other principle which has tried to enunciate before us has been laid down in that decision - Since in our opinion - When Amending Act came into force is material and since on that was in force principle laid down by Supreme Court in aforesaid decision has no application to this case - Supreme Court has also laid down that while determining reasonableness of a statute guidelines can be inferred from Directive Principles laid down in Constitution - Welfare Commissioner court are of opinion impugned provisions are reasonable and since what an employer is required to make over Board is judgment-debt employer is not deprived of his property - Appeals dismissed

S. H. SHETH, J.

( 1 ) ). This group of 52 appeals arises out of as many suits filed in the City Civil Court Ahmedabad. They were filed by shareholders of corporate employers in which they challenged the vires of secs. 3 and 6 of the Bombay Labour Welfare Fund Act 1953 and Rules 3 and 4 of the Labour Welfare Fund (Gujarat) Rules 1962 They contended that the aforesaid provisions were ultra vires Art. 19 (1) (f) and Art. 31 (2) of the Constitution of India. Some of the suits were instituted in 1975 and others were instituted in 1976. No evidence was led in the suits. They were decided on the basis of legal arguments advanced before the learned trial Judge. On 2nd September 1978 they were decided by the learned trial Judge by a common judgment. He turned down the conten- tions raised by the plaintiffs and dismissed the suits. Decrees passed by him in all the suits are challenged by the plaintiffs in these appeals.

( 2 ) BEFORE we enter upon the examination of the contentions raised by the plaintiffs before us it is necessary to set out the history of the litigation relating to the impugned provisions. The Bombay Labour Welfare Fund Act 1953 (hereinafter referred to as the Labour Wefare Act for the sake of brevity was enacted by Bombay Legislature in 1953. Sec. 3 as it was then was challenged in a group of writ petitions before the High Court of Bombay on the ground that it was ultra vires Art. 31 (2 ). Sec. 3 as it was then read as follows: (1 ). There shall be constituted a fund called the Bombay Labour Walfare Fund and notwithstanding anything contained in any other law for the time being in force the sums specified in sub-sec. (2) shall be paid into the Fund. (2 ). The Fund shall consist of (a) all fines realised from the employees; (b) all unpaid accumulations; (c) any voluntary donations; (d) any fund transferred under sub-sec. (5) of sec. 7; and (e) any sum borrowed under sec. 8. (3 ). The sums specified in sub-sec. (2) shall be collected by such agencies and in such manner and the accounts of the Fund shall be maintained and audited in such manner as may be prescribed. Sec. 7 (1) Provided: The Fund shall vest in and be held and applied by the Board as Trustees subject to the provisions and for the purposes of this Act sub-sec. (2) of sec. 7 provided as follows: "without prejudice to the generality of sub-sec. (1) the moneys in the Fund may be utilised by the Board to defray expenditure on the following: (a) community and social education centres including reading rooms and libraries. (b) community necessities; (c) games and sports; (d) excursions tours and holiday homes; (e) entertainment and other forms of recreations; (f) home industries and subsidiary occupations for women and unemployed persons- (g) corporate activities of a social nature; (h) cost of administering the Act including the salaries and allowances of the staff appointed for the purposes of the Act; and (i) such other objects as would in the opinion of the State Government improve the standard of living and ameliorate the social conditions of labour. Provided that the Fund shall not be utilized in financing any measure which the employer is required under any law for the time being in force to carry out provided further that unpaid accumulations and fines shall be paid to the Board and be expended by it under this Act notwithstanding anything contained in the Payment of Wages Act 1936 (IV of 1936) or any other law for the time being in force". Sub-sec. (10) of sec. 2 defined the expression Unpaid accumulations in the following terms: unpaid accumulations means all payments due to the employees but not made to them within a period of three years from the date on which they became due whether before or after the commencement of this Act including the wages and gratuity legally payable.

( 3 ) THE writ petitions were heard by Chagla C. J. and Tendolkar J who dismissed them by their order dated 14th September 1953. The reasons which weighed with the learned Judges







































































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