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1992 Supreme(Guj) 43

Gujarat High Court
Judgename :A.N.Divecha, J.M.Panchal
SAURASHTRA PAPER AMD BOARD MILLS PRIVATE LIMITED,rajkot - Appellant
Versus
STATE - Respondent
S.C.A. 3384 of 1979
Decided On : 02/14/1992

Advocates Appeared: Anu S.Verma, D.V.PATEL, K.M.PATEL, V.B.PATEL

Headnote:

Constitution of India, Article 226 – Minimum Wages Act, 1948 – Section 4 – Petitions filed petitioners, who manufacture Mill-board by sun-dry process, have prayed for issuance of an appropriate writ, direction or order for quashing and setting aside the Notification (Annexure d to the petition) issued by the government of Gujarat in its Labour, Social Welfare and Tribal Development department, in exercise of powers conferred on it by clause (b) of sub-sec. (1) of Sec. 3 read with sub-sec. (2) of Sec. 5 and clause (i) of sub-sec. (1) of Sec. 4 of the Minimum Wages Act, 1948, fixing minimum rates of wages in respect of employees employed in the scheduled employment known as employment in any Pulp and Paper or Board Manufactory with effect both these petitions involve common questions of facts and law, with the consent of the learned Advocates, these petitions have been heard together and are being disposed of by this common judgment facts giving rise to the present petition may now be stated : the petitioners manufacture Mill-board by sun-dry process. According to the petitioners, manufacture of Mill-board by sun-dry process is very different from paper manufacturing by automatic process petitioners have averred in the petitions that the Board manufactories (i) Millboard manufactory run by manual process which are by their very nature seasonal, and (ii) Board manufactory run with fully automatic process carried out mechanically petitioners have described the manufacturing process in detail and have stated that the Industries run by the petitioners have widely different characteristics from the pulp and paper industry and also the board manufacturing industry by automatic process in the matter of nature of employment and the work involved in the employment according to the petitioners, the Mill-board Industry run by sun-dry process occupy lowest rung of the ladder with respect to technology, investment, organisation and is working with the highest labour production ratio and is seasonal and classified as small scale industry –Held, Market Committees contended that although the refund of the excess collections might be legally due to the dealers, many of them had in turn recovered this excess percentage from the next purchasers. While disposing of the petition and laying down guidelines Honble Supreme Court of India has held as under:"article 226 grants an extraordinary remedy, which is essentially discretionary, although founded on legal injury it is perfectly open for the Court, exercising this flexible power, to pass such order as public interest dictates and equity projects. Courts of equity may. and frequently do go much further both to give and withhold relief in furtherance of the public interest than they are accustomed to go where only private interests are involved granting or withholding of relief may properly be dependent upon considerations as of public interest has been rightly observed that legal formulations cannot be enforced divorced from the realities of the fact situation of the case while administering law it is to be tempered with equity and if the equitable situation demands after setting right the legal formulations not to take it to the logical end the High Court would be failing in its duty if it does not notice equitable considerations and mould the final order in exercise of its extraordinary jurisdiction. Any other approach would render the High Court a normal Court of Appeal, which it is not. Having regard to the facts of the case, we are of the view that neutralization beyond the permissible limit of 100% under the impugned notification is only with respect to lowly paid workman engaged in the scheduled employment in question and has not resulted in a material failure of justice. To declare the special allowance part of the impugned notification to be illegal, is bound to result into untold hardship and miseries to them and it might create a lot of difficulties also in recovery of excess amount paid to them pursuant to the said notification – Petitions are dismissed.

PANCHAL, J.

( 1 ) IN both these petitions filed under Art. 226 of the Constitution of india, the petitioners, who manufacture Mill-board by sun-dry process, have prayed for issuance of an appropriate writ, direction or order for quashing and setting aside the Notification dated 2/07/1979 (Annexure d to the petition) issued by the government of Gujarat in its Labour, Social Welfare and Tribal Development department, in exercise of powers conferred on it by clause (b) of sub-sec. (1) of Sec. 3 read with sub-sec. (2) of Sec. 5 and clause (i) of sub-sec. (1) of Sec. 4 of the Minimum Wages Act, 1948, fixing minimum rates of wages in respect of employees employed in the scheduled employment known as employment in any Pulp and Paper or Board Manufactory with effect from 15/07/1979.

( 2 ) AS both these petitions involve common questions of facts and law, with the consent of the learned Advocates, these petitions have been heard together and are being disposed of by this common judgment.

( 3 ) THE facts giving rise to the present petition may now be stated : the petitioners manufacture Mill-board by sun-dry process. According to the petitioners, manufacture of Mill-board by sun-dry process is very different from paper manufacturing by automatic process. The petitioners have averred in the petitions that the Board manufactories are of two types: (i) Millboard manufactory run by manual process (by sun-dry process), which are by their very nature seasonal, and (ii) Board manufactory run with fully automatic process carried out mechanically. The petitioners have described the manufacturing process in detail and have stated that the Industries run by the petitioners have widely different characteristics from the pulp and paper industry and also the board manufacturing industry by automatic process in the matter of nature of employment and the work involved in the employment. According to the petitioners, the Mill-board Industry run by sun-dry process occupy lowest rung of the ladder with respect to technology, investment, organisation and is working with the highest labour production ratio and is seasonal and classified as small scale industry.

( 4 ) THE Dominion Parliament has enacted the Act called as minimum wages Act, 1948 (hereinafter referred to as the act) to provide for fixing minimum rates of wages in certain employments. Section 4 of the Act lays down what the minimum rate of wages should consist of. Section 5 sets out the procedure for fixing or revising minimam wages. Section 9 of the Act provides for the composition of the Committee. Section 27 of the Act confers powers on the Government to add an employment in the Schedule to the Act. The Government of Gujarat in the purported exercise of the said power, on 2/07/1976 issued notification, whereby it added the following employment in the schedule, namely, employment in any pulp and paper or board manufactory. This was added with effect from 1/07/1976. In exercise of powers conferred by clause (a) of sub-sec. (1) of Sec. 5 of the Minimum Wages Act, 1948, the Government of Gujarat by its Resolution, Labour, Social Welfare and Tribal Development department dated 22/03/1977 appointed a Committee to hold inquiry and to advise the Government in the matter of fixation of minimum wages in respect of employment in any pulp and paper or board manufactory in the State of Gujarat. The Committee appointed by the government made necessary inquiry and submitted its report to the government of Gujarat. The Government of Gujarat, after considering the advice of the said Committee, decided to fix the minimum rates of wages in respect of the said scheduled employment and in exercise of powers conferred by clause (b) of sub-sec. (1) of Sec. 3 read with subsec. (2) of Sec. 5 and clause (i) of sub-sec. (1) of Sec. 4 of the said act. issued a Notification dated 2/07/1979 fixing minimum rates of wages in respect of employees employed in said scheduled employment with effect from 1 5/07/1979. The petiti















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