SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2022 Supreme(Guj) 169

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.S. SUPEHIA, J.
Gujarat Rajya Hotel Federation & 9 Other - Appellants
Versus
State of Gujarat & Others - Respondents
R/Special Civil Application No. 6185 of 2002
Decided on : 11-02-2022

Advocates:
Advocate Appeared:
For the Appellant : Ms. Aishwarya Reddy For M/S Trivedi & Gupta(949)
For the Respondent: Mr. Rohan Shah, AGP.

Headnote:

Minimum Wages Act, 1948 - Section 30(1), 5(1)(a),(b), 3 to 5, 11 and 30 - General Clauses Act, 1897 - Sections 23 and 21 - Minimum Wages - Notification Prescribing Mode of Computation of Cash Value - Petitioner No.1 is a federation representing more than 500 establishments engaged in activity of running hotels/restaurants in State Petitioner Nos.2 to 7 are members and officers of petitioner no.1 - Notifications have been issued under Minimum Wages Act, 1948 – Held, In present case, though State Government has followed procedure stipulated under section 5 of Act before issuing final notification prescribing mode of computation of cash value in kind of 33.3% of total wages, however, while issuing subsequent notification fixing reduced cash value at 19%, such procedure is not followed - State Government has introduced fresh computation of cash value by substituting relevant clauses/items stipulated in former notification - Thus, a fresh computation of cash value has been stipulated in notification - Assuming that petitioner-Federation was heard with regard to fixation of cash value at 19%, same will not authorize State Government to by-pass statutory provision of publication of proposed cash value through publication of notification - There may be other stake-holders, who would have come forward raising their grievance, if notification was published in Official Gazette stipulating 19% cash value - On substratum of foregoing reasons and analysis, impugned notification issued by respondent No.1 is quashed and set aside - However, it will be open for State Government to issue a fresh notification, after following procedure prescribed under section 5 of Act - Petition allowed.

JUDGMENT :

A.S. Supehia, J.

1. The present writ petition has been filed inter alia praying for quashing and setting aside the impugned notifications dated 25/27.05.1999, 27.01.2001 and 15.12.2001 issued by the respondent No.1. However, the prayer in the writ petition is confined to quash and set aside the notification dated 15.12.2001 issued by respondent No.1.

2. Learned advocate Ms.Aishwarya Reddy appearing for the petitioners has submitted that the petitioner No.1 is a federation representing more than 500 establishments engaged in the activity of running hotels/restaurants in the State of Gujarat, Petitioner Nos.2 to 7 are the members and officers of the petitioner no.1. The notifications dated 23.01.2001 and 15.12.2001 have been issued under the Minimum Wages Act, 1948 (hereinafter referred to as "the Act", for short). It is submitted that vide notification dated 23.01.2001, in exercise of the powers conferred under Section 30 of the Act, the State Government notified the Gujarat Hotel Workers' Wages in Kind (Computation of Cash Value) Rules, 1998 (hereinafter referred to as 'the Rules'). The said Rules were brought into effect on 01.02.2001, wherein at the schedule it was provided that the cash value of a monthly wage would be 33.3% of total wages, when residential accommodation, two meals, two teas, two nasta (breakfast), is served daily. She has submitted that thereafter, by way of notification dated 15.12.2001, the State Government purportedly, in exercise of power under Section 30 of the Act, amended the notification dated 23.01.2001 and amongst the other amendments, the cash value of the total wage was reduced from 33.3% to 19%.

2.1 It is submitted that initially, the State Government had published a Draft Notification, in the Official Gazette, as required by the Act, by stating inter alia that the Government is proposing to issue the said notification containing the Rules and, therefore, the same is being published for the information of all the persons likely to be affected thereby and that notice given with the said Draft Notification would be taken into consideration by the Government of Gujarat on or after the expiry of two months from the date of its publication in the Official Gazatte. She has submitted that the said time limit of two months appears to have been adopted from the provisions of Section 5(1)(b) of the Act. It is submitted that it may be noted that the said Draft Notification suggested for allowing the deduction at the rate of 25% of total wages towards the cash value of benefits and/or facilities, i.e. (1) residential accommodation, (2) two meals, (3) two teas, and (4) two nastas (breakfast) being served daily and ultimately, the aforesaid Draft Notification was finalized and a final notification bearing No.KHR- 30-MWA-1097-833-M(2) was issued on 23.01.2001 effective on and from 01.02.2001, wherein deduction was provided at the rate of 33.3% of total wages towards the cash value of the aforesaid benefits and/or facilities. It is further submitted that thereafter, vide notification dated 15.12.2001, the State Government notified an amendment, by which deduction was allowed at the rate of 19% of total wages towards the cash value of two meals, two teas and one nasta (breakfast) being served daily. It is submitted that the draft of the said notification was never published, as required under the provisions of the Act, and no notice was given to the affected parties for providing their objections and/or suggestions, as was done at the time of issuing and publishing the drat notification dated 25.05.1999, which had ultimately culminated in issuance of final notification dated 23.01.2001.

2.2 Learned advocate for the petitioners has submitted that the Act makes it clear that in respect of the scheduled employments mentioned in Part-I or Part-II of the Schedule to the Act, the appropriate Government is authorized to fix minimum rates of wages, which can be reviewed at such intervals as considered appropriat

    Click Here to Read the rest of this document
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10
    11
    SupremeToday Portrait Ad
    supreme today icon
    logo-black

    An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

    Please visit our Training & Support
    Center or Contact Us for assistance

    qr

    Scan Me!

    India’s Legal research and Law Firm App, Download now!

    For Daily Legal Updates, Join us on :

    whatsapp-icon Back to top