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2024 Supreme(Ker) 676

IN THE HIGH COURT OF KERALA AT ERNAKULAM
THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
Abdul Khader – Appellant
Versus
The Assistant Labour Officer – Respondent
WP(C) NO. 859 OF 2014, WP(C) NO. 26288 OF 2013, WP(C) NO. 15178 OF 2013
Decided on : 20-06-2024

Advocates:
Advocate Appeared:
For the Appellant : M.M.FATHIMA JALEENA, K.A.HAZAN(K/457/2010), V.J.JAMES(K/000221/1975), RAMESH KUMAR K.(K/000618/2022), M.M.ABBAS ALI(K/000425/1998), ADV SMT.P.R.REENA, ADV.RENJITH THAMPAN
For the Respondent: R BY GP SRI.JUSTIN JACOB, SRI.CHRISTOPHER ABRAHAM, SMT.M.M.FATHIMA JALEENA, SRI.K.A.HAZAN, SRI.V.J.JAMES, SRI.SIRAJ KAROLY, R2 BY GP SRI.JUSTIN JACOB, GOVERNMENT PLEADER SRI.JUSTIN JACOB, SMT.P.R.REENA, SRI.RENJITH THAMPAN SR.

IMPORTANT POINT
The authority under the Minimum Wages Act must provide an opportunity to be heard before issuing orders, but failure to appear after proper notice results in valid ex parte orders, and delays in challenging such orders beyond the statutory period cannot be condoned.

Headnote:

MINIMUM WAGES - Minimum Wages Act, 1948 - Sections 20(2), 20(3), 20(5), Kerala Minimum Wages Rules, Rule 33 - The court discussed the provisions of the Minimum Wages Act, 1948, particularly Sections 20(2) and 20(3), which mandate that the authority must provide an opportunity for the employer to be heard before passing an order regarding minimum wages. The court interpreted Rule 33 of the Kerala Minimum Wages Rules, which outlines the procedure for hearing applications and the conditions under which ex parte orders can be set aside. The court concluded that the authority acted within its powers and that the petitioner failed to show sufficient cause for the delay in challenging the ex parte order, thus affirming the authority's decision and the legality of the revenue recovery proceedings initiated against the petitioner.

Fact of the Case:

The petitioner, proprietor of Al-Iqbal Hospital, received a revenue recovery notice for unpaid wages ordered under the Minimum Wages Act, 1948. The petitioner claimed ignorance of the proceedings leading to the ex parte order due to his absence abroad for business. He sought to set aside the order but was denied due to significant delay and lack of sufficient cause.

Finding of the Court:

The court found that the petitioner was duly notified of the proceedings and failed to appear, leading to the ex parte order. The authority's dismissal of the petitioner's application to set aside the order was upheld, as the delay in filing was excessive and not justifiable under the rules.

Issues: Whether the authority under the Minimum Wages Act provided adequate opportunity for the petitioner to be heard, and whether the delay in challenging the ex parte order could be condoned.

Ratio Decidendi: The court held that the authority had followed the procedural requirements of the Minimum Wages Act and the Kerala Minimum Wages Rules. The petitioner was given notice and failed to respond, thus the ex parte order was valid. The court emphasized that the authority had no power to condone delays beyond the stipulated period in the rules.

Final Decision: The writ petitions were dismissed, affirming the authority's order and the legality of the revenue recovery proceedings against the petitioner.

JUDGMENT :

THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN

Since common issues arise for consideration in these writ petitions, they are disposed of by this common judgment. For the sake of convenience, unless otherwise expressly indicated, the status of the parties and the exhibits referred to hereinbelow shall be as obtaining in W.P.(C) 15178 of 2013.

2. W.P.(C) 15178 of 2013: The petitioner is the proprietor of Al-Iqbal Hospital, Chentrappinni, which was established in 1996.

Petitioner is a businessman in gulf countries and the Administrator looks after the affairs of the hospital in his absence. The hospital has six consulting doctors and a Resident Medical Officer, along with 20 permanent employees across various departments. Additionally, there were 45 trainee nursing students who were undergoing mandatory one-year training as part of their studies and most of them leaving the hospital after completing their training. The petitioner ensured that all the employees were enrolled in the Employees Provident Fund.

3. While so, the petitioner received Ext. P1 revenue recovery notice issued by the Deputy Tahsildar (Revenue Recovery), the 3rd respondent for the recovery of an amount of Rs. 20,17,680/-together with interest @ 12% per annum from 28.01.2008 due towards arrears of wages ordered in MWA 10/2006 by the 2nd respondent, the Deputy Labour Commissioner, Thrissur, the Authority under the Minimum Wages Act, 1948 (hereinafter called the “MW Act' for short). The petitioner states that he was not aware of any proceedings before the 2nd respondent nor he received any notice from the 2nd respondent. On enquiry, the petitioner came to know that the 2nd respondent passed an ex parte order on 28.01.2008 on a claim filed by the Assistant Labour Officer, the 1st respondent, the Inspector appointed under Section 19 of the MW Act for payment of difference in minimum wages to 87 employees for the period from September, 2005 to February, 2006. The petitioner was directed to pay a sum of Rs. 10,08,840/-being the difference in minimum wages together with compensation of Rs. 10,08,840/-to the employees concerned.

4. On coming to know about the ex parte order in MWA 10/06, the petitioner filed Ext. P2 application to set aside the order with Ext. P3 application to condone delay of 1696 days. The petitioner also approached this Court by filing W.P. (C) No. 414 of 2013 and this Court, by Ext. P5 judgment, directed the second respondent to consider Exts. P2 and P3 applications in accordance with law within a period of two months from the date of receipt of a copy of the judgment. This Court also ordered that the revenue recovery proceedings initiated pursuant to Ext. P1 shall be put on hold if a sum of Rs.5,00,000/- is remitted with the Assistant Labour Officer.

5. The 2nd respondent, by Ext. P6 order, dismissed Exts. P2 and P3 applications on the grounds that the petitioner failed to establish that there was sufficient cause for not filing the petition to set aside ex parte order within the time stipulated under the provisions of the Kerala Minimum Wages Rules, 1958 (Kerala MW Rules), and that the Rules do not empower the authority to condone the delay in filing a petition, which is filed 1743 days beyond the time stipulated in the Rules.

6. Ext. P6 order is impugned in this writ petition. It is contended that the Authority under the MW Act did not provide an opportunity of being heard to the petitioner before passing an order in the application filed under Section 20(2) of the MW Act. The petitioner states that he did not receive any notice from the 2nd respondent in person. He intermittently goes to gulf countries in connection with his business and in his absence, the Administrator is looking after the affairs of the hospital. It is further contended that the 2nd respondent went wrong in taking the trainee nursing students as employees of the petitioner. It is also contended that if sufficient cause is shown, the 2nd respondent can set aside the ex pa

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