IMPORTANT POINT
The court upheld the Government's authority to revise minimum wages under the Minimum Wages Act, emphasizing limited grounds for judicial review.

JUDGMENT :

The petitioners in these writ petitions are in the business of manufacture of Indian Made Foreign Liquor (IMFL). They run their own Distilleries. The writ petitioners challenge GO(P) No.103/2021/LBR dated 27.12.2021 (Ext.P3 Notification in W.P.(C) No.28861/2022).

2. By GO dated 27.12.2021, the Government of Kerala, in exercise of powers conferred by Clause (b) of sub-section (1) of Section 3 of the Minimum Wages Act, 1948 read with sub-section (2) of sub-section (5) thereof has revised the minimum rates of wages payable to the employees employed in Breweries (including manufacture of beverages and distillation and rectification of spirit) industry sector in the State of Kerala, as specified in the schedule annexed to the GO.

3. The petitioners state that the GO is illegal and has been issued in violation of the provisions of the Minimum Wages Act, 1948. According to the petitioners, fixation of grades cannot be a component in the matter of fixation of minimum wages. Though grades and weightages were taken as components in the draft notification, weightage has been taken away in Ext.P3 GO while retaining grades, without any legal basis.

4. The Government has fixed a graded scale of wages with increment to all groups of employees ranging from 7 to 15% of the basic wages based on length of service. The petitioners would urge that fixation of wage scales and providing weightage based on length of service are not within the scope and ambit of the Minimum Wages Act. Ext.P3 is unsustainable for the further reason that it takes within its fold persons who do not fall within the definition of 'employee' as given in the Minimum Wages Act.

5. The petitioners state that the minimum wages prevailing in the Brewery Sector was on the higher side even before Ext.P3 revision. The petitioners would further state that to initiate a process of review of minimum wages, it has to be first ascertained as to whether the increase in Dearness Allowance which is coupled with the Consumer Price Index would neutralise the hike in the cost of living during the period in question. Only if the increase for the period in question has not neutralised the living cost, is a revision envisaged under the Act is called for.

6. The petitioners further urged that instead of calculating the living cost in accordance with the guiding norms, the Government has simply made a further addition of 55% to the existing basic salary fixed as per Ext.P1 notification. There is no basis for the increase of 55% of the basic wages since the living cost has already been neutralised by the merging of Dearness Allowance which is linked to the Consumer Price Index. Ext.P3 GO is therefore liable to be set aside, contended the petitioners.

7. Respondents 1 and 2 filed a counter affidavit in W.P.(C) No.28861/2022, which was adopted by the respondents in other writ petitions also. The respondents submitted that steps were taken to revise the minimum wages of the workers employed in the Breweries Sector under Section 5 of the Act. A Sub Committee was constituted. The Sub Committee held a number of sittings and made their recommendations. The recommendations were considered by the Minimum Wages Advisory Board held on 22.02.2020. The proposals were approved by the Board and were forwarded to the Government for publication.

8. The respondents stated that only relevant components are taken for fixing the minimum wages of employees in Brewery Sector. The GO has been issued adhering to the norms and conditions prevailing in the sector. The revision of minimum wages in the Brewery Sector was previously done on 01.06.2013. The present revision is done after expiry of about nine years, as against the stipulated period of five years. While fixing minimum wages, increase in the DA also was considered.

9. The counsel for the petitioners relied on the judgments in Hindustan Sanitaryware and Industries Limited and others v. State of Haryana and others [AIR 2019 SC 2194], Bidi, Bidi leaves and Tobacco M