The Minimum Wages Act applies to scheduled employment in banks, but notifications for minimum wages applicable to shops do not extend to banks.

JUDGMENT :

The Kerala State Co-operative Bank Limited is the petitioner in all these writ petitions. Orders passed by the Minimum Wages Authority and show-cause notices issued pursuant thereto, are challenged in these writ petitions.

2. The petitioner states that the petitioner is a scheduled Co-operative Bank licensed by the Reserve Bank of India. The Bank is governed by the Banking Regulation Act and the Rules made thereunder. Service conditions of its employees are governed by the Kerala Co-operative Societies Act and the Rules framed thereunder.

3. Rule 189 of the Kerala Co-operative Societies Rules provides that Government shall have power to fix or alter the maximum and minimum limit of establishment expenses. The term establishment expenses include expenses towards wages payable to its employees. The Government has periodically issued orders fixing the pay and allowances of its employees.

4. The officers under the Labour Department conducted inspections and they found that minimum wages are not paid to certain Watchmen. Notices were issued to the Bank requiring to show-cause why Claim Petition shall not be filed and why prosecution shall not be initiated for non-payment of minimum wages. The Managers of the Bank filed reply.

5. The objections of the Bank were overruled by the Inspector under the Minimum Wages Act. Claim Petitions were filed alleging that minimum wages were not paid to the Security Guards / Watchmen. The Bank filed detailed objections. However, the Deputy Labour Commissioner repelled the contentions of the Bank and directed the Bank to remit certain amounts towards arrears of minimum wages. Show-cause notices were issued requiring to answer why amount should not be recovered from the Bank.

6. The petitioner states that employment in Banks is included in Schedule Part I and no Notification fixing minimum wages has been issued by the Government, in respect of employees of Banks. In the absence of prescription of minimum wages, the finding arrived at by the 2nd respondent-Inspector that there is difference between the minimum wages fixed and the amount paid is not sustainable.

7. The Government has issued GO(P) No.196/2016/LBR dated 21.12.2016 fixing the minimum wages payable to employees in the Shops and Commercial establishments industry. The petitioner states that the Bank is neither a shop nor a commercial establishment covered under the Kerala Shops and Commercial Establishments Act, 1960. The Kerala State Co-operative Bank and the District Co-operative Banks are scheduled commercial Banks and they are exempted from the provisions of the Act, 1960, by SRO No.501/82 dated 31.03.1982. Therefore, the GO dated 21.12.2016 is not applicable to the petitioner-Bank. The Government has issued GO(P) No.38/2017/Labour dated 09.05.2017 prescribing minimum wages for security services. The Bank is not providing employment in security services and the security service agencies are different establishments. Therefore, GO(P) dated 09.05.2017 would also not apply to the petitioner-Bank.

8. The petitioner further pointed out that any dispute between an employer and employee of a Co-operative Society can be adjudicated only before an Arbitration Court under Section 69 of the Kerala Co-operative Societies Act. The present proceedings are therefore highly illegal and arbitrary.

9. The 1st respondent filed counter affidavit. The 1st respondent stated that the petitioner being a Scheduled Co-operative Bank, it would come under the purview of the Kerala Shops and Commercial Establishments Act, 1960. The petitioner-establishment is registered in the rolls of the Assistant Labour Officer, Chavakkad. The ALO filed claim application based on the statements given by security employees at the time of inspection. The inspection revealed that the employees were not paid the prescribed minimum wages.

10. The definition of commercial establishment under Section 2(4) of the Shops Act includes banking establishments. This Court, in the judgment in