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IN THE HIGH COURT OF KERALA AT ERNAKULAM
N.NAGARESH, J
Kerala State Co-operative Bank Ltd. – Appellant
Versus
Deputy Labour Commissioner – Respondent
JUDGMENT :
N.NAGARESH, J.
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-pa
The Minimum Wages Act's notifications for shops and commercial establishments do not apply to scheduled Co-operative Banks, which are governed by distinct regulations.
The Minimum Wages Act applies to scheduled employment in banks, but notifications for minimum wages applicable to shops do not extend to banks.
Section 70 of Act deals with a dispute which are to be referred to Registrar for a decision which includes in terms of Section 70(1)(c) of Act, dispute between Society, any officer, agent or employee....
The court established that for prosecution under the Minimum Wages Act, the establishment must fall within the defined scheduled employments, and the company must be named as an accused.
The financial viability of a Co-operative Society and the applicability of the Minimum Wages Act to such societies were central to the judgment.
The Minimum Wages Act applies to all workers in scheduled employment, ensuring fair wages regardless of employment status.
Cooperative banks operate under state law for incorporation and management, while banking activities are regulated by central law, establishing a division of legislative competence.
The Minimum Wages Act applies to all employees in scheduled employment, and employers must prove compliance with wage laws.
Point of Law : Section 33C(2) of The Industrial Disputes Act, 1947 reads as Recovery of money due from an employer.
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