The government has the power to revise minimum wages after considering objections, suggestions, and the opinion of the Advisory Board, as interpreted by various High Courts and the Supreme Court.

Judgment

B.K. Nayak, J.

The question that arises for consideration in this writ petition is whether the Government can while issuing notification under Section 5(2) of the Minimum Wages Act, 1948 further increase the rate of minimum wages and go beyond their own proposal in the draft notification published under clause (b) of sub section (1) of Section 5 of the said Act.

2. The petitioners are Utkal Bidi Merchants’ Association and Bidi Supply Company. Opposite party no.3 is the Orissa Bidi Shramik Mahasangha impleaded by way of intervention.

The Government of Orissa in the Labour and Employment Department in exercise of powers conferred by clause (a) of sub section (1) and clause (b) of sub section (2) of Section 3 read with Section 4 of the Minimum Wages Act,1948 (in short ‘the Act’) published draft Notification No.LL-I(AR)-51/07-7224 dated 1st July, 2008 proposing revision of minimum wages in respect of several items including piece rate of wages for rolling of bidis as well as packing and labelling of bidis as per Section 5(1)(b) of the Act inviting objections/suggestions as at Annexure-2. As per the draft notification, minimum wages for rolling of one thousand bidis was proposed to be increased from Rs.45.20 to Rs.57.53 and similarly, for packing and labelling of one thousand bidis the wages was proposed to be increased from Rs.1.72 to Rs.2.19. In pursuance of the said notification, the petitioners filed objections/suggestions to the proposal on 20.08.2008 vide Annexure-3. In the objection it was mentioned that the proposal has been made without application of mind to the real state of affairs prevailing in the bidi industry and that in view of the anti smoking propaganda of the Government as also some social organizations, the bidi production is affected. Nothing has been said in the objection with regard to the proposed rate of increase of minimum wages. It transpires that the State Government again issued a proposal notification bearing No.LL-I(AR)-51/07-12648/LE, dated 15th December, 2008 under Anenxure-7 proposing revision of minimum piece-rate of wages for rolling of bidis as well as packing and labelling of bidis as required under Section 5(1)(b) of the Act. Thereafter, the Government vide final notification No.LL-I(AR)-51/07-12962/LE dated 23.12.2008 (Annexure-6) revised piece-rate of wages for rolling of thousand bidis from Rs.45.20 to 63.28 and for rolling and labeling of one thousand bidis from Rs.1.72 to 2.408 and under the same notification the Government also cancelled the proposal notification dated 15.12.2008 (Annexure-7).

3. The petitioners have challenged the final notification under Annexure-6 revising minimum wages on the ground that under the proposal notification dated 01.07.2008 vide Annexure-2, the Government having proposed revision up to Rs.57.53 for rolling of bidis and up to Rs.2.19 for packing and labelling of the bidis, in the final notification it cannot go beyond the said proposal and further increase beyond the proposed rate, which has been done in the instant case, as the same is not permissible. It is also submitted by the learned counsel for the petitioners that the second proposal notification dated 15.12.2008 under Annexure-7 was a fresh proposal, which must be deemed to have substituted or cancelled the earlier proposal notification dated 01.07.2008 and, therefore, the subsequent proposal notification having also been cancelled under the final notification, there must be deemed to have been no notified proposal at all for revision of wages and, therefore, the final notification under Annexure-6 stands vitiated for noncompliance of Section 5(1)(b) of the Act.

4. A counter affidavit has been filed by opposite party nos.1 and 2 sworn to by the Labour Commissioner, Cuttack. It is stated in the counter that the final notification under Annexure-6 has been issued revising the piece rate of minimum wages, after taking into consideration all the objections/suggestions received and the opinion of th