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1958 Supreme(P&H) 51

PUNJAB & HARYANA HIGH COURT
Bishan Narain, J.
Jaswant Rai Beri
Versus
State Of Punjab
Civil Writ No. 672 of 1957,
Decided On : APRIL 7, 1958

The Government's power to fix minimum wages under the Minimum Wages Act, 1948, is not in contravention of Article 19 (1) (g) of the Constitution and is protected by Article 19 (6).

Headnote:

MINIMUM WAGES ACT, 1948 - Fixation of Minimum Wages - Constitution of Advisory Committee - Validity - Notification Fixing Minimum Rates of Wages - Validity - Paying Capacity of Employers - Consideration - Power of Government to Enhance Rates Suggested by Advisory Committee - Validity - Article 19 (1) (g) of the Constitution - Applicability.

Fact of the Case:

Petitioners, owners of private printing presses, challenged the validity of a notification issued by the Punjab Government fixing minimum rates of wages for employees in private presses under the Minimum Wages Act, 1948, alleging procedural irregularities in the constitution of the Advisory Committee and the fixation of rates without considering the paying capacity of small presses.

Finding of the Court:

1. The constitution of the Advisory Committee was valid, and the appointment of the Labour Commissioner as Chairman and Shri Ishar Singh Majhail as a representative of employers was not contrary to law. 2. The absence of two members of the Committee from some meetings did not vitiate the report of the Committee or the fixation of minimum wages by the Government. 3. The notification fixing minimum rates of wages, including dearness allowance, was valid and in accordance with the provisions of the Act. 4. The Government was not bound to accept the advice tendered by the Advisory Committee, and the enhancement of rates by the Government was within its powers. 5. The fixation of minimum wages without considering the paying capacity of small presses was not contrary to the intention of the legislature or the principles of a welfare state. 6. The power of the Government to fix minimum wages was not in contravention of Article 19 (1) (g) of the Constitution and was protected by Article 19 (6).

Issues: 1. Whether the constitution of the Advisory Committee was valid. 2. Whether the absence of two members of the Committee from some meetings vitiated the report of the Committee or the fixation of minimum wages by the Government. 3. Whether the notification fixing minimum rates of wages, including dearness allowance, was valid. 4. Whether the Government was bound to accept the advice tendered by the Advisory Committee. 5. Whether the fixation of minimum wages without considering the paying capacity of small presses was contrary to the intention of the legislature or the principles of a welfare state. 6. Whether the power of the Government to fix minimum wages was in contravention of Article 19 (1) (g) of the Constitution.

Ratio Decidendi: 1. The Minimum Wages Act, 1948, empowers the Government to fix minimum rates of wages for employees in certain scheduled employments. 2. The Government may appoint an Advisory Committee to hold an inquiry and advise it in the matter of fixing minimum wages. 3. The Advisory Committee shall consist of Government nominees who do not represent any interest in the employment concerned and an equal number of representatives of the employers and employees concerned. 4. The Government is not bound to accept the advice tendered by the Advisory Committee. 5. The Government shall fix the minimum rates of wages after considering the advice of the Committee. 6. The fixation of minimum wages is not in contravention of Article 19 (1) (g) of the Constitution and is protected by Article 19 (6).

Final Decision: The petition challenging the validity of the notification fixing minimum rates of wages for employees in private presses was dismissed with costs.

Judgment

Bishan Narain, J.

1. The Punjab Government on 28-2-1957 issued a notification under Section 5 (2) of the Minimum Wages Act, 1948 (Central Act XI of 1948), fixing minimum rates of wages of skilled and unskilled employees in private presses. Some of the owners of printing presses have filed this petition under Article 226 of the Constitution challenging the validity of this notification.

2. The Minimum Wages Act of 1948 (hereinafter called the Act) provides a machinery for fixation of minimum rates of wages payable to employees in certain trades specified in Part I of the schedule attached to the Act and it will be convenient to give its relevant provisions to appreciate the objections of the petitioners. Section 27 of the Act empowers the appropriate Government to amend the schedule by adding any employment in respect of which the Government is of the opinion that minimum wages should be fixed and lays down the procedure which must be followed for so amending the schedule. Section 5 lays down the procedure for fixing minimum wages. The Government may appoint a Committee to hold an inquiry and then to advise it in the matter of fixing minimum wages or in the alternative the Government may publish its own proposals for the information of persons likely to be affected. After considering the advice of the Committee or the representations on the proposals of the Government as the case may be, the Government shall fix the minimum rates of wages in respect of the scheduled employment by notification in the official gazette. The constitution of the Advisory Committee is laid down in S, 9 of the Act. It shall consist of Government nominees who do not represent any interest in the employment concerned and an equal number of representatives of the employers and employees concerned. The independent persons should not exceed one-third of the total number of the Advisory Committee, and one of these independent persons shall be appointed its Chairman. Section 30 empowers the Government to make rules for carrying out the purposes of the Act. The rules inter alia lay down the procedure for filling of casual vacancies on resignation and cessation and for restoration of membership. The rules also lay down the regulations to be observed in the meetings of the Committee.

3. The Punjab Government amended para I of the schedule to the Act by adding "employment in private presses" and this addition was notified in the official gazette of 29-2-1956 after having notified its intention to do so as laid down in Section 27 of the Act. The Government then issued a notification under Section 5 of the Act constituting the Committee for fixing minimum wages in respect of private presses. The Government nominated two independent persons and three persons each representing employers and employees. This Committee was constituted on 27-1-1956. Subsequently in January 1957 additional members were nominated increasing the representation of employers and employees to five each. It appears that the Committee held six meetings. The Committee made its report on 10-2-1957. The petitioners allege that the report was considered by the Labour Minister who increased the rates suggested by the Committee and thereafter the Chief Minister further increased them. The notification under Section 5 (2) of the Minimum Wages Act fixing the rates was issued on 28-2-1957. The real grievance of the petitioners which was repeatedly emphasised before me is that they are owners of small presses and the uniform rates fixed by the Government are so high that small presses are likely to be squeezed out of business and that they are likely to lose their source of livelihood. They have challenged the validity of the Constitution of the Advisory Committee and of its proceedings as well as the validity of the impugned notification.

4. The learned counsel first argued that the Act did not apply to printing presses. It was conceded that by the notification dated 29-2-1956 issued under Secti



























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