By the Court.—The question of law, that requires consideration in these two Special Appeals, is as to whether the ‘Variable Dearness Allowance’ (VDA) in the notification dated 31.1.1992 issued under Section 4 of the Minimum of Wages Act, 1948 (in short, the Act) is linked up with the basic rate of wages.

2. The Govind Bhawan Karyalaya with its registered office at 151 M.G. Road, Kolkata is a Society registered under the Societies Registration Act engaged in religious and charitable works including publication of religious books. The Society carries on various activities including running a printing press at Gorakhpur known as ‘Geeta Press’. The books printed and published are sold at nominal prices at various places in the country. The press is the major source of affordable religious books in the country.

3. The Society employs unskilled, semi-skilled, skilled and highly skilled staff. They are paid wages in accordance with the notifications issued from time to time by the State Government under the Act.

4. Learned Single Judge has dismissed both the writ petitions challenging the notification dated 31.1.1992 issued under Section 4 of the Act for the reasons :

A. The consumer items have got varying prices dependant upon its quality. In the consumer basket the most essential items are foodgrains and cloth. The price of foodgrains and cloth varies on their quality. The persons, having different incomes including pay package, consuming a particular commodity, choose quality of that commodity in accordance with their income. If the increase of different qualities of the commodities are not afforded, then the people using different qualities of the same commodities are not affected by the increase flatly or uniformally. They are affected in proportion to the effect of that commodity. The VDA with the basic pay is more rational and logical than flat VDA.

B. In certain cases the formula provided under the notification results in more than 100% neutralisation. This argument is dependent upon the presumption that all classes of workers, likely to be affected by the notification, use same quality of commodities having same price. This presumption is not correct. The same principle will apply to services also. The increase is likely to be percentage-wise and not flat.

C. The challenge to the impugned notification, that the notification divides the clerical staff into two cadres, is not correct. The notification has not bifurcated the cadres of the clerical staff. The clerical staff has been classified into two groups only for the purposes of payment of dearness allowance. The classification is on the basis of length of service, in the particular establishment, i.e. one group consists of those, who have completed five years in the establishment, and others, who have not completed five years in the establishment. The classification is quite rational.

5. Before considering the submission raised by Shri Navin Sinha, Senior Advocate appearing for the appellant, and Shri R.N. Singh appearing for the workmen respondents, it will be appropriate to refer to the notifications issued prior to the impugned notification, and the legal position, as on date.

6. It is admitted to both the parties, that Section 4 of the Act provides for fixation of minimum wages for the employees of private printing press. Section 2 (d) of the Act defines cost of living index number; Section 3 (1) (b) provides for review of the minimum rates of wages and Section 4 (1) provides for the minimum rates of wages. These provisions relevant for the purpose of deciding the appeals are quoted as below :

“Section 2 (d) of the Act defines cost of living index number as follows:

“Cost of living index number”, in relation to employees in any scheduled employment in respect of which minimum rates of wages have been fixed, means the index number ascertained and declared by the competent authority by notification in the Official Gazette to be the cost of having index number ap