High Court Of Madhya Pradesh
P. V. Dixit, C. J. and K. L. Pandey, J.
NAROTTAMDAS HARJIWANDAS - Appellant
Versus
P.B.GOWARIKAR, INSPECTOR, MINIMUM WAGES, ASSISTANT - Respondents
Misc. Petn. 88 Of 1960
Decided On : 08/31/1960
MINIMUM WAGES ACT, 1948 - Fixation of minimum wages - Revision of minimum wages - Distinction between the two - Proposals for fixation or revision of minimum wages - Publication of - Consultation with Advisory Board - Constitution of Advisory Board - Independent persons - Who are - Relationship of employer and employee - Sattedars in bidi industry - Whether employees of proprietors.
Fact of the Case:
The petitioners, owners of concerns in the Mahakoshal region of Madhya Pradesh engaged in the manufacture and sale of bidis, challenged the legality of a notification fixing minimum rates of wages in respect of employment in tobacco (including bidi making) manufactory. The petitioners contended that the notification was invalid as it purported to revise the minimum wages already fixed and that the Advisory Board constituted for the purpose of fixation or revision of minimum wages was not validly constituted.
Finding of the Court:
The Court held that the notification was invalid as it purported to revise the minimum wages already fixed and that the Advisory Board constituted for the purpose of fixation or revision of minimum wages was not validly constituted. The Court further held that the Sattedars in the bidi industry were not employees of the proprietors and that, therefore, the question of the petitioners being required to pay any minimum wage settled under the Act to the Sattedars or the bidi rollers could not arise.
Issues: 1. Whether the notification fixing minimum rates of wages was valid? 2. Whether the Advisory Board constituted for the purpose of fixation or revision of minimum wages was validly constituted? 3. Whether the Sattedars in the bidi industry were employees of the proprietors?
Ratio Decidendi: 1. The Court held that the notification was invalid as it purported to revise the minimum wages already fixed and that the Advisory Board constituted for the purpose of fixation or revision of minimum wages was not validly constituted. 2. The Court held that the Sattedars in the bidi industry were not employees of the proprietors and that, therefore, the question of the petitioners being required to pay any minimum wage settled under the Act to the Sattedars or the bidi rollers could not arise.
Final Decision: The Court allowed all the petitions and directed the issue of a writ prohibiting the opponent State from giving effect to the notifications dated 18-8-1958 and 30-12-1958 and quashed in each case the order of the Authority constituted under Section 20 (1) of the Act by a writ of certiorari.
( 1 ) THIS order will also govern Miscellaneous Petitions Nos. 49, 50, 51, 52, 53, 78, 81, 85, 87, 89, 90, 91, 92, 93, 94, 95, 101, 118, 150 and 152 all of 1960.
( 2 ) THE petitioners in these twenty-One petitions under Articles 226 and 227 of the Constitution of India, who are all owners of concerns in the Mahakoshal region of Madhya Pradesh engaged in the manufacture and sale of bidis, challenge the legality of notification No. 307-XVI-58 published in the extraordinary Gazette dated the 30th December 1958 notifying the minimum rates of wages in respect of employment in tobacco (including bidi making) manufactory. The petitioner in each of the eases seeks an appropriate writ or direction prohibiting the opponent State from giving effect to the said notification, and a writ of certiorari for quashing the order of the authority constituted under Section 20 (1) of the Minimum Wages Act (hereinafter referred to as the Act) directing him to pay the difference between the wages actually paid and the wages that ought to have been paid under the said notification to the bidi rollers employed, using the word in a neutral sense, by the Sattedar (intermediary), who has been impleaded in each case as one of the opponents.
( 3 ) THE material facts are that in the former State of Madhya Pradesh, which comprised the Mahakoshal region of the new State of Madhya Pradesh, the minimum wages for the workers in the bidi industry were first fixed in 1951 by notification No. 111-132-XXIII dated the 11th January 1951. These rates were revised in 1958 with effect from 2nd March 1950 by notification No. 564-451xxiii dated the 23rd February 1956. After the coming into being of the new State of Madhya Pradesh the Government, by notification No. 31-4029-XVI elated the 30th April 1957, constituted under Sections 5 and 6 of the Act, (as they stood then) an Advisory Board. This consisted of the Labour Commissioner Shri Oak, Shri Mehta, the Director of Economics and Statistics, six representatives said to be of the employers and six representatives said to be of the employee's. Shri Oak was appointed as the Chairman. On 18th August 1958, the Government issued a notification under Section 5 (1) of the Act, which ran as follows: "no. 189-XVI -- As required by the amended provisions of the Minimum Wages Act, 1948 (Act No. XI of 1948) and in exercise of the powers conferred by Sub-section (1) of Section 5 of the said Act, the State Government are pleased to publish its proposals for the rates of wages specified in the schedule as minimum rates of wages in respect of employment in any Tobacco (including bidi making) manufactory for the information of all concerned. All representations in this behalf may be addressed to the Secretary to Government in the Labour Department, Madhya Pradesh, Bhopal, within a period of two months from the date of the publication of this notification. These proposals together with representations, if any, received within the period specified above shall be taken into consideration as per Sub-section (2) of the said section after a period of two months from the date of the publication of this notification. " The notification then set out the rates of minimum wages. On 26th and 27th December 1958 meetings of the Advisory Board were held. It seems that at these meetings some consideration was given to the proposals published on 18th August 1958 and the representations received. Ultimately on 1st January or 2nd January 1959 the Government published the impugned notification dated 30-12-58 bringing into force the rates of minimum wages set out therein from 1st January 1959. There is some dispute as to when the extraordinary Gazette containing the notification was published. The petitioners say it was published on 9th January 1959. On the other hand, it was stated by the opponent State that an extraordinary Gazette publishing the notification was issued on 30th December 1958 that some copies of the extraordinary gazette were dis
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REFERRED TO : Jagan Nath v. Jaswant Singh
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