U.L. Bhat, C.J. -- 1. The five petitioner are engaged in manufacture of Agarbatti in Sagar district. They have filed this writ petition challenging Annexure-G order dated 31.3.1986 passed by the Labour Court, Sagar (Minimum' Wages Authority).

2. Minimum Wages were fixed for the employees working in Agarbatti industry under the provisions of Minimum Wages Act, 1948, for the first time by notification Annexure-R/1 dated 24.6.1983. There was a dispute between some of the manufacturers including the petitioner on the one hand and their employees on the other regarding the rate of wages payable. The dispute was referred to the M.P. Industrial Tribunal, Indore by the State Government under section 10 (1) of the Industrial Dispute Act, 1947. The reference was numbered as 1 of 1979. During the pendency of the reference, the parties settled their dispute. The Tribunal, on the basis of the settlement passed two awards - one between petitioners Nos. 1 to 4 herein and the union representing the employees and the other between 5th petitioner herein and certain others on the one hand and the union on the other. Copies of these awards are marked as Annexures -B and C respectively of the writ petition. The parties agreed in the settlement that it will be in operation till 22.10.1986. The Inspector under the Minimum Wages Act filed a complaint before the Labour Court (Authority under the Minimum Wages Act) under Section 21 of that Act alleging that for the period between 1.10.84 to 31.10.84 these employers did not pay minimum wages as notified under Annexure-R/1 but paid wages less in amount than minimum wages, namely wages as covered by the awards. The present petitioners resisted the complaint on the ground that the period in question fell within the period of operation of the award namely till 22.10.1986 and, therefore, minimum wages fixed by the Government will not apply during the period as contemplated in Section 3 (2-A) of the Minimum Wages Act. The Labour Court overruled this contention and passed an order directing the present petitioners to pay the deficit of wages as per the minimum wages notification. levied penalty of 50% under Sec. 20 (3) (ii) and also directed payment of compensation at five times the amount in deficit under Sec. 20 (3) (i) of the Minimum Wages Act. This order is now being challenged.

3. Section 3 of the Minimum Wages Act deals with fixation of minimum rates of wages. The appropriate Government is empowered to fix the minimum wages payable to employees employed in an employment specified in Part I or II of the schedule. Sub-section (2-A) engrains an exemption in cases where proceedings are pending before a Tribunal or other authority or an award has been-made by a Tribunal. We are concerned only with the case of an award made by the Tribunal being in operation. In such cases, according to sub-section (2-A), where an award is in operation and a minimum wages notification is issued during the operation of the award, then, notwithstanding anything contained in the Act, the minimum rates of wages so fixed shall not apply to those employees during the period in which the award is in operation. Where a notification is issued during the operation of an award, it shall not apply to the employees during that period.

4. The award was passed on 30.11.1981. Though the settlement between the parties was that it will remain in operation till 22.1 0.1986, the period of operation of the award is restricted statutorily by section 19 (3) of the Industrial Disputes Act. According to this provision, an award shall remain in operation for a period of one year from the date on which the award becomes enforcable. The appropriate Government may reduce the period and fix such period as it think fit. The appropriate Government may extend the period of operation by any period not exceeding one year at a time but the total period of operation of the award cannot exceed three years. The appropriate Government has not interfered in the mat