FEDERATION OF OKHLA INDUSTRIAL ASSOCIATION (REGD.) vs LT GOVERNOR OF DELHI AND ANR

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2018 Supreme(Online)(DEL) 3530

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*IN THE HIGH COURT OF DELHI AT NEW DELHI % Reserved on : 22nd May, 2018 Date of decision : 4th August, 2018 + W.P.(C) 8125/2016 & CM No.3362/2016 FEDERATION OF OKHLA INDUSTRIAL ASSOCIATION (REGD.) .... Petitioner versus LT GOVERNOR OF DELHI AND ANR ..... Respondents + W.P.(C) 12088/2016 & CM Nos.9316/2017, 10386/2017 &
14678/2017 APEX CHAMBER OF COMMERCE AND INDUSTRY OF NCT DELHI ..... Petitioner versus LT. GOVERNOR OF DELHI & ANR ..... Respondents + W.P.(C) 2658/2017 & CM No.11560/2017 DELHI FACTORY OWNERS' FEDERATION .... Petitioner versus LT. GOVERNOR OF DELHI & ANR. .... Respondents + W.P.(C) 3360/2017 & CM No.14703/2017 AUTOMOBILE TRADERS ASSOCIATION OF DELHI ..... Petitioner versus LT GOVERNOR OF DELHI AND ANR ..... Respondents + W.P.(C) 3385/2017 & CM No.14800/2017 COLORWHEEL ..... Petitioner versus LIEUTENANT GOVERNOR & ANR .... Respondents + W.P.(C) 3684/2017 & CM No.16236/2017 SEVEN SEAS HOSPITALITY PVT LTD ..... Petitioner versus LT GOVERNER OF DELHI AND ANR ..... Respondents + W.P.(C) 3792/2017 & CM No.16681/2017 DMA NURSING HOME AND MEDICAL ESTABLISHMENT FORUM ... Petitioner versus LT GOVERNER OF DELHI AND ORS ..... Respondents + W.P.(C) 3987/2017 & CM No.17543/2017 MALHOTRA CABLES PVT. LTD ... Petitioner versus LT GOVERNER OF DELHI AND ORS ..... Respondents + W.P.(C) 4007/2017 & CM No.17632/2017 FEDERATION OF PUBLISHERS & BOOKSELLERS ASSOCIATION IN INDIA & ORS ..... Petitioners versus LT. GOVERNOR OF DELHI & ANR ..... Respondents + W.P.(C) 4080/2017, CM Nos.17912/2017 & 20168/2017 DELHI VOLUNTARY HOSPITAL FORUM & ANR.
…….Petitioners versus LT. GOVERNOR OF DELHI & ANR ..... Respondents + W.P.(C) 4102/2017 & CM No.17996/2017 NEW DELHI TRADERS ASSOCIATION ..... Petitioner versus LT. GOVERNOR OF DELHI & ANR ..... Respondents + W.P.(C) 4103/2017 & CM No.17998/2017 SOUTH EXTENSION TRADERS ASSOCIATION .... Petitioner versus LT. GOVERNOR OF DELHI & ANR ..... Respondents + W.P.(C) 4106/2017 & CM No.18004/2017 NATIONAL RESTAURANT ASSO. OF INDIA...Petitioner versus LT. GOVERNOR OF DELHI & ANR ..... Respondents + W.P.(C) 4446/2017 & CM No.19413/2017 FOOTWEAR WHOLESALERS ASSO. (REGD).. Petitioner versus LT GOVERNOR OF DELHI AND ANR ..... Respondents + W.P.(C) 4493/2017 & CM No.19640/2017 FEDERATION OF DELHI TEXTILE MERCHANTS ..Petitioner versus LT GOVERNOR OF NCT OF DELHI & ANR ..... Respondents + W.P.(C) 4867/2017 & CM No.21093/2017 METRO CASH AND CARRY INDIA PVT. LTD ...Petitioner versus LT. GOVERNOR OF DELHI & ANR .... Respondents + W.P.(C) 4934/2017 & CM No.21336/2017 M/S ACE FACILITIES MANAGEMENT SERVICES & ANR. .....Petitioner versus LT GOVERNOR OF DELHI AND ANR .....Respondents + W.P.(C) 4998/2017& CM No.21608/2017 DELHI HINDUSTANI MERCANTILE ASSO.(REGD) ......Petitioner versus LT. GOVERNOR OF NCT OF DELHI & ANR ….. Respondents + W.P.(C) 5013/2017& CM No.21650/2017 RAJVAIDYA SHITAL PRASAD & SONS ..... Petitioners versus LT GOVERNOR OF DELHI AND ANR .... Respondents + W.P.(C) 5026/2017& CM No.21663/2017 ASSOCIATION OF GOLD LAON COMPAINIES INDIA ..... Petitioner versus LT GOVERNOR OF DELHI AND ANR .... Respondents + W.P.(C) 5199/2017& CM No.22137/2017 ECOM EXPRESS PVT LTD .... Petitioner versus LT GOVERNOR OF DELHI AND ANR ..... Respondents + W.P.(C) 5200/2017& CM No.22139/2017 INDIAN SPINAL INJURIES CENTRE ..... Petitioner versus LT GOVERNOR OF DELHI AND ANR ...... Respondents + W.P.(C) 5214/2017& CM No.22167/2017 THOMSON PRESS (INDIA) LTD ..... Petitioner versus LT GOVERNOR OF DELHI AND ANR ..... Respondents + W.P.(C) 5217/2017& CM No.22172/2017 FLT LT RAJAN DHALL CHARITABLE TRUST & ORS ..... Petitioners versus LT GOVERNOR OF DELHI AND ANR .... Respondents + W.P.(C) 5218/2017& CM No.22173/2017 CONNER INSTITUTE OF HEALTHCARE AND RESEARCH CENTRE P LTD AND ANR ..... Petitioners versus LT GOVERNOR OF DELHI AND ANR ..... Respondents + W.P.(C) 5753/2017& CM No.23956/2017 DEEPAK GUPTA MEMORIAL FOUNDATION ..... Petitioner versus LT. GOVERNOR OF DELHI & ANR ..... Respondents + W.P.(C) 5779/2017 SOCIAL JURIST A CIVIL RIGHTS GROUP ..... Petitioner versus GOVT OF NCT OF DELHI ..... Respondent + W.P.(C) 5933/2017 and CM No.24668/2017 ARTEMIS MEDICARE SERVICES LIMITED.... Petitioner versus GOVT OF NCT OF DELHI ..... Respondent + W.P.(C) 6078/2017 and CM No.25247/2017 AIRPORT SERVICE PROVIDERS ASSON .... Petitioner versus LT GOVERNOR OF THE NATIONAL CAPITAL TERRITORY OF DELHI & ANR .... Respondents + W.P.(C) 6155/2017& CM No.25609/2017 RETAILERS ASSOCIATION OF INDIA ..... Petitioner versus LT. GOVERNOR OF DELHI & ANR. .... Respondents + W.P.(C) 6794/2017& CM No.28326/2017 TENON FACILITIES MANAGEMENT INDIAPVTLTD ..... Petitioner versus LT GOVERNOR OF DELHI AND ANR .... Respondents + W.P.(C) 6815/2017& CM No.28372/2017 RARE HOSPITALITY AND SERVICES PVT LTD ... Petitioner versus LT GOVERNOR OF DELHI AND ORS ..... Respondents + W.P.(C) 6841/2017& CM No.28472/2017 M/S SECURITRANS INDIA PVT LTD ..... Petitioner versus LT GOVERNOR OF DELHI AND ANR ..... Respondents + W.P.(C) 6990/2017& CM No.28997/2017 WRITER SAFEGUAD PVT. LTD. ..... Petitioner versus LIEUTENANT GOVERNOR OF DELHI & ANR …. Respondents + W.P.(C) 7012/2017& CM No.29106/2017 CMS INFO SYSTEMS LIMITED .... Petitioner versus LT GOVERNOR OF DELHI AND ANR .... Respondents + W.P.(C) 7141/2017 VULCAN EXPRESS PRIVATE LIMITED ..... Petitioner versus LT. GOVERNOR OF DELHI & ANR .... Respondents + W.P.(C) 7760/2017& CM No.32053/2017 THE LEELA PALACE, NEW DELHI ..... Petitioner versus LT. GOVERNOR OF DELHI & ANR .... Respondents + W.P.(C) 8229/2017& CM No.33833/2017 JW MARRIOT HOTEL AEROCITY AND ANR . Petitioner versus LT. GOVERNOR OF DELHI & ANR .... Respondents + W.P.(C) 8622/2017& CM No.35424/2017 JAYPEE VASANT CONTINENTAL ..... Petitioner versus LT. GOVERNOR OF DELHI & ANR .... Respondents + W.P.(C) 9099/2017& CM No.37207/2017 JONES LANG LASALLE PROPERTY CONSULTANTS (INDIA) PVT. LTD. ..... Petitioner versus LT. GOVERNOR OF DELHI & ANR .... Respondents + W.P.(C) 9187/2017& CM No.37556/2017 JAYPEE SIDDHARTH ..... Petitioner versus LT. GOVERNOR OF DELHI & ANR .... Respondents + W.P.(C) 9221/2017& CM No.37681/2017 INDRAPRASTHA MEDICAL CORPORATION LIMITED ..... Petitioner versus LT. GOVERNOR OF DELHI & ANR .... Respondents + W.P.(C) 9446/2017& CM No.38428/2017 EIH LTD. ..... Petitioner versus LT. GOVERNOR OF DELHI & ANR .... Respondents + W.P.(C) 7495/2017& CM No.30926/2017 DARCL LOGISTICS LTD. ..... Petitioner versus LT. GOVERNOR OF DELHI & ANR ... Respondents For the petitioners Mr. Gaurav Bahl, Adv. for petitioners in W.P(C) 8125/2016 Mr. S.K. Dubey and Mr. Rajmangal Kumar, Advs. for the petitioner in W.P (C) nos.12088/2016, 4493/2017, 4998/2017 Mr. Bhuvnesh Sehjal and Mr. Anubhav Bhasin, Advs. in W.P (C)
nos.2658/2017, 4446/2017 Mr. Dhruv Mehta, Sr. Adv. with Mr. Vipin Singhania, Adv. for petitioner in W.P (C) no.3360/2017 Mr. Vaibhav Arora, Adv. for the petitioners in W.P (C)
no.4007/2017 Mr. Sandeep Vishnu and Mr. Anil Kr. Gupta, Advs. for petitioners in W.P ( C) no.4080/2017.
Mr. Ankit Jain, Adv. with Mr. Sarvesh Rai, Adv. for the petitioner in W.P (C) nos.4102/2017, 4103/2017, 4106/2017 Mr. Dhruv Mehta, Sr. Adv. with Mr. Vikas Dutta, Mr. Siddharth Silwal and Ms Priyanka Nayyar, Advs. for the petitioner in W.P (C) no.4867/2017 Mr. Puneet Saini and Mr. Kapil Hans, Advs. for petitioner in W.P.(C)No. 4934/2017.
Mr. Harvinder Singh, Mr. K.K. Mukhija, Mr. Sandeep Sharma, Mr. S.C. Dhingra, Ms. Reeta Yagnik and Ms. Deepti Singh Sodhi, Advs. for petitioners in W.P.(C)Nos.5013/2017, 5026/2017, 5199/2017, 5200/2017, 5214/2017, 5217/2017, 5218/2017 and 5253/2017.
Mr. Neeraj Malhotra Sr. Adv. with Mr. Arijit Mazumdar, Adv. in W.P.(C)Nos.5217/2017, 5218/2017, 5753/2017, 5779/2017 and
25247/2017.
Mr. Ashok Agarwal and Ms. Slomita Rai, Advs. for petitioner in W.P.(C) 5779/2017.
Mr. Rishi Agrawala and Ms. Niyati Kohli, Advs. for petitioner in W.P.(C) 6155/2017.
Mr. Vivek Kishore, Adv. for the petitioner in W.P.(C) 6794/2017.
Ms. Fareha Ahmad Khan, Adv. for petitioner in W.P.(C)
6815/2017 Mr. Amit Seth, Adv. for petitioner in W.P.(C) 6990/2017 Mr. Alok Bhasin and Ms. Poonam Das, Advs. for petitioner in W.P.(C)Nos.6841/2017 and 7012/2017 Mr. Vikram Dhokalia and Mr. Sahil Bakshi, Advs. for petitioner in W.P.(C) 7141/2017.
Mr. Manu Bera, Adv. for petitioner in W.P.(C) 7495/2017.
For the respondents Mr. Ramesh Singh, Standing Counsel with Mr. Sandeepan Pathak, Adv. for respondents in W.P.(C) 6155/2017 Mr. Sanjay Ghose ASC for GNCTD with Mr. Rishabh Jaitley and Ms. Urvi Mohan, Advs. in W.P (C) nos.12088/2016 , 2658/2017, 3360/2017, 3684/2017, 4080/2017, 4102/2017, 4934/2017, 4998/2017, 5013/2017, 5199/2017, 5200/2017, 5214/2017, 5217/2017, 5218/2017, 5779/2017, 25247/2017, 6794/2017, 6815/2017, 6841/2017, 6990/2017, 7012/2017, 7141/2017, 7495/2017, 7760/2017.
Mr. Santosh Kumar Tripathi, ASC for GNCTD in W.P.(C)Nos.4446/2017, 4867/2017 and 5753/2017 Mr. Devesh Singh, ASC (Civil) GNCTD with Ms. Neelam Kholiya, Adv. for respondent no.1 in W.P.(C) 5026/2017 Mr. Siddharth Dutta, Adv. for respondent in W.P.(C) 5013/2017 CORAM:
HON'BLE THE ACTING CHIEF JUSTICE HON'BLE MR. JUSTICE C. HARI SHANKAR

JUDGMENT

GITA MITTAL, ACTING CHIEF JUSTICE “The hurrier I go, the behinder I get”

-Lewis Caroll

1. This quote, from the classic literary work Alice in Wonderland from the year 1865, appropriately manifests the manner in which the hurried actions of the respondents would set back the entire work force of the city.

2. An attempt to constitute a Minimum Wage Advisory Committee by an order dated 12th April, 2016, had already disrupted the course of wage revision once. Alas, even though the revision is sorely needed, the hurried attempt again, inter alia failing to comport with binding the statutory requirements, without relevant material and contravening principles of Natural Justice has unfortunately disrupted this course, yet again.

3. This batch of writ petitions, lays a challenge to the constitutionality of the Notification bearing no. F- 13(16)/MW/1/2008/Lab/ 1859 dated 15th September, 2016 issued by the Lt. Governor of Delhi in exercise of powers conferred by Section 5(1) of the Minimum Wages Act, 1948 (hereafter referred to as ‘the Act’). By this notification, the respondents re-constituted the Minimum Wages Advisory Committee for all scheduled employments.

4. These petitions also challenge the constitutional validity of the Notification bearing no. F.Addl.LC/Lab/MW/2016 dated 3rd of March 2017 published in the Official Gazette on 4th March, 2017, again issued by the respondents, in exercise of power conferred by Section 5(2) of the enactment. By this Notification, minimum rates of wages for all classes of workmen/employees in all scheduled employments stand revised w.e.f. the date of the notification in the official gazette. The challenge rests, inter alia, on the plea of the petitioners that both these notifications are ultra vires the provisions of the enactment itself and that the respondents also violated the principles of natural justice in issuance of the notifications.

5. Flt Lt. Rajan Dhall Charitable Trust, a society registered under the provisions Society Registration Act, claims that it has not been established for the purposes of profit and that it is running a hospital by the name of Fortis Flt Lt. Rajan Dhall Hospital in Vasant Kunj, Delhi. This Trust as petitioner no. 1, has filed W.P.(C)No.5217/17. The petitioner nos.2 to 8 in this writ petition are either companies incorporated under the provisions of the Companies Act or societies under the Society Registration Act, all of whom claim that they are either running hospitals or providing medical facilities.

6. All other connected writ petitions lay a similar challenge. As such W.P.(C)No.5217/2017 was directed to be treated as the lead case in this batch of matters.

7. We set down hereunder the headings under which we have considered the matter :

I. Statutory provisions (paras 8 to 12) II. Factual narration (paras 13 to 15)

III. Relevant Notifications under the Minimum Wages Act, 1948 (paras 16 to 26)

IV. Challenge to the notification dated 15th September, 2016 by way of W.P.(C) 10146/2016 (paras 27 to 29)

V. Proceedings of the Committee appointed under Sec 5 (1)

(a) of the Minimum Wages Act, 1948 by notification dated 15th September, 2016 (paras 30 to 54)

VI. Petitioners’ contentions (paras 55 to 90)

VII. Respondents’ contentions (paras 91 to96)

VIII. Scope of interference by the High Courts in exercise of extraordinary jurisdiction under Article 226 of the Constitution of India (paras 97 to 101)

IX. Minimum Wages Act, 1948, the social welfare legislation – court should adopt the beneficent rule of construction (paras 102 to 106)

X. Fixation/revision of minimum wages – object thereof -

financial capacity of and hardship to employer –

relevance? (paras 107 to 126)

XI. Norms for fixation of ‘minimum wages’

(paras 127 to 136)

XII. Whether an employee of the appropriate Government can be considered an independent person for the purposes of Section 9 of the Minimum Wages Act?

(paras 137 to 169)

XIII. Whether the procedure adopted by the respondents for fixation of minimum wages was ultra

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