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1966 Supreme(Online)(MP) 4

MADHYA PRADESH HIGH COURT
X, Y, JJ
Harris Mineral Supply Co. Jaitwara v. Salim M. Merchant
Writ Petition 123/1964



Wage fixation must adhere strictly to statutory definitions and principles, especially concerning minimum wage and workman status, or risk being deemed invalid.

Headnote:(A) Industrial Disputes Act, 1947 - Section 10(1)(d) - Wages fixation - The Tribunal improperly determined wage rates considering factors beyond statutory guidelines. Findings disregarded minimum wage calculations and statutory definitions of 'workmen'. An award for lay-off compensation was rendered invalid due to the seasonal nature of the industry. (Paras 3, 6, 8, 10)

(B) Recognition of Workmen - Definitions and categories - The Tribunal appropriately identified mine managers as 'workmen' under S.2(s) based on actual duties performed rather than title. (Paras 7) (

Facts of the case:
Owners of ochre mines challenge Tribunal's wage determination for workers based on industry conditions. Findings on wage levels, employee categories, and additional compensation sought prompted controversy.) (

Findings of Court:
Tribunal's wage fixation cannot stand; erroneous assessment and non-compliance with statutory definitions require annulment of wage decisions. Emphasis on proper standards for determining 'workman' status affirmed.) (

Issues: Central questions include the appropriateness of wage fixation, workman status of mine managers, entitlement to lay-off compensation, and sick leave provisions.) (

Ratio Decidendi: Appling statutory guidelines and definitions, the court found the Tribunal's award flawed on various grounds, particularly concerning minimum wage principles.) (

Result: Tribunal's wage decisions quashed, with no costs assigned, and pending security deposits to be refunded.)

Table of Content
1. introduction to dispute and tribunal findings. (Para 1 , 2)
2. tribunal's award and determination of wage inadequacy. (Para 3 , 4)
3. legal arguments highlighting jurisdiction and employee's status. (Para 5 , 7 , 9)
4. court's analysis on wage standards and seasonal industry implications. (Para 6 , 8 , 10)

1. The petitioners in this case seek a writ of certiorari for quashing a part of an award given by the Industrial Tribunal, Bombay, on 18th June 1964 in a dispute referred to it by the Central Government in the exercise of its powers under S.10(1)(d) of the Industrial Disputes Act, 1947 , (hereinafter referred to as the Act).

2. The petitioners are owners of ochre mines situated in Jaitwara area of districi Satna. The employees of the mines presented as many as thirty - two demands against the petitioners and raised an industrial dispute. When the dispute could not be settled in conciliation proceedings, the Central Government, by an order made on 15th June 1962 under S.10(1)(d) of the Act referred to the Industrial Tribunal Bombay, for adjudication ten matters arising out of the dispute and specified in a schedule annexed to the order. The Industrial Tribunal gave an award on those matters on 18th June 1964. The petitioners question the award in respect of the following issues :
"1. Whether the present wage rates of the following categories of workmen employed in the ochre mines of Jaitwara area of the aforesaid employers are satisfactory; if not, to what revision of wage rates they are entitled and from which date :
(1) Assistant Managers (ii) Clerks and Supervisors (iii) Mates (iv) Time - rated male labour (v) Time - rated female labour (vi) Piece - rated male labour (vii) Piece - rated female labour.
(2) Whether the persons who are employed as mine managers in the ochre mines of the aforesaid employers in Jaitwara area are 'workmen' under the provisions of the Industrial Disputes Act; and if so, whether they are entitled to the revision of their wage rates and to what extent and from which date ?
(3) Whether the workers employed in the ochre mines of the aforesaid employers are entitled to wages, lay - off compensation or any other relief during the period the mines were and are closed in rainy season; and if so, the quantum of such relief and the date from which the said relief is admissible ?
(4) Whether the employers who employ less, than 100 workers are liable to make the workers permanent; and if so, what sholud be the eligibility for such permanency and to what relief the existing workers are entitled ?
(5) Whether the workers employed by the aforesaid employers are entitled to any sick leave; if so, at what rate ?"






3. The Tribunal has found that the petitioners employ between 400 to 600 workmen of whom 25p.c. are time - rated and the remaining are piece - rated; that the total number of mines worked by them is twenty - five; and that the ochre mine industry is seasonal as the mines cannot be worked during the rainy season and they remain closed during that period. On the first question relating to wage - rates., the Tribunal, after examining the capacity of the industry to pay the wages demanded by the employees and the work done by a worker each day, and after taking into account the "nature and existing conditions of work in the ochre mines", formed the view that the present wages to the workmen were inadequate and did not even fulfil the minimum wage requirements and concluded by observing that "taking into consideration the facts and circumstances of the case, the nature of the work, the financial position of the industry, and the level of wages in the region in other industries particularly the iron ore mining', it would be fair to fix the minimum wage for the daily rated workmen at Rs. 2.12 nP. per day inclusive of dearness allowance, and that those working in the gallaries, if daily rated, should be paid an extra allowance of Rs. 0.12 nP. per day. After finding thai there were no Assistant Managers








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