SUPREME COURT OF INDIA
A.N. GROVER, K.K. MATHEW AND A.K. MUKHERJEA, JJ.
The State of A.P., Appellant
Versus
Narayana Velur Beedi Manufacturing Factory and others, Respondents.
Civil Appeals Nos. 1659 to 1662 of 1967, D/- 26-3-1973. 1308
Minimum Wages Act, 1948 – Section 9 - Industrial Disputes Act 1947 – Section 2(i) - Minimum rates of wages – Revising wages - Sole question which has to be decided in these appeals by certificate from a judgment of High Court is the meaning of the word "independent" in Section 9 of Minimum Wages Act, 1948 - Act was enacted to provide for fixing minimum rates of wages in certain employments - Section 2 gives definitions of various expressions. Clauses (a), (h) and (i) give meaning of words "employer", "wages" and "employee" respectively - Section 3 provides for fixing of minimum rates of wages by appropriate government and their review at certain intervals - Section 5 gives procedure for fixing and revising minimum wages - Whether persons who have been appointed from out of class of independent persons can be regarded as independent or not – Held, in court judgment view which has prevailed with majority of High Courts must be sustained - Committee or advisory board can only tender advise which is not binding on government while fixing minimum wages or revising same as case may be - Court are not impressed with reasoning adopted that a government official will have a bias or that he may favour policy which appropriate government may be inclined to adopt because when he is a member of an advisory committee or board he is expected to give an impartial and independent advice and not merely carry out what government may be inclined to do - Government officials are responsible persons and it cannot be said that they are not capable of taking a detached and impartial view - For the reasons given appeals are allowed and judgment of High Court is hereby set aside - As other matters were left undecided in writ petitions out of which these appeals have arisen case shall go back to High Court for disposal in accordance with law - Appeals allowed.
Judgment
GROVER, J.:- The sole question which has to be decided in these appeals by certificate from a judgment of the Andhra Pradesh High Court is the meaning of the word "independent" in Section 9 of the Minimum Wages Act, 1948, hereinafter called the "Act .
2. The Act was enacted to provide for fixing the minimum rates of wages in certain employments. Section 2 gives the definitions of various expressions. Clauses (a), (h) and (i) give the meaning of the words "employer", "wages" and "employee" respectively. Section 3 provides for fixing of the minimum rates of wages by the appropriate government and their review at certain intervals. Section 5 gives the procedure for fixing and revising minimum wages. Section 5 reads: -
S. 5 (1). "In fixing minimum rates of wages in respect of any scheduled employment for the first time under this Act or in revising minimum rates of wages so fixed, the appropriate government shall either -
(a) appoint as many committees and sub-committees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision, as the case may be, or
(b) by notification in the Official Gazette, publish its proposals for the information of persons likely to be affected thereby and specify a date not less than two months from the date of the notification, on which the proposals will be taken into consideration.
(2) After considering the advice of the committee or committees appointed under clause (a) of sub-section (1) or as the case may be, all representations received by it before the date specified in the notification under clause (b); of that sub-section, the appropriate government shall, by notification in the Official Gazette, fix, or, as the case may be, revise the minimum rates of wages in respect of each scheduled employment, and unless such notification otherwise provides, it shall come into force on the expiry of three months from the date of its issue:
Provided.........."
Section 9 relates to composition of committees etc. and is in these terms:
S. 9. "Each of the committees, sub-committees and the Advisory Board shall consist of persons to be nominated by the appropriate Government representing employers and employees in the scheduled employments, who shall be equal in number, and independent persons not exceeding one-third of its total number of members; one of such independent persons shall be appointed the Chairman by the appropriate Government."
3. The Government Order which was challenged related to the revision of minimum wages in the Bidi industry. It was based on the recommendation of a committee consisting of six members, two of whom were Chief Inspector of Factories, Hyderabad, and Deputy Chief Inspector of Factories, Hyderabad; the former beeing the Chairman. These two officers were to be on the committee from among the category of independent persons mentioned in Section 9. The whole controversy has centered on the question whether the aforesaid two officers could be regarded as independent persons. There are a number of decisions of the High Courts. In majority of them, namely, Jaswant Rai Beri v. State of Punjab, AIR 1958 Punj 425; D. M. S. Rao v. State of Kerala, AIR 1963 Ker 115; Bengal Motion Pictures Employees Union, Calcutta v. Kohinoor Pictures Private Ltd., AIR 1964 Cal 519; Ramkrishna Ramnath Nagpur v. State of Maharashtra, AIR 1964 Bom 51; Chandrabhava Boarding and Lodging v. State of Mysore, AIR 1968 Mys 156 and P. Gangadharan Pillai v. State of Kerala, AIR 1968 Ker 218, it has been held that the mere fact that a person happens to be a government servant or that he is an officer, he does not cease to be an independent person within the meaning of Section 9. The only two decisions in which a contrary view has been taken are Narottamdas Harjivandas v. P. V. Gowarikar, AIR 1961 Madh Pra 182 and Kohinoor Pictures (Private) Ltd. v. State of West Bengal (1961) 2 Lab LJ 741 (Cal); the latter is a judgment of the learned single Judge of the Calcutta High Court. I
D. M. S. Rao v STate of kerala
Bengal Motion Pictures Employees Union, Calcutta v.Kohnoor Pictures Private Lid.
Ramkrishna Ramnath, Nagpur v. State of Maharashtra
P. Gangadharan Pillai v. State of Kerala
overruled : Narottamdas Harjivandas v P.V. Gowarikar, Inspector, Minimum Wages
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