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2018 Supreme(Del) 2337

IN THE HIGH COURT OF DELHI AT NEW DELHI
GITA MITTAL, C. HARI SHANKAR, JJ.
Federation of Okhla Industrial Association (Regd.) – Petitioner
Versus
Lt Governor of Delhi And Anr. – Respondents
W.P.(C) 8125 of 2016 & CM No.3362 of 2016, W.P.(C) 12088 of 2016 & CM Nos.9316 of 2017, 10386, 14678, 2658, 11560, 3360, 14703, 3385, 14800, 3684, 16236, 3792, 16681, 3987, 17543, 4007, 17632, 4080,, CM Nos.17912, & 20168, 4102, 17996, 4103, 17998, 4106, 18004, 4446, 19413, 4493, 19640, 4867, 21093, 4934, 21336, 4998, 21608, 5013, 21650, 5026, 21663, 5199, 22137, 5200, 22139, 5214, 22167, 5217, 22172, 5218, 22173, 5753, 23956, 5933, 24668, 6078, 25247, 6155, 25609, 6794, 28326, 6815, 28372, 6841, 28472, 6990, 28997, 7012, 29106, 7141, 7760, 32053, 8229, 33833, 8622, 35424, 9099, 37207, 9187, 37556, 9221, 37681, 9446, 38428, 7495, 30926 of 2017
Decided On : 04-08-2018

Advocates Appeared:
For the Petitioners Mr. Gaurav Bahl, Adv., Mr. S.K. Dubey and Mr. Rajmangal Kumar, Advs., Mr. Bhuvnesh Sehjal and Mr. Anubhav Bhasin, Advs., Mr. Dhruv Mehta, Sr. Adv. with Mr. Vipin Singhania, Adv., Mr. Vaibhav Arora, Adv., Mr. Sandeep Vishnu and Mr. Anil Kr. Gupta, Advs., Mr. Ankit Jain, Adv. with Mr. Sarvesh Rai, Adv., Mr. Dhruv Mehta, Sr. Adv. with Mr. Vikas Dutta, Mr. Siddharth Silwal and Ms Priyanka Nayyar, Advs., Mr. Puneet Saini and Mr. Kapil Hans, Advs., Mr. Harvinder Singh, Mr. K.K. Mukhija, Mr. Sandeep Sharma, Mr. S.C. Dhingra, Ms. Reeta Yagnik and Ms. Deepti Singh Sodhi, Advs., Mr. Neeraj Malhotra Sr. Adv. with Mr. Arijit Mazumdar, Adv., Mr. Ashok Agarwal and Ms. Slomita Rai, Advs., Mr. Rishi Agrawala and Ms. Niyati Kohli, Advs., Mr. Vivek Kishore, Adv., Ms. Fareha Ahmad Khan, Adv., Mr. Amit Seth, Adv., Mr. Alok Bhasin and Ms. Poonam Das, Advs., Mr. Vikram Dhokalia and Mr. Sahil Bakshi, Advs., Mr. Manu Bera, Adv.
For the Respondents Mr. Ramesh Singh, Standing Counsel with Mr. Sandeepan Pathak, Adv., Mr. Sanjay Ghose ASC for GNCTD with Mr. Rishabh Jaitley and Ms. Urvi Mohan, Advs., Mr. Santosh Kumar Tripathi, ASC for GNCTD., Mr. Devesh Singh, ASC (Civil) GNCTD with Ms. Neelam Kholiya, Adv., Mr. Siddharth Dutta, Adv.

JUDGMENT :

GITA MITTAL, J.

“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)

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