Utkal Bidi Merchants Association v. State of Odisha in Labour & ESI Department
2016-09-08
SANJU PANDA, SUJIT NARAYAN PRASAD
body2016
DigiLaw.ai
JUDGMENT : S.N. Prasad, J. This writ petition is for quashing notification as contained in Annexure-1 and 4. Annexure-1 is the notification dated 31.07.2015 published in the Odisha Gazette by the Labour and E.S.I. Department of the State of Odisha, whereby and where under the notice has been given regarding the proposal of the State Government for fixing the minimum piece-rate wages as it specified in column (6) of Annexure-I and Ii of the Schedule below in respect of items specified against each in column 93) of Annexure-I and II of that Schedule, payable to the employees employed in the employments specified in column (1) thereof for the whole State of Odisha, is hereby published as required by clause (b) of sub-section (1) of Section 5 of the Act for information of all persons likely to be affected asking from them to file objection or suggestions before expiry of the period of two months from the date of publication of the notice. 2. Annexure-4 is the notification dated 9.11.2015 issued by the Labour and ESI Department published in the Odisha Extraordinary Gazette whereby and where under exercising the power conferred under Clause (b) of sub-section (1) and clause (b) of sub-section (2) of Section 3 read with sub-section (2) of Section 5 of the said Act, the State Government has revised the minimum piece-rate wages. Brief facts of the case of the petitioners as has been pleaded in the writ petition is that the petitioner no.1 being an Association of Bidi Manufacturers and is a body corporate having been registered under the Societies Registration Act, 1860. The Labour and ESI Department of the State of Odisha has been conferred with the power under clause (a) of sub-section (1) and clause (b) of sub-section (2) of Section 3 read with Section 4 of the Minimum Wages Act, 1948 has published a proposal notification on 31.07.2015 vide Gazette No.1145 dated 01.08.2015 proposing revision of minimum wages in respect of several items including piece rate of wages for rolling of bidis as well as packing and labeling of bidis as per Section 5(1) (b) of the Minimum Wages Act and invited objection and/or suggestions for its consideration, the petitioners after coming to know about the aforesaid proposal at belated stage along with other local Bidi Manufacturers submitted their objections through their registered Association vide letter dated 15.10.2015.
The President of the Association being a member of the State Minimum Wage Advisory Board was never informed about the date of meeting and as such the entire action of the State authorities is not fair and proper, when no decision has been taken in pursuance of the objection dated 15.10.2015, the petitioners through their Association once again represented to the State Government highlighting the irregularities and prejudice apparent in the aforesaid proposed revision of minimum wages and requested remedial measures to be taken. However, the State Government has not taken into consideration the objections and much after the completion of the proposed two months period made a final notification dated 9.11.2015 behind the back of the petitioners and arbitrarily revised the minimum wages in respect of several items including the piece-rate wages for rolling of bidis as well as packing and labeling of bidis at par with the proposed notification as contained in Annexure-1. The petitioners being aggrieved with the Annexure-1 and Annexure-4 on the ground that the statutory provision has not been followed, have assailed the same by way of this writ petition. This Court while issuing notice to the opposite parties vide order dated 4.7.2016 has passed an interim order to the effect that no coercive act on shall be taken against the petitioners pursuant to Final Notification dated 9.11.2015 vide Annexure-4 till next date and thereafter interim order has continued time to time and the opposite party-State has filed counter affidavit and today it has been on Board for hearing. The stand which has been taken by the opposite party-State in the counter affidavit is that the statutory provision has been followed while issuing final notification as contained in Annexure-4.
The stand which has been taken by the opposite party-State in the counter affidavit is that the statutory provision has been followed while issuing final notification as contained in Annexure-4. Moreover, the minimum wages has been revised on due consultation of the State Minimum Wages Advisory Board meeting of which was held on 20.12.2014 as would be evident from Annexure-B/2 and considering the recommendation of State Minimum Wages Advisory Board, the State Government in Labour and ESI Department has notified a proposal for inviting objection vide notification dated 31.07.2015 and after expiry of two months from the date of publication stipulated therein, the State Government considering all objections and suggestions received in this regard initiated process for final notification as per the provision contained under Section 5(2) of the Minimum Wages Act and accordingly a notification was issued on 9.11.2015 having been published in Odisha Extraordinary Gazette No.1567 dated 16.11.2015 as contained in Annexure-4. It has been stated that notification was published on 1.8.2015 vide Annexure-1 inviting proposal for objections and suggestions within the period of two months from the date of publication in Odisha Gazette and two months period was over by 30.09.2015, objection of the petitioners as contained in Annexure-2 and 3 were received in the office of the Labour Commissioner, Odisha with Diary No. 1931 dated 28.10.2015 and 2050 dated 9.11.2015 respectively and since the objections of the petitioners were belated, the Labour Commissioner, Odisha vide letter No.15420 dated 05.12.2015 informed to Government in Labour and ESI Department that the objection petition cannot be considered being time barred which would be evident from Annexure-C/2 annexed to the counter affidavit. It has further been stated that the percentage of hike of piece-rate wages for Tobacco and Beedi making establishment was recommended by the 50th State Minimum Wages Advisory Board to the Government for consideration and publication of the notification and accordingly the State Government has resorted the provision as contained in Section 5(1)(b) of the Minimum Wages Act, 1948.
It has further been stated that the percentage of hike of piece-rate wages for Tobacco and Beedi making establishment was recommended by the 50th State Minimum Wages Advisory Board to the Government for consideration and publication of the notification and accordingly the State Government has resorted the provision as contained in Section 5(1)(b) of the Minimum Wages Act, 1948. The intention of the Government behind enhancing the wages was that all Beedi workers were getting Rs.82/- peer rolling of 1000 beedis while the Government of Odisha revised piece rate minimum wages @ Rs.45.20 for rolling of 1000 beedis and Rs.1.72 for labeling of 1000 beedis vide Gazette Notification No.763 dated 05.05.2005, which was revised to Rs.63.28 paise and 2.40 paise respectively w.e.f. 6.1.2009, however the notification dated 6.1.2009 was challenged before this Court in W.P.(C) No.1969 of 2009 and in W.P.(C) No.1971 of 2009 and both the writ petitions have been dismissed. In this factual aspect, it has been submitted that since the issue which has been raised by the petitioners in this writ petition has already been dealt and discussed with by this Court in writ petitions being W.P. (C) Nos.1969 and 1971 of 2009 and as such no interference is warranted in this case also. We have heard learned counsel for the parties at length and gone through the contents contained in the writ petition as well as the counter affidavit. Before going into the facts of the writ petition, it would be relevant to have a discussion with the statutory provision which are relevant for the present case i.e., Sections 3 and 5 which is being quoted herein below:- “Sec. 3.
Before going into the facts of the writ petition, it would be relevant to have a discussion with the statutory provision which are relevant for the present case i.e., Sections 3 and 5 which is being quoted herein below:- “Sec. 3. Fixing of minimum rates of wages – (1) The appropriate Government shall, in the manner hereinafter provided- (a) Fix the minimum rates of wages payable to the employees employed in an employment specified in Part I or Part II of the Schedule and in an employment added to either Part by notification under Section 27 : Provided that the appropriate Government may, in respect of employees employed in an employment specified in Part II of the Schedule, instead of fixing minimum rates of wages under this clause for the whole State, fix such rates for a part of the State or for any specified class or classes of such employment in the whole State or part thereof; (b) Review at such intervals, as it may think fit, such intervals not exceeding five years, the minimum rates of wages so fixed and revise the minimum rates, if necessary : Provided that where for any reason the appropriate government has not reviewed the minimum rates of wages fixed by it in respect of any scheduled employment within any interval of five years, nothing contained in this clause shall be deemed to prevent it from reviewing the minimum rates after the expiry of the said period of five years and revising the, if necessary, and until they are so revised the minimum rates in force immediately before the expiry of the said period of five years shall continue in force. 1 (A) Notwithstanding anything contained in Sub-section (1), the appropriate Government may refrain from fixing minimum rates of wages in respect of any scheduled employment in which there are in the whole State less than one thousand employees engaged in such employment, but if at any time, the appropriate government comes to a finding after such inquiry, as it may make or cause to be made in this behalf, that the number of employees in any scheduled employment in respect of which it has refrained from fixing minimum rates of wages has risen to one thousand or more, it shall fix minimum rates of wages payable to employees in such employment.
The appropriate Government may fix- (a) a minimum rate of wages for time work (hereinafter referred to as “a minimum time rate”) (b) a minimum rate of wages for piece work (hereinafter referred to as “a minimum piece rate”) (c) a minimum rate of remuneration to apply in the case of employees employed on piece work for the purpose of securing to such employees a minimum rate of wages on a time work basis (hereinafter referred to as “a guaranteed time rate”); (d) a minimum rate (whether a time rate or a piece rate) to apply in substitution for the minimum rate which would otherwise be applicable, in respect of overtime work done by employees (hereinafter referred to as overtime rate) 2 (A) Where in respect of an industrial dispute relating to the rates of wages payable to any of the employees employed in a scheduled employment, any proceeding is pending before a Tribunal or National Tribunal under the Industrial Disputes Act, 1947 or before any like authority under any other law, for the time being in force, or an award made by any Tribunal, National Tribunal or such authority is in operation, and a notification fixing or revising the minimum rates of wages in respect of the scheduled employment is issued during the pendency of such proceeding or the operation of the award, then, notwithstanding anything contained in this Act, the minimum rates of wages so fixed or so revised shall not apply to those employees during the period in which the proceeding is pending and the award made therein is in operation or, as the case may be, where the notification is issued during the period of operation of an award, during that period and where such proceeding or award relates to the rates of wages payable to all the employees in the scheduled employment, no minimum rates of wages shall be fixed or revised in respect of that employment during the said period.
(3) In fixing or revising minimum rates of wages under this section – (a) different minimum rates of wages may be fixed for (i) different scheduled employments; (ii) different classes of work in the same scheduled employment; (iii) adults, adolescents, children and apprentices; (iv) different localities (b) minimum rates of wages may be fixed by any one or more of the following wage-periods, namely – (i) by the hour, (ii) by the day, (iii) by the month, or (iv) by such other larger wage-period as may be prescribed, and where such rates are fixed by the day or by the month, the manner of calculating wages for a month or for a day, as the case may be, may be indicated Sec. 5. Procedure for fixing and revising minimum wages – (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 proposal 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 of 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 that where the appropriate Government proposes to revise the minimum rates of wages by the mode specified in clause 9b) of sub-section (1), the appropriate Government shall consult the Advisory Board also.” Thus, the appropriate Government has been authorized to fix the minimum wages as would be evident from the provision of Section 3 which also provides a provision for the appropriate Government to review the minimum wages already fixed at such intervals, as it may think fit, such intervals may not exceeding five years. Section 5 is the procedure for fixing and revising minimum rate of wages and in respect of any scheduled employment or in revising minimum rates of wages so fixed, the appropriate Government shall either 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 proposal 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. While sub-section (2) stipulates that after considering the advice of the committee or committees appointed under clause (a) of Sub-section (1), or as the case may be, all representation 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. Thus, the Government has conferred with the power to revise the minimum rate of wages subject to certain conditions that a proposal is to be invited by publishing it in the Official Gazette so that the persons likely to be affected may give their objections and after considering the advice of the Committee, the appropriate Government by notification in the Official Gazette shall revise the minimum rate of wages.
The facts of this case is that a notification has been issued on 31.07.2015 (Annexure-1) in terms of the provision as contained in Clause (b) of sub-section (1) of Section 5 of the Act, but the petitioners have not made objections within the time stipulated under the Statute i.e., within the period of two months rather they have submitted objections which was received in the office of the Labour Commissioner after the lapse of period of two months and as per the entry made in the diary, objection has been received on 28.10.2015 and 9.11.2015 as would be evident from para-7 of the counter affidavit as such the Labour Commissioner has informed the Government that objection is not worth to be considered, since it has been sent after the period stipulated under the Provision of Section 5(1)(b) and thereafter the objections of others have been considered by the State Minimum Wages Advisory Board and the Advisory Board has recommended for revision in the minimum wages as would be evident from the minutes of meeting dated 20.12.2014 i.e., the Annexure-B/2 annexed to the counter affidavit and the same has been accepted by the Government and thereafter it has been notified on 31.07.2015 in pursuance of the provision of Section 5 of the Act, 1948. Thus, the statutory provision has been followed while revising the minimum wages. The petitioners on the very first date has made out a case that the Advisory Committee has not recommended the revision in minimum rate of wages, however no such statement has made in the writ petition, but accepting the same we have issued notice to the opposite parties to file counter affidavit and the State has come out with the specific stand that there is recommendation of the Advisory Board as stipulated under the statute. So far as the contention that the petitioner being a member of Advisory Board ought to have been invited to attend the meeting in terms of the provision as contained in Rule 12 of the Orissa Minimum Wages Rules, 1954. We have examined the provision of the Orissa Minimum Wages Rules, 1954 which has been promulgated by the State of Odisha in contemplation of the provision of Section 30 of the Minimum Wages Act, 1948 which provides power to the appropriate Government to make rules which is being reproduced herein below:- “Sec. 30.
We have examined the provision of the Orissa Minimum Wages Rules, 1954 which has been promulgated by the State of Odisha in contemplation of the provision of Section 30 of the Minimum Wages Act, 1948 which provides power to the appropriate Government to make rules which is being reproduced herein below:- “Sec. 30. Power of appropriate Government to make rules- (1) The appropriate Government may, subject to the condition of previous publication by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
Power of appropriate Government to make rules- (1) The appropriate Government may, subject to the condition of previous publication by notification in the Official Gazette, make rules for carrying out the purposes of this Act. (2) Without prejudice to the generality of the foregoing power, such rules may,- (a) prescribe the term of office of the members, the procedure to be followed in the conduct of business, the method of voting the manner of filling up casual vacancies in membership and the quorum necessary of the transaction of business of the committees, sub-committees and the Advisory Board; (b) prescribe the method of summoning witnesses, production of documents relevant to the subject-matter of the enquiry before the committees, sub-committees and the Advisory Board; (c) prescribe the mode of computation of the cash value of wages in kind and of concessions in respect of supplies of essential commodities at concessional rates; (d) prescribe the time and conditions of payment of, and the deductions permissible from wages; (e) provide for giving adequate publicity to the minimum rates of wages fixed under this Act; (f) provide for a day of rest in every period seven days and for the payment of remuneration in respect of such day; (g) prescribe the number of hours of work which shall constitute a normal working day; (h) prescribe the cases and circumstances in which an employee employed for a period of less than the requisite number of hours constituting a normal working day shall not be entitled to receive wages for a full normal working day; (i) prescribe the form of registers and records to be maintained and the particulars to be entered in such registers and records; (j) provide for the issue of wage books and wage slips and prescribe the manner of making and authenticating entries in wage books and wage slips.; (k) prescribe the powers of Inspectors for purposes of this Act; (l) regulate the scale of costs that may be allowed in proceedings under Section 20; (m) prescribe the amount of court-fees payable in respect of proceedings under Section 20; and (n) provide for any other matter which is to be or may be prescribed.” It is evident that for carrying out certain business as has been provided under Section 30 of the Minimum Wages Act, 1948, the State Government has been conferred with the power to make rules and in pursuance of the same, the Minimum Wages Act, 1948 has been promulgated by publishing it in the Orissa Gazette, Part-III, No.17/23.4.1954 and the provision of Rule 12 provides that “the Chairman shall fix the date, time and place of every meeting, and a notice in writing containing the aforesaid particulars along with a list of business to be conducted at the meeting shall be sent to each member by registered post at least fifteen days before the date fixed for such meeting.
Provided that in the case of an emergent meeting, notice of seven days only may be given to every member.” Learned counsel for the petitioners has given much emphasis upon the provision of Rule 12 of the Orissa Minimum Wages Rules, 1954 (in short “Rules 1954) and has submitted that since the provision of Rule 12 has not been followed, hence notification as contained in Annexure-1 and 4 cannot be said to be in consonance with the statute but we have not accepted the arguments, it is for the reason that the Rules, 1954 has been formulated by the State of Odisha in terms of the provision of Section 30 of the Minimum Wages Act, 1948 which confers power upon the State Government to formulate rules and purpose for formulating rule has been prescribed in Section 30 (a) to (n) and we have not found under the provision of Section 30 regarding reference of a condition that the members would also be invited to attend the meeting in fixation of revision of minimum wages and as such after going through the provision of Section 30 of the Act, 1948 read with the provision of Rules, 1954, we are of the considered view that the members of the Board can only be invited to attend the meeting to be fixed by the terms as contemplated under Rule 12, is only for the purpose which has been provided under Section 30 of the Minimum Wages Act, 1948 and not in the case of fixation of minimum wages and as such it cannot be said that before revising minimum wages, the petitioner ought to have been provided an opportunity of attend the meeting of the Advisory Board, hence in the backdrop of the fact, there is no force on the arguments advanced on behalf of the learned counsel for the petitioner.
The revision of minimum wages has exclusively been provided under the provision of Section 5 of the Minimum Wages Act, 1948, specifically the Section 5 which contains provision of fixation of minimum wages and before revising minimum wages or even fixation for the first time a notice is to be published in the official Gazette inviting objections, so that persons concerned may get an opportunity to file their objections till within the stipulated period as provided under the Statute i.e., under Section 5(1)(b) i.e., the period of two months and when objection would be received, then it will be considered by the Advisory Board and on its recommendation the Government will revise the minimum wages, after going through the record, we have found that the procedure contemplated under Section 5 of the Minimum Wages Act, 1948 has been followed. Hence, we decline to interfere with the notification impugned in this writ petition. Accordingly, the writ petition stands dismissed having no merit.