GUJARAT RAJYA HOTEL FEDERATION Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The present writ petition has been filed inter alia praying for quashing and setting aside the impugned notifications dated 25/27.05.1999, 27.01.2001 and 15/12/2001 issued by the respondent No.1. However, the prayer in the writ petition is confined to quash and set aside the notification dated 15/12/2001 issued by respondent No.1.

(2.) Learned advocate Ms.Aishwarya Reddy appearing for the petitioners has submitted that the petitioner No.1 is a federation representing more than 500 establishments engaged in the activity of running hotels/restaurants in the State of Gujarat, Petitioner Nos.2 to 7 are the members and officers of the petitioner no.1. The notifications dated 23/01/2001 and 15/12/2001 have been issued under the Minimum Wages Act, 1948 (hereinafter referred to as "the Act ", for short). It is submitted that vide notification dated 23/01/2001, in exercise of the powers conferred under Section 30 of the Act, the State Government notified the Gujarat Hotel Workers ' Wages in Kind (Computation of Cash Value) Rules, 1998 (hereinafter referred to as 'the Rules '). The said Rules were brought into effect on 01/02/2001, wherein at the schedule it was provided that the cash value of a monthly wage would be 33.3% of total wages, when residential accommodation, two meals, two teas, two nasta (breakfast), is served daily. She has submitted that thereafter, by way of notification dated 15/12/2001, the State Government purportedly, in exercise of power under Section 30 of the Act, amended the notification dated 23/01/2001 and amongst the other amendments, the cash value of the total wage was reduced from 33.3% to 19%.

(3.) In response to the submissions advanced by the learned advocate for the petitioners, learned Assistant Government Pleader Mr.Rohan Shah, while placing reliance on the affidavits filed by the authority has submitted that the notification pertaining to cash value of the wages paid in kind for the workers of Hotel Industry came to be issued in accordance with law and provisions of the Minimum Wages Act and Rules framed thereunder. He has submitted that as per Section 5 of the Act, the department was required to hear the representatives of the employers and employees and accordingly, both the parties were heard at length and after scrutinizing the facts of the case and prevailing rates of the essential commodities and food articles, Minimum Wages notification is issued by the department. He has submitted that the draft notification/Provisional Notification, which came to be issued by the Government on 25.05.1999, wherein 33% deduction is shown to be appropriate. It is submitted that after receiving the objections/ suggestions from the societies and recommendations of the Minimum Wages Advisory Board vide its letter dated 14.10.1998, the Government issued a new draft notification, in which 1/4th deduction of Special Allowance instead of 1/3rd Allowance was recommended and thereafter, the Government issued a final notification and fixed the deduction rates as 33.3% equally from the basic pay and special allowance. He has submitted that the Hotel Federation made a representation before the Government and raised certain objections with regard to computation of deductions and the same was considered by the Government and afforded personal hearings to the Hotel Federation on 17.02.2001 and 01.08.2001.