AHMEDABAD INDUSTRIAL EMPLOYEES UNION Vs. STATE OF GUJARAT

JUDGEMENT

(1.) These 33 Special Civil Applications are directed against the Notifications issued under the Minimum Wages Act, 1948 fixing the minimum wages and involve common questions of law based on identical facts and, therefore, all these Special Civil Applications are decided by this common order.

(2.) Special Civil Application No. 12017 of 1994 is the first Special Civil Application filed on behalf of Ahmedabad Industrial and other Employers Union and others challenging the Notification dated 21-3-1994 issued by the Labour & Employment Department of the Government of Gujarat in exercise of powers conferred by sub-sec. (1) of Sec. 3 read with sub-sec. (2) of Sec. 5 and clause (i) of sub-sec. (1) of Sec. 4 of the Minimum Wages Act, 1948 (Act No. XI of 1948) fixing the minimum wages for the employees employed in any shop and commercial establishment under Entry No. 16 in Para I of the Schedule of the said Act in the whole of the State of Gujarat. In this matter Rule was issued on 23-1-1995. The other 32 Special Civil Applications have been filed in the year 1997 and they are directed against the Notifications dated 25-4-1997 issued by the Labour and Employment Department of the Government of Gujarat fixing the minimum wages under the aforesaid Minimum Wages Act in respect of different industries, viz., Industrial Engineering Establishments, Powerloom Industries and Textile Processing Industries, etc.

(3.) Petitioners in Special Civil Application No. 12017 of 1994 have come with the case that in the State of Gujarat the minimum wages for the establishments falling under the Schedule of employment and shops and commercial establishments were fixed by Notification dated 7-12-1983. Thereafter a draft Notification of the Schedule of employment of shops and commercial establishments was issued on 20-10-1989. By this Notification dated 20-10-1989 it was proposed by the appropriate Government to fix the minimum rates of wages at the rate of 6 ps. per point in place of 3 ps. which was existing at the time of the proposed draft Notification. The appropriate Government proposed to revise the minimum wages at the cost of living index number 700 in place of 400. At the time when draft Notification dated 20- 10-1989 was issued, the cost of living index of Ahmedabad was 850. It is then stated that since the appropriate Government proposed the revised minimum rates of wages directly by 100 per cent, the objections were filed to this draft Notification and the petitioner - Association filed their objections to the said draft Notification. Appropriate Government constituted an Advisory Board to advise the Government in the matter of fixation and revision of minimum wages under Sec. 7 of the Act. It is alleged in the petition that the appropriate Government had not appointed any committee or sub-committee under clause (A) of sub-sec. (1) of Sec. 5 of the Act and no such committee had called for any information from the petitioners and no such committee had concluded any hearing or visited any of the establishments of the petitioner. After inviting objections appropriate Government issued the impugned Notification dated 21-3-1994 revising and fixing the rates of minimum wages in Scheduled employment of shops and commercial establishments in the whole State of Gujarat and in supersession of the rates revised under the Notification of Labour & Employment dated 7-12-1983. These revised minimum wages on the basis of the Notification dated 7-12-1983 were to take effect from 21-3-1994. It is alleged that by this notification dated 21-3-1994 the cost of living is sought to be neutralized at 133 per cent and that under the impugned notification the neutralization had been increased to 400 point. It is also alleged that one of the members of the Advisory Board representing the employers had written a letter dated 11-11-1990 to Shri I. G. Thakore, the Chairman of the Advisory Board, stating therein that the Government had issued the draft Notification on the basis of consultation with the officers of the Statistics Department. The objection was to the effect that the draft Notification could be published only after consultation with the members of the Advisory Board and that objections received by the Government were to be produced before the Board and only thereafter the Board had to discuss the objections before sending its recommendation to the Government. It is further alleged that the Advisory Board in its meeting dated 2/3-5-1991 made an unanimous recommendation to retain the neutralization at the rate of 3 ps., per point and it accordingly made recommendation for fixing the minimum wages. It has been submitted that the minimum wages fixed by the State Government vide Notification dated 21-3-1984 were at the rate much higher than what had been recommended by the Advisory Board unanimously. It has also been alleged that the impugned Notification had revised the minimum wages with retrospective effect. It has been further submitted that the Central Government had published a Notification revising the minimum wages in certain establishments vide Notification dated 12-7-1994. The Central Government had revised the dearness allowance at the rate of 11 ps. for every 4 points beyond the consumer price index number 1281 for unskilled category of workers. It has also been submitted that there are no reasons or scientific calculation or any logic before prescribing the rate of dearness allowance at 4 ps. per point and that it was in violation of Art. 14 of the Constitution of India.