SECUNDERABAD CLUB Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) These writ appeals arise out of the common judgment of the single Judge passed in a batch of writ petition. The appellants herein field the writ petitions challenging various final notifications issued in exercise of power confirmed under Section 3(1) and 5(2) of the Minimum Wages Act, 1948 (for short 'the Act') by the Government of Andhra Pradesh revising the minimum rates of wages payable to various categories of employees in different establishments as specified in Part-I of the Schedule.

(2.) The main contentions that were raised by the appellants are : Section 5 of the Act is ultra virus the Constitution; an opportunity of bearing was not given to the employers before issuance of final notification under See. 5(2) of the Act, which is mandatory; constitution of the Advisory Board under Section 7 of the Act is not in consonance with the provisions of Section 9 of the Act and the Advisory Board failed to discharge its duties; the provisions of the Act cannot be extended to the Scheduled Employments, the employees of which can form organisations for bargaining their wages; the rates of wages fixed in the impugned notifications are more than fair wages as the Government cannot fix higher rates of minimum wages than those prescribed in the draft notification issued under Section 5(1)(b) of the Act, etc. On behalf of the respondents, the Government Pleader defended the impugned notifications as valid on the grounds that the constitutional validity of Section 5 of the Act has already been upheld by the Supreme Court, composition of the Advisory Board is in consonance with the provisions of the Act, the Government considered the matter independently while fixing the minimum rates of wages apart from the report of the Advisory Board and the question of further opportunity of hearing to be given to the employers does not arise when their representations were considered and the rates of minimum wages fixed by the Government are proper and not discriminatory.

(3.) The Single Judge classified the impugned notifications into three groups : (1) Group-A consisting of notifications providing that payment of minimum rates of wages consisting of an all inclusive rate as contemplated under Section 4(1)(iii) of the Act, (2) Group-B consisting of notifications providing for payments of minimum rates of wages consisting of basic wages and cost of living allowance for the period from January 1/07/1989 as the case may be, up to the date of publication of final notification and payable from the date of publication of the final notification and (3) Group-C containing notification providing for payment of minimum rates of wages consisting of basic wage and cost of living allowance from the date of publication of final notification and payable from that date. The learned Single Judge after elaborately considering the affidavits filed in support of the writ petitions counter affidavits and hearing the arguments of both sides, dismissed the writ petitions which contain the notifications falling under Groups-A and C. Regarding the writ petitions covered by Group-B notification, he struck down the mode of computation of cost of living allowances providing for payment of cost of living allowance for any rise in consumer price index over and above 166 points (base year 1982 = 100) as on 1/01/1989 and 169 points (base year 1982 = 100) as on 1/07/1989 and directed the Government of Andhra Pradesh to revise the mode of computation of cost of living allowance in accordance with the law and publish the same in the Official Gazette within four months from the date of receipt of the order. Aggrieved by the said judgment of the learned Single judge, these writ appeals are filed.