T V KRISHNA Vs. ANDHRA PRABHA PRIVATE LIMITED

JUDGEMENT

(1.) WRIT Petitions Nos. 476, 539 and 616 of 1959 are for the issue of a WRIT of scire facias to rescind the certificate issued by the Registrar of Companies to Andhra Prabha Private Limited, Vijayawada, while WRIT Petition No. 511 of 1959 is for the issuance of a WRIT of Certiorari to quash the authentication of declaration by one of the respondents for the printing and publication of Indian Express from Vijayawada. All the petitioners were either working journalists or workers employed in the Express Newspaper Private Limited and their petitions follow the same pattern and raise common questions of law and fact, and could, therefore, be disposed of in one judgment.2. A few facts, which are material for appreciating the issues involved in these petitions, may be briefly set out. Express Newspapers Private Limited, otherwise termed as the Express Group, has been publishing several dailies and weeklies amongst them being the Indian Express, Diuamani. Aidhra Prahha and Andhra Prabha Illustrated Weekly. We are now concerned only with Andhra Prabha and Andhra Prabha Illustrated Weekly. Express Group is supposed to be the biggest chain in the newspapers World. This concern had in its employment a number of working journalists proof readers, members of the staff and workers. Some of the newspapers published by this concern have a wide circulation and, according to the petitioners, it was a very flourishing industry earning enormous profits, while the respondents have it that the company was incurring huge losses for some vears. There are several otber newspapers similarly situated in India,3. For some years past working journalists were agitating for the creation of a machinery to have their salaries, allowances etc., enquired into by some agency, which would be empowered to fix reasonable terms and conditions of services for them as whole. Isolated attempts were made by the various State to appoint Committees to enquire into the conditions of the employees of the newspaper industry. But the problem could not be tackled on an All India basis. Following on the declaration of the policy by the Prime Minister in that behalf ia the year 1951, the Press (Objectional Matter) Act. 1952 was passed by the Parliament.In September 1952, the Press Commission was appointed to report, among other things on the method of recruitment, training, scales of remuneration, benefits and other conditions of employment for working journalists, the settlement of disputes affecting them and the factors which influenced the establishment and maintenance of high professional standards. After the Press Commission made its report, the Working Journalists (Conditions of Service and Miscellaneous Provisions) Act (Act XLV of 1955) was passed which received the assent of the President in December, 1955, to have better conditions of service established for those working in the newspaper industry. Section 8 of the Act authorised the Central Government to constitute a Wage Board for fixing the rates of wages in respect of working journalists.4. In exercise of that power the Union Government created a Wage Board for fixing and determining the rates of wages in accordance with the provisions of the Act. This Board gave its decision classifying newspaper establishments into several groups according to their gross earnings and fixing scales of wages of the various grades of working journalists. As a result of the proposals of the Board, there was an increase in the emoluments of the employees working in this industry with the result that the wage bill went up very high. This threw an additional burden on the industry, the Express Newspapers being one such. The Express Newspapers Private Limited and several other newspaper establishments invoked the jurisdiction of the Supreme Court under Article 32 of the Constitution questioning the vires of the Act and challenging the decision of the Board contending, inter alia, that the implementation of the decisions would be beyond the capacity of the industry and would lead to their utter ruin.5. While upholding the constitutionality of the Act, except in regard to one or two provisions, the Supreme Court set aside the derision of the Wage Board as illegal and void. One of the reasons adduced in support of the conclusion of their Lordships was that the Wage Board, in fixing the rates of wages, had not taken into account the capacity of the industry to pay. After this, the Government made an ordinance subsequently replaced by Act XXIX of 1958, which was in substance on the same lines as Act XLV of 1955 and which made no departure in regard to the main policy embodied in the earlier Act By virtue of the authority conferred by Act XXIX of 1958, the Government of India constituted a Wage Committee in June, 1958 to fix the rates of wages etc. This Committee made tentative proposals in December 1958, which were circulated to all newspaper proprietors including those of the Express Group. The Committee also classified the newspaper industry into various Classes A to E according to their gross receipts In this classification, the Andhra Prahha Limited, which was treated as a unit was assigned place in Croup C. As a result of the recommendations of this Committee, the Express Newspapers Limited had to pay a sum of about two lakhs of rupees a month by way of additional wages to working journalists and the members of the staff.6. Early in November, 1958, there was a dispute between Express Newspapers Limited and its employees and it was settled through the mediation of one of the Ministers of Madras. However, this did not result in the establishment of peace between the employers and the employees. The management was contemplating either to transfer and sell its publications or to do some other thing in order to relieve itself of the difficulties in carrying on business and further losses. This appears from the resolution passed by the share-holders of the company at an extraordinary general body meeting on the 11th of February. 1959, which reads as follows :