KRISHNA DEVI PRASAD KEJARIWAL Vs. STATE OF BIHAR

JUDGEMENT

(1.) This writ petition has -been filed for quashing the notification dated September 6, 1990 issued by the State of Bihar in exercise of its power conferred by clause (a) of sub-section-(i) of Section 3 of the Minimum Wages Act (hereinafter to be referred to as the Act) fixing the minimum rates of wages as specified in clause (iii) of the Schedule annexed therewith against each category of employees employed in the 'private hospitals, nursing homes and clinics' in the whole of the State of Bihar. A prayer has also been made for quashing the order of the Joint Labour Commissioner dated April 8, 1991 (Annexure 7) and yet another order dated May 3, 1991 (Annexure 8) whereby while rejecting the representation of the petitioner, a direction was issued for implementation of the notification with respect to the employees of the petitioner-hospital.

(2.) In short, the case of the petitioner is that Krishna Devi-Devi Prasad Kejariwal Matri Sadan, Muzaffarpur is a charitable institution established under a trust deed duly registered under the Indian Registration Act. Therefore, the impugned notification fixing the minimum wages with respect to different categories of employees in the specified schedule will not be applicable to the employees of the instant hospital. In fact, the hospital in question is being run for charitable purposes without any profit motive and is not utilised for the benefit of a private individual. Hence keeping this aspect under consideration, even the Income Tax Department had granted exemption under Section 22-A of the Income Tax Act. Similar exemption was also granted by the Labour Court, Muzaffarpur with regard to the applicability of Bihar Shops and Establishments Act. It was held that from a bare reference to the trust deed, it would be apparent that the object of the trust was purely charitable to grant relief to the poor as well as medical relief. Therefore, in view of the provisions of Section 4 of the said Act, a charitable institution was entitled to full exemption.

(3.) A grievance was also made although on receipt of the notice under Section 5(1 )(b) of the Act regarding proposal for fixation of minimum wages, an objection was filed well within time before the Deputy Labour Commissioner for grant of exemption regarding applicability of the Act but the said objection was rejected summarily by the Joint Labour Commissioner even without holding any inquiry and granting an opportunity to the petitioner to establish her case. That apart, from a reference to the said Act, it would appear that no reason was assigned to justify under what circumstances the institution in question was not entitled for exemption.