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Corporation Of City ... v. Inland Carriers, Nag...
Structured Summary of the Judicial Opinion
Factual and Procedural Background
The core question in the appeal was whether the Motor Transport Workers' Act, 1961 (the "Central Act") had, by necessary implication, repealed the Bombay Shops and Establishments Act, 1948 (the "State Act") in respect of motor transport workers.
The respondent, Inland Carriers, Gandhi Baugh (represented by its Managing Director Lalbhai), had been registered as a commercial establishment under the State Act from 1971 until 1978 but did not renew the registration certificate as required by S. 7(2A) of the State Act. Because of the non-renewal it was prosecuted for contravention of that provision, an offence punishable under S. 52(a) of the State Act.
Respondent 1 contended that, as an employer of a motor transport undertaking to which the Central Act applied, it was registered under S. 3(1) of the Central Act and therefore had no necessity to continue or renew registration under the State Act. The learned Magistrate accepted that contention and acquitted the accused. The Corporation of the City of Nagpur appealed against that acquittal.
It was common ground that respondent 1 employed fourteen persons engaged in goods transport and thereby came within the definition of a motor transport undertaking for the Central Act.
Legal Issues Presented
- Whether, after the enactment of the Motor Transport Workers' Act, 1961 (Central Act), the Bombay Shops and Establishments Act, 1948 (State Act) is by necessary implication repealed so far as motor transport workers are concerned.
- Whether a motor transport undertaking already registered under the Central Act is required to continue or renew registration under the State Act (specifically compliance with S. 7(2A) of the State Act).
Arguments of the Parties
Respondent's Arguments (Inland Carriers / Sri Deopujari)
- Respondent submitted that the Central Act applies to every motor transport undertaking employing five or more motor transport workers (S. 1(4) of the Central Act) and that the undertaking must be registered under the Central Act (S. 3).
- Given that respondent 1 fell within the Central Act's definition and was registered under S. 3(1) of the Central Act, it was unnecessary to continue or renew registration under the State Act; S. 37(1) of the Central Act excludes inconsistent provisions of other laws.
Appellant's Arguments (Corporation of City of Nagpur / Sri B.P. Dharmadhikari and Sri Dharmadhikari)
- The appellant argued that the Patna High Court rulings relied upon by the learned Magistrate did not consider the effect of S. 37 of the Central Act; therefore those rulings were insufficient authority for excusing non-compliance with the State Act.
- The appellant relied upon Annamalai Bus Transport (Private) Ltd. v. D. Ramakrishna Pillai (Kerala High Court) to contend that there is no inconsistency between the Central Act and the State Act, and that the State Act's registration requirement remained necessary.
- Relying on the definition in S. 2(h)(ii) of the Central Act, the appellant submitted that motor transport workers employed in shops or commercial establishments (as defined by the State Act) would still fall within the State Act and thus the State Act would continue to apply to them.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Bihar State Road Transport Corporation v. Orang Bahadur, A.I.R. 1968 Pat. 203 | Authority relied upon by the learned Magistrate for the proposition that registration under the Central Act removes the necessity to continue registration under the State Act. | The Magistrate relied on this ruling to acquit; the present Court noted this reliance but evaluated other provisions (including S. 37) before reaching its conclusion. |
| Amarnath Singh v. Industrial Tribunal, Bihar, A.I.R. 1970 Pat. 269 | Another Patna High Court ruling relied upon by the learned Magistrate to support non-necessity of continuing State registration where the Central Act applies. | The Magistrate relied on this ruling; the present Court considered these Patna rulings collectively and later expressly referred to a Full Bench view of the Patna High Court. |
| Annamalai Bus Transport (Pvt.) Ltd. v. D. Ramakrishna Pillai, A.I.R. 1967 Ker. 225 | Kerala High Court decision holding that, where the Central Act lacked a corresponding provision (for example S. 18 of the Kerala Act concerning notice of termination), there was no repugnancy and the State Act could continue to apply in that respect. | This decision was relied upon by the appellant to argue no repugnancy; the present Court analysed the Annamalai reasoning and concluded it did not support the proposition that registration under the State Act remains required for a motor transport undertaking otherwise falling under the Central Act. |
| Full Bench view of the Patna High Court (as referred to in the opinion) | The Full Bench had taken the view that the Central Act by implication repealed the State Act insofar as motor transport workers are concerned. | The present Court respectfully agreed with the Full Bench view and concluded that the Motor Transport Workers Act, 1961, by implication repeals the State Act as to motor transport workers. |
Court's Reasoning and Analysis
The Court conducted a comparative statutory analysis of the Central Act and the State Act, focusing on whether the later Central Act, though not expressly repealing local enactments, had the effect of impliedly repealing the State Act in respect of motor transport workers.
The Court examined specific provisions and differences between the two Acts:
- The Court compared leave-and-wages provisions: S. 28 of the Central Act and Ss. 36 and 37 of the State Act (noting a difference in S. 37 of the State Act which requires half the total amount due to be paid before leave begins).
- The Court observed S. 27 (Central Act) and S. 35 (State Act) both address annual leave with wages, and noted S. 38-A of the State Act makes provisions of the Workmen's Compensation Act, 1923 applicable to employees of an establishment — a provision not expressly present in the Central Act.
- On overtime and holidays: S. 26 (Central Act) and S. 63 (State Act) both provide for extra wages for overtime. The State Act (S. 65) prohibits work on a given holiday or during leave; the Central Act lacks an identical provision but S. 20 provides for a compensatory day of rest, which the Court found to be a functionally appropriate and different approach given the nature of motor transport work.
- On termination: S. 66 of the State Act requires notice of termination in certain cases; the Central Act had no corresponding provision. The Kerala High Court had treated such matters as capable of concurrent operation where no repugnancy exists.
The Court reiterated the governing principle on repeal by implication: the intent of the legislature must be gathered from the later enactment; there is a presumption against repeal by implication but conflict, repugnancy or a complete substitution by later legislation can justify an implied repeal. On comparing the two Acts, the Court found that, although not identical, the Central Act substantially covers the same matters concerning the welfare of motor transport workers — which is the object of the Central legislation.
The Court addressed the parties' competing textual arguments about definitions and scope:
- The appellant's reliance on S. 2(h)(ii) of the Central Act (which excludes persons to whom any law regulating conditions of service of persons employed in shops or commercial establishments applies) was analysed. The Court found that construing the provision to exclude all motor transport workers employed in "commercial establishments" would effectively nullify the definition in S. 2(h) and defeat the purpose of the Central Act. The Court explained that the exclusion applies to persons plainly governed by other laws (e.g., factories or shops/establishments other than the motor transport undertaking itself), not to defeat the separate statutory regime for motor transport workers employed in an undertaking defined as such by S. 2(g).
- The Court interpreted S. 37(1) of the Central Act as a provision that gives the Central Act precedence over anything inconsistent in any other law, while its proviso preserves more favourable benefits under any other law, award or agreement for motor transport workers. The proviso therefore secures superior benefits from other laws while allowing the Central Act to govern generally.
- The Court considered the Kerala High Court's decision in Annamalai and its focus on provisions for termination (S. 18 of the Kerala Act analogous to S. 66 of the State Act). It concluded that the Kerala decision — which allowed concurrent operation in particular respects under the proviso to S. 37(1) — does not support the proposition that a motor transport undertaking otherwise within the Central Act must separately register under the State Act.
On balance, and mindful of the legislative intent and the content overlap directed to the welfare and conditions of motor transport workers, the Court concluded that the Central Act was intended to be the operative code for motor transport undertakings and by implication repealed the State Act insofar as motor transport workers are concerned.
Holding and Implications
Holding: The appeal is dismissed.
Core legal holding: The Motor Transport Workers Act, 1961, by implication repeals the Bombay Shops and Establishments Act, 1948, insofar as motor transport workers employed in motor transport undertakings are concerned.
Immediate consequences and implications as articulated in the opinion:
- Because the respondent's enterprise is principally a motor transport undertaking and its employees fall within the Central Act's definitions, the respondent did not contravene S. 7 of the State Act by failing to renew registration under the State Act.
- The Central Act governs the welfare and conditions of service of motor transport workers employed in such undertakings; registration as a motor transport undertaking is required under the Central Act (S. 3).
- The proviso to S. 37(1) of the Central Act preserves any more favourable benefits that motor transport workers may enjoy under other laws (for example, benefits equivalent in effect to application of the Workmen's Compensation Act under S. 38-A of the State Act), so that superior benefits under other laws or agreements continue to be available to workers notwithstanding the Central Act's primacy on inconsistent matters.
The opinion does not announce that a new general rule of law beyond the specific holding was created; rather it applies established principles of statutory construction to conclude that the Central Act occupies the field for motor transport undertakings and implicitly displaces the State Act in that domain while preserving workers' more favourable existing benefits through the proviso to S. 37(1).
1. An important question involved for consideration in this appeal is, whether after the passing of the Motor Transport Workers' Act, 1961 (hereafter called the Central Act), the Bombay Shops and Establishments Act, 1948 (hereafter called the State Act), is by necessary implication repealed, so far as the motor transport workers are concerned.
2. The Inland Carriers, Gandhi Baugh, represented by its Managing Director, Lalbhai (respondent 1) was registered as a commercial establishment under the State Act since 1971 till 1978. Thereafter it did not renew the registration certificate as required by S. 7(2A) of the State Act. It, therefore, came to be prosecuted for contravention of the provisions of the said section, an offence punishable under S. 52(a) of the State Act.
3. Respondent 1 contended that as an employer of a motor transport undertaking, to which the provisions of the central act precisely apply, the same is duly registered under S. 3(1) of the Central Act. It is not necessary, therefore, to continue or renew the registration of the said undertaking under the State Act.
4. This contention of respondent 1 prevailed with the learned Magistrate and he acquitted the accused and, hence, this appeal by the Corporation of City of Nagpur.
5. It is not disputed that respondent 1 has fourteen employees, all engaged in the business of transport of goods and as such it is a motor transport undertaking within the meaning of S. 1(4) of the Central Act.
6. The learned Magistrate, relying upon Bihar State Road Transport Corporation v. Orang Bahadur [A.I.R 1968 Pat. 203] and Amarnath singh v. Industrial Tribunal, Bihar [A.I.R 1970 Pat. 269], found that it was not necessary for the accused to continue registration of its establishment under the State Act, as it was already registered under the Central Act.
7. Sri B.P Dbarmadhikari, the learned counsel for the appellant, submitted that the above two rulings of the Patna High Court, upon which reliance has been placed by the learned Magistrate, never considered the effect of S. 37 of the Central Act. He, on the other hand, relied upon Annamalai Bus Transport (Private), Ltd. v. D. Ramakrishna Pillai [A.I.R 1967 Ker. 225], in support of his proposition that there is no repugnancy or inconsistency between the two Acts and the learned Magistrate was not justified in holding that by the passing of the central act, the state act by necessary implication is repealed. The registration under the State Act, according to him, was, therefore, still necessary.
8. In the cited ruling of the Kerala High Court, the services of a temporary employee of the Annamalai Bus Transport were terminated. The Appellate Authority under the Kerala Shops and Commercial Establishments Act found that it was an illegal termination as notice of termination as contemplated under S. 18 of the Kerala Act was not issued and it, thereafter, directed reinstatement with back-wages for the period he was kept out of employment. The said Transport (Private), Ltd., filed a writ petition questioning the said order, on the ground that the Central Act dealing with the particular subject has replaced the Kerala Act. The question that was raised for consideration before the High Court was, whether S. 18 of the Kerala Act dealing with notice of termination can be regarded as inconsistent with or repugnant to the provisions of the Central Act. Now. S. 18 of the Kerala Act (which is in pari materia with S. 66 of the State Act) contemplates giving of a notice of termination. There is no provision corresponding to S. 18 of the Kerala Act in the Central Act. The High Court of Kerala held that as there was no provision in the Central Act corresponding to S. 18, it was difficult to see any case of repugnancy or inconsistency arising between the two. In the result, the argument that the Central Act having dealt with specifically with the conditions of service of motor transport workers, would exclude the Kerala Act dealing generally with the conditions of service of workmen in all shops and commercial establishments was, therefore, rejected and the writ petition was dismissed.
9. I was taken through the various provisions of the two Acts and though it is not necessary for me to set out elaborately a comparative chart, it may be pointed out that S. 28 of the Central Act and Ss. 36 and 37 of the State Act make a provision for payment of wages during the leave period, with the only difference that under S. 37 of the State Act, the employee is entitled for be paid half of the total amount due to him for the period of such leave before the leave begins.
[Emphasis supplied.]
10. Section 27 of the Central Act and S. 35 of the State Act provide for annual leave with wages. Section 38-A of the State Act makes the provisions of the Workman's Compensation Act, 1923, applicable to the employees of an establishment, but no such provision is to be found in the Central Act.
11. Section 26 of the Central Act and S. 63 of the State Act provide for extra Wages for overtime. Section 65 of the State Act enjoins that no employee shall work in any establishment, nor shall any employer knowingly permit an employee to work, on a given holiday or during leave period. There is no such similar provision fn the Central Act, but S. 20 thereof provides for grant of a compensatory day of rest, in case a motor transport worker is deprived of any of the days of rest to which he is entitled. Regard being had to the nature of the duties required to be discharged by workers as carriers of goods or passengers; grant of a holiday on any fixed day is obviously not possible nor is it convenient or beneficial to such workers. A compensatory off on any other working day is, therefore, a good safeguard to the worker entitling him to a day of rest.
12. Lastly, S. 66 of the State Act requires a notice of termination of service to be given in respect of certain employees, except, however, when it is for misconduct. A contravention of this provision is also made punishable under S. 52 of the Act. There is no such corresponding provision in the Central Act. The High Court of Kerala in the decision cited above on construction of the proviso to S. 37 of the Central Act, therefore, held that the two statutes, namely, the central act and the kerala act, in this matter could concurrently operate.
13. Now, the Central Act does not, in express terms, repeal the local or State Acts. The question, therefore, is whether a repeal by necessary implication can be inferred. Whether a statute is repealed by implication either in its entirety or in part has to be gathered from the intent of the Legislature, which the Court can ascertain from the terms and provisions of the later enactment. True it is that ordinarily the presumption is against the intention of the Legislature to repeal by mere implication. If, however, the provisions of the two enactments are sharply conflicting, are inconsistent or repugnant, that by itself may reveal an intent to repeal the existing law. Again, if the inconsistency relates to a part of the statute only, that part of the statute only would stand repealed to the extent of repugnancy. Where a later or new legislation substantially replaces or makes a complete substitute for the existing law, implied repeal can be inferred. As can be seen on a comparative study of the Central and the State Act, though the provisions of the central act may not be identical, they substantially provide for the same matters covered by the State Act, so far as the welfare of the motor transport workers is concerned, which is the object of the Central legislation.
14. It was submitted by Sri Deopujari, the learned counsel for respondent 1, that the Central Act intends to provide for the welfare of the motor transport workers and regulates their conditions of work, that S. 1(4) of the Act applies to every motor transport undertaking employing five or more motor transport workers and since this respondent comes within the definition of a motor transport undertaking, it is the Central Act alone which would be applicable and the operation of the State enactment would be excluded, which is also expressly provided for by S. 37(1) of the Central Act.
15. Sri Dharmadhikari, the learned counsel for the Corporation on the other hand, laid great stress on the definition of motor transport workers in S. 2(h)(ii) of the Central Act and submitted that the provisions of the state act would still apply to all motor transport workers. Now, the expression “motor transport undertaking” as defined in S. 2(g) by the Central Act reads thus:
“(g) ‘motor transport undertaking’ means a motor transport undertaking engaged in carrying passengers or goods or both by road for hire or reward, and includes a private carrier.”
16. Section 3 of the Central Act says that every employer of a motor transport undertaking to which this Act applies shall have the undertaking registered under this Act.
17. The definition of “motor transport worker” as defined in S. 2(A) by the Central Act is in these terms;
“2.(h) ‘motor transport worker’ means a person who is employed in a motor transport undertaking directly or through an agency, whether for wages or not, to work in a professional capacity on a transport vehicle or to attend to duties in connection with the arrival, departure, loading or unloading of such transport vehicle and includes a driver, conductor, cleaner, station staff, line checking staff, booking clerk, cash clerk, depot clerk, time-keeper, watchman or attendant, bat except in S. 8 does not include—
(i) any such person who is employed in a factory as defined in the Factories Act, 1948;
(ii) any such person to whom the provisions of any law for the time being in force regulating the conditions of service of persons employed in shops or commercial establishments apply.”
18. Now, S. 8 of which an exception is made in the above definition deals with the provision of canteens for which the State Government may make rules. What is not included in the definition is,—
(i) any person who is employed in any factory run by the motor transport undertaking as defined in the Factories Act, 1948; and
(ii) persons to whom provisions of any law regulating the conditions of service of persons employed in shops or commercial establishments apply.
The expressions “shop” and “establishment” (which includes a commercial establishment) are defined by the State Act under Ss. 2(27) and 2(8), but they are not defined in the Central Act. The submission of Sri Dharmadhikari is that since motor transport undertaking also is a commercial establishment, the motor transport workers in such establishment are also not included and they would, therefore, be governed by the provisions of the State Act under S. 2(h)(ii). Such an interpretation, in my opinion, in effect, would exclude every motor transport worker, though falling precisely within the earlier part of the definition clause including drivers, conductors, cleaners, etc., and leave none to be governed by the provisions of this Act. The definition clause of S. 2(h) would stand virtually effaced and the very object of the Legislature would stand defeated. What the definition clause plainly means is that just as persons employed in any factory, if any run by the motor transport undertaking are left out as their welfare would be governed by the Factories Act, so also those employed in shops or commercial establishments, other than t??? motor transport undertaking (which expression is separately defined), are also left out to be governed by the provisions of any other law in force regulating their conditions of service.
[Emphasis supplied.]
19. Now, S. 37 of the Central Act, which deals with the effect of laws and agreements inconsistent with the provisions of that Act, reads thus:
“37. (1) The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law or in the terms of any award, agreement or contract of service, whether made before or after the commencement of this Act:
Provided that where under any such award, agreement, contract of service or otherwise a motor transport worker is entitled to benefits in respect of any matter which are more favourable to him than those to which he would be entitled under this Act, the motor transport worker shall continue to be entitled to the more favourable benefits in respect of that matter, notwithstanding that he receives benefits in respect of other matters under this Act.
(2) Nothing contained in this Act shall be construed as precluding any motor transport worker from entering into an agreement with an employer for granting him rights or privileges in respect of any matter which are more favourable to him than those to which he would be entitled under this Act.”
20. The Sub-cl. (1), in the first place, makes it clear that the provisions of this Act shall prevail in supersession of anything inconsistent contained in any other law or award or agreement of service. What is saved by the proviso, however, is that a motor transport worker, if he is entitled to more favourable benefits in respect of any matter under any award or agreement of service or otherwise, he shall continue to derive that benefit and the said benefit shall not be denied to him on the ground that he receives benefits in respect of other matters, under this Act. So also it would be open to a motor transport worker to enter into an agreement with his employer claiming more favourable, terms, rights or privileges than those to which he is entitled under the Act.
21. In my opinion, therefore, the Central Act, which applies to every motor transport undertaking is enacted to provide for the welfare of the motor transport workers employed in such undertakings. A motor transport undertaking is required to be registered as such under S. 3 of the Central Act. The employees of such an undertaking, who may be employed in a factory or in a shop or other commercial establishment, are not motor transport workers within the meaning of the definition given in S. 2(h) of the Act, and they would continue to be governed by the provisions of the factories act or any other law in force regulating the conditions of service of persons employed in shops or commercial establishments. So far as the present respondent 1 is concerned, transport of goods is its sole concern and business and as an employer of fifteen motor transport workers, it would be governed by the provisions of the central act. Respectfully agreeing, therefore, with the view of the Full Bench of the Patna High Court, I find that the Motor Transport Workers Act, 1961, by implication repeals the State Act.
22. The proviso to S. 37(1) of the Central Act is intended to protect and preserve for the motor transport workers the more favourable advantages and benefits, if any, under any other laws, agreements or awards to which they may be entitled, notwithstanding that they receive benefits in respect of other matters under the Act. As pointed out above, S. 38-A of the State Act provides that provision of the Workmen's Compensation Act shall mutatis mutandis apply to the employees of an establishment to which Act applies as if they were the workers within the meaning of the Workmen's Compensation Act, 1923. Though no such provision is to be found in the Central Act, the same result in my view, is achieved by virtue of the proviso to S. 37(1). The High Courts of Kerala in the aforesaid ruling having found that a motor transport worker in the matter of termination of service was entitled to the beneficial provision of S. 18 of the Kerala Shops and Commercial Establishments Act (analogous to S. 66 of our State's Act), held, that by virtue of the proviso to S. 37(1), they would still be entitled to that benefit, irrespective of the fact whether the motor transport undertaking was or was not registered under the local or the State Act. The said decision, therefore, is no authority for a proposition that the motor transport undertaking, though engaged exclusively in carrying passengers or goods or both as defined by S. 2(g) of the Central Act, would require a registration under a State or other local Act, in view of the proviso to S. 37 as is sought to be suggested by the learned Counsel for the appellant in this case. The learned Magistrate rightly held that respondent 1, which is principally a motor transport undertaking, did not contravene the provisions of S. 7 of the State Act.
23. In the result, the appeal is dismissed.
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