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  • clause (a) of sub-section (1) of Section 3 read with sub-section (2) of Section 5 of the Minimum Wages Act, 1948,
  • Article 226 of the Constitution of India.2. The Minimum Wages Act, 1948 (for brevity the Act)
  • Section 3 read with Section 5
  • clause (b) of sub-section (1),
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Citation Codes
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citation codes
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  • clause (a) of sub-section (1) of Section 3 read with sub-section (2) of Section 5 of the Minimum Wages Act, 1948,
  • Article 226 of the Constitution of India.2. The Minimum Wages Act, 1948 (for brevity the Act)
  • Section 3 read with Section 5
  • clause (b) of sub-section (1),
Smart Summary

Factual and Procedural Background

The petitioner, Shri K.C Khandelwal, President of the All India Auto and Miniature Bulbs and Components Manufacturers' Association, challenged a Notification dated January 1, 1993, issued by respondent No. 1 under clause (a) of sub-section (1) of Section 3 read with sub-section (2) of Section 5 of the Minimum Wages Act, 1948. The notification fixed minimum wages for employment in the Glass Bulb Manufactory industry, which had been added to the Schedule by a prior notification dated June 24, 1986.

Following the 1986 inclusion, a Committee was constituted on February 1, 1989, under Section 5 of the Act to inquire into service conditions and advise on minimum wages. The Committee conducted multiple meetings and collected data across various districts, issued public notices inviting representations, and completed its report on March 13, 1991. The petitioner filed representations after the report was finalized, which were considered by the Government before issuing the challenged notification on January 1, 1993. The writ petition contests this notification.

Legal Issues Presented

  1. Whether the procedure prescribed under the Minimum Wages Act, 1948, particularly under Section 3 and Section 5, was properly followed in fixing the minimum wages for the Glass Bulb Manufactory industry.
  2. Whether the petitioner’s objections and representations were duly considered before the issuance of the notification fixing minimum wages.
  3. Whether the Government could fix uniform minimum wages for the scheduled industry across different regions of the State.
  4. Whether the Committee’s report was reasoned and adequate for fixing the minimum wages.
  5. Whether the capacity of the industry to pay the prescribed minimum wages needed to be considered in fixing such wages under the Act.

Arguments of the Parties

Petitioner’s Arguments

  • The Committee appointed under Section 5 did not consider the objections filed by the petitioner, relying on precedent that approval without discussing objections was improper.
  • The notification fixing minimum wages was issued without considering the Committee's report as required under the Act.
  • The Government could not fix uniform minimum wages for industries located in various regions of the State.
  • The Committee’s report was unreasoned and inadequate.
  • The petitioner’s representation dated January 15, 1992, was not considered by the Government, vitiating the notification.
  • The State Government failed to examine the capacity of the industry to pay the minimum wages.

Respondent’s Arguments

  • The petitioner filed objections after the Committee had finalized its report and after public notices were issued inviting representations; hence, the objections were not timely.
  • The notification was issued only after the Committee’s report was duly considered along with departmental comments.
  • No objection was raised about the uniformity of wages in the writ petition, and the benevolent provisions of the Act should not be circumvented on technical grounds.
  • The Committee’s report was well-reasoned, having considered all relevant aspects and conducted extensive consultations.
  • The petitioner’s representation was not required to be separately considered once the Committee’s report was accepted by the Government.
  • The Committee’s report took into account the capacity of the industry to pay the wages.
  • The initial notification adding the industry to the Schedule (dated June 24, 1986) was not challenged and remains valid.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
H.B Verma & Ors. v. Union of India & Ors., 1992 LAB IC 1039 Approval of notification under Section 3 without discussing objections is improper. Found inapplicable as petitioner filed objections after Committee’s report and public notice; public notice implies knowledge of objections.
The N.M Wadia Charitable Hospital v. State of Maharashtra (Writ Petitions Nos. 1303 and 1699 of 1985) Notification fixing minimum wages without considering Committee’s report is invalid. Found inapplicable because in the instant case, notification was issued after considering the Committee’s report.
Achuthan v. State of Kerala, 1992 II CLR 447 Government cannot fix uniform minimum wages for scheduled industries located in different regions. Not contested in the petition; benevolent provisions of the Act prevent circumvention on technical grounds.
Mumbai Kamgar Sabha v. The State of Maharashtra, 1990 II CLR 372 Committee’s report must be reasoned and adequate. The Committee’s report was found well-reasoned and thorough after review.
Express Newspaper Ltd. v. Union of India, AIR 1958 SC 578 Capacity of the industry to pay must be considered in fixing minimum wages. The Committee’s report considered the capacity to pay; submission that it was ignored was rejected.

Court's Reasoning and Analysis

The Court examined the procedural compliance of the State Government with the Minimum Wages Act, 1948. It noted that the Government had inserted the Glass Bulb Manufactory employment into the Schedule through a valid notification in 1986 and thereafter followed the procedure under Section 5 by constituting a Committee to inquire and advise on minimum wages.

The Committee conducted extensive inquiries, held multiple meetings across districts, invited public representations, and submitted a detailed report. The petitioner’s objections were filed after the report was finalized and after public notices had been issued, which the Court held implied knowledge and opportunity to object earlier.

The Court found that the Government accepted the Committee’s report after considering departmental comments and that the report was well-reasoned, addressing all relevant aspects including capacity to pay, contrary to the petitioner’s submissions.

The Court rejected the petitioner’s reliance on precedents as inapplicable on facts, emphasizing that the Government followed the first option under Section 5 (appointing a Committee) rather than the second option (direct notification inviting objections), and therefore was not obliged to consider objections filed after the Committee’s report.

Regarding objections about uniform wages across regions, the Court noted no such objection was raised in the writ petition and declined to entertain such a technical ground to circumvent the Act’s benevolent purpose.

Accordingly, the Court concluded that the notification fixing minimum wages was valid and issued after proper procedure and consideration.

Holding and Implications

The writ petition is dismissed.

The Court upheld the validity of the notification dated January 1, 1993, fixing minimum wages for the Glass Bulb Manufactory industry after due compliance with the Minimum Wages Act, 1948. The direct effect is that the minimum wages fixed by the notification stand confirmed and binding on the parties. No costs were imposed. The decision does not establish any new precedent beyond affirming adherence to procedural compliance and the legislative scheme under the Act.

    K.C Khandelwal v. State Of Maharashtra And Others

    G.R Majithia, J.:— The petitioner, Shri K.C Khandelwal, President, All India Auto and Miniature Bulbs and Components Manufacturers' Association, has challenged Notification dated January 1, 1993 issued by respondent No. 1 in exercise of powers conferred by clause (a) of sub-section (1) of Section 3 read with sub-section (2) of Section 5 of the Minimum Wages Act, 1948, in this Writ Petition under Article 226 of the Constitution of India.

    2. The Minimum Wages Act, 1948 (for brevity “the Act”) was enacted to prevent exploitation of labour and for that purpose authorises the appropriate Government to take steps to prescribe minimum rates of wages in the schedule industries. In an under-developed country which faces the problem of unemployment on a very large scale, it is not unlikely that labour may offer to work even on starvation wages. The policy of the Act is to prevent the employment of such sweated labour in the interest of general public and so in prescribing the minimum wage rates, the capacity of the employer need not be considered. What is being prescribed is minimum wage rates which a welfare State assumes every employer must pay before he employs labour.

    3. Section 3 of the Act enables the appropriate Government to fix the minimum rates of wages payable to employees employed in an employment specified in Part I or Part II of the Schedule and in an employment added to either Part by notification under Section 27. Section 27 contains the procedure for making additions to the Schedule.

    4. Respondent No. 1, by notification No. MWA/5281/3065/CAB.7 published under Section 27 read with Section 2(g) of the Act, dated June 24, 1986 inserted the following entry at Serial No. 68 in the Schedule:—

    “Employment in any Glass Bulb Manufactory.” On February 1, 1989, respondent No. 1 constituted a Committee under Section 5 of the Act to hold enquiries into conditions of services prevailing in Glass Bulb Manufactory, to advise Government for fixation of minimum rate of wages. The Committee held its first meeting in Bombay on July 6, 1989. It collected required information in Bombay on July 20, 1989. It held meetings with the representatives of the concerned industry at Thane on August 18 and 19, 1989; at Nagpur, Jalgaon, Pune and Bombay from October 21 to 23, 1989; and at Aurangabad from March 11 to 15, 1991. The Committee gave public notices in local newspapers on September 24 and 25, 1990, inviting representations from the persons likely to be affected by the fixation of minimum wages. The Committee completed its report after complying with all the formalities enjoined under law on March 13, 1991. The petitioner for the first time filed a representation on April 29, 1991. The Committee submitted its report to respondent No. 1 on September 30, 1991. The petitioner filed another representation on January 15, 1992. The Labour Minister of the Government of Maharashtra accepted the report of the Committee on September 24, 1992. The report was sent to the Law and Judiciary Department for approval on October 21, 1992. The Law and Judiciary Department accorded approval on November 25, 1992 and the notification was issued on January 1, 1993. The same is challenged in this writ petition. These facts have been supplied to us by the Under Secretary to the Government of Maharashtra, Industry, Labour and Energy Department. The facts have not been disputed by the counsel for the petitioner. We had to send for the record of the department as we found that the affidavit filed by the State was vague. Certain allegations made in the petition were not controverted. Certain facts which ought to have been disclosed in the affidavit were not disclosed and the correct factual position remained obscure, necessitating the summoning of the record. The record was produced by the learned Advocate General and we record our appreciation for the very fair stand taken by him. But for the record, certain indisputable facts may have led to a mistake in adjudicating the dispute.

    5. The facts stated above reveal in unmistakable terms that the State Government, after complying with the procedure prescribed, fixed the minimum wages for the industry which was added in the schedule by notification dated June 24, 1986.

    6. Now the stage is set to examine the submissions made by the learned counsel for the petitioner. Learned counsel submitted that the Committee appointed under Section 5 of the Act did not consider the objections filed by the petitioner and in support of his submission he relied upon H.B Verma & Ors.… v. Union Of India & Ors.…, 1992 LAB IC 1039, more particularly on the observations made in para 11. In para 11 of the report it is stated that the Advisory Board granted approval to the proposed notification to be published under Section 3 of the Act without discussing the objections raised by the writ petitioners. In the instant case, the objections were filed by the petitioner after the Committee had concluded its deliberations and finalised the report. The objections were not filed by the petitioner when a public notice to this effect was issued. It is not stated by the petitioner that he had no knowledge of the public notice. A public notice presupposes a knowledge to the world at large and nobody can be heard to say that he was not aware of the public notice. The ratio of this judgment is inapplicable to the facts of the instant case.

    7. The learned counsel then relied upon a decision of this Court in The N.M Wadia Charitable Hospital v. State of Maharashtra, (in Writ Petitions Nos. 1303 and 1699 of 1985 decided on September 23, 1986) to contend that the Government issued the notification under Section 3 read with Section 5 of the Act fixing the minimum rates of wages payable to employees employed in the employment specified in the Schedule, without considering the report of the Committee appointed under Section 5(1)(a) of the Act. The ratio of this judgment is inapplicable as, on facts, we have come to a conclusion that the notification under Section 3 read with Section 5 was issued after considering the report of the Committee appointed under Section 5(1)(a) of the Act.

    8. The learned counsel also relied upon Achuthan v. State of Kerala, 1992 II CLR 447 to contend that the Government could not fix uniform rates for the scheduled industry which is situated in various regions of the State; and that the industry situated in different regions could not be treated alike and uniform wages could not be fixed. No such objection has been taken in the Writ Petition. At any rate, we do not consider that the benevolent provisions of the Act can be circumvented on technical grounds.

    9. The learned counsel then relied upon Mumbai Kamgar Sabha v. The State of Maharashtra, 1990 II CLR 372 to contend that the report of the Committee is unreasoned. The original report of the Committee has been produced before us by the Under Secretary to the Government of Maharashtra, Industry, Labour and Energy Department. A perusal of the same reveals that the report of the Committee is well-reasoned. The Committee took into consideration every conceivable aspect before making the recommendation for the increase in the minimum wages. The report of the Committee indicates that the Committee visited all the important districts in the State. It held discussions with the representatives of the industry. It followed a procedure consistent with propriety and fair play. It cannot even remotely be suggested that the report of the Committee is not a reasoned one.

    10. The learned counsel then submitted that the petitioner's representation dated January 15, 1992 submitted to the Minister was not considered by the State Government and hence the notification fixing the minimum wages stands vitiated. The submission is devoid of merits. Section 5 of the Act reads thus:—

    “5. (1) In fixing minimum rates of wages in respect of any scheduled employment for the first time under this Act or in revising minimum rates of wages so fixed, the appropriate Government shall either—

    (a) appoint as many committees and sub-committees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision, as the case may be, or

    (b) by notification in the official gazette, publish its proposals for the information of persons likely to be affected thereby and specify a date, not less than two months from the date of the publication, on which the proposals will be taken into consideration.

    (2) After considering the advice of the committee or committees appointed under clause (a) of sub-section (1), or as the case may be, all representations received by it before the date specified in the notification under clause (b) of that sub-section, the appropriate Government shall, by notification in the Official Gazette, fix, or, as the case may be, revise the minimum rates of wages in respect of each scheduled employment, and unless such notification otherwise provides, it shall come into force on the expiry of three months from the date of its issue:

    Provided that where the appropriate Government proposes to revise the minimum rates of wages by the mode specified in clause (b) of sub-section (1), the appropriate Government shall consult the Advisory Board also.”

    11. Section 5 is in two parts. The appropriate Government has two options in fixing or revising the minimum rates of wages as envisaged by the Act, namely (i) appoint Committee to hold enquiry in respect of such fixation or revision; (ii) by notification in the official gazette, fix or revise the minimum rates of wages in respect of scheduled employment. In the latter case when the appropriate Government intends to fix or revise the minimum rates of wages in respect of a scheduled employment, it has to consider the objections/representations, if any, filed by the party affected. In the instant case, the Government did not opt for the second option, viz. it did not issue a notification of its own, for fixing or revising the minimum rates of wages in respect of scheduled employment. It appointed a Committee and the Committee, after due deliberations, submitted its report. The Government accepted the report after considering not only the report of the Committee but the comments of the department concerned.

    12. In fairness to the learned counsel, one more judgment cited by him must be noted. He submitted that the State Government did not examine the capacity of the industry to pay the minimum wages. In support of his submission, he relied upon Express Newspaper Ltd. v. Union of India, AIR 1958 SC 578. The submission is devoid of merits. A perusal of the Committee's report indicates that it had taken into consideration all the relevant factors, including the capacity to pay while fixing the minimum wages.

    13. Moreover, the notification dated June 24, 1986 under which the industry was inserted in the Schedule at Serial No. 68, relating to employment in any Glass Bulb Manufactory, has not been challenged in the writ petition and we need not comment on this.

    14. Learned counsel very fairly stated that the notification dated June 24, 1986 is not under challenge and that he has confined his submissions only with regard to the notification dated January 1, 1993 fixing the minimum wages.

    15. For the reasons stated above, the writ petition fails and is dismissed. Rule is discharged. No order as to costs.

    Petition dismissed.
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    K.C Khandelwal v. State Of Maharashtra And Others
    (Mar 13, 1996)