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Anamalais Bus Transport (P) Ltd. v. Ramakrishna Pillai & Others

Kerala High Court
Jan 12, 1967
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Structured Summary of the Opinion

Factual and Procedural Background

The writ petition (O.P.) challenged an order (certified copy Ext. P-1) of the appellate authority under Section 18 of the Kerala Shops and Commercial Establishments Act, 1960 ("the Kerala Act"). The petitioner is the Manager of Anamalais Bus Transport Ltd. The 1st respondent was a temporary employee of the petitioner from 7-2-1954 to 10-6-1964. On an appeal preferred by the 1st respondent to the 2nd respondent (the appellate authority under S.18 of the Kerala Act), the 2nd respondent found that the 1st respondent's service had been illegally terminated and directed reinstatement with payment of Rs. 250 as compensation in lieu of back-wages for the period he was kept out of employment. On default, the petitioner was directed to pay a further sum of Rs. 500 in lieu of reinstatement and all other claims before a specified date. The petitioner filed the present writ petition to quash that order.

Legal Issues Presented

  1. Whether the Kerala Shops and Commercial Establishments Act, 1960 (State Act) is inconsistent with or repugnant to the Motor Transport Workers Act, 1961 (Central Act), such that the State Act (or relevant provisions thereof) would be void under Article 254(1) of the Constitution.
  2. Whether Section 18(2) of the Kerala Act is unconstitutional on the ground that the appellate authority's decision under that section is made final with no further provision for appeal or review.
  3. Whether the extension of the Kerala Act to motor transport workers by a State Government notification under Section 4 (dated 18-10-1963) was invalid because the Central Act had already occupied the field.
  4. Whether the Kerala Act applied territorially to the 1st respondent's employment (a contention that the 1st respondent was employed within the Poyya Panchayat where the Kerala Act had not been extended under S.1(5)).

Arguments of the Parties

Petitioner's Arguments

  • The Central Act (Motor Transport Workers Act, 1961) and the Kerala Act cover the same field (conditions of work and employment for motor transport workers/shops & commercial establishments) and there is substantial identity or correspondence between provisions of the two Acts; therefore the Kerala Act is repugnant to the Central Act and void under Article 254(1).
  • The Central Act dealt specifically with conditions of service of motor transport workers, and thus excluded or displaced the general State legislation on conditions of work in shops and commercial establishments.
  • By the time the Kerala Act was extended to motor transport workers by notification (18-10-1963), the Central Act had already occupied the field and the State extension must be held void for repugnancy.
  • Section 18(2) of the Kerala Act is unconstitutional because the appellate authority's decision under that section is made final with no further provision for appeal or review.
  • The 1st respondent was employed in Krishnankottai within the limits of the Poyya Panchayat to which the Kerala Act had not been extended (a territorial objection to application of the State Act to the 1st respondent).

Respondents' Arguments

  • There is no provision in the Central Act corresponding to Section 18 of the Kerala Act; the two statutes can operate concurrently and are not repugnant.
  • Section 2(h) of the Central Act excludes persons governed by any law regulating conditions of service of persons employed in shops or commercial establishments — indicating the Acts should be read in harmony rather than as conflicting.
  • The Kerala Act was validly extended to persons whose work mainly involves travelling by a Government notification dated 18-10-1963; from that date motor transport workers are governed by the Kerala Act.
  • Section 1(4) of the Central Act applies only to undertakings employing five or more motor-transport workers, and there is nothing to show the petitioner's undertaking satisfied that requirement.
  • The territorial point (employment in Krishnankottai/Poyya Panchayat) was not raised before the 2nd respondent; the 1st respondent denied working in Krishnankottai and attendance registers of the Chalakudi office (Exts. R-5 and R-6) supported the 1st respondent's case — a disputed question of fact which the court declined to decide in these proceedings.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ch. Tika Ramji v. The State of Uttar Pradesh (AIR 1955 SC 676) Principles on repugnancy where both Parliament and State have legislated in the same field; tests for inconsistency and approach to overlapping central and state enactments. The court applied the decision's approach: examine whether provisions overlap or are capable of simultaneous obedience; concluded that, as in that case, absence of overlapping provisions and simultaneous operation defeats repugnancy.
Clyde Engineering Co. Ltd. v. Cowburn (1926-37 CLR 466) The conclusive test of inconsistency: where a competent legislature evinces intention to cover the whole field, another legislature entering the same field is inconsistent. The court cited the test as part of its analytical framework for assessing whether the Central Act intended to cover the whole field and thereby exclude State legislation; it concluded the Central Act did not evince such an exclusive intention in relation to S.18 of the Kerala Act.
Ex Parte McLean (1930-43 CLR 472) Principle that inconsistency depends on whether the paramount legislature intended the statute to be complete/exclusive for the subject matter rather than merely supplementary; coexistence is permissible if simultaneous obedience is possible. The court relied on this principle to determine that the Central Act and the Kerala Act were susceptible of simultaneous obedience and that no exclusive intention by Parliament to cover the whole field was shown.
Manohar Lal v. The State (AIR 1951 SC 315) Authority relevant to tracing legislative power and the possibility that State legislative competence may arise from entries other than those in the Concurrent List (referenced in relation to source of State power). The court noted this precedent when discussing alternative bases for the State's legislative competence (entry 25 of List II) but did not rely on it to alter its conclusion that there was no repugnancy between the two statutes.

Court's Reasoning and Analysis

The court proceeded with a focused analysis of repugnancy between the State and Central Acts, applying established tests and the facts expressly set out in the opinion.

  1. Identification of the precise question: the court limited its inquiry to whether Section 18 of the Kerala Act was repugnant to, or inconsistent with, the Central Act. It noted there was no provision in the Central Act corresponding to S.18 of the Kerala Act.
  2. Use of authority on repugnancy tests: the court adopted reasoning from Ch. Tika Ramji and the principles stated in Clyde Engineering and Ex Parte McLean — namely, that inconsistency arises only if the paramount legislature clearly intended to occupy the whole field so as to make coexistence impossible, and that mere overlap or similarity does not of itself create repugnancy.
  3. Comparison of statutory provisions: the court observed that the Central Act contains provisions (for example S.27(3)) that contemplate discharge or dismissal but does not prescribe the procedural mode of dismissal. By contrast, S.18 of the Kerala Act prescribes a mode (notice and appellate remedy). The court found no direct inconsistency in these provisions.
  4. Statutory interpretive indicators favouring harmony: the court relied on Section 2(h) of the Central Act which expressly excludes persons to whom provisions of laws regulating conditions of service in shops or commercial establishments apply. The court regarded this as an indication that the two Acts were meant to operate harmoniously rather than conflictually.
  5. Consideration of chronology and extension by notification: the court addressed the petitioner's contention that the Kerala Act's later extension (by notification dated 18-10-1963) to persons whose work mainly involves travelling was invalid because the Central Act (1961) had already occupied the field. The court rejected this contention on the basis that it had already found no repugnancy; moreover, the saving in S.2(h) of the Central Act would operate upon the State Act's extension.
  6. Threshold applicability under the Central Act: the court noted Section 1(4) of the Central Act limits its application to undertakings employing five or more motor transport workers and observed there was nothing on record to show the petitioner's undertaking met that requirement — a fact which reduced the force of the repugnancy argument.
  7. On the contention of implicit repeal: the court stated it could not find any express or implicit repeal of the State Act by the Central Act and concluded the statutes were "susceptible of simultaneous obedience."
  8. Alternative constitutional footing and unresolved judicial conflict: the court acknowledged a conflict of judicial opinion about whether repugnancy can arise where a State law is made under a State List entry and Parliament legislates under Union/Concurrent List entries. The court observed that the parties argued the case on the basis that both statutes were covered by entries in the Concurrent List and therefore did not resolve the alternative question — nonetheless, the court still saw no conflict or repugnancy.
  9. Factual/territorial contention and procedural limitation: the court declined to adjudicate the disputed factual question about the 1st respondent's place of work (Krishnankottai v. Chalakudi) in these proceedings because it was a matter of fact and had not been raised before the appellate authority.
  10. Challenge to constitutionality of S.18(2): the court rejected the petitioner's contention that S.18(2) was unconstitutional because there is no further provision for appeal or review, characterising the objection as too late and noting that S.18(2) confers appellate power on the 2nd respondent and that the appellate authority had considered the facts and reached a decision without any ground for interference evident to the court.

Holding and Implications

Holding: The writ petition (O.P.) is dismissed.

Implications and immediate consequences:

  • The appellate authority's order (Ext. P-1) finding illegal termination and directing reinstatement with Rs. 250 (and further payment directions on default) stands and is not quashed by this court.
  • The court declined to interfere with the merits of the appellate authority's findings, and therefore the effective relief ordered by that authority remains enforceable against the petitioner.
  • The petition is dismissed without costs.
  • The opinion does not purport to lay down a new, broad precedent beyond the application of established repugnancy tests; the court confined itself to applying existing principles (as set out in the cited authorities) and concluded there was no repugnancy between the two Acts on the facts and provisions considered.

Note: This summary strictly reflects the content and reasoning set out in the provided opinion and does not add any facts or legal conclusions beyond those expressly stated by the court in that opinion.

Show all summary ...

1. The question that was debated in this O.P is whether the Kerala Shops and Commercial Establishments Act 1960 (Act 34 of 1960) is inconsistent with, or repugnant to, the Motor Transport Workers Act 1961 (Central Act 27/1961) (hereinafter referred to as the ‘Kerala Act’ and the ‘Central Act’). The petitioner is the Manager of the Anamalais Bus Transport Ltd. The 1st respondent was a temporary employee under the petitioner from 7-2-1954, to 10-6-1964. On an appeal preferred by the 1st respondent to the 2nd respondent, (the appellate authority under S. 18 of the Kerala Shops and Commercial Establishments Act 1960), the 2nd respondent found that there had been an illegal termination of the service of the 1st respondent and directed the 1st respondent's re-instatement with a payment of Rs. 250 in lieu of back-wages for the period for which he was kept out of employment. On default, the petitioner was directed to pay the 1st respondent a further sum of Rs. 500/- in lieu of re-instatement and all other claims, before a specified date. This writ petition is to quash the said order, a certified copy of which, is Ext. P-1. S. 18(1) and (2) of the Kerala Shops and Establishments Act 1960 read as follows:—

“Notice of dismissal—(1) No employer shall dispense with the services of an employee employed continuously for a period of not less than six months, except for a reasonable cause and without giving such employee at least one month's notice or wages in lieu of such notice; provided however that such notice shall not be necessary where the services of such employee are dispensed with on a charge of misconduct supported by satisfactory evidence recorded at an enquiry held for the purpose.

(2) Any employee whose services are dispensed with may appeal to such authority and within such time as may be prescribed either on the ground that there was no reasonable cause for dispensing with his services or on the ground that he had not been guilty of misconduct as held by the employer.

2. The preamble to the Act states that it is an Act to consolidate and amend the law relating to the regulation of conditions of work and employment in the shops and commercial establishments in the State of Kerala. My attention was called to Ss. 6 to 9, 11, 13, 14, 12, 19 and 20 of the Act. The Motor Transport Workers Act 1961 is an Act to provide for the welfare of motor transport workers and to regulate the conditions of their work. Attention was called to Ss. 13, 25, 15, 15, 19, 27, 28, 25, 21 and Ss. 8 to 12 enacted with a view to secure the object of the Act, and it was contended that there is substantial identity or correspondence between these provisions of the Central Act and the provisions of the Kerala Act referred to earlier. S. 37(1) of the Central Act 27 of 1961, in so far as it is material reads as follows:

“37. Effect of laws and agreements inconsistent with this Act.—(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:

And S. 31 of the Kerala Act reads:

“31. Saving of certain rights and privileges.— Nothing in this Act shall affect any rights or privileges which an employee in any establishment is entitled to on the date this Act comes into force, under any other law, contract, custom or usage applicable to such establishment, or any award, settlement or agreement binding on the employer and the employees in such establishment, if such rights or privileges are more favourable to him than those to which he would be entitled under this Act.”

3. There is no provision corresponding to S. 18 of the Kerala Act, in the Central Act, 27 of 1961. The Kerala Act received the assent of the President on 16th December 1960 and was published in the Gazette on 23rd December 1960. The Central Act received the assent of the President on 20-5-1961 and was published in the Gazette on 22-5-1961. On the above provisions of the two Acts, counsel for the petitioner contended that the same field covered by the Kerala Act, namely conditions of work and employment in Shops and Commercial Establishments was also covered by the Central Act, with specific reference to the welfare and conditions of service of motor transport workers. It was contended that the Kerala Act being inconsistent with, or repugnant to, the Central Act, was void under Article 254(1) of the Constitution. It was further contended that the Central Act having dealt specifically with the conditions of service of motor transport workers would exclude the Kerala Act dealing generally with the conditions of service of workers in all shops and commercial establishments. Article 254(1) of the Constitution reads:

“254(1) If any provision of a law made by the Legislature of a State is repugnant to any provision of a law made by Parliament which Parliament is competent to enact, or to any provision of an existing law with respect to one of the matters enumerated in the Concurrent List, then, subject to the provisions of clause (2), the law made by Parliament, whether passed before or after the law made by the Legislature of such State, or, as the case may be, the existing law, shall prevail and the law made by the Legislature of the State shill to the extent of the repugnance, be void.”

4. It was common ground before me that the legislative power for the two Acts could be traced to entries 23 and 24 of List lit of Schedule VII of the Constitution of India. Both the legislatures being competent to enact the respective statutes, the question of repugnance of the one to the other falls to be examined. In Ch. Tika Ramji v. The State of Uttar Preadesh (AIR. 1955 SC. 676) the question of repugnance of the U.P Sugarcane (Regulation of Supply and Purchase) Act 1953 to the Industries (Development and Regulation) Act of 1951, and to the Essential Commodities Act of 1955 arose for consideration. At page 698, the Supreme Court observed:

“We are here concerned with the repugnancy if any arising by reason of both Parliament and State Legislature having operated in the same field in respect of a matter enumerated in the concurrent List….”

5. The concept of repugnancy was discussed in paragraphs 27 to 36 of the judgment. The Supreme Court noticed the conclusive test of inconsistency laid down by Isaacs, J. in Clyde Engineering Co. Ltd. v. Cowburn (1926-37-CLR. 466). The said test was: “If however, a competent legislature expressly or implicitly evinces its intention to cover the whole field that is a conclusive test of inconsistency where another legislature assumes to enter to any extent upon the same field.” The Supreme Court also cited with approval the following principle stated by Dixon, J. in Ex-Parte McLean (1930-43-CLR. 472).

“If it appeared that the Federal Law was intended to be supplementary to or cumulative upon State law, then no inconsistency would be exhibited in imposing the same duties or in inflicting different penalties. The inconsistency does not lie in the mere coexistence of two laws which are susceptible of simultaneous obedience. It depends upon the intention of the paramount Legislature to express by its enactment, completely, exhaustively or exclusively, what shall be the law governing the particular conductor matter to which its attention is directed. When a Federal statute discloses such an intention, it is inconsistent with it for the law of a Stats, to govern the same conduct or matter.”

6. Analysing the question of repugnancy in the light of the above principles, the Supreme Court held that both the Parliament and the Central Government, were within their power in enacting the Central Act and the Control Order, and so was the U.P State Legislature in regard to the law enacted by it. It was pointed out that none of the provisions overlap, the Central Act and Order being silent with regard to some of the provisions enacted by State Act, and the State Act being silent with regard to some of the provisions enacted by the Central Act and Order. It was therefore held that there was no repugnancy at all between the two.

7. Applying the principle of the above decision, I am strictly concerned in the present case only with the question as to whether S. 18 of the Kerala Act is repugnant to, or inconsistent with, the provisions of the Central Act. As noticed, there is no provision in the Central Act corresponding to S. 18 of the Kerala Act; and it is difficult to see any case of repugnancy or inconsistency arising between the two. S. 27(3) of the Central Act seems to envisage discharge or dismissal from the service of a motor transport worker, but the Act does not provide for the mode of dismissal or discharge. S. 18 of the Kerala Act which provides for the dismissal of an employee cannot be regarded as inconsistent with or repugnant to the provisions of the Central Act.

8. Besides, the definition of a Motor Transport Worker under S. 2(h) of the Central Act excludes inter alia “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”. This, I should think, is sufficient indication that, far from there being any conflict or inconsistency between the two Acts, they had to be read in harmony with each other. But, it is contended that under S. 3(1)(b) and (f) of the Kerala Act, motor transport workers were exempted from the operation of the Kerala Act, and were brought under its purview only by a notification issued by the State Government under the provisions of S. 4. S. 3(1)(b) and (f) and S. 4 of the Kerala Act read thus:

“3. Exemptions—(1) Nothing contained in this Act shall apply to

(a) xxx

(b) persons whose work mainly involves travelling, and persons employed as canvassers and caretakers and whose names do not appear in the muster rolls;

(f) Establishments which, not being factories within the meaning of the Factories Act, 1948 (Central Act 63 of 1948), are in respect of matters dealt within this Act governed by a separate law for the time being in force in the State of Kerala.”

“4. Power of Government to apply Act to exempted persons or establishments—Notwithstanding anything contained in S. 3, the Government may, by notification in the Gazette, apply all or any of the provisions of this Act to any class of persons or establishments mentioned in that section, other than those mentioned in clauses (e) and (f) of sub-section (1) and modify or cancel any such notification.”

9. By a notification dated 18th October 1963 issued under S. 4 of the Act, the Government directed that the provisions of the Act (with certain immaterial omissions) apply to persons whose work mainly involved travelling. From the date of this notification, there was no controversy that motor transport workers are also governed by the Kerala Act. But what was contended by the counsel for the petitioner was, that by the time the Kerala Act was so extended to the motor transport workers, the field had already been occupied by the Central Act 27 of 1961, whose provisions were repugunant to the State Act, and the State Act as subsequently extended must be held void for repugnancy. I have already held against repugnancy as between the two Acts and none could therefore arise on the extension of the Kerala Act to motor transport workers. On its extension to them the exemption in S. 2(h) of the Central Act would operate and save any conflict.

10. It was also pointed out by the counsel for the respondents that by reason of S. 1(4) of the Central Act, it applies only to an undertaking employing five or more motor-transport workers and there is nothing to show that the petitioner's undertaking satisfied the requirement.

11. I cannot accede to the petitioner's argument that the Central Act dealing with the particular subject has repealed the Kerala Act dealing with a general subject. On the provisions of the statutes, I cannot hold that a repeal was either express or implicit. The indications are that the statutes admitted of concurrent operation and were “susceptible of simultaneous obedience.”

12. I have discussed the question of repugnancy on the footing that both the statutes are covered by the entries in the concurrent list. It was on this basis that the matter was argued before me. The legislative power for the State Act could perhaps also be traced to entry 25 of List II. in view of the decision of the Supreme Court in Manohar Lal v. The State (AIR. 1951 SC. 315). If so, a further refinement arises as to the question of repugnancy. There is a conflict of judicial opinion as to whether any repugnancy can arise at all as between a State law made under an entry in the State List and a law made by Parliament in pursuance of entries in the Union List and the concurrent List. One view is that repugnancy falls to be considered only where both the laws are with respect to matters enumerated in the concurrent list. There is a view contra. The conflict is noticed and left open in AIR. 1956 SC. 676 at 698. As arguments before me proceeded as the footing that both the Acts are covered by entries in the concurrent list, I need not deal with the case on any alternative footing. Even so, I might observe that I see neither conflict nor repugnancy between the two statutes.

13. The petitioner's counsel raised a contention that the 1st respondent was employed in Krishnankottai within the limits of the Poyya Panchayat to which the Kerala Act had not been extended under S. 1(5). As pointed out by the counsel for the respondents, the point was never raised before the 2nd respondent. 1st respondent in his counter-affidavit has denied that he was working in Krishnankottai and has asserted that he was attached to the Chalakudi office. The attendance registers of the Chalakudi office of the petitioner produced before the 2nd respondent as Exts. R-5 and R-6, seem to support the 1st respondent's contention. I cannot go into this disputed question of fact in these proceedings.

14. The petitioner's counsel feebly argued that S. 18(2) of the Kerala Act was unconstitutional on the ground that the decision of the appellate authority under the section is made final and no further provision for appeal or review is made. It is too late in the day to contend that the section is unconstitutional merely because of the absence of any further provision for appeal or review from the decision of the appellate authority. An attempt was made by the petitioner's counsel to attack the finding of the appellate authority on the merits. S. 18(2) confers appellate power on the 2nd respondent. The facts and circumstances of the case, have been considered and adverted to, and I can see no ground for interference with the decision thus arrived at.

15. I dismiss the O.P; but in the circumstances without costs.