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Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • provisions of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1964 (for short APMC Act)
  • section 33-C(2) of the Industrial Disputes Act, 1947 (for short, the Act),
  • section 2(4) of the Bombay Shops and Establishments Act, 1948.
  • Bombay Shops and Establishments Act, 1948.
  • MINIMUM WAGES ACT 1948
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • provisions of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1964 (for short APMC Act)
  • section 33-C(2) of the Industrial Disputes Act, 1947 (for short, the Act),
  • section 2(4) of the Bombay Shops and Establishments Act, 1948.
  • Bombay Shops and Establishments Act, 1948.
  • MINIMUM WAGES ACT 1948
Smart Summary

Factual and Procedural Background

The respondent employee filed an application under section 33-C(2) of the Industrial Disputes Act, 1947 seeking payment of the difference of minimum wages (and special allowance) applicable to employees in shops and commercial establishments under entry No. 17 of the Schedule to the Minimum Wages Act, 1948. The learned Labour Court, rejecting the petitioner's contentions, granted the difference of minimum wages to the respondent. The petitioner challenged the Labour Court's order by filing this writ petition.

Legal Issues Presented

  1. Whether the application under section 33-C(2) of the Industrial Disputes Act is maintainable in view of the existence of the Minimum Wages Act as a special enactment (maintainability argument).
  2. Whether the petitioner market committee is covered by the Minimum Wages Act — specifically, whether the petitioner is a "commercial establishment" within the meaning of entry No. 17 of the Schedule to the Minimum Wages Act and section 2(4) of the Bombay Shops and Establishments Act, 1948.
  3. Whether there is a notification under the Minimum Wages Act covering the petitioner's establishment (and, relatedly, whether the petitioner's establishment carries on business, trade or profession or work incidental/ancillary thereto).

Arguments of the Parties

Petitioner's Arguments

  • The application under section 33-C(2) was not maintainable because the Minimum Wages Act is a special enactment that provides the remedy for recovery of minimum wages.
  • No notification under the Minimum Wages Act covers the petitioner's market committee; therefore the minimum wages are not applicable to the petitioner's establishment.
  • The petitioner market committee, constituted under the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1964 (APMC Act), performs statutory duties under section 29 of that Act and does not itself carry on any business, trade or profession; thus it is not a "commercial establishment" within section 2(4) of the Bombay Shops and Establishments Act, 1948.

Respondent's Arguments

  • The respondent claimed entitlement to the minimum wages fixed for employees in shops and commercial establishments under entry No. 17 of the Schedule to the Minimum Wages Act, 1948, and to the special allowance fixed by the Government for such establishments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
M.C Achalpur v. Shaikh Rahim . 1984 Mh. L.J 998. Addressed the maintainability of an application under section 33-C(2) in presence of the Minimum Wages Act (as cited in the opinion). Because of this decision, the petitioner's counsel did not press the contention that the application under section 33-C(2) was not maintainable.

Court's Reasoning and Analysis

The court noted that, in view of the Division Bench decision in M.C Achalpur v. Shaikh Rahim, the petitioner did not press the maintainability argument under section 33-C(2). The court then examined whether the petitioner market committee is a "commercial establishment" within the meaning of section 2(4) of the Bombay Shops and Establishments Act, 1948, as that definition is incorporated by the explanation to entry No. 17 of the Schedule to the Minimum Wages Act.

The court analysed the definition in section 2(4), observing that "commercial establishment" includes establishments that carry on work in connection with, incidental to, or ancillary to any business, trade or profession, not only those that themselves carry on business. The court held that if the market committee carries on work in connection with the business carried on by traders within the market, it falls within the definition.

The court reviewed the duties enumerated in section 29 of the APMC Act and found that the activities of the market committee relate to marketing or allied activities carried on by traders within its jurisdiction. On that basis the court concluded the market committee carries on work in connection with the traders' business and is therefore a "commercial establishment" under section 2(4) of the Bombay Shops and Establishments Act.

The court further relied on intrinsic evidence in the Bombay Shops and Establishments Act: item 62 of Schedule II (relating to exemptions under section 4) indicates that Agricultural Produce Marketing Committees established under the APMC Act are intended to be covered by the Bombay Act, which reinforced the conclusion that the petitioner is a commercial establishment.

Accordingly, the court rejected the petitioner's contention that the market committee is not a commercial establishment and upheld the Labour Court's order directing payment of the difference of minimum wages.

Holding and Implications

DISMISSED

Holding: The writ petition is dismissed and the Labour Court's order awarding the difference of minimum wages to the respondent is upheld.

Implications: The immediate consequence is that the respondent is entitled to the difference in minimum wages as directed by the Labour Court. The court made no order as to costs. The opinion does not discuss broader legal implications beyond the direct effect on the parties.

    President, Agricultural Produce Market Committee, Tumsar v. Murari Kapurchand Yadav .

    1. This is a writ petition challenging the order of the learned Labour Court passed under section 33-C(2) of the Industrial Disputes Act, 1947 (for short, “the Act”), granting difference of minimum wages to the respondent employee employed by the petitioner.

    2. Briefly, the facts are that the respondent filed an application under section 33-C(2) of the Act on the ground that he is entitled to be paid the minimum wages fixed for the employees in shops and commercial establishments covered under entry No. 17 of Schedule to the Minimum Wages Act, 1948 as also to the special allowance fixed by the Government from time to time in respect of the said establishments.

    3. The petitioner inter alia raised two questions before the Labour Court. The first was that the application under section 33-C(2) of the Act was not maintainable because there was a special enactment viz. the Minimum Wages Act which provided a remedy to the employees for recovery of the minimum wages fixed thereunder. The second question urged was that there is no notification issued under the Minimum Wages Act covering the establishment of the petitioner market committee and, therefore, the minimum wages are not applicable to the establishment of the petitioner. Really speaking what is urged is that the establishment of the petitioner is not a commercial establishment within the meaning of the said expression under entry No. 17 of the Schedule to the Minimum Wages Act. The learned Labour Court rejected both the contentions and directed payment of the difference in minimum wages as claimed by the respondent. Being aggrieved, the petitioner has challenged the aforesaid order of the Labour Court in this writ petition.

    4. In view of the decision of the Division Bench of this Court in the case of M.C Achalpur v. Shaikh Rahim . 1984 Mh. L.J 998. the learned counsel for the petitioner did not urge the contention that the application under section 33-C(2) of the Act is not maintainable. The second contention is, however, seriously pressed before me. It is urged that the petitioner market committee is not carrying on any business, trade or profession and is not, therefore, within the definition of the expression “commercial establishment” given in section 2(4) of the Bombay Shops and Establishments Act, 1948. It is further urged that the petitioner market committee is constituted under the provisions of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1964 (for short “APMC Act”) and has to perform statutory duties as provided under section 29 of the said Act. The submission is that none of the duties enumerated in section 29 of the apmc act would show that the petitioner market committee is carrying on any business, trade or profession as those expressions are normally understood.

    5. In considering the above contention on behalf of the petitioner it may be seen that the explanation to entry No. 17 of the Schedule in the Minimum Wages Act shows that the expression “shops and commercial establishments” have the meanings assigned to them respectively in the Bombay Shops and Establishments Act, 1948. It is, therefore, necessary to consider the scope and ambit of the definition of “commercial establishment” given in section 2(4) of the Bombay Shops and Establishments Act, 1948. A careful perusal of the said definition would show that the expression “commercial establishment” means not only an establishment which itself carries on any business, trade or profession but also means an establishment which carries on any work in connection with or incidental to or ancillary to any business, trade or profession. Assuming for the sake of argument that the establishment of the petitioner does not carry on any business, trade or profession the question would be whether it carries on any work in connection with any business, trade or profession. It cannot be disputed that the traders or businessmen who carry on their activity within the market establishment carry on business or trade in the normal sense in which it is understood. If it is shown that the petitioner market committee carries on the work in connection with the said business, then by virtue of the definition of the expression “commercial establishment” given in section 2(4) of the Bombay Shops and Establishments Act, 1948 it would be a commercial establishment within the meaning of the said Act.

    6. A perusal of the duties enumerated in section 29 of the apmc act would show that all the activities carried on by the market committee are in relation to the marketing or allied activities carried on by the traders within the jurisdiction of the market committee. It has, therefore, to be held that the petitioner market committee is a commercial establishment within the meaning of section 2(4) of the Bombay Shops and Establishments Act, 1948. The above conclusion is further strengthened by the intrinsic evidence in the above Act itself. A perusal of item 62 of Schedule II to the Bombay Shops and Establishments Act, 1948 relating to the exemptions granted under section 4 of the said Act would show that the Agricultural Produce Marketing Committees established or deemed to be established under the APMC Act are intended to be covered by the said Act. In this view of the matter the above contention raised on behalf of the petitioner is rejected.

    7. In the result, the writ petition fails and is dismissed. However, in the circumstances of the case, there would be no order as to costs.

    Petition dismissed.
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    Comments

    President, Agricultural Produce Market Committee, Tumsar v. Murari Kapurchand Yadav .
    (Aug 1, 1985)