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  • sections 3 and 5 (2) of the minimum Wages Act, 1948
  • section 3 read with section 5 (2).
  • section 5 (1) (b) and section 5
  • section 5 (1) (b). (6.) THE
  • section 5 (1) (b),
  • section 5 (l) (b)
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
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Acts
  • sections 3 and 5 (2) of the minimum Wages Act, 1948
  • section 3 read with section 5 (2).
  • section 5 (1) (b) and section 5
  • section 5 (1) (b). (6.) THE
  • section 5 (1) (b),
  • section 5 (l) (b)
Smart Summary

Structured Summary of the Court's Opinion

Factual and Procedural Background

The petitioners are bidi manufacturers who, by a petition under Article 226 of the Constitution, challenged a notification dated 19 December 1979 (Annexure-B) issued under sections 3 and 5(2) of the Minimum Wages Act, 1948, which fixed minimum wage rates for certain classes of employees.

A proposal to fix minimum wages for three classes of employees—Munim, Chowkidar and Cook (Rasoiya)—was published on 25 June 1979. The proposal notice stated it would be taken into consideration after the expiry of two months from the date of publication in the Madhya Pradesh Gazette, and invited objections or suggestions within that two month period.

The petitioners submitted objections within the two-month period and were heard. After consultation with the Advisory Board, the State issued the impugned notification dated 19 December 1979 fixing the minimum wages (the opinion records the fixation but does not reproduce the wage amounts in the provided text).

Legal Issues Presented

  1. Whether the proposal-notification under section 5(1)(b), which did not specify the date on which the proposal would be taken into consideration, rendered the final notification (under section 5(2)) invalid or voidable.
  2. Whether the rates of minimum wages finally fixed under section 3 read with section 5(2) can lawfully be higher than the rates stated in the initial proposal published under section 5(1)(b).
  3. Whether the final notification could validly fix rates of minimum wages for categories of employees that were not mentioned or identified in the proposal published under section 5(1)(b).

Arguments of the Parties

Petitioners' Arguments

  • The notification publishing the proposal under section 5(1)(b) was defective because it did not specify the date on which the proposal would be taken into consideration; reliance was placed on Narottamdas v. P. B. Gowarikar to support the contention that the date must be specified and representations up to that date considered.
  • The final rates fixed under section 3 read with section 5(2) cannot be higher than the rates stated in the proposal; if higher rates are fixed, the petitioners contended that the notification is invalid.
  • The proposal related only to three categories—Munim, Chowkidar and Cook—whereas the final notification fixed wages for many other categories not mentioned in the proposal; the petitioners argued that those additional categories could not be included in the final notification.

Respondent / Government Advocate's Arguments

  • The defect (non-specification of the date) caused no prejudice to the petitioners because they were able to file objections within two months and were heard before fixation; therefore, the final notification should not be quashed on that technical ground.
  • On the inclusion of additional categories, the Government Advocate submitted that certain employees (Accountant, Cashier, Store-keeper, Head-Clerk) could be treated as falling within the same category as Munim and thus covered by the proposal.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Narottamdas v. P. B. Gowarikar, 1961 MPLJ 302 = AIR 1961 MP 182 Supports the proposition that a notification under section 5(1)(b) must specify the date on which proposals will be taken into consideration and that representations submitted up to that date should be considered. The court accepted that the precedent established the requirement but found that, in the instant case, the petitioners suffered no prejudice from non-specification of the date because they filed objections within the two-month period and were heard; accordingly the court declined to quash the final notification solely on that technical ground.

Court's Reasoning and Analysis

The court addressed the petitioners' three principal contentions in sequence and applied statutory construction and facts as follows.

1. Defect in the proposal-notification (non-specification of the date)

The court acknowledged the precedent (Narottamdas) establishing that the notification under section 5(1)(b) should specify the date on which the proposals will be taken into consideration and that representations up to that date should be considered. However, the court examined whether any prejudice resulted from the omission in the present case. The petitioners did not assert that they were prevented from filing any objection; they had submitted objections within the two-month period and were actually heard before the final notification was issued. Given the absence of prejudice and the fact that the petitioners were heard, the court concluded that quashing the final notification on this technical ground would be unjustified in the "special circumstances" of the case.

2. Whether final rates can be higher than proposed

The court analyzed the statutory scheme: section 5(1)(b) requires publication of proposals for the information of "persons likely to be affected" and specification of a date not less than two months for consideration; section 5(2) requires consideration of representations received before that date and then fixation by notification; section 7 (Advisory Board) requires consultation. The court emphasized that "persons likely to be affected" includes both employers and employees. From the scheme, the court found no express or implicit limitation that the Government cannot fix a rate higher than that proposed. The court reasoned that allowing employees (or their representatives) to make representations that the proposed rates are too low would be pointless if the Government were barred from fixing higher rates; requiring the Government to issue a fresh proposal every time it wished to increase the proposed rate would needlessly prolong the process. Consequently, the court held there is no legal bar to the Government fixing rates higher than those proposed in the section 5(1)(b) notification.

3. Inclusion of categories not mentioned in the proposal

The court compared the proposal (which named only Munim, Chowkidar and Cook) with the final notification and observed that several categories (e.g., Accountant, Cashier, Store-keeper, Head-Clerk; Typist/billman; workers at serial Nos. 5 and 6 in the final notification) were not mentioned in the proposal. The court held that the proposal must indicate the class or classes of employees for which the Government proposes to fix rates; otherwise, those persons would have no opportunity to make representations and the object of section 5(1)(b) would be defeated. Thus, the court concluded that the final notification under section 5(2) could not validly apply to classes of employees not indicated in the original proposal.

On the Government Advocate's submission that certain categories (Accountant, Cashier, Store-keeper, Head-Clerk) could be included in the same category as Munim, the court found no material to accept that those employees in the bidi industry perform the same or similar work such that they could be treated as Munim for purposes of the proposal; particularly the store-keeper could not be treated as falling in the Munim category. Therefore, the court refused to extend the effect of the proposal to those unnamed classes.

Holding and Implications

Holding: The petition is partly allowed. The court quashed the impugned notification dated 19 December 1979 only to the extent that it fixed minimum wages for employees other than the three categories specified in the original proposal. The notification will have effect only for (1) Munim, (2) Chowkidar and (3) Cook. To that extent the notification is quashed. There will be no order as to costs. Security is to be refunded to the petitioners.

Implications: The direct consequence of the court's decision is that the final notification of 19 December 1979 remains valid and operative only insofar as it relates to the three categories specifically named in the proposal (Munim, Chowkidar and Cook). The portions of the final notification purporting to fix minimum wages for other categories not mentioned in the proposal are declared invalid and are quashed. The opinion focuses on statutory interpretation and application to the facts; it does not purport to create a broader new precedent beyond these holdings (the court explicitly accepted precedent on the date-specification issue but declined to apply it to nullify the notification in the absence of prejudice).

This summary is based exclusively on the content of the provided opinion text; no information not present in that text has been added.

    Madhya Pradesh Bidi Udyog Sangh, Sagar And Others v. State Of Madhya Pradesh .

    (1.) THE petitioners, who are bidi manufacturers, by this petition under Article 226 of the Constitution, challenge the notification dated 19th December 1979 (Annexure-B) issued under sections 3 and 5 (2) of the minimum Wages Act, 1948 fixing rates of minimum wages for certain classes of employees.

    (2.) THE proposal to fix minimum wages for three classes of employees, namely, Munim, Chowkidar and Cook (Rasoiya) was published on 25th June 1979. The notice publishing the proposal stated that the proposal will be taken into consideration after the expiry of two months from the date of publication of the notification in the Madhya Pradesh Gazette. It further stated that any objection or suggestion which may be received from any person with respect to the said proposal within the said period will be considered by the State Government. The proposal notified in so far as relevant was as follows:

    EXPLANATION for the purpose of this Notification:-

    "1 (a) Zone I shall comprise of cities/towns with a population of 50,000 and above, including an area of 8 kms. from the Municipal Corporation/municipality limits and where such Municipal Corporation/municipality does not exist with such area shall also include area of 8 kms. from the limits of such city/town. (b) Zone II shall comprise of all the places not included in Zone I mentioned above."

    The petitioners submitted their objections within two months of the date of the notification of the proposal and they were heard. After consultation with the Advisory Board, the impugned notification dated 19th December 1979 was issued. The rates of minimum wages fixed by the impugned notification are as follows:

    (3.) THE first contention raised by the learned counsel for the petitioners is that the notification issued under section 5 (1) (b) containing the proposal did not specify the date on which the proposal was to be taken into consideration and that this defect invalidated the final notification fixing the rates of minimum wages. The learned counsel for the petitioners relied upon narottamdas v. P. B. Gowarikar, (1961 MPLJ 302= AIR 1961 MP 182.) in support of this contention. This case does support the contention of the petitioners that specification of the date on which the proposal is to be taken into consideration has to be specified in the notification and that all representation submitted till that date can be considered on the date so specified before finally fixing the rates of minimum wages. In the instant case, however, it does not appear that any prejudice was caused to the petitioners. The petitioners do not say that they failed to file any objection which they wanted to file to the proposal because of non-specification of the date in the notification issued under section 5 (1) (b). The petitioners were noticed before the consideration of the representations and were actually heard before the finalisation of rates of minimum wages. In the special circumstances of this case, non-specification of the date has resulted in no prejudice whatsoever and it would be a mere technicality if the final notification fixing the rates of minimum wages is quashed on the ground that the notification under section 5 (l) (b) was defective as it did not specify the date on which the proposal was to be taken into consideration.

    (4.) IT was next contended that the rates of minimum wages fixed under section 3 read with section 5 (2) cannot be higher than the rates stated in the proposal. section 5 (l) (b) provides that in fixing minimum rates of wages or in revising minimum rates of wages so fixed, the appropriate Government shall 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 notification on which the proposals will be taken into consideration. section 5 (2) then provides that after considering all representations received by it before the date specified in the notification under section 5 (l) (b), the appropriate Government shall, by notification in the Official Gazette, fix or revise the minimum rates of wages. There is a proviso to section 5 (2) which says that where the Government proposes to revise the minimum rates of wages by the mode specified in section 5 (1) (b), it shall consult the Advisory Board also. The Advisory Board is constituted under section 7 for the purpose of advising the Government generally in the matter of fixing and revising minimum rates of wages. The boards consist of persons to be nominated by the Government representing employers and employees in the scheduled employment. A persual of the scheme of the sections mentioned above will go to show that the proposal made by the Government under section 5 (l) (b) is not addressed to the employers alone for making representations. The proposal is for the information of persons likely to be affected by the fixation or revision of minimum wages. The employers and the employees are both "persons likely to be affected" by the fixation or revision of minimum wage within the meaning of section 5 (l) (b). Just as the employers can come forward and say that the rates proposed are high, the employees can make representations and say that the rates are low. It is after considering all such representations that the government finally fixes the minimum wage under section 3 read with section 5 (2). The Advisory Board is also to be consulted in this matter. The board, as already noticed, includes the representatives of employees also. From the scheme of these provisions it is difficult to infer that the rates of minimum wages fixed by the notification under section 5 (2) cannot be higher than the rates proposed under section 5 (l) (b). There is no such express limitation contained in the provision and no such implied limitation can be inferred from the scheme of these provisions. The argument of the learned counsel that the employers will have no right to make representations relating to the rate fixed if it is higher than the proposed rate overlooks the scheme that the Government after publication of the proposal under section 5 (l) (b)can receive representations even for increasing the rates fixed in the proposal. If the Government cannot finally fix minimum wage at a rate higher than what is proposed, no useful purpose will be served in allowing the employees or their representatives to represent against the proposal. The learned counsel for the petitioners argued that if the Government feels on the representation of the employees that the rate of minimum wage should be higher than what is initially proposed, then it should issue another proposal and invite fresh representations. Such a procedure, in our opinion, will lead to endless prolongation of the fixation of rates of minimum wages. The scheme under section 5 does not envisage such a procedure. The object of the notification under section 5 (l) (b) is to intimate to all concerned, i. e. employers and employees, that the Government proposes to fix rates of minimum wages for a particular industry and for particular categories of workmen and that it tentatively proposes particular rates. The representations received may show that the proposed rates are low or that they are higher. The final decision is taken by the Government after considering the representations and consulting the Advisory Board. There is no limitation on the power of the Government to fix a higher rate than proposed in the notification under section 5 (l) (b). In our opinion, the contention of the learned counsel that as the rates of wages fixed finally are higher than those proposed, the notification is invalid cannot be accepted.

    (5.) IT was lastly contended by the learned counsel that the proposal related to only three categories of employees, namely, Munim, Chowkidar and Cook whereas the final notification has fixed the rates of minimum wages of many other categories. In our opinion, this contention must be accepted. A comparison of the notifications under section 5 (1) (b) and section 5 (2)will show that Accountant, Cashier, Store-keeper, Head-Clerk who have been included with Munim at serial No. 1 were not mentioned in the proposal. Similarly, Typist /billman etc. mentioned at serial No. 2 do not at all find place in the proposal. The same is the case with respect to the workers and employees mentioned at serial Nos. 5 and 6. In our opinion, it is necessary that the proposal must indicate the class or classes of employees for which the Government proposes to fix rates of minimum wages. If a particular class of employees is not indicated in the proposal, neither the employers nor the employees will have any opportunity to make any representation in the matter of fixation of rates of minimum wages for that category and the object behind section 5 (l) (b) would be entirely defeated. In this view of the matter, notification under section 5 (2) cannot have application for those classes of employees which are not mentioned in the notification under section 5 (l) (b). The learned Government Advocate submitted that Accountant / cashier/store keeper/head Clerk who are included at serial No. 1 can be included in the same category as Munim. It is difficult to accept this contention. The work of a Munim may have some resemblance with the work of an accountant or a cashier or even a head-clerk, but there is no material to hold that in the bidi industry the employees known by these names have to do same or similar work. Moreover, so far as the store keeper is concerned, it cannot be said that he falls under the same category as Munim. The workers and employees at serial Nos. 5 and 6 are not at all mentioned in the original notification. The final notification under section 5 (2) cannot, in our opinion, be given effect to except in respect of Munim, Choukidar and cook who are mentioned in the notification under section 5 (1) (b).

    (6.) THE petition is partly allowed. We direct that the notification dated 19th December 1979 (Annexure-B) issued under section 5 (1) (b) will have effect only for (1) Munim, (2) Chowkidar and (3) Cook and not for other employees mentioned in it. To that extent, the notification is quashed. There will be no order as to costs. Security be refunded to the petitioners. Petition partly allowed.

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    Madhya Pradesh Bidi Udyog Sangh, Sagar And Others v. State Of Madhya Pradesh .
    (Dec 4, 1980)