# NAROTIAMDAS v. STATE OF MADHYA PRADESH

- **Citation:** [1964] 7 S.C.R. 820
- **Court:** Supreme Court of India
- **Decided:** 1963-09-05
- **Case number:** Civil Appeal No. 221 of 1964
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/narotiamdas-v-state-of-madhya-pradesh-3124
- **Pages:** 11

## Headnote

820
SUPREME COURT REPORTS
[I9ti4J
NAROTIAMDAS
v.
STATE OF MADHYA PRADESH
(P. B.
GAJEN!>RAGADKAR, c. J., K. N.
WANCHOO, M.
HIDAYATIJLLAH, K. C. DAS GUPTA AND N. RAJAGOPALA
AYYANGAR, JJ.J
•
Wages-Law passed fixing rates of minimum wages Tetrospecti7J11ly-Effect of-Validity-Minimum Wages Act, 1948 (Act
11 of 1!!48}-Madhya Pradesh Amendment and Validation Act,
1001 (Act 23 of 1961), s. 31A-Madhya Pradesh Ordinance No. 4
of 1962-Madhya Pradesh Minimum Wages Fixation Act, 1962
(Act No. 16. of 1962), ss. 2, 3 and 4-Constitution of India, Art.
19(l)(f) and (g).
The aopellant was the manager of a Bidi counting and
labelling factory. Jn 1951, the State of Madhya Pradesh fixed
rates of minimlJ!ll wages payable to workmen in accordance
with the provisibns of the Minimum Wages Act, 1948. These
rates were revised in the year 1956 and new rates were notified
by the Government ty a notification dated December 30, 1958
directing that these rates would come into force from January
1, 1959. The validity of this notification was successfully
cllallenged by the appellant before the High Court. To meet
the situation the Legislature enacted the Minimum Wages Act,
1961 giving effect to the impugned notification. Qn.·challenge
of this Act by the appellant and other Bidi manufactories, the
High Court allowed the applications and restrained the Government from giving effect to the impugned notification. Thereafter, the Madhya Pradesh Ordinance No. 4 of 1962 was PasOOd
fixing rates of minimum wages retrospectively. The ordinance
was later replaced by ;m Act, the Madhya Pradesh Minimum
Wages Fixation Act, 1962. On challenge of the validity ol. this
Act by the appellant, the High Court held the Act to be valid
and disallowed the application. Jn this Court the validity of
the Act was challenged on the ground (l) that in enacmng the
Act of 1962 the Legislature was not exercising its independent
legislative power but only validating the notification dated
December 30, 1958 which it was not competent to do, (2) that by
giving retrospective effect to the rates of wages fixed bv this
Act the State had put unreasonable restrictions on the appellant's fundamental rights under Art. 19(l)(f) & (g) and (31 that
by making the provisions of ss. 20 and 22 of the Central Act of
1948 applicable to the wages now fixed the Act had contravened
Art. 20(1) of the Constitution.
Held: (i) The contention that the Act was not independent
legislation cannot be accepted. Section 2 of the Act merely
says that the expressions used in this Act shall have the same
meaning for the purpose of this Act as defined in the Minimum
Wages Act of 1948. The definition of expressions used in an
Act with reference to another Act is a well known device in
legislative practice generally adopted for the sake of brevity.
The definition would remain effective even after the other Act
with reference to which the definition was given ceases to exist.
This fact of defining expressions in an Act with reference to
some other Act cannot therefore have the etr..,ct of making
this Act dependent on such other Act.
7 S.C.R.
SUPREME COURT REPORTS
821
It is clear from s. 3 of the impugned Act that the legislature
was fixing for itself the minimum rates of wages in certain
scheduled employments. The fact that the rates mentioned in
the Table appended to the Act happened to t e the same as the
rates fixed elsewhere cannot reasonably justify a conclusion
that the validation of the old rates was being affected. Independent legislation does not cease to be so, merely because
its effect is the same as it would have been if a validating Act
had been passed.
(ii) The retrospective operation of legislation is a relevant
circumstance jn deciding its reasonableness. It is, however, not
necessarily a decisive test. Section 3 of the Act does not make the
new rates of w'1ges payable on the 1st January 1959. The proviso
to s. 4 is a clear statement of the legislature's intention that it
is on the 21st June 1962 that the rates whi

## Text

820
SUPREME COURT REPORTS
[I9ti4J
NAROTIAMDAS
v.
STATE OF MADHYA PRADESH
(P. B.
GAJEN!>RAGADKAR, c. J., K. N.
WANCHOO, M.
HIDAYATIJLLAH, K. C. DAS GUPTA AND N. RAJAGOPALA
AYYANGAR, JJ.J
•
Wages-Law passed fixing rates of minimum wages Tetrospecti7J11ly-Effect of-Validity-Minimum Wages Act, 1948 (Act
11 of 1!!48}-Madhya Pradesh Amendment and Validation Act,
1001 (Act 23 of 1961), s. 31A-Madhya Pradesh Ordinance No. 4
of 1962-Madhya Pradesh Minimum Wages Fixation Act, 1962
(Act No. 16. of 1962), ss. 2, 3 and 4-Constitution of India, Art.
19(l)(f) and (g).
The aopellant was the manager of a Bidi counting and
labelling factory. Jn 1951, the State of Madhya Pradesh fixed
rates of minimlJ!ll wages payable to workmen in accordance
with the provisibns of the Minimum Wages Act, 1948. These
rates were revised in the year 1956 and new rates were notified
by the Government ty a notification dated December 30, 1958
directing that these rates would come into force from January
1, 1959. The validity of this notification was successfully
cllallenged by the appellant before the High Court. To meet
the situation the Legislature enacted the Minimum Wages Act,
1961 giving effect to the impugned notification. Qn.·challenge
of this Act by the appellant and other Bidi manufactories, the
High Court allowed the applications and restrained the Government from giving effect to the impugned notification. Thereafter, the Madhya Pradesh Ordinance No. 4 of 1962 was PasOOd
fixing rates of minimum wages retrospectively. The ordinance
was later replaced by ;m Act, the Madhya Pradesh Minimum
Wages Fixation Act, 1962. On challenge of the validity ol. this
Act by the appellant, the High Court held the Act to be valid
and disallowed the application. Jn this Court the validity of
the Act was challenged on the ground (l) that in enacmng the
Act of 1962 the Legislature was not exercising its independent
legislative power but only validating the notification dated
December 30, 1958 which it was not competent to do, (2) that by
giving retrospective effect to the rates of wages fixed bv this
Act the State had put unreasonable restrictions on the appellant's fundamental rights under Art. 19(l)(f) & (g) and (31 that
by making the provisions of ss. 20 and 22 of the Central Act of
1948 applicable to the wages now fixed the Act had contravened
Art. 20(1) of the Constitution.
Held: (i) The contention that the Act was not independent
legislation cannot be accepted. Section 2 of the Act merely
says that the expressions used in this Act shall have the same
meaning for the purpose of this Act as defined in the Minimum
Wages Act of 1948. The definition of expressions used in an
Act with reference to another Act is a well known device in
legislative practice generally adopted for the sake of brevity.
The definition would remain effective even after the other Act
with reference to which the definition was given ceases to exist.
This fact of defining expressions in an Act with reference to
some other Act cannot therefore have the etr..,ct of making
this Act dependent on such other Act.
7 S.C.R.
SUPREME COURT REPORTS
821
It is clear from s. 3 of the impugned Act that the legislature
was fixing for itself the minimum rates of wages in certain
scheduled employments. The fact that the rates mentioned in
the Table appended to the Act happened to t e the same as the
rates fixed elsewhere cannot reasonably justify a conclusion
that the validation of the old rates was being affected. Independent legislation does not cease to be so, merely because
its effect is the same as it would have been if a validating Act
had been passed.
(ii) The retrospective operation of legislation is a relevant
circumstance jn deciding its reasonableness. It is, however, not
necessarily a decisive test. Section 3 of the Act does not make the
new rates of w'1ges payable on the 1st January 1959. The proviso
to s. 4 is a clear statement of the legislature's intention that it
is on the 21st June 1962 that the rates which had become enforceable under s. 3 with effect from 1st January 1959 became
payable. The appellant's aDPrehension that he might be made
liable for payment of compensation under s. 20(3) or to prosecution under s. 22 of the Minimum Wages Act 1948 as a result of
mere passing of the Act must therefore be held to be groundless. The contention therefore that ss. 3 and 4 of the impugned
Act impose unreasonatle restrictions on the appellant's fundamental rights must be rejected.
Rai Ramkrishna v. State of Bihar, [1964] 1 S.C.R. 897,
applied.
(iii) On a proper construction of ss. 3 and 4 of the impugned
Act, the attack on the validity of the section on the ground of
a contraventicn of Art. 20(1) of the Constitution must also fail.
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 221
of 1964. Appeal from the judgment and order dated September 5, 1963 of the Madhya Pradesh High Court in Misc.
Petition No. 334 of 1962.
M. C. Setalvad, B. V. Shukla, Rameshwar Nath, S. N.
Andley, and P. L. Vohra, for the appellant
B. Sen and /. N. Shroff, for. the respondents.
April 21, 1964. The Judgment of the Court was delivered
by
DAs GUPTA, J.-This appeal raises the question of the
Daa G,,pla, J.
validify of the Madhya Pradesh Minimum Wages Fixation Act,
1962 (Act No. 16of1962). The appellant is the Manager of a
Bidi counting and labelling factory of M/s. Mohanlal Hargovindas, Jabalpur, who are engaged in the trade of purchase
and sale of Bidi in the State of Madhya Pradesh and other
States of India. In 1951 the State of Madhya Pradesh fixed
rates of minimum wages payable to workmen engaged in Bidi
making manufactories. This was done in accordance with the
provisions of the Minimum Wages Act, 1948 (Central Act 11
of 1948). These rates of minimum wages were revised in the
year 1956 by a notification of the Madhya Pradesh Government dated the 23rd February 1956. New rates of minimum
1964
Narouanttla&
...
Slate of Madhya
l'ratkah .
V.. Gupla, J.
822
SUPREME COURT REPORTS
[1964}
wages for workmen engaged in the Bidi making manufactories were notified by the Madhya Pradesh Government by a
notification dated the 30th December 1958. The notification
directed that these rates would come into force from January
1, 1959. The validity of this notification was however successfully chall~nged by the present appellant before the Madhya
Pradesh Htgh Court. To meet the situation the Madhya Pra·
desh Legislature enacted the Minimum Wages (Madhya
Pradesh Amendment and Validation) Act, 1961-(Madhya
Pradesh Act No. 23 of 1961). Section 3 lA which was introduced by this Act into the Central Act (No. 11 of 1948) provided that the rates of minimum wages fixed or revised under
the notification of the 30th December 1958 "shall be and shall
always be deemed to have been validly fixed and revised and
shall be deemed to have come into force on the date mentioned in the said notification, notwithstanding any judicial
decision to the contrary or any defect or irregularity in the
constitution of the Advisory Board under s. 7 of the principal
Act read with s. 9 thereof or publication of the notification in
the Gazette or non-compliance with any other requirement of
law and shall not be called in question in any court merely
on the ground that there was failure to comply with the provisions of the principal Act."
The appellant and some other Bidi manufactories of
Madhya Pradesh challenged the validity of this Act before the
High Court by petitions under Art. 226 of the Constitution.
The High Court allowed the applications, struck down s. 31A
. as invalid and restrained the Government from enforcing the
section and from giving effect to the impugned notification
dated the 30th December, 1958.
The High Court gave its decision on the 2nd May 1962.
On the 21st June 1962 the Madhya Pradesh Ordinance No. 4
of 1962 was passed fixing rates of minimum wages retrospectively. The Ordinance was later replaced by an Act, the
Madhya Pradesh Minimum Wages Fixation Act, 1962. On
the 5th October 1962, the appellant made an application to
the High Court of Madhya Pradesh under Art. 226 and Art.
227 of the Constitution challenging the validity of this Act
and praying for a declaration that the Act is ultra vi.res, void
and inoperative and a writ in the nature of mandamus restraining the State of Madhya Pradesh and the other respondents from giving effect to or enforcing the provisions of the
Act. The High Court has held that the Act is valid and has
disallowed his application. Against that decision the present
appeal has been preferred.
The challenge to the validity of the Act is based on three
principal grounds. The first is that in enacting Act No. 16
7 S.C.R.
SUPREME COURT REPORTS
823
of 1961 the Madhya Pradesh Legislature was really not exercising its independent legislative power but only validating the
notification dated the 30th December 1958 which it was not
competent to do.
The second ground is that by giving retros·
pective effect to the rates of wages fixed by this Act the State
has put unreasonable restrictions on the appellant's funda·
mental rights under Art. l 9(J)(f) & (g) of the Constitution. The
last ground on which the Act was challenged as invalid is
that by making provisions of s. 20 and s. 22 of the Central
Act No. II of 1948 applicable to the wages now fixed the
Act has contravened Art. 20(1) of the Constitution.
The impugned Act is a short Act of five sections only. The
first section givoo the title of the Act and the fifth section
repeals the Ordinance to r~place which this Act was passed.
Three remaining sections are in the following words: -
"2. The expression used in this Act and defined in the
minimum Wages Act, 1948 (XI of 1948), in its
application to the State of Madhya Pradesh shall
have the meanings assigned to them in the said
Act.
3. Notwithstanding anythfog contained in s. 5 of the
Minimum Wages Act, 1948 (XI of 1948), in its
application to the State of Madhya Pradesh (here·
inafter referred to as the said Act) or any other
provisions contained therein relating to the fixation or revision of minimum rates of wages in
scheduled employments and any judgment, decree
or order of any court to the contrary, the mini·
mum rates of wages in respect of employments in
items 2, 3, 5, 6, 7, 8 and II in Part I and in res·
pect of employment in Part II of the Schedule to
the said Act shall be and shall always, in respect
of each employment, be deemed to be as specified
in Table appended hereto and it is hereby enacted
that the said minimum rates of wagoo shall be payable by the employer in the said scheduled em·
ployments and be enforceable against him with
effect from the 1st January 1959, as if the provi·
sions herein contained have been in force at all
material times.
4. The provisions of section 4-A, section SA, in so far
as they relate to revision of minimnm rates of
wages, and of sections 12 to 30.A of the said .. Act,
and the rules made thereunder shall apply to
miriimum rates of wages specified in section 3 as
they apply to minimnm wages in respect of sche·
duled employments fixed in accordance with the
said Act;
1964
Narollamda.
v.
Stal< of Madhya
Praduh
D .. Gupta, J.
'1964
Narotta't'tUlaa
v.
Btate of Madhya
pw;J.,,h
Das Gupta, J.
824
SUPREME COURT REPORTS
[1964}
Provided that with reispect to claims arising out of payment of minimum rates of wages specified in
section 3 pertaining to a period prior to the publication of the Madhya Pradesh Minimum Wages
Fixation Ordinance, 1962 (4 of 1962) in the
Gazette, the period of one year referred to in the
first proviso to sub-section (2) of section 20 of the
said Act Ghall be counted with effect from the 21st
June, 1962, the date of the publication of the said
Ordinance in the Gazette."
It is not disputed that the Madhya Pradesh legislature
had the legislative competence to make a law as regards minimum wages under Entry 24 of List III (Sch. Seventh). Mr.
Setalvad contends that this power of independent legislation
was not really exercised by the legislature and that in the
guir,e of independent legislation it has in substance passed a
validating Act, after an attempt to validate the notification
of the 30th December, 1958, had failed. In support of his
argument that it is not independent legislation Mr. Setalvad
laid stress on the language of s. 2. That section merely says
that the expressions used in this Act shall have the same
meaning for the purpose of this Act as defined in the Minimum Wages Act of 1948. According to the learned counsel,
this shows that this was really a dependent and not independent legislation. We can find no substance in this argument.
The definition of expressions used in an Act with reference
to other Act is a well known device in legislative practice
generally adopted for the sake of brevity. The definition
would remain effective even after the other Act with reference
to which the definition was given ceases to exist. This fact of
defining expressions in an Act with reference to some other
Act cannot therefore have the effect of making this Act dependent on such other Act.
Mr. Setalved next urged that. quite clearly the object of
s. 3 was to validate the minimum rates of wages as fixed by
the notification dated the 30th December 1958 and nothing
more.
As we read the section we find that it merely fixed
wages in respect of certain employments at the rates mentioned
in the Table appended to the Act. We are informed that the
rates mentioned in the Table are identical with the rates mentioned in the notification dated the 30th December, 1958. The
effect 'of ·enactment of s. 3 would therefore be the same as if
the notification of 1958 had been validated. To say that,
however, i~ not to say that this Act has validated or that even
it seeks to validate the 30th December 1958 notification. On
the face of it the legislature was fixing for itself the minimum
rates of wages in certain scheduled employments. That is
stated in the preamble and is plain from s. 3 itself. The fact
7 S.C.R.
SUPREME COURT REPORTS
825
1964
Narottamda1
v.
that rates mentioned in the Table appended to the Act happened to be the same as rate;i fixed elsewhere cannot reasonably justify a conclusion that the validation of the old rates
was being affected. Independent legislation does not cease to
be so, merely because its effect is the same as it would have
been if a validating Act had been passed. The contention
that thL> Act was not independent legislation cannot therefore
be accepted.
State of Madhya
Prade.h
Nor is it possible to accept the argument that the Act is
an unreasonable restriction on the appellant's fundamental
rights under Art. 19(!)(f) and (g) of the Constitution. Restriction there undoubtedly is, but we are not satisfied that the
restriction is unreasonable. Section 3 of the Act makes the
new rate.> of wages effective from January 1, 1959. Section 4
makes the various provisions of the Central Act No. 11 of
1948 available for revision and enforcement of the rates as
.specified in s. 3. The consequence is that if an employer does
not pay the rates as specified, an application may be made
under s. 20 of Act 11 of 1948 to enforce such payment. He will
be liable aloo to prosecution and penalties under s. 22 of the
Act. What according to the learned counsel makes the
Act unreasonable is that such application can be made and
such prosecution and penalties can be imposed even in respect
of the past period-from 1st January 1959 upto the date of
the Act. How is it possible for the employer, it is urged, to
pay such arream which might amount in many cases to consi•
derable sums of money when the accounts for the past years
had been closed, profits had been distributed and the available
surplus had either been spent or invested in other ways?
We have no hesitation in agreeing to the proposition that
the retrospective operation of legislation is a relevant circumstance in deciding its reasonableness. It is, however, clearly
established by a long series of decisions of this Court that this
is not neces.-iarily a decisive test. We may mention in this connection the decision of this Court in Rai Ramkrishna v.
State of Bihar('). There the Court had to consider the question whether the retrospective operation of the Bihar Taxation
of Passengers and Goods (Carried by Public Service Motor
Vehicles) Act, 1961 put such an unreasonable restriction on the
fundamental rights guaranteed under Art. l 9(1)(f) and (g) of
the Comtitution as to make the Act invalid to the extent of its
retrospective operation. The Bihar Finance Act, 1950 (Bihar
Act XVII of 1950) had imposed a tax on passengers and goods
carried by public service motor vehicles in Bihar. In an appeal
arising out of a suit filed by the passengers and owners of
goods, this Court struck down Part Ill of the ~aid Act as unconstitutional. This judgment was pronounced on the 12th
(') [1964] 1 S.C.R 897.
Das Gupta, J.
1964
N arottamdas
v.
State of Mad Ii ya
Pradesh
Daa Gupta, J.
826
SUPREME COURT REPORTS
(1964]
. December 1960. Then an Ordinance, viz., Bihar Ordinance
No. II of 1961 was issued on August 1, 1961. By this Ordinance the material provisions of the earlier Act of 1950 were
validated and brought into force retrospectively from the date
when the earlier Act had purported to come into force. Subsequently, the provisiono of this Ordinance were incorporated
in the Bihar Taxation on Passengers and Goods (Carried by
Public Service Motor Vehicles) Act, 1961. Section 23 of the
Act provided that any amount paid, collected or recovered
or purported to have been paid, co)lected or recovered as tax
or penalty under the provisions' of Part III of the Bihar
Finance Act, 1950 or rules made thereunder during the period
beginning with the first day of April 1950 and ending on the
thirtyfirst day of July 1961, shall be deemed to have been
validly levied, paid, collected or recovered under the provisions of this Act. It was urged that thio retrospective operation
for such a long period like IO years itself made the provisions
unconstitutional. In repelling this contention, Gajendragadkar, J. (as he then was) speaking for the Court observed
thus:-
"If a statute paBsed by the legislature is challenged in
proceedings before a court and the challenge is
ultimately sustained and the statute is struck down.
it is not unlikely that the judicial proceedings
may occupy a fairly long period and the Legislature may well decide to await the final decision in
said proceedings before it uses its legllilative power
to cure the alleged infirmity in the earlier Act. In
such a case, if after the final judicial verdict is
pronounced in the matter the legislature passes a
validating Act, it may well cover a long period
taken by the judicial proceedings in court and yet
it would be inappropriate to hold that because the
retrospective operation covers a long period, therefore, the restriction imposed by it is unreasonable."
These observations which were made in resoect of a
validating Act apply fully to a legislation as in the Act now
under consideration.
It is not also possible to accept the picture presented by
Mr. Setalvad of the employers' financial difficulties in making
payment for the past period as a fair repreBentation of the
true facts. For practically the entire period from the !st April
1959 to the date of the present Act the employers had before
them the provisions of what purported to be a good law requiring them to pay at these very rates. As good
businessmen they are expected to have made provisions
7 S.C.R.
SUPRElIE COURT REPORTS
827
for payments on these very rates, even though they intended to challenge the validity of the previous Act a_nd
ultimately succeeded in that attempt. We are not prepared to
believe that such provisions are not generally made. The
hardship which according to Mr. Setalvad the employers would
have to face in making the payments for the past periods is,
in our judgment, more imaginary than real.
But, urges the learned counsel, s. 3 of the Act while
giving to the rates of wages fixed by the Act retrospective
effect from the lst January 1959 has afsb made wages at these
new rates payable on January l, 1959 for the past period.
The result of this, according to the learned counsel, is that
as soon as an application is made under s. 20 of Act 11 of
.1948 the employer would be liable not only to pay the arrears
t>f wages but also compensation as provided in sub-s. 3 of s. 20.
Sub-section 3 of s. 20 of Act ll of 1948 provides, inter alia,
that the minimum wage authority may direct:
"In the case of a claim arising out of payJ!lent of less
than minimum rates of wages, the payment to the
employee of the amount by which the minimum
wages payable to him exceed the amount actually
paid, together with the payment of such compensation as the Authority may think fit, not exceeding ten times the amount of such excess."
It has further provided that the authority may direct payment of such compensation in cases where the excess or the
amount due is paid by the employer to the employee before
the disposal of the application.
If the legal position were as urged by the learned counsel,'
that s. 3 made the new rates of wages for the past period
payable on January I, 1959 or the apprehension that the employer might be made to pay heavy compensation may well
be true. Another consequence of that legal position would
be that the employer would also be liable to prosecution under
s. 22 of the Act for his omission to pay on January I, 1959
the rates which were fixed first by the Ordinance and then by
the impugned Act. We are satisfied however that s. 3 of the
impugned Act does not make the new rates of wages payable
on the lst January 1959. The words used are ...... "and it is
hereby enacted that the said minimum rates of wages shall
be payable by the employer in the said scheduled employments
and be enforceable against him with effect from the !st January 1959. as if the provisions herein contained have been in
force at all material times." By these words, it is urged on
behalf of the appellant, the legislature not only made the
minimum wages effective from the 1st January 1959 but also
made them payable on that date for the past period. In other
words, the sentence is sought to be read as saying: -
N a.rottam.tku
••
Sta•e of Madhya
PradMh
Drt-9 Gupta, J.
1964
Narottamdas
v.
State of Madhya
Ptadesh
Das Gupta, J.
828
SUPREME COURT REPORTS
[1964J
"the said minim um rates of wages shall be payable by the
employer in the said scheduled employments with effect from
!st January 1959 and shall be enforceable against him with
effcet from Isl January 1959." If that had been the intention
of the legislature the appropriate words to use would have
been "the said minimum rates of wages shall be payable by
the employer in the said scheduled employments and enforceable against him with effect from 1st January 1959." No purpose would be served by the word "be" before the word
"enforceable" if the phrase "with effect from the !st January
1959" was intended to apply both to "payable" and to
"enforceable". The very fact that the legislature took care to
say "be enforceable" in the latter part of the sentence shows
clearly that while it was intended that the new rates would be
enforceable against the employer with effect from the 1st
January 1959 no date was being prescribed by s. 3 as regards
the date on which it became payable.
An examination of s. 4 of the Act further makes it clear
beyond any reasonable doubt that it was the intention of the
legislature that new rates became payable only on the 21st
June 1962, the date of the publication of the Ordinance which
was later replaced by the Act. Section 4 makes applicable to
the minimum rates of wages as fixed by s. 3, the provisions
of s. 4A and s. 5 of the Minimum Wages Act (Act II of 1948).
that is, the provisions as regards the revision in future of the
rates fixed by the impugned Act, and of sections 12 to 30A.
Among the sections thus included is therefore s. 20 which
prescribes the procedure for claims arising out of payment of
less than the minimum rates of wages. The first proviso to
sub-section 2 of s. 20 prescribes a period of limitation within
which an application on such claims has to be made. The
period prescribed is one year from the date on which the
minimum wages became payable. It was thus necessary for
the legislature when giving retrospective effect to the rates
fixed bys. 3 of the.impugned Act to indicate the date on which
the new rates would become payable. This indication is
clearly given by the proviso to s. 4. The proviso (which has
already been set out) is in these words: -
"Provided that with respect to claims arising out of payment of minimum rates of wages specified in s. 3
pertaining to a period prior to the publication of
the Madhya Pradesh Minimum Wages Fixation
Ordinance 1962 (4 of 1962) in the Gazette, the
period of one year referred to in the first proviso
to sub-section (2) of section 20 of the said .Act
shall be counted with effect from the 21st June
1962, the date of publication of the said Ordinance
in the Gazette."
7 S.C.R.
SUPREME COURT REPORTS
829
1964
Narnrt-nmda&
v.
The above provision that "the period of one year referred
to in the first proviso to sub-section (2) of s. 20 of the said Act
shall be counted with effect from the 2 lst June 1962"' is a
clear statement of the legislature"s intention that it is on lhe
21st June 1962 that the rates which had become enforceable
under s. 3 with effect from lst January 1959 became payable.
That is how the High Court has construed the section and in
our judgment that construction is correct. The appellant's
apprehension that he might be made. liable for payment of
compensation under s. 20(3) or to prosecution under s. 22 of
the Minimum Wages Act, 1948 (Act II of 1948) as a result of
the mere passing of the Act is therefore groundless.
Stale of ModhyA
Pradesh
It is clear that the duty to pay at these rates arose only on
and from the 21st June 1962 and no liability to pay compensation under s. 20(3) or to prosecution under s. 22 of the Minimum Wages Act, 1948 would arise if payment was made on
the 21st June 1962.
It was then urged that it would be unreasonable to expect
the employer to be able to make such payment on the 2 lst
June 1962, the date of publication of the Ordinance. Some·
time would elapse, it is pointed out, before the employer could
acquaint himself with the detailed provisions of the Act amt
some further time in making arrangements for payment; there·
was thus the· risk of an application being made against him
under s. 20 of the Minimum Wages Act, 1948, and an order
directing him to pay compensation. While there is no doubl
a theoretical possibility of .such a thing happening, the risk
appears to us practically non-existent. It is to be noticed that
it is discretionary with the minimum wage authority to make
an order for payment of compensation. It is very unlikely
that the authority will in the use of his discretion make aa
order for payment of compensation when he finds that the
employer has made the payment within a few days after the
21st June 1962.
The risk of prosecution under s. 22 because
of failure to pay exactly on the 21st June 1962 is even less.
But such prosecution, it may be pointed out, will be entertained by courts only after an application under s. 20 as reg:;rds.
the facts had been made and partly succeeded and the appropriate Government or an officer authorised by it has sanctioned .
the making of a complaint. It does not appear to us likely .
that prosecution will be launched because of failure to pay
exactly on the 21st June 1962. · The contention that s. 3 and
s. 4 of the impugned Act impose unreasonable restrictions on
the appellant's fundamental rights must therefore be rejected.
The last ground urged in support of the appeal. viz., that
the impugned Act contravenes Art. 20(1) of the Constitution,
is based on the assumption that the new rates of wages became payable on the Ist Januar~ 1959 even as regards the
Do• o..,ta, J •.
191J4
Naroftamd1is
T.
Stak of MadAya
J>,(u,wi
Das Gupl.a, J.
830
SUPREME COURT REPORTS
[1964)
past period. If that assumption were correct it would no doubt
be also correct to say that the combined effect of ss. 3 and 4 of
the impugned Act was to make the employer liable to conviction for offences for violation of a law which was not in force
at the time of the commission of the act charged. We have
already held however that on a proper construction of ss. 3
and 4. the new rates of wages for the past period became
payable not on the !st January 1959 but on the 21st June
1962. The attack on the validity of the sections on the ground
of Art. 20(1) of the Constitution therefore fails.
All the points raised in the appeal fail. The appeal is
accordingly dismissed with costs.
Appeal dismissed.