# Shanti Prasad Jain v. Dir~c:or oj' Enforce~ ment, Foreign Exchange Regulation

- **Citation:** [1963] Supp. 1 S.C.R. 524
- **Court:** Supreme Court of India
- **Decided:** 1963
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/shanti-prasad-jain-v-dir-c-or-oj-enforce-ment-foreign-exchange-regulation-2726
- **Pages:** 16

## Headnote

1962
Shanti Prasad Jain
v.
Dir~c:or oj' Enforce~
ment, Foreign
Exchange Regulation
W1tnchoo, J.
1961
Oc!t11Jtr, lfJ.
524 SUPREME COURT REPORTS [1963] SUPP.
Lastly, it is urged that the penalty imposed in
this case is too heavy. This matter has been considered by the Appellate Board and we see no reason to
differ from the Board on this question. We may
only add that the first appellant who is the Chairman
of the Sahu Jain Limited is a person of responsibility
and position, and it is not expected tha.t such a person
would contravene the provisions of the Act. The
appeal is hereby dismissed with costs.
A fl peal di~mia!td.
M/s. BHIKUSA YAMASA KAHATRIYA
v.
SANGAMNER AK.OLA TALUKA BIDI
KAMGAR UNION
(B. P. SINHA, c. J., P. B. GAJENDRAGADKAR,
K. N. WANoHoo, K. C. DAS GUPTA and
J.C. SHAH, .lJ.)
Minimum W!UJM-StaMe dek(Jati11Q '[l'7'h.r t,o Gov.rnMtnt
f,o fix UJ04M-lf cowfer• arbitrary a.W, uncontrolkd pmcer8Notijfr.atiort .fizillflJ minimum W!UJe8-Valiaity of-Notifeation
iaud Apri.l 19, 1965, of Got!.rnm.,d of Bombay-Mintn&um
Wag"1 Aot, 1948(XI of 1948), •.3(3}(w).
Section 3(1) of the Minimum Wages Act, 1948, authori""8
the appropriate Government to fix rates of minimum Wligl'S
payable to employees in the scheduled employments. Section
3(3)(iv) authorises the government, in fixing or revising minimum wages,
to fix different minimum rates for difl"crent
localities. By Notification dated April 19, 1955, the Government of Bombay revised the minimum rates of W"!,'CS for workers
employed in the bidi manufactories and fixed for localities of
Sangamner and. ~kola.~ plac~ .within seven miles of their
respective Mun1c1pal bm1ts, a m1h1mum rate of Rs. 2/2/· for
I S.C.R.
SUPREME COURT REPORTS
525
making !000 bidis; The appellant contended that s. 3(3) (iv)
violated Arts. 14 ancl 19(l)(f) of the Comtitution as it conferred
uncontrolled powers on the government enabling it to discriminate belween employers of different localities which also
affected their business, that the notification also violated
Art. 14 and that the notification was not validly made as the
Advisory Board had no representatives of the employers on it.
Htld, thats. 3(3)(iv) of the Act was valid and that the
notificatiOn was
issued after compliance with the statutory
pro.visions.
Section 3(3)(iv) docs not delegate any arbitrary or uncontrolled power to the Government.
Having regard to the
diversity of conditions prevailing and the number of industries
covered by the Act, the Legislature could not fix uniform rates
fur all the industries and for all the localities. Working out of
the detailed provisions relating to minimum rates had from the
very nature of the legislation to be delegated to some authority.
By entrusting to the State Government power to fix minimum
wages for any locality or localities the le_gislature has not
stripped itself ,,f its essential legislative power but has merely
entrusted an incidental function to it. The policy and the
principJes for guidance in the exercise of the power are inherent
in the purpoS<' and object of the Act, and in the machinery
erected for
assistin~ the Government
in
rnaking equitable
adjustment of the conflicting claims of labour and employers.
If a statute docs not make a classification itself but leaves it to
a responsible hody to make it and sets out the policy or
prir.ciples for its guidance, the statute cannot be struck down
as infrin!?ing Art. 14.
Kathi Raning Rawat v. State of Sauraahtra, (1952] S.C.R.
435, relied on.
The notification was promulgated after making a full
enquiry under the Act. The fixation of rates of wages and
the revision thereof was clone after considering the reports of
the committees and sub-committees appointed in that behalf
and of the Advisory Committees and Board, and after g;ivin~
full consideration tn the representations made by the employers
likely to be affected thereby. The fact that there was no
representative of the emplovers in the Advisory Board did not
affect the validitv of the l'\otification

## Text

1962
Shanti Prasad Jain
v.
Dir~c:or oj' Enforce~
ment, Foreign
Exchange Regulation
W1tnchoo, J.
1961
Oc!t11Jtr, lfJ.
524 SUPREME COURT REPORTS [1963] SUPP.
Lastly, it is urged that the penalty imposed in
this case is too heavy. This matter has been considered by the Appellate Board and we see no reason to
differ from the Board on this question. We may
only add that the first appellant who is the Chairman
of the Sahu Jain Limited is a person of responsibility
and position, and it is not expected tha.t such a person
would contravene the provisions of the Act. The
appeal is hereby dismissed with costs.
A fl peal di~mia!td.
M/s. BHIKUSA YAMASA KAHATRIYA
v.
SANGAMNER AK.OLA TALUKA BIDI
KAMGAR UNION
(B. P. SINHA, c. J., P. B. GAJENDRAGADKAR,
K. N. WANoHoo, K. C. DAS GUPTA and
J.C. SHAH, .lJ.)
Minimum W!UJM-StaMe dek(Jati11Q '[l'7'h.r t,o Gov.rnMtnt
f,o fix UJ04M-lf cowfer• arbitrary a.W, uncontrolkd pmcer8Notijfr.atiort .fizillflJ minimum W!UJe8-Valiaity of-Notifeation
iaud Apri.l 19, 1965, of Got!.rnm.,d of Bombay-Mintn&um
Wag"1 Aot, 1948(XI of 1948), •.3(3}(w).
Section 3(1) of the Minimum Wages Act, 1948, authori""8
the appropriate Government to fix rates of minimum Wligl'S
payable to employees in the scheduled employments. Section
3(3)(iv) authorises the government, in fixing or revising minimum wages,
to fix different minimum rates for difl"crent
localities. By Notification dated April 19, 1955, the Government of Bombay revised the minimum rates of W"!,'CS for workers
employed in the bidi manufactories and fixed for localities of
Sangamner and. ~kola.~ plac~ .within seven miles of their
respective Mun1c1pal bm1ts, a m1h1mum rate of Rs. 2/2/· for
I S.C.R.
SUPREME COURT REPORTS
525
making !000 bidis; The appellant contended that s. 3(3) (iv)
violated Arts. 14 ancl 19(l)(f) of the Comtitution as it conferred
uncontrolled powers on the government enabling it to discriminate belween employers of different localities which also
affected their business, that the notification also violated
Art. 14 and that the notification was not validly made as the
Advisory Board had no representatives of the employers on it.
Htld, thats. 3(3)(iv) of the Act was valid and that the
notificatiOn was
issued after compliance with the statutory
pro.visions.
Section 3(3)(iv) docs not delegate any arbitrary or uncontrolled power to the Government.
Having regard to the
diversity of conditions prevailing and the number of industries
covered by the Act, the Legislature could not fix uniform rates
fur all the industries and for all the localities. Working out of
the detailed provisions relating to minimum rates had from the
very nature of the legislation to be delegated to some authority.
By entrusting to the State Government power to fix minimum
wages for any locality or localities the le_gislature has not
stripped itself ,,f its essential legislative power but has merely
entrusted an incidental function to it. The policy and the
principJes for guidance in the exercise of the power are inherent
in the purpoS<' and object of the Act, and in the machinery
erected for
assistin~ the Government
in
rnaking equitable
adjustment of the conflicting claims of labour and employers.
If a statute docs not make a classification itself but leaves it to
a responsible hody to make it and sets out the policy or
prir.ciples for its guidance, the statute cannot be struck down
as infrin!?ing Art. 14.
Kathi Raning Rawat v. State of Sauraahtra, (1952] S.C.R.
435, relied on.
The notification was promulgated after making a full
enquiry under the Act. The fixation of rates of wages and
the revision thereof was clone after considering the reports of
the committees and sub-committees appointed in that behalf
and of the Advisory Committees and Board, and after g;ivin~
full consideration tn the representations made by the employers
likely to be affected thereby. The fact that there was no
representative of the emplovers in the Advisory Board did not
affect the validitv of the l'\otification as there was no such
statutory requirei'nent. Besides the function of the n;iard is
merely to co-ordinate the wor~ of the Committees and subcommittees and to advise Government generally in the matter
1'62
M/s. Bhikusa
ramasa Kahatriyu
v.
S(Jllgamner Jk11fo
Taluka Bitii Kamga1
Union
1962
Al /s. Bhikusa
ramasa f(ahatr~ya
v.
Sa11gamner Akolt1
'J '1/uka Bidi Kamgar
Un inn
Shah, J.
526 SUPREME COURT REPORTS [1963] SUPP.
of fixing and revising the minin1um rates ; its function is not to
n1ake any detailr-d investigatign in any particular industry,.
CrVIL APPELLATE JmusmcTION : Civil Appeal
No. 54G of 1961.
Appeal from the judgment and decree dated
June '27 and 30, 1958 and November 28, 1958, of the
Bombay High Court in Special Civil Application
No. 67 of 1958.
G. S. Pathak, J. B. I>udac/umji, 0. C. Jl/1.1th'llr
and Ruvinder Numin, for the appellants.
D. S. Nargolkar and K. R. Chaudhuri, for
respondent No. l.
S. B. Nuil.' and K. R. Chuudhiiri, for respon·
dent No. 2.
N. S. Bindra and P. D. Menon, for respondents.
Nos. :~ and 4.
1!162. October, JO. The Judgment of the Court
was delivered by
SHAH, J.-·J\1/s. Bhikusa Yamasa Kahatriya and
J\I/i. Bastiram Narayandas (owners of bidi factories
at Sangamner in the District of Ahmednagar) herein·
after referred to collectively as 'the appellants', moved
the High Court of Judicature at Bombay under
Art. 226 of the Constitution praying for a writ or
direction declaring s. 3(3)(iv) of the Minimum Wages
Act, 1 !l48, (XI of 1948) and a Notification dated
April 19, 1955, issued by the Government of Bombay
in exercise of the authority vested under the Act
''ultra vires, void and illegal" because the said enactment and the Notification infringed the guarantee
of equal protection of the laws, and affected the
rights of the appellants to carry on their lawful bl!siness, and for an order declaring that the appellants
were not bound by the said Notification and were not
l S.C.R.
SUPRE;\1E COURT REPORTS
527
liable to pay wages t > the Bidi workers at the rates
prescribed by the Notification, and for consequential
relief.
The High Court dismissed the petition, for
in their view, s. :3(3)(iv) of the Minimum Wages Act
and the Notification dated April 19, l!)Jfi, fixing
minimum rates of wages for bidi workers in the
localities of Sangamner and Akola did not violate the
fundamental rights guaranteed by the Constitution
and that the State of Bombay had "in issuing the
Notification revising the rates of minimum wages
followed the procedme prescribed in that behalf by
the Act."
Against the order, with u·rtificatc of
fitness granted by the High Court under Art. 1:13(l)(c)
of the Constitution, this appeal is preferred by the ·
appellants.
The Minimum Wages Act, 1948, was enacted
by the
Parliarn~nt to provide for fixing mi11 imum
rates of wages in certain employments.
The valictity
of the Act as it stuod in the year rn;,n falls to !Jt'
determined in this appeal. We will thcn·forc refer
to the Act as it stood in the yrar lHi>li, and will
omit reference to amendments in the Act by enact·
ments since that year.
Sub-section (1) ofs. ;i authorises the appropriate Government in the manner pres·
cribed to fix minimum wages payable to employees
employed in employments specified in parts I and II
of the Schedule, for the whole State or for a part of
the State or for any specified class or classes of such
employment in the whole Stale or parts thereof and
to review at such intervals as the State thinks fit the
minimum rates of wages so fixed and to revise the
rates. ·By sub-s. (3) the State is authorised in fixing·
or revising minimum rates of wages to fix-(a)
different minimum rates of wages for (i) different
scheduled employments ; (ii) different classes of work
in the same scheduled employment; (iii) adults,
adolescents, children and apprentices; (iv) different
localities. Section 5 sub·s. ( l) prescribes. the procedure
fur fixing and revising the rates of Minimum wages.
1962
/vf.1s. Bhikusa
rarMsa Kahatr!y
v.
Sangamner Akola
TalrJ:a Bidi Ksm
Uriior,
1962
M/s. Bhikwtt
"'a1l'Ulsa liahatri70
v.
~ng•mner A.kola
"1luka Bidi Kamgcr
Union
Shah, J,
528 SUPREME COURT REPORTS [1963] SUPP
It is provided in so far as it is material that "in fixing
minimum rates of wages in respect of any scheduled
employment x x x x x x x x or in revising minimum
rates of wages the appropriate Government shall
either-(a) appoint as many committees and subcommittees 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, x x x x x x x x on which the
proposals will be taken into consideration." By
sub-s. (2) the appropriate Government is authorised
to fix the minimum rates of wages in respect of rach
scheduled employment after considering the advice
of the committee or sub-committee or the representations received from persons interested. Section 6
empowers the appropriate Government to appoint
Advisory Committees and sub-committees to enquire
into the conditions prevailing in any scheduled
employment and to advice the ai;>propriate Government in making such revision m respect of such
employment. Section 7 authorises the appropriate
Government to appoint Advisory Boards for the
purpose of co-ordinating the work of the committees
and Advisory Committee and for advising the appropriate Government generally in the matter of fixing
'!nd revising the minimum rates of wages. Section 9
prrscribes the composition of committees and Advisory
Boards. Committees, Advisory Committees and the
Advisory Boards are to be nominated by the appropriate Government and are to consist of persons
representing employers and employees in the scheduled employments who are to be equal in number and
independent persons not exceeding one-third of its
total number of members.
Section 10 prescribes the
procedure to be followed in the revision of minimum
rates of wages.
By s. 20 power is conferred upon the
appropriate Government to appoint regional authorities to hear and decide claims arising out of payment
1 S.C.R.
SUPREME COURT REPORTS
529
of less than the minimum rates of wages to employees
employed in the localities.
Section 26 empowers the
appropriate Government to direct that the provisions
of the Act or any of them shall not apply to all or
any class of employees employed in any scheduled
employment or to any locality where there is carried
on a scheduled employment. By s. 27 the appropriate
Government is authorised to add to either Part of the
Schedule any employment in respect of which the
appropriate Government thinks that minimum ratt"s
of wages should be fixed under the Act.
"Employment in any tobacco (including bidi-making) manu·
factory" is one of the items in Part I of the Schedule
to the Act.
In exercise of the powers conferred by s. 5 the
Government of Bombay by Resolution dated February
27, 1951, appointed a Committee to hold enquiry
and to advise the Government in fixing minimum
rates of wages in respect of employmeat "in any
tobacco (including Bidi-making) manufactory''. The
Committee consisted of three employers' representatives, an equal number of employees' representatives
and an independent chairman. On July 3, 1952,
the Government of Bombay appointed, in exercise of
powers conferred nuder s. 6. a Committee to assist it
in considering the question of "revision of zoning"
(and rates of wages, if necessary) made under orders
regarding minimum wages for employment in any
tobacco manufactory.
An Advisory Board was also
constituted by Resolution dated October 3, 1953.
The Committee invited suggestions from the Labour
Unions of employees in the tobacco industry and also
of the emplovers and submitted their report to the
Government· of Bombay.
A notification operative
from March 31, 1952, was thereafter issued in exercise of the powers conferred by s. 3 (1) (a) of the
Minimum Wages Act by the Government of Bombay
after considering the advice of the Committee, fixing minimum rates of wages payable to workers
1962
M/s. Bhikusa
ranuu• Kohatri1•
v.
811.ngamner A.kola
Tsluk• Bidi K"m!'flT
Union
Sh•h, J.
1962
M/s. Bhikusa
"amasa Kaha.'riya
v.
"'""~ Akola,
aluka Bidi l(amgar
Union
Shah, J.
530
SUPREME COURT REPORTS [1963] SUPP.
employed in different industries in Zones I to IV specified in the Schedule appended thereto.
Districts of
Thana, Ahmednagar, East Khandesh, West Khandesh
Nasik, Poona. Satara North, Kolaba and Dangs in
the State of Bombay were included in Zone III. In
Zone III in the Bidi making industry for making 1000
bidis a minimum rate "of Rs. 2/- (without leaves)"
was prescribed.
By Notification datedjune 30, 1955,
issued under s. 26(2) the Government of Bombay directed that for a period of three months with effei:t
from July 1, 1951), the provisions of the Act shall not
apply to bidi makers employed in the bidi-making
industry in the localiries of Sangamner and Akola and
places within seven miles of their respective Municipal limits.
This exemption was extended from time
to time, till the end of December Hlfiu, but by Notification dated August 22, 1956, the Government of
Bombay cancelled·- the exemption with effect from
September l, Hlii(i, in respect of Sangamner and
Akola and places within seven miles of their respective Municipal limits. In the mean time by Notification dated April 19, 1!)5f>, the Government of Bombay
after considering the report of the Advisory Committee
and after consultation with the Advisory Board, revised the minimum rates of wages of workers employed
in the Bidi manufactories and fixed for the localities
of Sangamner and Akola and places within seven
miles of their respective Municipal limits, a minimum
rate of Rs. '2/:2/-
for making 1000 bidis.
After the
exemption granted under
s. 2(i(2) was cancelled
workers employed in the Bidi industry in Sangamner
and Akola and places within seven miles of their
respective Municipal limits demanded wages at the
revised rates.
The employers having failed to satisfy
their demands, applications were preferred by the
workers under s. 20 of the Minimum Vv ages Act to
the Regional authority appointed in that behalf.
By
order dated November 6, 1957, the authority under
the Minimum Wages Act rejected the contentions
raised by the employers and held that the workers
1 S.C.R.
SUPREME COURT REPORTS
531
were entitled to wages at the rates fixed bv the
Government under the notification dated April 19,
1955, as from January I, 1957, but not before that
date.
Aggrieved by that decision the appellants
applied to the High Court under Art. 226 of the
Constitution for writs declaring that the provisions of
s. 3(3) (iv) of the Minimum Wages Act which authorised fixation of varying rates of minimum wages for
different localities, and the Notifi~ation dated April
19, 1955, were discriminatory and void, for they infringed the equal protection clause of the Constitution.
The High Court dismissed the petition. In
this appeal counsel for the appellants contends :-
(I) that s. 3(3)(iv) of the Minimum Wages
Act, 1948 confers arbitrary and uncontrolled power upon the State Government to
fix rates of minimum wages in respect of
certain localities, and thereby enables the
Government to discriminate contrary to the
equal protection clause of the Constitution
against the employers carrying on their business in those localities, and on that account
the exerc;se of the power so conferred also
amounts to imposing unreasonable restrictions upon their right to carry on their business under Art. 19(1) (f) of the Constitution;
(2)
that the Notification dated April 19, 1955,
is discriminatory and violates the fundamental right of equality before law guaranteed by the Constitution; and
,
(3)
that ss. 5, G, 7 and 9 were contravened bec_ause the Comm~ttees. were not validly constituted there bemg m the Advisory Board
no representatives of employers in the Bidi
industry, and therefore there was no lawful revision of minimum wages under the
Notification dated April 19, 1955.
1962
M/s. Bhikusa
ramasa Kahatri1a
v.
Sangamner Akola
Taluka Bidi Kamgar
Union
Shah,J
1962
M/s. Bhiku,.
Ta1Msa: Kah«triy11
v.
Sangamner A.kola
-.Iuka Bidi Kamgar
Union
Shah, J.
532 SUPREME COURT REPORTS [1963) SUPP.
Section 3 of the Minimum Wages Act was impugned
in this Court on the plea thatit infringed Art.19(l)(f)
of the Constitution in Bijay Cotton Jllfills Ltd. v. The
State of Ajmer (').
Mukherjea, J., speaking for the
Court in that case observed that having regard to the
scheme of the Act and the purpose for which it was
enacted, namely to secure to workmen in the enjoy·
ment of minimum wages and
to protect against
exploitation it was necessary to put restraints upon
their freedom of contract and such restraints could not
be regarded in any sense as unreasonable. In a recent
judgment of this Court in U. Unichoyi v. The State
oj Kernla(') it was observed that "what the l\1inimum
Wages Act purports to achieve is to prevent exploita·
tion of labour and for that purpose authorises the
appropriate Government to take steps to prescribe
minimum rates of wages in the scheduled 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 star·
vation wages.
The policy of the Act is to prevent
the employment of such sweated labour in the interest
of gC"ncral 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".
The plea that fixation of minimum rates by
Notification under s. 3 violates the fundamental
freedom under Art. 19(1 )(f) is in view of the decision
of this Court not open to be canvassed by the appellants. But it is urged that in enacting s. 3(3)(iv)
which conferred upon the State authority to fix varying minimum rates of wages for different localities,
the Legislature gave no indication of the matters to
be taken into account for that purpose, and entrusted
the State with arbitrary and uncontrolled power,
exercise whereof was likely to result in discriminatory
treatment between different employers carrying on the
(1) [1955] 1 S. C. R. 752.
(2) [1962) l s. C. R. 946.
I s.c.R.
SUPREME COURT REPORTS
533
same business in contiguous localities. The Act undoubtedly confers authority upon the appropriate Government
to issue notifications fixing and revising rates of
minimum wages in respect of diverse industries for
the whole or part of the State. Having regard to the
cliversity of conditions prevailing and the number of
industries covered by the Act the Legislature could
obviously not fix uniform minimum rates of wages
for all scheduled industries, or for all localities in
respect of individual industries. Working out of
detailed provisions relating to the minimum rates,
the advisability of fixing rates for different industries,
ascertainment of localities in which they were to be
applied, and the time when they were to be effective,
and fixation of time rate, piece rate, or guaranteed time
rate had from the very nature of the legislation to be
delegated to some authority. In considering the minimum rates of wages for a locality diverse factors such
as, basic rates of wage, special allowance, economic
climate of the locality, necessity to prevent exploitation
having regard to the absence of organisation amongst
the workers, general economic condition of the industrial
development in the area, adequacy of wages paid,
and earnings in other comparable employments and
similar other matters would have to be taken into
account. Manifestly the Legislature could not ascertain whether it was expedient to fix minimum wages
in respect of each scheduled industry for the entire
territory or for a part thereof and whether uniform or
varying rates should be fixed having regard to the
conditions prevailing in different localities.
Again of
necessity different rates had to be fixed in respect of
the work performed by adults, adolescents, children
and apprentices.
The object and policy of the Legislature appear
on the face of the Act. The object of the Act is to
prevent exploitation of the workers, and for that
purpose it aims at fixation of minimum wages which
the employers must pay. The Legislature tmdoubtedly
1912
Mis Bhikusa
Yamasa Kahatriyo
v.
Sangamner A.kola
Taluko Bidi K4mgt1•
Uni1n
Shtth, J,
1962
.\l,.'s _ Bhikusa
Yamasa Kahalriya
v.
Sangamner Akola
Taluka Bidi Kamgar
Union
Shah, J,
534 SUPREME COURT REPORTS [1963] SUPP.
intended to apply the Act to
those industries or
localities in which by reason of causes such as
unorganized labour or absence of machinery for
regulation of wages, the wages paid to workers were,
in the light of the general level of wages, and subsistence level, inadequate. Conditions of labour vary in
different industries and from locality to locality, and
the expediency of fixing minimum wages, and the
rates thereof depends largely upon diverse factors
which in their very nature are variable and can
properly be ascertained by the Government which is
in charge of the administration of the State. It is
to carry out effectively the purpose of this enactment
that power has been given to the appropriate Government to decide, with reference to local conditions,
whether it is desirable that minimum wages should be
fixed in regard to any scheduled trade or industry, m
any locality, and if it be deemed expedient to do so,
the rates at which the wages should be fixed in respe.ct
of that industry in
the locality. By entrusting
authority to the appropriate Governmeni to determine
the minimum wages for any industry in any locality or
generally, the legislature has not divested itself of its
authority, nor has it conferred uncontrolled power upon
the State Government. The power conferred is subordinate and accessory' for carrying out the purpose
and the policy of the Act.
By entrusting to the State
Government power to fix minimum wage for any
particular locality or localitie~ the Legislature has
not stripped itself of its essential legislative power
but has merely entrusted what is merely an incidental
function of making a distinction having regard to
the special circumstances prevailing in
different
localities in the matter of fixation of rates of minimum wages. Power to fix minimum rates of wages
does not by itself invest the appropriate Government
with authority to make unlawful discrimination between employers in different industries. Selective
application of a law according to the exigencies
where it is sanctioned, ordinarily results in permis~ible
\
.,
l S.C.R. SUPREME COURT REPORTS
535
classification.
Article
14 forbids
class
legislation but does not prohibit reasonable classification
for the purpose of legislation. If the basis of classification is indicated expressly or by implication, by
delegating the function of working out the details of
a scheme, according to the objects of the statute and
principles inherent therein, to a body which has the
means to do so at its command the legislation will
not be exposed to the attack of unconstitutionality.
In other words, even if the statute itself does not make
a classification for the purpose of applying its provisions, and leaves it to a responsible body to select and
classify persons, objects, transactions, localities or
things for special treatment, and sets out the policy
or principles for its guidance in the exercise of its
authority in the matt~r of selection, the statute will
not be struck down as infringing Art. 14 of the
Constitution. This principle is well recognised: see
Kathi Raning Rawat v. The State of oaurashtra(').
Let us now examine whether c :\
Legislature
has conferred an uncontrolled or arbnrary power
upon the Government without laying down any
principles for its guidance in selecting different rates
for different localities in the fixation or revision uf
the minimum rates of wages. The Legislature has
by s. 4 laid down what the minimum rated of wages
is to consist of, and by s. 5 it has prescribed the
procedure for fixing minimum wages.
An alternative procedure is provided for making enquiry for
fixing and revising the minimum wages.
The State
Government may either appoint a Committee or subcommittee to hold enquiry and advise it in respect of
such fixation or revision, as the case may be, ur by
Notification in the Official Gazette publish its proposals for the information of persons likely to be
affected thereby.
After receiving the report of the
Committee or the representations made in respect of
the proposals from persons affected thereby the State
Government may fix the minimum rates of wages.
(I) (1952) S. C. R, 485.
1962
.Af/s. BhikuJa
Y amasa Kahatriya
v.
Sangamner Akola
Taluka Bidi Kamga.
Uri ion
Shah, J.
1962
M/s. Bhil:usa
Yamasa KahatriJfl
v.
Sangamnt1- Akola
Taluka Didi Kamgar
Union
Shah, J.
536 SU.PREMi COURT REPORTS [1963] SUPP.
Advisory Committees to enquire into conditions
prevailing in any scheduled employment and to advise
the Government in making the revision,
and an
Advisory Bmud for the purpose of co-ordinating the
work of committees appointed under ss. 5 and 6 and
for advising the Government generally in the matter
of fixing and revising
minimum rates of wages
have also to be constituted. Sections 5, 6 and 7 set
up an elaborate machinery for collecting and sifting
materials, for the purpose of ascertaining conditions
prevailing in an industry for fixing minimum wages
and for revising the same. By setting up this
machinery the statute contemplated a full investiga
tion in the presence of interested persons by the
Committee and the Advisory Board presided over by
independent persons before it rt'solved upon either the
fixation of rates or revision of rates.
The charge
that the Legislature had entrusted to the Government
an arbitrary and uncontrolled power cannot reasonably be sustained. It is true that power is conferred
upon the Government to determine the appropriate
rates of minimum wages for industries generally or
in any locality. But the policy and principles for
the guidance in the exercise of this power are inherent
in the purpose and object of the Act, and in the
machinery erected for assisting the Government in
making an equitable adjustment of the conflicting
claims of labour and the employers.
There is therefore no delegation of any arbitrary and uncontrolled
power to the Government.
The impugned Notification was promulgated
after making a full enquiry under the Act. It
was after due consideration of the report of the
Committee that the rates were revised. It appears
that representations were made by the Nasik Bidi
manufacturers who were bracketed with the Bidi
manufacturers of Sangamner and Akola in Zone III in
fixing rates, requesting the Government to c<i;ncel ~he
revised minimum wage rate fixed under Not1ficat1011
I S.C.R.
SUPREME COURT REPORTS
537
dated April 19, 1955, and to restore the old rate.
Pending consideration of these representations the
Government which had originally directed that the
revised minimum rates of wages were to come into
operation from July l, I 95fi, postponed implementation of the revised rates, and directed that exemption
from the application of the Act may continue for a
further penod of three months.
Their representations dated June 17, 1955, and September 9, 1955,
referred to the general economic depression, reduced
buying capacity of consumers, fall in the cost of living index, competition in the market and the organised
condition of labour, inability of the industry to pav
higher wages and the additional economic burden
such as increased trends of taxation. The economic
advantages sanctioned under the Factories Act and
bonus compensation, facilities under the Industrial
Disputes Act were also pressed into service to induce
the Government not to bring into force the revised rates
of minimum wages. Fixation of rates of wages and the
revision thereof were manifestly preceded by a detailed survey and enquiry and the rates were brought
into force after full consideration of the represent a·
tions which were made by a section of the employers
concerned. It would be difficult in the circuJ11stances
to hold that the Notification dated April 19, 1955,
which fixed different rates of minimum wages for
different localities, was not based on intelligent diffe·
rentia having a rational nexus with the object of the
Act, and thereby violated Art. 14. It is obvious that
no uncontrolled or arbitrary power was exercised by
the Government : it exercised power to fix the rates
of minimum wages after considering the reports of
the Committees and sub-committees appointed in that
behalf and of the Adviscry Committees and Advisory
Board formed for
co-ordinating the work of the
Committees, and revised them after giving full consi·
deration to the represemations made by the emplovers
likely to be affected thereby.
·
H62
M/s Bhilcu.rs
Yamu.sa Kahtttriya
v
Songamntr A.kola
Ta/Mk.a Bidi Kmnt•r
u,,,fon
Shah, J.
1962
M/1. Bhiku.r•
Tami1ra KaMtriwJ
v.
Sangamner Ako/a
T ttluka Bidi Kamr,1..r
[Tnion
S/1.11/c, J.
538 SUPREME COURT REPORTS [1963] SUPP.
In regard to the contention that the Notification
dated April 19, 1955, was invalid because in the formation of the Committees under s. 5 and the Advisory Committees under s. li and the Advisory Board
under s. 7, provisions of the Act were contravened, no
arguments were advanced and
none
could be
advanced.
It
appears
that
the
Committees
were formed consistently with the provisions of s. 9
under the chairmanship of a retired officer with considerable judicial
experience
and the Advisory
Committee appointed under s. 6 also consisted of
three representatives of employers and three representatives of employees presided over by a chairman
having experience of industrial disputes.
It was
urged, however, that in the Advisory Board there
was no representative of the employers in the Bidi
industry. But the function of the Advisory Board
under s. 7 is to co-ordinate the work of the Committees
and sub-committees under ss. 5 and 6 and to advise
the Government generally in the matter of fixing and
revising the minimum rates.
The function of the
Board is not to make any detailed investigation in
any particular industry.
That in\'estigation is contemplated to be made by the Committee and the Advisory Committee. The Act does not require that
the Board should consist of representatives of any
particular scheduled industry. The Board is to consist of representatives of employers and employees in
the scheduled employments, and such a Board was
constituted. The Board examined the reports of the
Committee and the Advisory Committee and even
called upon the employers in the Bidi industry to submit their representations.
The Advisory Board considered the representations and made its unanimous
recommendation on which the Notification dated
April 19, 1955, was issued.
On a careful examination of the various provisions of the Act and the machinery set up thereby we
hold that. S• 3(3)(iv) does not contravene Art. 19(1)(f)
•
1 S.C.R.
SUPREM.li: COURT REPORTS
539
of the Constitution nor does it infringe the equal protection clause of the Constitution; we also hold that
the Notification dated April 19, 1955 did not vioiatl'
Art. 14 of the Constitution. We are further of the
view that the constitution of the Committees and the
Advisory Board did not contravene the statutory provisions in that behalf prescribed by the Legislature.
The appeal therefore fails and is dismissed with
costs.
Appwl dismissed.
ROOP CHAND
v.
STATE OF PUNJAB
(S. K. DAS, J. L. KAPUR, A. K. SARKAR,
M. HIDAY.A.TULLAR and R.AGHUBAR DAYAL, JJ.)
Consolidation of Holdings-Appeal to State GovcrnmentPwtr.to hear appeal delegatd to o.fficer-Dtcision of such ojficu--
Rwi1ion of decision by State Government-Ltgality of-Funwmtntal right.-lf infringed by illegal ortier of State GovunrnrntEut Punjab Holdings (Comolidation and Prevention of Fragmtnta,tion) Act, J,948 (Punj. 50 of 1948), ss, 21 (4), 41 (/), i2Conatitution of India, Art. 32.
Under the E. P. Holdings (Consolidation and Prevention
of Fragmentation) Act, 1948, a scheme for consolidation of
holdings was framed for the petitioner's village and a repartition
of the lands was proposed. The petitioner objected to the
repartition and contended that under the scheme he was entitlet1
to retain his plots Nos. 635 and 636 and to get some more land
adjacent to them in exchange for other lands belonging to him
This contention was rejected by the Consolidation Officer
The petitioner filed an appeal before the Settlement Office<
1!02
·\f/s. BhikusiJ
Jilm111.t Kah:.ib'iV4
v
Stm~amntr A~tJ{&
Taluk• Bitii Xcm:or
U11U11
Sh<h, J.
1962