# The State of Andhra Pradesh v. Naraycina

- **Citation:** [1976] 1 S.C.R. 641
- **Court:** Supreme Court of India
- **Decided:** 1975-09-03
- **Bench:** A. Alagiriswami, Goswami, N. L. Untwalia
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/the-state-of-andhra-pradesh-v-naraycina-6651
- **Pages:** 7

## Headnote

1'.<ii11in1.u111 Wages Act (11 of 1948) ss. 5(C) (e), 7 and 9-Appointment
of gove·rnnient officers on cornmittees and Advisory Board as independent members-Propriety-Advisory Board appointing its own sub .. c:o111mittees-Propriety
--S. 5{1)(a), scope of.
~ction 5 ( l ) of the Minimum Wages Act. 1948, provides two types
of
procedure for fixing and revising minimun1 Wa$es in respect of any scheduled
employment.
Section 7 provides for the· appointment of an Advisory Board.
If the procedure provided in s.5(1)(a) is followed consultation
with
the
Advisory Board is not re.quired while it is mandatory in case· the procedure
in cl. (b) is followed.
Under cl. (a), the Government can appoint as many
Committees. or sub-committees as it considers necessary to hold inquiries and
advise it in respect" of such fixation or revision. Section 9 requires that every
committee, sub-committee and the Advisory Board shall consist of representatives of the. employtrs and empioJr~es in eQ:ual numbers and independend
persons, whose number shall not exceed 1/3 of the total number of members.
One of the independ"ent persons shall be appointed Chairman. [643 G~644 F]
In the present case. the State Government followed the procedurl! under
cl. (a) and appointed a committee i'or revising the wages with
resPect to
employ1nent' in Mica 1\.1ines which is a scheduled employment undier the Act.
The committee consisted of five members, two representatives of the employers,
two of the employees and a Professor oi' Economics of a Government college
as an independent member.. It submitted its report to the Government. The
Government. referred the matter to the Advisory Board which consisted of 21
members, ~ representatives of the employers. 8 of the employees and 5 government officers as independent members. The Advisory Board appointed a sub--
\
committee 10 go further into matter. In the
sub~committce were taken same
persons who were
not
members of
the
Advisory Board.
The
rulJ....
commiue·e made its recommendations and the Advisory Board after considering
those recommendations also submitted its report and the State Government
accepted it with slight variations and fixed minimum wages by a notification.
The respondent challenged its validity . and the High Court struck it
down
holding that, (i) the constitution of the Wage Committee and. the Advisory
Board was not valid because the economics professor and the 5 government
members were not independent members, (ii) the Board had exceeded
its
power in appointing a sub-committee, and, (iii) the Board committed an illegality
in taking into consideration its recommendations while submirting its report to
the Governn1ent.
Allowing the appeal to this Court,
HELD : ( 1) It may be that in certain circumstances trersons who are in
sefvice or the Government may cease to have an independent character if the
question arises of fixation of minimum wages in a scheduled employment. In
the easel of fixation of minimum wages in a scheduled employment in '':hich the
Government is directly interested, whether Government servants can come in
the category of fndependent members in addition to the Government officers
who come on the Board or Committee as representatives of the employers is
a matter which~ has to be considered in an appropriate case. But in the instant
case, the constitution Qf the 1 Wage c·ommittee or the Advisory Board was not
bad, as Government was not an employer in. the 11ica Min'es in respect
of
which minimum. wages were fixed. [646 A-El
The State of Andhra Pradesh v. Naraycina
Velur Beedi
Manufacturing
Factory and o.thers [1973] 1 Labour Law Journal. 476, followed.
642
SUPREME COURT REPORTS
[1976] 1 S.C.R.
(2) The Advisory Board can device its o'.vn procedure anJ collect infer~
A
rn::i.tion by nppcii·1~1nent of sub-co1nmittec-s cons·i'lting
only
of
some
of
its
members.
But the Advisory Board has no pov.'er to appoint a rival
snbcomm,ittee to the one appointed by the Gov~rnn1..::nt and take in such subcommittee, pe

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€41
STATE OF RAJASTHAN & ANOTHER
V,
HART RAM NATHWANI & ORS.
September 3, 1975
[A. ALAGIRISWAMI, P. ]{, GOSWAMI AND N. L. UNTWALIA, JJ.]
1'.<ii11in1.u111 Wages Act (11 of 1948) ss. 5(C) (e), 7 and 9-Appointment
of gove·rnnient officers on cornmittees and Advisory Board as independent members-Propriety-Advisory Board appointing its own sub .. c:o111mittees-Propriety
--S. 5{1)(a), scope of.
~ction 5 ( l ) of the Minimum Wages Act. 1948, provides two types
of
procedure for fixing and revising minimun1 Wa$es in respect of any scheduled
employment.
Section 7 provides for the· appointment of an Advisory Board.
If the procedure provided in s.5(1)(a) is followed consultation
with
the
Advisory Board is not re.quired while it is mandatory in case· the procedure
in cl. (b) is followed.
Under cl. (a), the Government can appoint as many
Committees. or sub-committees as it considers necessary to hold inquiries and
advise it in respect" of such fixation or revision. Section 9 requires that every
committee, sub-committee and the Advisory Board shall consist of representatives of the. employtrs and empioJr~es in eQ:ual numbers and independend
persons, whose number shall not exceed 1/3 of the total number of members.
One of the independ"ent persons shall be appointed Chairman. [643 G~644 F]
In the present case. the State Government followed the procedurl! under
cl. (a) and appointed a committee i'or revising the wages with
resPect to
employ1nent' in Mica 1\.1ines which is a scheduled employment undier the Act.
The committee consisted of five members, two representatives of the employers,
two of the employees and a Professor oi' Economics of a Government college
as an independent member.. It submitted its report to the Government. The
Government. referred the matter to the Advisory Board which consisted of 21
members, ~ representatives of the employers. 8 of the employees and 5 government officers as independent members. The Advisory Board appointed a sub--
\
committee 10 go further into matter. In the
sub~committce were taken same
persons who were
not
members of
the
Advisory Board.
The
rulJ....
commiue·e made its recommendations and the Advisory Board after considering
those recommendations also submitted its report and the State Government
accepted it with slight variations and fixed minimum wages by a notification.
The respondent challenged its validity . and the High Court struck it
down
holding that, (i) the constitution of the Wage Committee and. the Advisory
Board was not valid because the economics professor and the 5 government
members were not independent members, (ii) the Board had exceeded
its
power in appointing a sub-committee, and, (iii) the Board committed an illegality
in taking into consideration its recommendations while submirting its report to
the Governn1ent.
Allowing the appeal to this Court,
HELD : ( 1) It may be that in certain circumstances trersons who are in
sefvice or the Government may cease to have an independent character if the
question arises of fixation of minimum wages in a scheduled employment. In
the easel of fixation of minimum wages in a scheduled employment in '':hich the
Government is directly interested, whether Government servants can come in
the category of fndependent members in addition to the Government officers
who come on the Board or Committee as representatives of the employers is
a matter which~ has to be considered in an appropriate case. But in the instant
case, the constitution Qf the 1 Wage c·ommittee or the Advisory Board was not
bad, as Government was not an employer in. the 11ica Min'es in respect
of
which minimum. wages were fixed. [646 A-El
The State of Andhra Pradesh v. Naraycina
Velur Beedi
Manufacturing
Factory and o.thers [1973] 1 Labour Law Journal. 476, followed.
642
SUPREME COURT REPORTS
[1976] 1 S.C.R.
(2) The Advisory Board can device its o'.vn procedure anJ collect infer~
A
rn::i.tion by nppcii·1~1nent of sub-co1nmittec-s cons·i'lting
only
of
some
of
its
members.
But the Advisory Board has no pov.'er to appoint a rival
snbcomm,ittee to the one appointed by the Gov~rnn1..::nt and take in such subcommittee, pep;ons who are not men1bers of the Board as was' done in this
case.
Therefore. the Advisory Board committed :in irregularity in appointing
the sub-committee and taking into consideration its report. [646 E-G]
(3) But it Joes not follow th<it the irnpu~ncd notification based upon the
B
reporL of the Advisory Board was had e\"Cn if the irregularity, is a!'.sumed to
be an illeg~lity.
The recommendations n1ade by the Board even
on
consiOeration of the report of- its sub-committee \\.'a<> only' that of the
Advi~ory
Board.
Since th:: procedure was under s. 5 ( 1) (a) it was not n1andatory for
Government to take ~he opinlon of the Advisory Boa!·d at all. Therefore, the
impugned notification and the proce::::ding<:i pursuant to it cJ.nnot be qua:':.h1:<l.
[646 G-647 BJ
Gulan1aha111ed T(Fasahcb, a Bidi factory hy its proprietors Shanlrao and
C
others v. Stati' oJ Do111bay and o!hcrs A.I.R. 1962 Bombay 97. referred to.
CIVIL APPELLATE JURISD!CTICJN : Civil Appeal No. 1800 of 1969.
Appeal by special leave from the Judgment and Order dated the
25th January., 1967 of the Rajasthan High Court in D.B. Civil Writ
' •
Petition No. 40(1 of 1966.
\
S. M. Jain, for the appellant.
D
1hc Judgment of the Court was delivered by
UNTWAUA, J.-The hearing of this appca: filed by the State of
Rajasthan and another by special leave proceeded ex-partc against the
respondents.
After examining all the pros and cons of the dispute
involved in this appeal with the assistance of the learned counsel for
the appellants we have come to the conclusion tt?at the appcai should
E
be allowed.
Frqm time to time the Government of Rajastha',1 fixed or revised
the minimum rates of wages for employees in the Mica Mines throughout the State of Rajasthan under section 5(2) of the Minimum Wages
Act, 1948-Central Act 11 of 1948-hereinafter called the Act. The
employment in the Mim Mines is a scheduled employment within the
meaning of section 2(g) of the Act-Eventually the minimum rates of
wages were facd by the Government by a notification dated the 3 lst
July, 1965, the validity of which was challenged in the Rajasthan
High Court by several employers in the Mica Mines in Civil Writ No.
406/1966 and 15 other writs.
Several proceedings initiated on the
basis of the impugned notificatio.1 were also challenged by the employers.
A Bench of the Rajasthan High Court allowed the writ
applications, quashed ,the impugned notification and the proceedings
taken in pursuance thereof.
This appeal arises out of Civil Writ No.
406/1966 in which the employer is respondent no. 1.
The notification dated 31-7-1965 was challenged on several grounds
·and we will be concerned with some of them in this appeal.
The
relevant facts are these. 'For the purpose of revising the minimum
wages fixed by the earlier notification dated the 2'>llr April, 1959,'the
State Government in the first instance appointed a Committee consisting
of five members on the 17th May, 1962.
The constitution of the
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RAJASTHA~ V, HAR! RAM (Untwalia, !.)
643
Committee was, however, revised by notification dated the 26th November, 1962.
This committee consisted of five members, two rcpresentati\'es of the employers, two representatives of the employees and one,
Professor K. S. Mathur, Head of the Department of Economics Degree
College, Ajmer.
The last was tak~n as an independent member of
the committee.
It submitted its report to the Government.
The
matter was referred by the Government to the Advisory Board wastituted under section 9 of the Act. . It appears that a Sub-committee
was appointcl\ by the Advisory Board to go into the matter further and
to consider the report of the Wage Committee appointed earlier by the
Government on the 26th November, 1962.
In the Sub-committee
were taken some persons who were not members of the
Advisory
Bonrd.
The Sub-committee also submitted its report to the Advisory
Board which consisted of 21 members, 8 employers' representatives, 8
employees' rcprcsrntatives and 5 Government officers appointed in
the category of independent members.
The proceedings of the Buard
<lntcd the 7th May, 1965 showed that it considered the recommendations of the Wage Committee and the Sub-committee and then submitted its report containing its recommendations of the. wage structure
suggesting an alternative scale of m:•aimum wages according as the linking of Drnrness Allowance with the consumer-price-indices.
The
State Government accepted the wage structure recommended oy
the
Board but with slight variation in the matter of the linking basis with
Dearness Allowance and made it all ;•,1clusive rates of minmum wages
per month.
The learned Acting Chief Justice of the Rajastt:an High Court who .
delivered the leading judgment in the case, on a consideration of the
various divergent decisions of the High Courts came to the conclusion
that the constitutiG',1 of the Wage Committee was not valid as
•he
Professor of the Government College was no~ an independent member.
Similarly the constitution of the Advisory Board was also bad as the
five Government officers on the Board could not be said to ho independent members.
He was also of the view that the Board had exceeded
its power in appointing a Sub-committee :rad committed an illegality
in taking into consideration its report while making recommendations
·to the Government.
The other learned Judge with some amount of
reservation and diffidence agreed to the order proposed by the learned
Acting Chief Justice.
It may be stated hete that the fixation of the
minimum wage in the ngtification dated the 31st July, 1965 was also
challenged before the High Court on certain grounds relating to the
merits of the fixation but the High Court has over-ruled such objections .
Section 5 of the Act provides the procedure for fixing •a·ad revising
minimum wages in. respect of any scheduled employment.
There are
two tyPes of procedure indicated in clauses (a) and (b) of sub-section
(1). Obviously in the present case the procedure followed was the
one.provide? in clause .<a).
We shall now read sub-section (2) of
sectwn 5 with the proviso appended thereto :
"After cdasidering the advice of the committee or committees appointed under clause (a) of sub-section ( 1), or as
the case may be, all representations received by it before the
fl44
SUPREME COURT REPORtS
[1976] I S.C.R.
date specified in the notification under clause (b) ~f th~t su~
section, the appropriate Government shall, by nollfica~10n m
the Official Gazette, fix, or, as the rnse may be, revise the
minimum rates of wages in
respect
of · each
scheduled
employn1ent,
and
unless
such
notification
othcrwii:;:c
provides, it shall come into force on the expiry of three months
from the date of its issue :
Provided that where the appropriate Government proA
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poses to revise the minimum rates of wages by the mode
)'t
specified in clause (b) of sub-section (!), the appropriate
I
Government shall con.suit the Advisory Board also."
It would be noticed that the power to fix the minimum wages is
of
the Government.
Uader clause ( e) of sub-section (I) the GovernC
mcnt can appoint as many committees and sub-committees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision of minimum wages.
Section 7 of the Act says
"For the purpose of co-ordinating the work of committees and sub-committees appointed under section 5 and advising the appropriate Govcrnm~nt generally in the matter of
fixing and revising minimum rates of wages, the appropriate
Government shall appoint an Advisory Board."
If the procedure provided in clause (a) is followed, consultation with
the Advisory Board is not required in terms but is resorted to whik
it is mandatory in case of procedure (b). Section 9 provides :
"Each of the committees, sub-committees and the Advisory
Board shall consist of persons to be nominated by the appropriate Government representing employers and employees in
the scheduled employments, who shall be equal in number,
an_d independent persons not exceeding one-third of its total
number of members; one of such independent persons shall be
appointed the Chairman by the appropriate Government."
The question as to whether a Government officer could be appointed on
a Committee" Stib-committtec or. the Advisory Board as an independent
person came up for consideration before the various
High Courts.
Majority of them took the view that it could be so. A few High Courts,
however took a contrary view. In the judgment under appeal the. High
Court of Rajasthan has fallen in the line of the minority. But recently
the point has been set at rest by a decision of this Court in The State of
Andhra Pradesh v. Narayana Velur Beedi Manufacturing Factory and
others(!).
We consider it appropriate to quote the whole of paragraph 10 of that judgment :
"In our judgment the view which has prevailed with the
Majority of the High Courts must be sustained. The committee or the advisory board can only tender advice which is not
binding on the Government while fixing the minimum wages
(i)-[f973]1Labour Law Journal 476.
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RAJASTHAN v. HARi RAM (Untwalia, !.)
64!>
or revising the same as the case may be. Of course, the
Government is expected, particulady in the present .deniocratic set up, to take that advice seriously into consideration and
act on it but it is not bound to do so. The language of s.
~
does not contain any indication whatsoever that persons in the
employment of the Government would be excluded from the
category of independent persons. These words have essentially
been employed in contradistinction to
representatives
of
employers and employees. In other words, apart from the
representatives of employers and employees there should be
persons who should be independent of them. It does not follow that persons in the service or employ of the Government
were meant to be excluded and they cannot be regarded as.
independent persons vis-a-vis the representatives of the employers and employees. Apart from this the presence of high
Government officials who may have actnal working knowledge·
about the problems of employers and employees can afford a.
good deal of guidance and assistance in formulating the advice
which is to be tendered under S. 9 to the appropriate Government.
It may be that in certain circumstances such persons who are in the service of the Government may cease to
have an independent character if the question arise of fixation
of minimum wages in a scheduled employment in which the
appropriate Government is directly interested. It would,
therefore, depend upon the facts of each particular case
whether the persons who have been appointed from out of
the class of independent persons can be regarded as independent or not. But the mere fact that they happen to be Government officials or Government servants will not divest them
of the character of independent persons. We are not impres-
. sed with the reasoning adopted that a Government official
will have ·a bias or that he may favour the policy which the
appropriate Government may be inclined to adopt because
when he is a member of an advisory committee or board he
is expected to give an impartial and independent advice and
not merely carry out what the Government may be inclined to
do.
Gov·ernment officials. are responsible persons and
it
cannot be said that they are not capable of taking a detached
and impartial vi~."
The learned Acting Chief Justice of the High Court considered many of
such decisions of the High Courts in his judgment and posed " question
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"Suppose, the Government is an employer in the particular scheduled
employment for which wages are sought to be fixed under the Act.
Could it be postulated in such a case that art officer of the Government
can be property appointed as an 'independent' person on any of the
statutory bodies in question?" An answer in the negative was given.
He then said "I need hardly add in this connection that if the Government be not an employer in any of the scheduled employments, there
H
would be no objection to the Government officers of the requisite calibre
and experience being appointed as independent persons within the
meaning of the section" .. But thinking that in the list of the scheduled
employment are included "employ1U.ents such as public motor transport,.·
.
6 46
SUPREME COURT REPORTS
(1976] 1 S.C.ll.
.and construction and maintenance of roads and building operations and
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may be, for aught we know, in certain other employments also" in
which the State Government is an employer and the Advisory Board
constituted is meant for advising the Government in those employments
also he held the constitution of the Advisory Board to be bad. In the
extract which we have given above from the decision of this Court a
sentence is to be found resembling the line of thinking of the learned
Acting Chief Justice.
This Court has said "It may be that in certain
ll
circumstances such persons who are in the service of the Government
may cease to have an independent character if the question arises of
:fixation of minimum wages in a scheduled employment in which the
appropriate Goverrn)lent is directly interested" The question as to
whether in such a situation a Government officer appointed on the Board
or a Committee can be said to be independent member or not will have
to be cautiously considered when an appropriate occasion arises for
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the same.
After all, even in such cases the final authority fixing or
revising the minimum wages in a scheduled employment is the Government.
Government officers can undoubtedly come on the Board or
the Committee as representatives of the employers. Whether in such
a situation more Government servants can come in the category of th"
independent members is a question which is open to serious debate and
doubt. But in the instant case on the authority of this Court it is clear
D
that the constitution of either the Wage Committee or the Advisory
Board \Vas not bad, as the Government was not an employer in the J\.1ica
Mines in respect of which employment only minimum wages were fixed
by revision in the notification dated the 31st July, 1965.
No procedure has been prescribed in the Act as to the method
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which the Advisory Board is to adopt before making its recommendations to the State Government. It can devise its own procedure and
collect some informations by appointment of a sub-committee consisting
only of some of its members as was the case in the decision of the
Bombay High Court in Gulanwhamed Tarasaheb, a Bidi Factory by its
proprietors Shamrao and others v. Stiate of Bombay and others(11 ). But
surely the Advisory Board has no power to appoint a . rival sub1
committee to the _one appointed by the Government and take in such subcommittee persons who are not members of the Board, as was done
in this case.
There is, therefore, no doubt that the Advisory Board
committed an irregularity in taking into consideration the report of the
sub-committee invalidly appointed by it. Does it necessarily follow from
this that the impugned notification dated 31-7-1965 based upon the
report of the Advisory Board which in its turn had taken into consideraG
tion not only the report of the Committee appointed by the Government but also that of the sub-committee appointed by the Board is bad?
'On a careful consideration of the matter we give our answer in the negative. The irregularity, even characterising it as an illegality, committed
by the Advisory Board in taking into consideration the report of the
&ub-committee was not such as to nullify its recommendation contained
in its report, or, in any event, the final decision of the Government conH
tained in the impugned notification. It must be remembered that the
procedure followed in this case was the one provided in section 5 ( 1) .
1_1}A!.R. i962lfombay 97.
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RAJASTHAN V, HAR! RAM (Untwalia, J,)
647
(a) in which case it was not mandatory for the Government to take the
opinion of the Advisory• Board.
After all, the recommendations made
by the Board even on consideration of the report of the Sub-committee
along with that of the Committee was the advice of the Board. The ·
Government did accept it but accepted it after some modification. ln
such a situation we do not think that the notification dated 31-7-1965
deserves invalidation. It follows as a corollary that the· proceedings
started pursuant to the notification cannot also be quashed.
In the result we allow this appeal, set aside the judgment and order
of the High Court and dismiss the connected writ application filed by
respondent No. I. Since he has not appeared there will be no order as
to costs.
V.P.S.
Appeal al/mred.
"