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  • Delhi HC Quashes Govt Notification Revising Minimum Wage

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Delhi HC Quashes Govt Notification Revising Minimum Wage

Courtesy/By: Sanjeev Sirohi  |  09 Aug 2018     Views:2279

It has to be stated before anything else that in a landmark judgment which is being considered as a huge blow to the AAP Government in Delhi, the Delhi High Court in its landmark judgment titled Federation of Okhla Industrial Association (Regd) v Lt Governor of Delhi and anr in W.P.(C) 8125/2016 & CM No. 3362/2016 reserved on 22 May and delivered finally on 4 August, 2018, quashed its much-touted March 2017 order revising the minimum wages for all classes of workmen in scheduled employment, opining clearly and categorically that the same was ultra vires Article 14 of the Constitution of India. The Bench of Delhi High Court comprising Acting Chief Justice Gita Mittal and Justice C Hari Shankar further opined that the impugned notification suffered from “non-application of mind”, was not based on any material and violated principles of natural justice. So it was but natural that it had to be quashed!   

                                Truth be told, the Bench also declared  explicitly that the constitution of the Minimum Wages Advisory Committee for all scheduled employments by the Government as ultra vires Sections 5(1) and 9 of the Minimum Wages Act, 1948, opining that the formation of this Committee was “completely flawed”. It should not have been set up at the first place! This Delhi High Court’s latest landmark judgment was issued primarily as a culmination of the petitions that were filed by employers – associations of traders, petrol dealers and restaurants – who had challenged the two notifications – one that was issued in September 2016 reconstituting the Minimum Wages Advisory Committee for all scheduled employments, and another issued in March 2017, revising the minimum rates of wages for all classes of workmen/employees in all scheduled employments.  

                                     Be it noted, para 2 of this landmark judgment states that, “An attempt to constitute a Minimum Wage Advisory Committee by an order dated 12th April, 2016, had already disrupted the course of wage revision once. Alas, even though the revision is sorely needed, the hurried attempt again, inter alia failing to comport with binding the statutory requirements, without relevant material and contravening principles of Natural Justice has unfortunately disrupted this course, yet again.” There can be no denying it!

                                      Going forward, para 3 further goes on to say that, “This batch of writ petitions, lays a challenge to the constitutionality of the Notification bearing no. F-13(16)/MW/1/2008/Lab/1859 dated 15th September, 2016 issued by the Lt. Governor of Delhi in exercise of powers conferred by Section 5(1) of the Minimum Wages Act, 1948 (hereafter referred to as ‘the Act’). By this notification, the respondents re-constituted the Minimum Wages Advisory Committee for all scheduled employments.” Para 4 further reveals that, “These petitions also challenge the constitutional validity of the Notification bearing no. F. Addl.LC/Lab/MW/2016 dated 3rd of March 2017 published in the Official Gazette on 4th March, 2017, again issued by the respondents, in exercise of power conferred by Section 5(2) of the enactment. By this Notification, minimum rates of wages for all classes of workmen/employees in all scheduled employments stand revised w.e.f. the date of the notification in the official gazette. The challenge rests, inter alia, on the plea of the petitioners that both these notifications are ultra vires the provisions of the enactment itself and that the respondents also violated the principles in issuance of the notifications.”

            Hurried Actions Of The Government

                                     It cannot be lost on us that this landmark judgment authored by Acting Chief Justice of Delhi High Court Gita Mittal begins by first and foremost quoting Lewis Caroll from Alice in Wonderland that, “The hurrier I go, the behinder I get” to assert emphatically that the quote “appropriately manifests the manner in which the hurried actions of the respondents would set back the entire workforce of the city.” It then goes on to note that while an attempt to revise wages was in fact “sorely needed”, the hurried attempt, without adherence to binding statutory requirements, without relevant material and in violation of principles of natural justice, disrupted the entire exercise.”  

            Crux of the Judgment

                                It would be in the fitness of things to now shell out the crux of this entire landmark judgment which will make the whole picture very clear as to what it implies. In other words, it can be safely said that it is the summary of the conclusions that Delhi High Court Bench held bare so explicitly. The key points as laid down in the concluding part of this landmark judgment are as follows: -

1.  The High Court under Article 226 of the Constitution of India can interfere with a notification fixing minimum wages only on “the most substantial grounds”.   

2.  The purport and object of the Act in fixing the minimum wage rate is clearly to prevent exploitation of labour. The hardship caused to individual employers or their inability to meet the burden of minimum wages or its upward revision, has no relevance.

3.  The object, intendment and provisions of the Minimum wages Act, 1948 are clear and unambiguous, and therefore, the applicability of the beneficent rule of interpretation is completely unnecessary.

4.   Minimum wages have to be more than wages at the subsistence level, have to take into consideration all relevant factors and prescriptions made after due application of mind and must take into consideration the norms and component as approved by the Supreme Court in the Reptakos judgment.

5.  The Supreme Court has rejected challenges to the constitutionality of the Minimum Wages Act, 1948 for the reason that the legislation has ensured the mechanism provided under Section 5, 7 and 9 of the enactment. This places the requirement of compliance with the provisions thereunder on an extremely high pedestal and they had to be strictly adhered to by the respondents.

6.  The appropriate government is required to take into account the report and advice rendered by the Committee/Advisory Board and to apply independent mind and take a balanced decision so far as fixation or revision of minimum wages is concerned. The Government is not bound by the recommendations of the Committee. It is open to the Government to accept (wholly or in part) or to reject the advice of the Board or report of the Committee.

7.  While there is no absolute prohibition on an employee of the Government being nominated as an independent member of the Committee under Section 5 of the Minimum Wages Act, an objection to such nomination has to be decided on the facts and circumstances of the case. It is only when minimum wages are under consideration for an industry in which the State may be vitally interested as an employer, that it may not be proper to nominate an official to the Committee treating him to be an independent member.

8. A defect in composition of the Committee under Section 5 would not per se vitiate either its advice or the decision taken thereon. A defect in the composition of the Committee would vitiate its advice, or the ultimate decision of the Government fixing the minimum wages, only if such illegality or defect has worked to the prejudice to a party, for example where the interest of a particular group of employer or employees has not been represented or has not been taken into consideration.

9. The Delhi Metro Rail Corporation is not an employer engaged in scheduled employment in Delhi and it could not have been appointed on the Committee under Section 5 as a representative of the employer.

10. Though the eligibility of the officers of the Labour Department or the Director of Economics & Statistics as members of the Committee cannot be faulted, however they failed to conduct themselves dispassionately and did not apply their independent minds. The respondent has appointed the very officials as independent persons on a Committee, which had already taken a view in the matter and made recommendations as members of a Committee in the year 2016, therefore, when appointed for the second time, they were clearly close-minded and proceeded in the matter in a predetermined manner.

11. The respondents have denied the statutorily mandated representation to the actual employers in scheduled employments in Delhi which tantamount to non-compliance of Section 9 of the Minimum Wages Act, 1948 and failure on the part of the respondents to constitute a Committee required by law to be constituted.

12. It is essential that under Section 5(1) of the MW Act, a Committee “properly constituted” is “genuinely invited” with an open (‘receptive’) mind to tender advice to the appropriate Government.

13. It has to be held that employers in the scheduled employments as well as employees with divergent views stand ousted from the consideration and their interests certainly compromised to their prejudice. This prejudice to the employers and employees would constitute a ‘most’ substantial ground (Ref : (2008) 5 SCC 428 (para 14), Manipal Academy of Higher Education vs. Provident Fund Commissioner) justifying interference by this court in exercise of jurisdiction under Article 226.

14. Clearly the Government of NCT of Delhi was aware of the requirement of law and consciously failed to comport to the same.

15. It is not open to a representative to insist on an oral hearing before the Committee appointed under Section 5 or the Advisory Board under Section 7 of the Minimum Wages Act, 1948.

16. The fixation of minimum wages in Delhi cannot be faulted simply because they are higher than the rates of minimum wages fixed in surrounding States and Towns.

17. The Committee in making its recommendations, as well as the respondents in issuing the singular notification for uniform minimum wages for all scheduled employments, have completely ignored vital and critical aspects having material bearing on the issue.

18. Any change in the prescribed rates of minimum wages, is bound to impact both the industry and the workmen. The respondents were bound to meaningfully comply with the principles of natural justice especially, the principles of fair play and due process. The representatives of the employers, had a legitimate expectation of being heard as the advice of the Committee was to inevitably affect them, which has been denied to them before the decision to revise minimum wages was finalized.     

19. The constitution of the Committee was completely flawed and its advice was not based on relevant material and suffers from non-application of mind. The Government decision based on such advice is in violation of express statutory provision, principles of natural justice, denied fair representation to the employers as well as the employees in fact without any effort even to gather relevant material and information.

20. The non-application of mind by the committee and the respondents, to the relevant material considerations, offends Article 14 of the Constitution of India.   

                              Having said this, it must be now stated that in para 365 of this landmark judgment, it is pointed out that, “The Notification bearing no. F-13(16)/MW/1/2008/Lab/1859 dated 15th September, 2016 issued by the respondents constituting the Minimum Wages Advisory Committee for all scheduled employments is ultra vires Section 5(1) and Section 9 of the Minimum Wages Act, 1948 and is hereby declared invalid and quashed.”

                                  Furthermore, in para 366, it is pointed out that, “The Notification bearing no. F. Addl. LC/Lab/MW/2016 dated 3rd of March 2017 issued by the respondents revising minimum rates of wages for all classes of workmen/employees in all scheduled employments is ultra vires Article 14 of the Constitution of India; of Section 3 & Section 5(2) of the Minimum Wages Act, 1948, of Rule 20 of the Minimum Wages (Central) Rules; appears from non-application of mind, is based on no material and is in contravention of principles of Natural Justice and is hereby declared invalid and quashed.” Also, para 368 says that, “The applications are disposed of as having been rendered infructuous.” Finally para 369 concludes the judgment by saying that, “No order as to costs.”


Courtesy/By: Sanjeev Sirohi  |  09 Aug 2018     Views:2279

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Victim Has A Right To Assist The Court In A Trial ...
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Study of Lakes to be Conducted by NEERI...
07 Aug 2019     Views:1957
SC Denies Permission to Conduct DNA Tests...
07 Aug 2019     Views:1871
Whatsapp's fight against interference with User-Pr...
07 Aug 2019     Views:1575
Evidence Of A Solitary Witness In A Criminal Trial...
07 Aug 2019     Views:1718
High Court of Karnataka set aside the retirement o...
07 Aug 2019     Views:1912
Study of Lakes to be Conducted by NEERI...
06 Aug 2019     Views:1827
History-sheeter kidnaps and rapes a College Studen...
06 Aug 2019     Views:1905
No Room For Sympathy While Sentencing Terror Convi...
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Rejected Plea: Declaration of Vande Mataram as Nat...
05 Aug 2019     Views:2095
Madras HC corrects the computation error of Motor ...
05 Aug 2019     Views:1662
Fundamental Right To Privacy Not Absolute And Must...
05 Aug 2019     Views:1861
Diocese of Tanjore Society School gets relief from...
04 Aug 2019     Views:1842
THE TEMPLES IN KARNATAKA NO MORE BE GOVERNED UNDER...
03 Aug 2019     Views:1841
Triple Talaq legislation is challenged in the Delh...
03 Aug 2019     Views:1641
Special Olympics International Football Championsh...
03 Aug 2019     Views:1566
Concession to be given to disabled persons appeari...
03 Aug 2019     Views:2228
Bombay High Court Hears Dowry Case Involving A Civ...
03 Aug 2019     Views:1984
Karnataka High Court on the condition of Roads...
02 Aug 2019     Views:2231
SC ORDERS DEATH PENALTY IN COIMBATORE GANG-RAPE CA...
02 Aug 2019     Views:1662
RBI Changes Features Of New Currency Notes. Bombay...
02 Aug 2019     Views:1610
Interest Of Victim And Society At Large Must Also ...
02 Aug 2019     Views:1663
Abolition of Colonial Decorum in Courts...
01 Aug 2019     Views:5922
Punjab & Haryana HC Bans Use Of Loudspeakers Witho...
31 Jul 2019     Views:2491
ICJ Has Rightly Called Pakistan’s Bluff In Jadha...
26 Jul 2019     Views:1679
Review And Reconsider Conviction And Sentencing Of...
22 Jul 2019     Views:1694
Plaintiff Cannot Be Forced To Add Parties Against ...
21 Jul 2019     Views:1954
Biggest Slap By ICJ Directly Right On The Face Of ...
19 Jul 2019     Views:1661
Delhi HC Imposes Rs. 50,000 Cost On Woman For Fals...
17 Jul 2019     Views:1665
Non-Appointment Of Judges Affects Speedy Justice: ...
16 Jul 2019     Views:1571
Right To Get Anticipatory Bail Is Not Any Fundamen...
14 Jul 2019     Views:1945
Plea For Anticipatory Bail Not Maintainable Before...
13 Jul 2019     Views:2101
Divorce Cannot Be Granted Only On Ground Of Irretr...
11 Jul 2019     Views:1585
Right To Shelter A Fundamental Right; State Has Co...
08 Jul 2019     Views:1722
HC Cannot Reverse Acquittal Without Affording Oppo...
06 Jul 2019     Views:1484
Centre Is Legally Empowered To Create A High Court...
05 Jul 2019     Views:2184
Centre Must Now Immediately Order Creation Of HC B...
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01 Jul 2019     Views:2578
Ban Advocates From Carrying Weapons Inside Court P...
26 Jun 2019     Views:2924
Enact Strict Law To Ensure Personal Safety Of Doct...
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Mere Aggressive Behaviour Of Wife Not A Ground Of ...
26 Jun 2019     Views:3060
Court Cannot Destroy Faith & Beliefs Of People: Ma...
07 Jun 2019     Views:1530
Insult Of Soldier In Name Of Law Is Most Disgracef...
07 Jun 2019     Views:1828
Courts Cannot Decide Eligibility And Essential Qua...
20 May 2019     Views:5269
SC Upholds Constitutionality Of Section 23 Of PCPN...
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My Unflinching Faith In CJI Stands Fully Vindicate...
20 May 2019     Views:2060
Solitary Confinement Of Death Convict Prior To Rej...
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“Drop This Episode From Your Minds And Gossips...
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18 May 2019     Views:1539
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Magistrate Shall Specify Whether Sentences Awarded...
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Inability To Establish Motive In A Case Of Circums...
23 Feb 2019     Views:3013
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Long Pendency Amounts To A Special Reason For Impo...
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Lieutenant General (Rtd) Cannot Be Tried In A Gene...
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Autonomy Of the Bar Cannot Be Taken Over By The Co...
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Casual Act Of Possession Over Property Does Not Co...
04 Feb 2019     Views:2619
No Authority Can Claim Privilege Not To Comply Wit...
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Death Sentence Only When The Alternative Option Is...
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SC Imposes Rs 5 Crore Penalty On A Medical College...
28 Jan 2019     Views:2118
A Judicial Officer Is Not An Ordinary Government S...
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Offences Under Section 307 IPC Can’t Be Quashed ...
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26 Nov 2018     Views:2604
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Legal Article Now Bar Council ID Card Is Valid Id...
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There Cannot Be Any Mechanical Denial Of Appointme...
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Extra-Judicial Confession Of Accused Need Not In A...
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Mirchpur Dalit Killings: “Atrocities Against SCs...
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SC Upholds Pan India Reservation Rule in Delhi; Bu...
03 Sep 2018     Views:2471
NDPS Bail Conditions Discriminatory, Irrational An...
31 Aug 2018     Views:3302
People Without A Degree Performing Surgeries: Utta...
28 Aug 2018     Views:2018
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28 Aug 2018     Views:2502
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MP HC To Debar Members/Office Bearers Of Bar Counc...
22 Aug 2018     Views:1962
Special Squad, Police Patrolling Every 24 Hours To...
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NRC Being Prepared Under Supreme Court’s Watch I...
20 Aug 2018     Views:2123
Victims Of Crime Can Seek Cancellation Of Bail: MP...
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Delhi HC Strikes Down Provisions In Law That Crimi...
13 Aug 2018     Views:2307
Delhi HC Quashes Govt Notification Revising Minimu...
09 Aug 2018     Views:2279
Poorest Of Poor Cannot Go To Private Hospitals: Ut...
07 Aug 2018     Views:2592
How Long Will Lawyers Of West UP Just Keep Strikin...
04 Aug 2018     Views:2560
Courts Must See That The Public Doesn’t Lose Con...
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UK Tier 1 Entrepreneur Visa: Overview from Experts...
31 Jul 2018     Views:2182
Enact Law For Safety Of Soldiers Of Jammu And Kash...
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SC Advocates Creating A Special Law Against Lynchi...
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Matrimonial Discord Can’t Be Considered As Reaso...
23 Jul 2018     Views:3380
Uttarakhand HC Recommends Govt To Enact Legislatio...
23 Jul 2018     Views:3237
High Court Priests Cannot Refuse To Perform Religi...
23 Jul 2018     Views:2515
Uttarakhand High Court Passes String Of Directions...
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SC Finally Decides Master Of Roster Case...
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Stone Pelters And Terrorists Have No Right To Life...
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Remove Designations Like Police, HC, Journalist, A...
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Farmer Suicide Due To Bankruptcy Or Indebtedness: ...
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Every Indian Should Salute Brave Soldier Aurangzeb...
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Uttarakhand HC Issues Directions To Curb Drug Pedd...
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Have A Functional National Law University Within 3...
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Establish Regional Bench Of AFT In The State Withi...
05 Jul 2018     Views:1798
Cancel Licences of Drivers Using Cell Phones; Helm...
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Supreme Court To Look Into Validity Of Amended Law...
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29 Jun 2018     Views:2868
No Politics Please Over Plan To Assassinate PM Mod...
11 Jun 2018     Views:2287
Free Mentally Ill Children And Formulate Policies ...
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Landmark Ruling By Uttarakhand HC On Solitary Conf...
07 Jun 2018     Views:3304
Right Of Adult Couple To Live Together Without Mar...
06 Jun 2018     Views:2403
Why BJP Will Be Wiped Out In West UP And UP?...
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05 Jun 2018     Views:1994
Women Governed By Muslim Personal Law Can Invoke P...
04 Jun 2018     Views:1733
Why Is BJP Not Creating More Benches In UP?...
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Probation Period To Count For New Civil Servants B...
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SC Women Lawyers Association Seeks Chemical Castra...
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SC Finally Steps In To Expedite POCSO Cases...
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UP Former CMs Can’t Stay In Govt Bungalows: SC...
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Make BCCI A Public Body: Law Panel...
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Self-Styled Godman Asaram Awarded Life Until Death...
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A High Court Bench For West UP In Meerut Is Impera...
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Delhi HC Upholds Life Term To Seven Policemen...
19 Mar 2018     Views:1819
Finance Act-2018 And Customs Act-1962 (Amendments)...
28 Feb 2018     Views:1942
Why No Death Or Life Term For Corruption?...
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Will Electoral Bonds Usher In Transparency?...
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How Long Will Lawyers Of West UP Keep Striking?...
19 Feb 2018     Views:1806
Finance Act 2018 and Customs Act 1962...
18 Feb 2018     Views:2322
Why Has Stone Pelting Been Legalised In Kashmir?...
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Shopian Firing: Major's Dad Moving SC For Quashing...
12 Feb 2018     Views:1746
Soldiers Have Every Legal Right To Kill Stone Pelt...
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Attack On Lawyers: Delhi HC Issues Notice To Delhi...
10 Feb 2018     Views:1738
Female Foeticide Must Be Punished Most Strictly...
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Soldiers Have Every Legal Right To Act In Self Def...
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New Consumer Protection Bill 2018 Will Entail More...
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CJI Brings Out A Roster To Allot Cases...
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Five Year Jail Term For Lalu In Third Fodder Scam ...
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SC Quashes All The 88 Mining Leases In Goa...
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Prevention Of Money Laundering Act -2002 (PMLA-20...
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Prevention Of Money Laundering Act-2002 Amended ...
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Right to Know...
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A STUDY OF CERTAIN DEDUCTIONS ON INCOME TAX RELATI...
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Enviornment protection is for saving universe...
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