1954 (10) TMI 42 - SC - Indian Laws

Minimum Wages Act Constitutional: Upheld for Fair Wages, Workers' Rights, and Welfare

The court upheld the constitutional validity of the Minimum Wages Act, rejecting challenges that it conflicted with fundamental rights. Emphasizing the ... - Issues:Challenge to the constitutional validity of the Minimum Wages Act under article 32 of the Constitution. Allegations of conflicting with fundamental rights of employers and employees under article 19(1)(g).Analysis:The judgment involved two connected petitions under article 32 of the Constitution. The first petition was filed by a company challenging the constitutional validity of the Minimum Wages Act, while the second petition was filed by employees supporting the company's claims. The company contended that the minimum wages fixed by the State Government were prohibitory, making it impossible for them to continue operations. The employees were willing to work at lower wages fixed by the Industrial Tribunal. The legality of the Minimum Wages Act was challenged on the grounds of conflicting with fundamental rights guaranteed under article 19(1)(g) of the Constitution.The learned counsel argued that the Minimum Wages Act imposed unreasonable restrictions on both employers and employees. The Act was criticized for allowing unfettered discretion to the government in fixing minimum wages, with decisions not subject to further review. It was contended that the Act was oppressive towards employers who were economically unable to pay the prescribed minimum wages, despite having no intention to exploit labor. The counsel further argued that the Act's provisions were arbitrary and unreasonable.The judgment emphasized the importance of securing living wages for laborers to ensure their well-being and protection against exploitation. The Act was considered essential for implementing international labor conventions and Directive Principles of State Policy. The court rejected the argument that the Act unfairly burdened certain employers, stating that the public interest in ensuring adequate wages for laborers outweighed individual economic hardships. The court found the Act's provisions reasonable and necessary for the general welfare, protecting the interests of both employers and employees.Regarding the procedure for fixing minimum wages, the court noted that the government had broad powers but was required to consider advisory input and representations from affected parties. Consultation with advisory bodies and the establishment of Central Advisory Boards ensured a fair and impartial decision-making process. The court concluded that the Act's provisions, though restricting trade freedom under article 19(1)(g), were reasonable and justified in the public interest. Consequently, the petitions challenging the Minimum Wages Act were dismissed, with no order as to costs.