Case: Kerala Private Hospital Association &amp; Others Vs. State of Kerala &amp; Others

etc . -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, and 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."23. Section 9 deals with constitution of various Committees for due performance of several acts specified under the Act. An appropriate Government is empowered to constitute a Committee whose composition consists of members by nomination to represent the employers and employees interest in equal numbers. The independent persons are also the members of the Committee whose number should not exceed one third of its total number of the members. The Chairman of the Board by the Central Government is empowered to appoint one independent person.24. The Minimum Wages (Central) Rules, 1950 (hereinafter referred to as "the Rules") prescribes, inter alia, a term of office of the members of the Committee and the Advisory Committee(Rule 3), Nomination of substitute-members (Rule 4A), eligibility for re-nomination of the members of the Committee, Advisory Committee and the Board (Rule 7), resignation of the Chairman and members of the Committee/Board and filling of the casual vacancies (Rule 8) and disqualification (Rule 10). The Rules nowhere provide as to who should be nominated as representative of employer in the Committee.25. Now coming to the facts of the case on hand, there lies a fallacy in the submissions urged by the learned counsel for the appellant.26. A person, who is nominated to represent the interest of his employer, in our considered opinion, need not necessarily be the employer himself. If on the other hand, his employee is nominated to represent his employers interest, such nomination is in accordance with the requirement of Section 9 of the Act. It is for the reason that such nominee once nominated would defend his employers interest and not individual interest as an employee in the Committee. In other words, a nominee in such a case does not participate in his individual capacity as an employee in the Committee but participates as a representative of his employer.27. A representation, by way of nomination, is a well accepted phenomenon. A fortiori, an employee while in the employment of his employer, when nominated as his employers representative in the Committee then such employee, who is well-versed with the working of his organization and the subject, is regarded as a competent person(nominee) to represent the interest of his master(employer). No fault can thus be found in such nomination when made by the State while constituting the Committee. It is more so when we find that the employer did not object to such nomination made by the State of their employee in the Committee.28. We consider it apposite to refer here a three- Judge Bench decision of this Court in Ministry of Labour & Rehabilitation & Anr. v. Tiffins Barytes Asbestos & Paints Ltd. and Anr., AIR 1985 SC 1391 wherein the challenge laid to constitution of Committee and the resultant notification issued under Section 5(1) read with Section 9 of the Act fixing minimum wages for the workers working in Manganese, Gypsum, Barytes and Bauxite Mines was repelled by upholding the constitution of the Committee and the notification with following pertinent observation. The learned Judge, Chinnappa Reddy, J. succinctly observed as under:"3.............................We are afraid that the approach of the High Court was entirely wrong. For the purpose of appointing the committee to represent the employers in a scheduled employment, it was not necessary that the person appointed should be engaged for profit in the particular employment. It is enough if a nexus exists between the persons so appointed to represent the employers in the particular employment and the particular employment concerned. For example it may be absurd to appoint persons engaged in the newspaper industry to a committee to represent employers concerned in the employment of Barytes mines or Bauxite mines................................................................We also wish to emphasise that notifications fixing minimum wages are not to be lightly interfered with under Art.226 of the Constitution on the ground of some irregularities in the constitution of the committee or in the procedure adopted by the committee. It must be remembered that the committee acts only as a recommendatory body and the final notification fixing minimum wages has to be made by the Government. A notification fixing minimum wages, in a country where wages are already minimal should not be interfered with under Art.226 of the Constitution except on the most substantial of grounds. The legislation is a social welfare legislation undertaken to further the Directive Principles of State Policy and action taken pursuant to it cannot be struck down on mere technicalities."29. In the case at hand, we find that equal representation is given to both - employer and employee (13 persons each) in the Committee.30. So far as the employers representation is concerned, we find that there exists a nexus between the persons who are nominated and for whom they are nominated. We also find that the employees who are nominated, are working as Head of Human Resources Department in their respective organizations (see at serial Nos. 4, 7, 8 and 9), they are thus well-versed in the subject in question by virtue of the posts held by them in their respective employment.31. In our opinion, we have not been able to notice any flaw or illegality in the constitution of the Committee or/and in nominating the members by the State. It is in accordance with the requirement of Section 9 of the Act and hence does not call for any interference. It was, therefore, rightly repelled by the Single Judge and Division Bench of the High Court.32. There is no challenge to the constitution of Committee on any other ground except the one which we have dealt with supra. In this view of the matter, the impugned judgment deserves to be upheld. It is accordingly upheld.

Court's decision (1 = petition accepted / positive for appellant, 0 = rejected / negative): 0

Reasoning from the judgment:
0[ds]21. Having heard the learned counsel for the parties and on perusal of the record of the case, we find no merit in the appeal.Now coming to the facts of the case on hand, there lies a fallacy in the submissions urged by the learned counsel for the appellant.26. A person, who is nominated to represent the interest of his employer, in our considered opinion, need not necessarily be the employer himself. If on the other hand, his employee is nominated to represent his employers interest, such nomination is in accordance with the requirement of Section 9 of the Act. It is for the reason that such nominee once nominated would defend his employers interest and not individual interest as an employee in the Committee. In other words, a nominee in such a case does not participate in his individual capacity as an employee in the Committee but participates as a representative of his employer.27. A representation, by way of nomination, is a well accepted phenomenon. A fortiori, an employee while in the employment of his employer, when nominated as his employers representative in the Committee then such employee, who iswith the working of his organization and the subject, is regarded as a competent person(nominee) to represent the interest of his master(employer). No fault can thus be found in such nomination when made by the State while constituting the Committee. It is more so when we find that the employer did not object to such nomination made by the State of their employee in the Committee.In the case at hand, we find that equal representation is given to bothemployer and employee (13 persons each) in the Committee.30. So far as the employers representation is concerned, we find that there exists a nexus between the persons who are nominated and for whom they are nominated. We also find that the employees who are nominated, are working as Head of Human Resources Department in their respective organizations (see at serial Nos. 4, 7, 8 and 9), they are thusin the subject in question by virtue of the posts held by them in their respective employment.31. In our opinion, we have not been able to notice any flaw or illegality in the constitution of the Committee or/and in nominating the members by the State. It is in accordance with the requirement of Section 9 of the Act and hence does not call for any interference. It was, therefore, rightly repelled by the Single Judge and Division Bench of the High Court.32. There is no challenge to the constitution of Committee on any other ground except the one which we have dealt with supra. In this view of the matter, the impugned judgment deserves to be upheld. It is accordingly upheld.