Case: State Of Andhra Pradesh Vs. Narayana Velur Beedi Manufacturing Factory &amp; Others

2. The Act was enacted to provide for fixing the minimum rates of wages in certain employments. Section 2 gives the definitions of various expressions. Clauses (a), (h) and (i) give the meaning of the words "employer", "wages" and "employee" respectively. Section 3 provides for fixing of the minimum rates of wages by the appropriate government and their review at certain intervals. Section 5 gives the procedure for fixing and revising minimum wages. Section 55 (1). "In fixing minimum rates of wages in respect of any scheduled employment for the first time under this Act or in revising minimum rates of wages so fixed, the appropriate government shallappoint as many committees andas 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 not less than two months from the date of the notification, on which the proposals will be taken into consideration.(2) After considering the advice of the committee or committees appointed under clause (a) of(1) or as the case may be, all representations received by it before the date specified in the notification under clause (b); of thatthe appropriate government shall, by notification in the Official Gazette, fix, or, as the case may be, revise the minimum rates of wages in respect of each scheduled employment, and unless such notification otherwise provides, it shall come into force on the expiry of three months from the date of its9 relates to composition of committees etc. and is in these terms:S. 9. "Each of the 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 exceedingof its total number of members; one of such independent persons shall be appointed the Chairman by the appropriate Government.The Government Order which was challenged related to the revision of minimum wages in the Bidi industry. It was based on the recommendation of a committee consisting of six members, two of whom were Chief Inspector of Factories, Hyderabad, and Deputy Chief Inspector of Factories, Hyderabad; the former being the Chairman. These two officers were to be on the committee from among the category of independent persons mentioned in Section 9. The whole controversy has centered on the question whether the aforesaid two officers could be regarded as independent persons.

Court's reasoning:
7. 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 advise which is not binding on the government while fixing the minimum wages or revising the same as the case may be. Of course the government is expected, particularly in the present democratic set up, to take that advise seriously into consideration and act on it but it is not bound to do so. The language of Section 9 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 employment of the government were meant to be excluded and they cannot be regarded as independent personsthe representatives of the employers and employees. Apart from this the presence of high government officials who may have actual 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 Section 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 arises 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 impressed 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. Government officials are responsible persons and it cannot be said that they are not capable of taking a detached and impartial view.