Telangana High Court
WP/701/1997 of All India Crochet Lace Exporters Asscociation, Vs The Government Of Andhra Pradesh, on 29 December 2004
COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY NINTH DAY OF DECEMBER TWO THOUSAND AND FOUR PRESENT THE HON'BLE MR JUSTICE P.S.NARAYANA WRIT PETITION NO : 701 of 1997 Between: All India Crochet Lace Exporters Asscociation, Rep by its General
IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD
(Special Original Jurisdiction)
WEDNESDAY, THE TWENTY NINTH DAY OF DECEMBERTWO THOUSAND AND FOUR
PRESENT
THE HON'BLE MR JUSTICE P.S.NARAYANAWRIT PETITION NO : 701 of 1997
Between:
All India Crochet Lace Exporters Asscociation, Rep by its GeneralSecretary A.S.Narayana, R/o Sivalayam Street , Narsapur.
..... PETITIONER
AND
1 The Government Of Andhra Pradesh, Rep by its Secretary, Labour Department, Hyderabad. Labour Department, Hyderabad.
2 The Commissioner of Labour,
Hyderabad.
3 The Assistent Commissioner of Labour,
Eluru, West Godavari District.
4 The Labour Officer,
Bhimavaram , West Godavari District.
5 The Assistant Labour Officer,
Palakole , West Godavari District.
.....RESPONDENTS
Petition under Article 226 of the constitution of India praying thatin the circumstances stated in the Affidavit filed herein the High Courtmay be pleased to issue a Writ, Order or Direction more particularlyone in the nature of Writ of Mandamus , declaring that the artisanswho knit the laces and sell the same to an exporter, can never bedeemed as "Workman" or an "Employee" of such purchaser withinthe meaning of any of " The Shops and Establishments Act" ."TheMinimum wages Act" or the "Labour welfare Act"; that having regardto the special nature of the service of exporters, such as collectingthe lace pieces, exporting them to foreign countries and earning foreign exchange, cannot be deemed as an establishment; thattherefore either the artisans who do the lace work during his/her idletime, by their special art, or the persons who purchase such lacepieces and export them, cannot be governed for any rights orliabilities by either the shops and Establishments Act, the MinimumWages Act or Labour Welfare Act; that the respondents are notentitled to enforce those said enhancements against any of theexporters either for prosecuting or otherwise; that the enforcement ofsuch laws against the Lace exporters is highly arbitrary, contrary tolaw, violative of the Constitution of India and the principles of naturaljustice; and to direct the respondents not to take any action under theprovisions of the aforesaid Acts, either against or in favour of theexporters or the artisans of the laces in the ends of justice.
Counsel for the Petitioner:MR.D.RAMALINGA SWAMY
Counsel for the Respondents : GP FOR LABOUR, EMPLOYMENT &TRAINING
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ORDER:
All India Crochet Lace Exporters Association, represented by itsGeneral Secretary, filed the present Writ Petition praying for a writ of mandamus declaring that the artisans who knit the laces and sell thesame to an exporter can never be deemed as “workman” or“employee” of such purchaser within the meaning of any of The A.P.Shops and Establishments Act, 1988, The Minimum Wages Act,1948 or the A.P.Labour Welfare Fund Act, 1987 having regard to thespecial nature of service of exporters such as collecting the lacepieces, exporting them to foreign countries and earning foreignexchange cannot be deemed as an establishment; that thereforeeither the artisans who do the lace work during his/her idle time bytheir special art or the persons who purchase such lace pieces andexport them cannot be governed for any rights or liabilities by eitherThe Shops and Establishments Act, 1988, The Minimum Wages Act,1948 or the A.P. Labour Welfare Fund Act, 1987; that therespondents are not entitled to enforce those said Enactmentsagainst any of the exporters either for prosecuting or otherwise; thatthe enforcement of such laws against the lace exporters is highlyarbitrary, contrary to law, violative of Constitution and the principles ofnatural justice and to direct the respondents not to take any actionunder the provisions of the aforesaid Acts, either against or in favourof the exporters or the artisans of the laces in the ends of justice.
The petitioner is a registered society and the main grievanceventilated by the petitioner is that the respondents and theirsubordinates have been harassing the members of the petitioner association, lace exporters, by issuing individual notices threateningto prosecute them unless minimum wages are paid and registration ismade as ‘establishment’ under The A.P. Shops and EstablishmentsAct, 1988, hereinafter in short referred to as “Act”, for the purpose ofconvenience. The grievance ventilated by the petitioner in thepresent Writ Petition is knitting laces is an ancient art and theseworkers cannot be styled as workers at all but only artisans and thereis no employee and employer relationship between these artisansand the purchasers of the lace goods and hence they are notgoverned by the welfare labour Legislations specified supra andhence these establishments need not be registered under the Act.The stand taken in the counter affidavit is that in the light of theprovisions of the Act and also the provisions of the Minimum WagesAct, 1948 and the A.P. Labour Welfare Fund Act 1987 it cannot besaid that these workers would not fall under the definition of‘workmen’ and there is no employer and employee relationship andhence these establishments are to be registered under the Act andthey are governed by the provisions of the Minimum Wages Act,1948 and also A.P. Labour Welfare Fund Act, 1987.
Sri D.Ramalinga Swamy, the learned Counsel representing thepetitioner had traced the historical background of this ancient art andwould contend that these artisans cannot be styled as workmen soas to attract the Labour Legislations and there is no employer and employee relationship between these exporters and artisans andhence the provisions of the Act are not attracted and consequentlythe other Labour Legislations also cannot be made applicable tothese Units. The learned Counsel also placed reliance on certaindecisions in this regard.
Per contra, the learned Government Pleader for Labour, Employmentand Training had taken this Court through the counter affidavit filedby the respondents and would contend that in the light of the specificprovisions of the Act and also the provisions of the Minimum WagesAct, 1948 and the A.P. Labour Welfare Fund Act, 1987, taking intoconsideration the activities of these Units, these Units definitely fallwithin the meaning of ‘commercial establishment’ and hence theseUnits are to be registered under the Act and also these Units aregoverned by the provisions of the Minimum Wages Act, 1948 andalso A.P. Labour Welfare Fund Act, 1987.Heard the Counsel.
The petitioner society had been constituted and registered for thebenefit of exporters of lace goods for solving common problems. TheEuropean Community came to India while setting forth their coloniesand also missionaries and found that the Indian women who werevery poor were dedicated to the domestic life and only seasonalagriculture work and had been idle wasting valuable time and hence
they encouraged the poor women residing in the three coastalDistricts i.e., East Godavari, West Godavari and Krishna, to learn theart of lace knitting of fine variety of lace works and finding this as avery good craft most of the poor women residing in these Districtslearnt the craft and used to do lace works. It is stated that there is nodemand for the lace goods in our country and hence the Europeanmissionaries encouraged some people to purchase these lacepieces from the artisans and to export them to foreign countrieswhere there had been good demand for fine lace goods. Thus theentire production of the lace is being exported to the foreign countriessuch as Australia, England, United States, France and to variousother countries. It is also stated that our country is securing a foreignexchange of not less than Rs.50 crore per annum due to thesetransactions. It is also stated that this art of craft is well flourishingonly because of non-interference by the Governmental agencies atany point of time. It is stated that the artisans have no fixed hours andthey do not work at any specific place but work only at theirrespective houses whenever they find time and the artisans areunder no obligation to sell their goods only to a particular exporterand they can act at their sweet will and pleasure and hence theseartisans would not fall under the definition of ‘workman’ and there isno employer and employee relationship between these exporters andthe artisans. It is further stated that the employees of the Labour Department have been asserting that the lace deals will come withinthe meaning of the Act and the artisans would fall under the definitionof ‘workmen’ and the exporting agencies should register themselvesunder the provisions of the Act and the Labour Legislations and theprovisions thereof are to be followed. Certain notices had beenissued and prosecutions had been launched. The petitionerassociation made several representations both to the Central and theState Governments not to apply the provisions of the Legislationsspecified supra in relation to the lace work and their exporters. In fact,the Ministry of Commerce, Government of India, New Delhi sent letterdated 27-8-1996 to the then Minister for Labour and Employment,Andhra Pradesh calling for the views regarding the pleas taken bythe petitioner association in their representation. It is stated that theState Government had not taken any action thereon. Takingadvantage of the same, the officials of the Labour Department havebeen harassing the lace exporters by issuing individual notices andalso threatening to prosecute them unless minimum wages are paidand unless these Units are registered as establishments under theA c t. In such circumstances, the petitioner association filed thepresent Writ Petition.
In the counter affidavit, the facts relating to historical background nodoubt had not been specifically denied but it was specifically averredthat depending on the demand for the lace products and after getting
samples, the lace manufacturers get lace items manufactured in theirEstablishments only. However, they also give some work to Homeworkers who are house wives and used to do lace knitting in theirhouses. The lace exporters supply thread to the direct workersworking in their establishments (usually residential houses ofexporters are being used for production of lace items) and also to thehouse workers while giving the model. After home workers and directworkers knit the lace items as per models, all of them bring themanufactured items to the establishment of the lace exporters toverify them with the model and accept only those items which are inuniformity with the model supplied by them. Rejections will also bethere and the home workers and direct workers have to bear the loss.The workers will be paid wages depending on the thread used bythem for the production of lace items. Even after acceptance of themanufactured lace items the lace exporters in their establishmentsget the items finished by giving touches and making minorcorrections and get them bundled, packed and exported. For allthese purposes, the lace exporters maintain an establishment havingsome skilled workers to do finishing work and also unskilled workersfor miscellaneous works of packing, bundling, exporting andaccounts, maintenance etc. The home workers will also be paidbasing on their work turn out. Thus it is false to say that there is noemployee and employer relationship between the workers and the lace exporters. It is also stated that due to increase of awarenessamong workers and Trade Unions about the implementation ofLabour Legislations especially the minimum wages and the otherwelfare Legislations there were several complaints in this regard fromEast Godavari, West Godavari and Krishna Districts during the pasttwo years in view of the failure to pay minimum wages to these poorworkers who are mostly illiterate and unorganized women workingwithout any restriction on hours in case of home workers and workingfor more than normal working hours in case direct workers strainingthemselves as the lace manufacturing work required lot ofconcentration and causes stress on the eyes of the workers but theworkers are being exploited by not being paid minimum wages andnot restricting the timings of 8 hours as guaranteed under the Act.During the course of meeting with the lace manufacturers associationand Trade Unions the lace exporters came forward with a plea thatthere cannot be restriction on opening hours and closing hours oflace manufacturing Units and for this purpose they were advised toapproach the Commissioner of Labour for relaxation from the specificClauses in the Act. In the counter affidavit different provisions of therelevant Legislations also had been specified in detail and the casespending in the Court of Judicial First Class Magistrate, Narsapur fornot registering the establishments and claims under the MinimumWages Act 1948 filed before the authority and also the details of certain lace establishments who had registered under the Act alsohad been specified.
Conclusion
The main grievance ventilated by the writ petitioner is that there is noemployer and employee relationship and these Units would not fallwithin the meaning of ‘commercial establishment’ under the Act andhence the Labour Department cannot enforce the welfare LabourLegislations specified supra. Before proceeding to decide the presentWrit Petition, the object of these Labour Legislations which are socialwelfare Legislations made for protecting the workers from exploitationby the employers may have to be kept in mind. The Counsel for thewrit petitioner placed reliance on SHANKAR BALAJI WAJE Vs. THESTATE OF MAHARASHTRA where the Apex Court had explainedthe concept of employment under Section 2(1) of The Factories Act,1948 wherein the Apex Court while dealing with Beedi factory andBeedi roller, in view of the fact that there is no obligation to work inFactory and there was freedom to attend and leave factory at anytime and as the payment is being made on the basis of piece workand quantity to be turned out per day not fixed, held that the Beediroller was not a worker within the meaning of Section 2(1) of theFactories Act, 1948. This view was expressed by the majority in thedecision referred to supra and the decision in CHINTAMAN RAO Vs.STATE OF MADHYA PRADESH also had been referred to in the decision referred (1) supra.
The A.P. Shops and Establishments Act, 1988, Act 20 of 1988, is anAct to consolidate and amend the law relating to the regulation of conditions of work and employment in shops, commercialestablishments and other establishments and for matters connected therewith. Section 2 of the Act deals with definitions. Section 2(5) of the Act defines ‘commercial establishment’ as hereunder :
“commercial establishment means an establishment whichcarries on any trade, business, profession or any work inconnection with or incidental or ancillary to such trade,business or profession or which is a clerical department of afactory or an industrial undertaking or which is a commercial ortrading or banking or insurance establishment and includes anestablishment under the management and control of a co-operative society, an establishment of a factory or an industrialundertaking which falls outside the scope of the Factories Act,1948 (Central Act 63 of 1948), and such other establishmentas the Government may, by notification, declare to be acommercial establishment for the purposes of this Act but doesnot include a shop.”
Section 2(9) of the Act defines ‘employer’ as hereunder :
“employer means a person having charge of or owning orhaving ultimate control over the affairs of an establishment andincludes the Manager, Agent or other person acting in themanagement or control of an establishment”.
Section 2(10) of the Act defines ‘establishment’ as hereunder :
“establishment means a shop, restaurant, eating house,residential hotel, lodging house, theatre or any place of publicamusement or entertainment and includes a commercial establishment and such other establishment as theGovernment may, by notification, declare to be anestablishment for the purposes of this Act”.
Section 2(11) of the Act specifies that ‘factory’ means factory within the meaning of the Factories Act, 1948 (Central Act 63 of 1948).Section 2(18) of the Act defines ‘register of establishment’ ashereunder :
“register of establishment means a register maintainedfor the registration of establishments under this Act.”
Section 2(19) of the Act defines ‘registration certificate’ as hereunder :
“registration certificate means a certificate issued under thisAct”.
Section 2(21) of the Act defines ‘shop’ as hereunder :
“shop means any premises where any trade or business iscarried on or where services are rendered to customers andincludes a shop run by a co-operative society, an office, astoreroom, godown, warehouse or work place whether in thesame premises or otherwise, used in connection with suchtrade or business and such other establishments as theGovernment may, by notification declare to be a shop for thepurposes of this Act, but does not include a commercialestablishment.”
Section 2(23) of the Act defines ‘wages’ as hereunder :
“wages means every remuneration, whether by way of salary,allowance, or otherwise expressed in terms of money orcapable of being so expressed which would, if the terms ofemployment, express or implied were fulfilled, be payable to anemployee in respect of his employment or of work done insuch employment, and includes –
a. any remuneration payable under any settlement betweenthe parties or order of a Tribunal or Court;the parties or order of a Tribunal or Court; b. any remuneration to which the employee is entitled inrespect of overtime work or holidays or any leaveperiod;respect of overtime work or holidays or any leaveperiod;
c. any additional remuneration payable under the terms ofemployment, whether called a bonus or by any othername;employment, whether called a bonus or by any othername;
d. any sum which by reason of the termination ofemployment of the employee is payable under any law,contract or instrument which provides for the paymentof such sum, whether with or without deductions, butdoes not provide for the time within which the paymentis to be made;employment of the employee is payable under any law,contract or instrument which provides for the paymentof such sum, whether with or without deductions, butdoes not provide for the time within which the paymentis to be made;
e. any sum to which the employee is entitled under anyscheme framed under any law for the time being inforce; but does not include, -scheme framed under any law for the time being inforce; but does not include, -
i. any bonus, whether under a scheme of profitsharing or otherwise, which does not formpart of the remuneration payable under theterms of employment, or which is notpayable under any award or settlementbetween the parties or order of a Court;sharing or otherwise, which does not formpart of the remuneration payable under theterms of employment, or which is notpayable under any award or settlementbetween the parties or order of a Court;
ii. the value of any house accommodation or of thesupply of light, water, medical attendanceor other amenity or of any serviceexcluded from the computation of wagesby a general or special order of theGovernment;supply of light, water, medical attendanceor other amenity or of any serviceexcluded from the computation of wagesby a general or special order of theGovernment; person or provident fund, and the interestwhich may have accrued thereon;which may have accrued thereon;
iv. any traveling allowance or the value of anytravelling concession;travelling concession;
v. any sum paid to the employee to defray specialexpenses entailed on him by the nature ofhis employment;any sum paid to the employee to defray specialexpenses entailed on him by the nature ofhis employment;
vi. any service compensation payable on thetermination of employment in cases otherthan those specified in sub-clause (d);termination of employment in cases otherthan those specified in sub-clause (d);
vii. the subscription paid by the employee to lifeinsurance and the contribution paid by theemployer to the life insurance of theemployee under the provisions of this Actand the bonus which may have accruedthereon; orinsurance and the contribution paid by theemployer to the life insurance of theemployee under the provisions of this Actand the bonus which may have accruedthereon; or
viii. house rent allowance payable by the employer; Section 3 of the Act dealing with Registration of Establishments reads as hereunder :
(1) Every employer of an establishment shall -
i. in the case of an establishment existing on the date ofcommencement of this Act, within thirty days fromthat date; andcommencement of this Act, within thirty days fromthat date; and
ii. in the case of a new establishment, within thirty days fromthe date on which the establishment commences itswork,the date on which the establishment commences itswork, send to the Inspector concerned a statement, containing suchparticulars, together with such fees, as may be prescribed.
(2) On receipt of such statement, the Inspector shall registerthe establishment in the register of establishments in suchmanner as may be prescribed and shall issue in the prescribed form a registration certificate to the employer who shall displayit at a prominent place of the establishment.
(3) Every registration certificate issued under sub-section (2),shall be valid with effect from the date on which it is issuedupto the 31[st] day of December following.
(4) Every employer shall give intimation to the Inspector, in theprescribed form, any change in any of the particulars in thestatement made under sub-section (1) within fifteen days afterthe change has taken place. The Inspector shall, on thereceipt of such intimation and the fees prescribed thereof makethe change in the register of establishments in accordancewith such intimation and shall amend the registration certificateor issue a fresh registration certificate, if necessary.
(5) The employee shall, within fifteen days of the closure of theestablishment, give intimation thereof in writing to theInspector, who shall, on receipt of such intimation, remove thename of the establishment from the register of establishmentsand cancel the registration certificate :
Provided that, where the Inspector is satisfied otherwise thanon receipt of such intimation, that the establishment has beenclosed, he shall remove the name of such establishment fromthe register and cancel the registration certificate.”
In exercise of the powers conferred by sub-section (1) of Section 71
of the Act, G.O.Ms.No.169, Women’s Development, Child Welfareand Labour (Lab.II), dated 28-10-1991, A.P. Shops andEstablishments Rules, 1990 were framed and the said Rules cameinto force with effect from 1-11-1991. Rule 3 dealing with Registrationof Establishments and Renewal of Registration Certificate reads as hereunder :
1. The statement specified in sub-section (1) of Section 3 ofthe Act shall be submitted by the employer in Form-I tothe Inspector of the area concerned. The statementshall be accompanied by a challan in support of thethe Act shall be submitted by the employer in Form-I tothe Inspector of the area concerned. The statementshall be accompanied by a challan in support of the payment of fees prescribed in Schedule-I.
2. The Inspector shall maintain Register of Establishments inForm V.Form V.
3. The Inspector shall issue a Certificate of Registration inForm II.Form II.
4. Every application for renewal of Registration Certificatemade under Section 4 of the Act shall be submitted bythe employer to the Inspector of the area concerned inForm III. The application for renewal of Certificate ofRegistration shall be accompanied by a challan for thefees prescribed in Schedule I.made under Section 4 of the Act shall be submitted bythe employer to the Inspector of the area concerned inForm III. The application for renewal of Certificate ofRegistration shall be accompanied by a challan for thefees prescribed in Schedule I.
5. The period of renewal of Certificate of Registration shall beone year or upto three years from the date of its expiry,at the option of the employer.one year or upto three years from the date of its expiry,at the option of the employer.
6. On receipt of application for renewal of Certificate ofRegistration, the Inspector shall issue Renewal ofRegistration Certificate in Form IV.Registration, the Inspector shall issue Renewal ofRegistration Certificate in Form IV.
7. Where the application for Renewal of RegistrationCertificate is not made within the date i.e., at least 30days before its expiry, penalty as specified shall belevied.Certificate is not made within the date i.e., at least 30days before its expiry, penalty as specified shall belevied.
1 . Application submitted on or after 2[nd] December, butbeforebefore 31[st] December - 25% of the fees prescribed.
2. Application submitted on or after 1[st] January - 50% of the fees prescribed Provided that the Government or subject to the control of theGovernment the Chief Inspector may, if they are or he issatisfied that there is sufficient reason for the employer in notsending the application for the renewal of the Certificate ofRegistration before the expiry of the time limit specified in sub-section (2) of Section 4, by an order and for reasons recordedtherein, waive the payment of penalty either in part or wholly by the employer in respect of the renewal of the Certificate ofRegistration applied for.”
Rule 29 of the Rules dealing with Maintenance of registers and records and display of notices reads as hereunder :
Every employer shall maintain registers and records anddisplay notices in the following manner :-
1. Every employer shall maintain a Register of Employmentin Form XXII.in Form XXII.
2. Every employer shall maintain a Register of Wages inForm XXIII.Form XXIII.
3. Every employer of an establishment other than a shopshall exhibit in his establishment a notice in Form XXIVspecifying the day or days of the week on which hisemployees shall be given a holiday. The notice shall beexhibited, before the employees, to whom it relatesimmediately preceding the first week during which it isto have effect.shall exhibit in his establishment a notice in Form XXIVspecifying the day or days of the week on which hisemployees shall be given a holiday. The notice shall beexhibited, before the employees, to whom it relatesimmediately preceding the first week during which it isto have effect.
4. Every employer shall exhibit in his establishment a noticecontaining such abstracts of the Act and Rules as theGovernment may direct.containing such abstracts of the Act and Rules as theGovernment may direct.
5. Any notice required to be exhibited under these Rulesshall be exhibited in such manner that it can be readilyseen and read by any person whom it affects and shallbe renewed whenever becomes defaced or otherwiseceased to be clearly legible.shall be exhibited in such manner that it can be readilyseen and read by any person whom it affects and shallbe renewed whenever becomes defaced or otherwiseceased to be clearly legible.
6. Every employer shall maintain a Register in Form XXV forthe leave granted to persons employed in hisestablishment.the leave granted to persons employed in hisestablishment.
7. In any register or record which an employer is required tomaintain under these rules, the entries relating to anyday, shall be made on such date and shall beauthenticated under the signature of the employer ormaintain under these rules, the entries relating to anyday, shall be made on such date and shall beauthenticated under the signature of the employer or Manager on the same day. The entries relating toovertime work shall be made before thecommencement and immediately after completion ofsuch overtime work.
8. The registers, records and notices relating to any calendaryear shall be preserved for a period of three years afterthe last entry is made therein.year shall be preserved for a period of three years afterthe last entry is made therein.
9. Save as otherwise provided in sub-rule (4) above, allRegisters, records and notices required to bemaintained and exhibited shall be either in English or inthe language of the majority of the employees in theestablishment.Registers, records and notices required to bemaintained and exhibited shall be either in English or inthe language of the majority of the employees in theestablishment.
(10) (a) Every employer shall maintain a Visit Book in which anInspector visiting the establishment may record his remarksregarding any defects that may come to light at the time of hisvisit or give directions regarding production of any documentsrequired to be maintained or produced under the provisions ofthe Act and the Rules.
(b) This Visit Book shall be a bound book more or less of size(18cms. x 15 cms.) containing atleast 100 pages.
(c) The first page of the Visit Book shall contain the followingparticulars:-
i. Name of the Shop or Establishment;
ii. Address;
iii. Registration Number;
iv. Name of the Employer;
v. Father’s Name;vi. Residential Address.
d. In case the Visit Book containing remarks passed by theInspectors, lost, destroyed or defaced, the employerof the establishment shall report the fact forthwith inwriting to the Inspector of the area and immediatelyInspectors, lost, destroyed or defaced, the employerof the establishment shall report the fact forthwith inwriting to the Inspector of the area and immediately arrange to maintain a new Visit Book.
e. The Visit Book shall be kept always in the businesspremises or the Establishment and shall be producedor caused to be produced on demand by theInspector.premises or the Establishment and shall be producedor caused to be produced on demand by theInspector.
(11) Where an office, store-room, godown, warehouse orworkplace used in connection with trade and business of ashop is situated at premises other than the premises of theshop, all registers, records, visit book and notices required tobe maintained, exhibited or given under the Act and the Rulesshall be separately so maintained, exhibited or given in respectof and at such office, store-room, godown, warehouse orworkplace.
(12) No employer with intent to deceive shall make or cause orallow to be made, in any register, record or notice prescribed tobe maintained under the provisions of the Act or the Rules, anentry which is false in any material particular, or willfully omitsor causes or allows to be omitted from any such register,record or notice, an entry which is required to be made therein,under the provisions of the Act and Rules, or maintain or causeor allow to be maintained, more than one set of any register,record or notice.
(13) The name board of every shop or establishment shall bein Telugu and wherever other languages are used, theversions in such other languages shall be below the Teluguversion.”
Section 2(s) of the Industrial Disputes Act, 1947 defines “workman”
as hereunder :
"workman" means any person (including an apprentice)employed in any industry to do any manual, unskilled, skilled,technical, operational, clerical or supervisory work for hire orreward, whether the terms of employment be express orimplied, and for the purposes of any proceeding under this Actin relation to an industrial dispute, includes any such personwho has been dismissed, discharged or retrenched inconnection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, butdoes not include any such person-
(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or the Navy Act, 1957(62 of 1957); or
(ii) who is employed in the police service or as an officer orother employee of a prison ; or
(iii) who is employed mainly in a managerial oradministrative capacity; or
(iv) who, being employed in a supervisory capacity, drawswages exceeding one thousand six hundred rupees permensem or exercises, either by the nature of the dutiesattached to the office or by reason of the powers vested inhim, functions mainly of a managerial nature.
The Minimum Wages Act, 1948, Act 11 of 1948, is an Act to provide for fixing minimum rates of wages in certain employments.
Section 2 of the said Act deals with Interpretation and Section 2(e)
defines “employer” as hereunder :
“employer means any person who employs, whether directly orthrough another person, or whether on behalf of himself or anyother person, one or more employees in any scheduledemployment in respect of which minimum rates of wages havebeen fixed under this Act, and includes, except in sub-section(3) of Section 26- i. in a factory where there is carried on any scheduledemployment in respect of which minimum rates ofwages have been fixed under this Act, any personnamed under clause (f) of sub-section (1) of Section7 of the Factories Act, 1948 (63 of 1948), asmanager of the factory;employment in respect of which minimum rates ofwages have been fixed under this Act, any personnamed under clause (f) of sub-section (1) of Section7 of the Factories Act, 1948 (63 of 1948), asmanager of the factory;
ii. in any scheduled employment under the control of anyGovernment in India in respect of which minimumrates of wages have been fixed under this Act, theperson or authority appointed by such Governmentfor the supervision and control of employees orwhere no person or authority is so appointed, thehead of the department;Government in India in respect of which minimumrates of wages have been fixed under this Act, theperson or authority appointed by such Governmentfor the supervision and control of employees orwhere no person or authority is so appointed, thehead of the department;
iii. in any scheduled employment under any local authority inrespect of which minimum rates of wages have beenfixed under this Act, the person appointed by suchauthority for the supervision and control ofemployees or where no person is so appointed, thechief executive officer of the local authority;respect of which minimum rates of wages have beenfixed under this Act, the person appointed by suchauthority for the supervision and control ofemployees or where no person is so appointed, thechief executive officer of the local authority;
iv. in any other case where there is carried on any scheduledemployment in respect of which minimum rates ofwages have been fixed under this Act, any personresponsible to the owner for the supervision andcontrol of the employees or for the payment ofwages;employment in respect of which minimum rates ofwages have been fixed under this Act, any personresponsible to the owner for the supervision andcontrol of the employees or for the payment ofwages; Section 2(i) defines “employee” as hereunder :
“employee means any person who is employed for hire orreward to do any work, skilled or unskilled, manual or clerical, inany scheduled employment in respect of which minimum ratesof wages have been fixed; and includes an out-worker to whomany articles or materials are given out by another person to bemade up, cleaned, washed, altered, ornamented, finished,repaired, adapted or otherwise processed for sale for thepurposes of the trade or business of that other person wherethe process is to be carried out either in the home of the out-worker or in some other premises not being premises under thecontrol and management of that other person; and alsoincludes an employee declared to be an employee by theappropriate Government; but does not include any member ofthe Armed Forces of the Union.”
Section 2(h) defines “Wages” as hereunder :
Section 2(h) defines “Wages” as hereunder :
“Wages means all remuneration, capable of being expressedin terms of money, which would, if the terms of the contract ofemployment, express or implied, were fulfilled, be payable to aperson employed in respect of his employment or of work donein such employment, (and includes house rent allowance), but does not include –
i. the value of –
a. any house-accommodation, supply of light,water, medical attendance, orwater, medical attendance, or
b. any other amenity or any service excluded bygeneral or special order of the appropriateGovernment;general or special order of the appropriateGovernment;
ii. any contribution paid by the employer to any PensionFund or Provident Fund or under any scheme ofsocial insurance;Fund or Provident Fund or under any scheme ofsocial insurance;
iii. any travelling allowance or the value of any travellingconcession;concession;
iv. any sum paid to the person employed to defray specialexpenses entailed on him by the nature of hisemployment; orexpenses entailed on him by the nature of hisemployment; or
v. any gratuity payable on discharge;
The A.P. Labour Welfare Fund Act, 1987, Act 34 of 1987, is anAct to provide for the constitution of a Welfare Fund for the financing of activities to promote welfare of labour in the State of AndhraPradesh and for the establishment of Board for conducting suchactivities and for matters connected therewith. Section 2(2) of the said Act defines “employee” as hereunder :
‘employee’ means:-
(i) any person who is employed for hire or reward to doany work, skilled or unskilled, manual, supervisory, clerical, ortechnical, in an establishment for a period of thirty days duringthe period of twelve months, whether the terms of employmentbe express or implied; but does not include any person -
a. who is employed mainly in a managerialcapacity; orcapacity; or
b. who being employed in a supervisorycapacity, draws wages exceedingRs.1,600 (Rupees sixteen hundred) permensem or exercises either by the natureof the duties attached to the office or byreason of the powers vested in him,functions mainly of a managerial nature; orcapacity, draws wages exceedingRs.1,600 (Rupees sixteen hundred) permensem or exercises either by the natureof the duties attached to the office or byreason of the powers vested in him,functions mainly of a managerial nature; or
c. who is employed as an apprentice or on part-time basis.time basis.
Explanation: (i) An apprentice means a person who accordingto the Certified Standing Orders applicable to theestablishment is an apprentice or who is declared to be anapprentice by the authority specified in this behalf by theGovernment; and
(ii) any other person employed in any establishments whomthe Government, may by notification, declare to be anemployee for the purposes of this Act.”
Section 2(3) defines “employer” as hereunder :
“employer means any person who employs either directlythrough another person either on behalf of himself or any otherperson, one or more employees in an establishment andincludes –
i. in a factory, any person named under Section 7(1)(f) of theFactories Act, 1948 as the manager;Factories Act, 1948 as the manager; ii. in any establishment, any person responsible to the ownerfor the supervision and control of the employees orfor the payment of wages;for the supervision and control of the employees orfor the payment of wages; Section 2(4) defines “establishment” as hereunder :
“establishment means –
i. a factory as defined in Section 2(m) of the Factories Act,1948;1948;
ii. a motor transport undertaking as defined in the MotorTransport Workers Act, 1961;Transport Workers Act, 1961;
iii. any other establishment as defined in Section 2(10) of theAndhra Pradesh Shops and Establishments Act,1966 and includes a society registered under anylaw in force in the State relating to registration ofsocieties, and a charitable or other trust, whetherregistered or not, which carries on any business ortrade or any work in connection with or ancillarythereto and which employs or on any working dayduring the preceding twelve months employedtwenty or more persons, but does not include anestablishment, not being a factory, belonging to orunder the control of the Central or any StateGovernment;Andhra Pradesh Shops and Establishments Act,1966 and includes a society registered under anylaw in force in the State relating to registration ofsocieties, and a charitable or other trust, whetherregistered or not, which carries on any business ortrade or any work in connection with or ancillarythereto and which employs or on any working dayduring the preceding twelve months employedtwenty or more persons, but does not include anestablishment, not being a factory, belonging to orunder the control of the Central or any StateGovernment; Section 2(12) of the said Act defines “wages” as hereunder :
“Wages” means all remuneration capable of being expressedin terms of money which would, if the terms of the contract ofemployment, express or implied were fulfilled, be payable to anemployee in respect of his employment or of work done insuch employment and includes bonus payable under thePayment of Bonus Act, 1965, but does not include, - a. the value of any house accommodation, supply of light,water, medical attendance, or any other amenity or anyservice excluded from the computation of wages bygeneral or special order of the Government.water, medical attendance, or any other amenity or anyservice excluded from the computation of wages bygeneral or special order of the Government.
b. any contribution paid by the employer to any pension fundor provident fund or under any scheme of socialor provident fund or under any scheme of social insurance;
c. any travelling allowance or the value of any travellingconcession;concession;
d. any sum paid to the employee to defray special expensesentailed on him by the nature of his employment; orentailed on him by the nature of his employment; or
e. any gratuity payable on termination of employment; In exercise of the powers conferred under Section 37 of the said Act, A.P. Labour Welfare Fund Rules, 1988 in G.O.Ms.No.131, Labour,Employment and Technical Education (Labour-III) dated 25-6-1988also had been framed and Rule 4 dealing with Maintenance ofRegisters by the employers reads as hereunder :
(1) Every employer of an establishment shall maintain andpreserve for a period of five years:preserve for a period of five years:
a. A register of wages in Form D except in cases where asimple register is maintained under any other law for thetime being in force, andsimple register is maintained under any other law for thetime being in force, and
b. A consolidated register of unclaimed wages and fines inForm G provided that in respect of cases of pendingbefore the appellate authorities such records registershall be preserved till the cases are finally disposed of.Form G provided that in respect of cases of pendingbefore the appellate authorities such records registershall be preserved till the cases are finally disposed of.
(2) The employer of an establishment shall by the 31[st] Januaryof every year forward to the Welfare Commissioner a copy ofthe extract from the register in Form-E pertaining to theprevious year.
Rule 6 dealing with Payment of employer’s and employee’scontributions specifies as hereunder :
“Every employer of an establishment operating for any lengthof period during the twelve months preceding the 31[st]December of every year shall pay to the WelfareCommissioner or such officer as may be authorized in thisbehalf, the employers’ contribution and also the employees’contribution, whose names stand on the register ofestablishment preceding the 31[st] December, by the 31[st]January succeeding year, along with a statement showing fullparticulars in Form-F.”
I n VENKATESWAR RAO Vs. SIR SON-IN-LAW LTD. AND
OTHERS the Division Bench while dealing with the aspect whether Birla Institute of Scientific Research is an establishment under the Act held :
“The Birla Institute of Scientific Research satisfies the tripletests of (1) systematic activity; (ii) organized by the cooperationbetween employer and employee; (iii) for the production and/ordistribution of goods and services calculated to satisfy humanwants and wishes, and therefore is a commercialestablishment and governed by the Act and an Appeal underSection 41 against the establishment therefore lies to theauthority.”
I n KODALI NAGAIAH Vs. SRI ARANI KANIAPPA MAISTRY
CHOULTRY, NELLORE the Division Bench while dealing with theaspect whether a choultry would fall under the meaning ofestablishment, held at paras 7 to 12 as hereunder :
“ I n Pappuchetti Raghavayya Chetti’s Charities v.Commissioner of Labour (1967-II-LLJ 848), the question waswhether the office of the charities falls within the definition of‘shop’ under Section 2(16) of the Madras Shops andEstablishments Act, Kailasam,J (as hethen was) held that thecharities were engaged in the activities of collecting rents fromimmovable properties and interests on moneys lent, besides collecting hire charges on the vessels and electricity chargesand that the charities had made a profit. Therefore, the officefalls within the definition of ‘shop’ under Section 2(16) of theMadras Shops and Establishments Act.
In Bayer (India) Limited v. Commissioner of Labour (1980(1)APLJ 360), a Division Bench of our High Court had consideredthe question whether a defined premises is an essentialrequisite for an establishment so as to fall within the definitionof ‘commercial establishment’. This judgment is of noassistance in regard to the question we are concerned.
In D.B. Khade v. Ramsingh Jaisingh (1986 (52) F.L.R. 378), alearned single Judge of the Bombay High Court held that theenterprise carried on by Khanna Construction House byproviding accommodation and service to the residents of thehouse on payment of rent would amount to ‘commercialestablishment’.
In G.Venkateshwara Rao v. Sir Silk Limited (1988-II-LLJ 375),a Division Bench of this Court to which one of us (Syed ShahMd.Quadri,J) was a member, considered the question whetherthe research institute of the Sir Silk Limited, which was set upwith the objects of improving, securing greater efficiency,rationalization, reduction of cost of silk, was a commercialestablishment within the meaning of Section 2(5) of the Act.Having taken into consideration the functions of the researchinstitute which included investment in movable and immovableproperties, growing of commercial crops and selling the sameto industries etc., it was held that it was a commercialestablishment within the meaning of the Act.
As noticed above, the Choultry in question is maintaining alodging house which falls within the expression of‘establishment’ as defined in Section 2(10) of the Act. We donot consider it necessary to go into the question whetherleasing out its land to a theatre and saw mills and the otherbuildings to a Bank and other persons would constitutebusiness or trade by the Choultry for purposes of satisfying therequirements of commercial establishment as on a reading ofthe definition of ‘establishment’ and ‘commercial establishment’it is clear that for being an ‘establishment’ it need not be a‘commercial establishment’ though every commercialestablishment falls within the meaning of ‘establishment’. Thefact that the object of the Choultry is charitable or religious isnot, in our view, relevant in construing the definition of‘establishment’.
Further from the point of view of an employee, it makes verylittle difference for him whether the object of the employer isreligious or charitable or commercial. So far as he isconcerned, he does his work. In the instant case the appellantwas collecting rents from the lodgers of the lodging house andrendering service to them. How those rents are applied is nothis concern and it should not be a relevant factor indetermining whether the employer is an establishment withinthe meaning of the Act or not. The A.P. Shops andEstablishments Act is beneficient social legislation intended toserve the cause of labour welfare and to regulate theconditions of employees in shops and commercialestablishments, restaurants, theatres and otherestablishments. When the provisions of the Act are clear andunambiguous, they cannot be so construed as to defeat thevery purposes of the legislation merely because theestablishment is a charitable institution. Under sub-section (4)of Section 64 of the Act (Section 73(4) of Act 20 of 1988), theGovernment have power to exempt any establishment or classof establishments from all or any of the provisions of the Actsubject to such conditions as they may deem fit. Therespondent-choultry does not enjoy exemption from theGovernment. So long as an establishment, whether religious orcharitable, is not exempted by the Government, the provisionsof the Act will apply and they have to be given effect to”.
In INDIAN CHAMBERS OF COMMERCE AND INDUSTRY’s casethe question was whether the Federation of Indian Chambers ofCommerce and Industry is a commercial establishment within themeaning of the Delhi Shops and Commercial Establishments Act,1854 and it was pointed out that the definition of ‘commercialestablishment’ in that Act is so wide that the activities of a registeredsociety or a charitable trust would also fall within the purview of thatdefinition. In V.SASIDHARAN Vs. M/s.PETER & KARUNAKAR ANDOTHERS while dealing with the aspect whether firm of lawyers wouldfall under ‘commercial establishment’ under Kerala Shops and Establishments Act 1960 the Apex Court observed at paras 8 and 9as hereunder :
“A lawyer’s office or the office of a firm of lawyers cannotobviously fall under clauses (30 and (40 above. Nor has theGovernment issued any notification as contemplated bySection 2(4). The question thus narrows itself into whether alawyer’s office falls under either of the first two clauses.
The expression ‘establishment’ is defined by Section 2(8) tomean a shop or a commercial establishment. Since by thedefinition contained in the first clause of Section 2(4), acommercial establishment means an establishment, a place ofwork cannot be regarded as a commercial establishmentunless the activity is conducted in a ‘shop’ or in a commercialestablishment, which is really tautological. The definition of‘shop’ which is contained in Section 2(15) shows that in orderthat an establishment can be regarded as a shop, it isnecessary that some ‘trade’ or ‘business’ must be carried onthere or some service must be rendered to ‘customers’. Theexpression ‘shop’ also includes offices, warehouses, storerooms or godowns which are used in connection with the tradeor business. It does not require any strong argument to justifythe conclusion that the office of a lawyer or of a firm of lawyersis not a ‘shop’ within the meaning of Section 2(15). Whatevermay be the popular conception or misconception regarding therole of to-day’s lawyers and the alleged narrowing of the gapbetween a profession on one hand and a trade or business onthe other, it is trite that, traditionally, lawyers do not carry on atrade or business nor do they render services to ‘customers’.The context as well as the phraseology of the definition inSection 2(15) is inapposite in the case of lawyer’s office or theoffice of a firm of lawyers.”
In AUGUSTINE MATHAI Vs. APPELLATE AUTHORITY a Division Bench of Kerala High Court while dealing with whether a Churchwould fall under ‘shop’ or ‘commercial establishment’ under Kerala Shops and Commercial Establishments Act, 1960 held that it wouldbe stranger than fiction to hold that the devout who goes to thechurch was a ‘customer’ and the church was a commercialestablishment where “services are rendered”. The church was neithera shop nor a commercial establishment as defined under the Act.The same view was expressed in AUGUSTINE MATHAI Vs.APPELLATE AUTHORITY . A Division Bench of Bombay High Courti n NARENDRA KESHRICHAND FULADI AND ANOTHER Vs.STATE OF MAHARASHTRA while dealing with Bombay Shops andEstablishments Act, 1948 as amended by Maharashtra Act LXIV of1977 which enlarged the definition of commercial establishment byincluding establishment of legal practitioners, at para-13 observed :
“We may not tread the same ground which has been coveredby this Court in Sakharam Narayan Kherdekar’s case supra(1964(1) LLJ 156) which distinguishes the law practice fromother commercial ventures. The nature of the law practice,contracted with other commercial ventures, is distinguished byfour features, according to Henry S.Drinker in his book “LegalEthics”, page 5. The primary characteristics which distinguishthe legal profession from business are : (1) a duty of publicservice in which one may attain the highest eminence withoutmaking such money, (2) a relation as an “officer of Court” toadministration of justice involving through sincerity, integrityand reliability, (3) a relation to clients in the highest degreefiduciary, and (4) a relation to colleagues at the barcharacterized by candor, fairness and unwillingness to resortto current business methods of advertising and encroachmenton their practice, or dealing directly with their clients. The part alawyer plays in the administration of justice partakes to someextent or participation in sharing sovereign or regal functions ofthe State. The discussion in Bangalore Water Supply andSewerage Board v. Rajanna and others (1978(1) LLJ 349)does not touch any of these aspects as it as not necessarythere to decide these other questions, in view of the point that fell for decision there, as to the scope of the definition of“industry” in Section 2(j) of the Industrial Disputes Act. We findthat the concept of commercial establishment is very muchdifferent from the concept of industry and whatever may havebeen said in respect of ‘industry’ cannot be imported whileconsidering the width, nature and the extent for the concept of‘commercial establishment’. In this view which we are taking,we are supported by the observations made by the KeralaHigh Court in Sasidharan v. Peter and Karunakaran (1978Lab. I.C. 1614).”
I n RASHEED A. MASKATI AND OTHERS Vs. M.ABBAS ALI
HUSSAINI AND ANOTHER while dealing with whether a trust owningbuilding with tenanted flats let out on rental basis would fall undercommercial establishment under the Bombay Shops &
Establishments Act, 1948 it was observed at para 20 as hereunder :
“…..There is no doubt that the petitioners have employedvarious workmen like the liftmen, watchmen, sweepers, pump-attendant etc., and with their help the Trust provided service tothe tenants of the flats. There is, therefore, organized labouremployed by the Trust. Hence I have no hesitation in comingto the conclusion that in this case, the petitioners-Trust wouldfall within the ambit of the definition of “commercialestablishment” appearing in Section 2(4) of the Bombay Shopsand Establishments Act, 1948.”
In Dr.NIRUPAMA RATH Vs. STATE OF ORISSA while dealing with the aspect whether the clinic run by Doctor is covered by the Orissa Shops and Commercial Establishments Act, 1956 it was held at para- 7 as hereunder:
“The expression “establishment” is defined in Section 2(8) tomean a shop or a commercial establishment. Since by thedefinition contained in the first category of Section 2(4), a
commercial establishment means an establishment, a place ofwork cannot be regarded as a commercial establishmentunless the activity is conducted in a “shop” or any commercialestablishment which is readily tautological. The definition of“shop” which is contained in Section 2(19) shows that in orderthat any establishment can be regarded as a shop, it isnecessary that some “trade” or “business” must be carried outthere or some services must be rendered to “customers”. Theexpression “shop” also includes offices, warehouses,storerooms, or godowns which are used in connection withtrade or business. The inevitable conclusion is that a doctor’sclinic is not a “shop” within the meaning of Section 2(19). Aquestion arose for consideration in respect of a lawyer’s officei n V.Sasidharan v. Peter and Karunakar (1984 II LLJ 385).Considering almost in pari materia the provision of the KeralaShops and Commercial Establishments Act (34 of 1960), theApex Court observed that the office of the lawyer is notcovered by the said Act. It is true that Section 2(4) of the Acthas used words of very wide import and grammatically it mayinclude even a consulting room where a doctor examined hispatients with the help of a solitary nurse or attendant. But, inthe matter of construing the language of Section 2(4) of theAct, the principle of noscitur a sociis has to be adopted. Thepresence of the profit motive or the investment of capitaltradition associated with the action of trade and commercecannot be given an undue importance in construing thedefinition of “commercial establishment” under Section 2(4) ofthe Act. The correct test of finding whether a professionalactivity falls within Section 2(4) of the Act is whether the activityis systematically and habitually undertaken for production ordistribution of goods or for rendering material services of thecommunity or any part of the community with the help of theemployees in the manner of a trade or business in such anundertaking. A professional activity must be an activity carriedon by an individual by his personal skill and intelligence. Thereis a fundamental distinction, therefore, between a professionalactivity and an activity of a commercial character and unlessthe profession carried on by a person also partakes of thecharacter of a commercial nature, he cannot fall within theambit of Section 2(4) of the Act. A person following a liberalprofession in any intelligible sense with the active co-operationof his employees and the principal, if not the sole, capital,which he brings into his profession is his special or peculiarintellectual and educational equipment. Considering a similarquestion in the background of Section 2(4) of the BombayShops and Establishment =s Act (79 of 1948), it was held by the Apex Court in Dr.Devendra M.Surti v. State of Gujarat(1969(2) LLJ 116), that a doctor’s establishment is notcovered.”
In LIFE INSURANCE CORPORATION Vs. APPELLATE
AUTHORITY the aspect whether L.I.C. would come within thedefinition of commercial establishment had been dealt with. InPHILLIPOS & CO. Vs. STATE the question whether the firm ofChartered Accountants would fall within the meaning of commercialestablishment or shop under Karnataka Shops and CommercialEstablishments Act, 1961 had been discussed. I n BANGALORECLUB Vs. SENIOR LABOUR INSPECTOR it was held that none ofthe activities carried by Bangalore Club had an element of trade orbusiness and such club is not a commercial establishment underKarnataka Shops and Commercial Establishments Act, 1961. InMERCHANT NAVY CLUB Vs. Vs. ASSISTANT INSPECTOR OFLABOUR it was held that Navy Club is not a shop or establishmentwithin the meaning of the Act. In S.V. RATNA GUPTA Vs. STATE OFA.P. it was held that the office of a Chartered Accountant, whether itis an individual or a firm, wherever it is run, would not fall undercommercial establishment within the meaning of the Act.
In the light of the decisions referred to supra and also the stand takenin the affidavit filed in support of the Writ Petition by the writ petitionerand the stand taken by the respondents in the counter affidavit and on a careful scrutiny of the different provisions of the Legislationsreferred supra, taking into consideration the nature of activities, thisCourt has no hesitation in holding that the lace knitting Units in thepresent case fall within the meaning of ‘commercial establishment’and thus attracted by the provisions of the Act. It is pertinent to notethat in the counter affidavit it had been specifically stated that despitethe protest by the petitioner-association, the following laceestablishments already had been registered under the Act andcontributions had been made under A.P. Labour Welfare Fund Act forthe workers employed :
Sl. Name of the Lace Licence No.of RenewedNo. Establishment No. workers upto
----------------------------------------------------------------------------------------
1. P.Veeraiah & Co. Palakole 4293 22 1997
2. P.Venkanna & Co. Palakole 279 46 1997
3. Jain Enterprises, Narasapur 3169 18 1997
4. Sri Koteswara Lace Industry,Narasampuram 7106 52 1997
5. Godavary Delta Women
Lace Artisans, Coop.Cottage Industrial Society Ltd., Narsampuram 7113 35 Due for 1997
6. Sri Kanaka Durga Lace
Industry, Narasapuram 7208 4 1997
7. K.S.Nayadu & Co.,
Palakole 3997 3 1997
No doubt in the counter affidavit certain other details relating to claimsunder Minimum Wages Act 1948 filed before the Authority had beenspecified hereunder :
----------------------------------------------------------------------------------------Name of the No. of Claim Date of Establishment workers amount claim filed
----------------------------------------------------------------------------------------
1. Sri Ramakrishna Paramahamsa
Lace Company, Sitarampuram 42 Rs. 88,693-50 5-6-96
2. Narasamamba Lace Industry, 64 Rs. 72,789-25 5-6-96
Sitarampuram
3. C.V.Chalam & Co. Narasapuram 27 Rs. 91,469-25 23-5-96
4. Koteswari Lace Industry, 34 Rs.1,30,365-00 23-5-96
Narsapuram
5. Kanakadurga Lace Industry,
Narasapuram 4 Rs. 15,990-00 5-6-96
6. P.Veeraiah & Co. Palakole 6 Rs. 13,759-00 23-5-96
7. P.Venkanna & Co. Palakole 42 Rs.1,18,881-00 1-1-96
8. Jain Enterprises, Narsapur 6 Rs. 8,535-00 5-6-96
9. P.Veeraiah & Co. Palakole 22 Rs. 14,154-00 30-8-96
Details relating to the cases in the Court of Judicial First ClassMagistrate, Narsapur for not registering the establishments also hadbeen given in the counter affidavit as hereunder :
----------------------------------------------------------------------------------------Nameof the Establishments No. of workers
----------------------------------------------------------------------------------------1. SriC.V.Chalam, C.V.Chalam & Co.
At Durga, Narsapuram 272. Sri Addagalla Upendranath, NarasamambaLace Industry, Sitarampuram 64
3. Sri Gangipamula Nageswara Rao, G.N.R. No workers found,Exports, Opp. To S.B.I. Narasapuram no work is goingby the time of Inspection.
4. Sri Kolvakolanu Tulasirao,
Sri Ramakrishna Paramahamsa Lace
Company, Sitarampuram 42
Taking into consideration the nature of activities, this Court is of theconsidered opinion that these Units are definitely governed by theprovisions of the Act and also in view of the same the provisions ofthe Minimum Wages Act, 1948 and also A.P. Labour Welfare FundAct, 1987 also are applicable to the said Units. As already referred tosupra, the object of these Labour Legislations is to protect the working class from the exploitation at the hands of the employers andthe enforcement and implementation of these Labour Legislationsaimed at protecting the interests of the working class. Taking intoconsideration the welfare object of these Legislations, this Court is ofthe considered opinion that the writ petitioner is not entitled to therelief prayed for in the Writ Petition and accordingly being devoid ofmerit, the Writ Petition is hereby dismissed, with costs.
_________________
P.S.Narayana.,J
Date : -12-2004
L.R. copy to be marked : YES / NO
AM
To:
One fair copy to the Honourable Mr.Justice P.S. Narayana (for hisLordship’s kind perusal)
1 The Secretary to Government Of Andhra Pradesh, Labour Department, Hyderabad. Labour Department, Hyderabad.
2 The Commissioner of Labour,
Hyderabad.
3 The Assistant Commissioner of Labour,
Eluru, West Godavari District.
4 The Labour Officer,
Bhimavaram , West Godavari District.
5 The Assistant Labour Officer,
Palakole , West Godavari District.
6. 2 C.Cs. to Government Pleader for Labour, Employment & Training High Court of A.P., High Court Buildings, Hyderabad.(OUT)
7. 2 C.D. copies
8. The Under Secretary, Union of India, Ministry of Law, Justice &
Company Affairs, New Delhi.
9. The Secretary, A.P. Advocates Association Library, High Court Buildings, Hyderabad
10. 8 L.R. copies