INDIAN EXPRESS NEWSPAPERS PRIVATE LIMITED Vs. UNION OF INDIA
LAWS(SC)-1994-9-145
SUPREME COURT OF INDIA
Decided on September 23,1994

INDIAN EXPRESS NEWSPAPERS PRIVATE LIMITED Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

- (1.) In all these matters, the petitioner-establishment have challenged two orders viz, Nos. 683(E) and 684(E), both dated 31-8-1989, (hereinafter referred to as 'Orders') issued by the Central Government under Section 11 of the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 (hereinafter referred to as the 'Act') accepting and giving effect to the recommendations of the Wage Board Report dated 26-5-1989 (hereinafter referred to as the 'Report ') on various grounds. Order No. 683 (E) deals with wage-scales and grades, and Order No. 684 (E) deals with House Rent Allowance and City Compensatory Allowance. The Wage Board was constituted by the respondent 1-Union Government in 1985 under the chairmanship of Shri Bachawat and hence the Report given by it is known as Bachawat Award. Both the orders are challenged on the ground of violation of the fundamental rights under Articles 14,19(1) (a) and (1)(g) of the Constitution of India. The petitioners also challenge the amendment of Sections 2 (d) and 10 (4) of the Act brought about by Sections 2 (i) and 3 of Working Journalists and Other Newspaper Employees (Constitution of Service) and Miscellaneous Provisions (Amendment) Act 1989 (hereinafter referred to as the "Amending Act") by adding an Explanation at the end of S.10(4) and a Schedule at the end of the Act as being violative Arts. 14, 19(1) (a) and 19 (1) (g) of the Constitution.
(2.) In order to appreciate the challenges, it is necessary to state a few background facts. The Act as it was initially enacted was titled the Working Journalists (Conditions of Service)and Miscellaneous Provisions Act, 1955 (the 'original Act') since it was confined to the service conditions of the working journalists only. By an amendment brought into force on 21-12-1974, by the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provision (Amendment ) Act, 1974, the scope of the original Act was expanded to include the other newspaper employees. Under the original Act, which was confined to the working journalists only, a Board headed by Shri Divatia was appointed under Section 9 of the Act, and the said Board gave its award in May 1957 which is known as Divatia Award. The recommendations made by the said Board and the provision of the Act were challenged by some establishments including some of the petitioners herein, under Article 32 of the Constitution, and these challenges were dealt with in the decision of this Court in Express Newspaper (Pvt.) Ltd., v. Union of India, (1959) SCR 12 : (AIR 1958 SC 578 ) by a Constitution Bench of five learned judges. To this decision, we may have occasion to refer later. Suffice it to say for the present that certain propositions of law which were laid down by this decision were followed not only by the later Wage Boards appointed under the Act but by all industrial adjudicators in the country. After the Divatia Wage Board, three more Wage Boards were appointed, viz Bhandarkar Wage Board, Shinde Wage Board and Palekar Wage Board in 1958, 1963 and 1975-76 respectively. They gave their respective awards in 1959, 1967 and 1980. They followed the principles laid down in the aforesaid decision of this Court. Then came the present Wage Board, viz., Bachawat Wage Board and its impugned award.
(3.) Before we discuss the challenges to the impugned award, it will be necessary to examine the relevant provisions of the Act, the changes brought about in the Act after the decision in Express Newspaper case (AIR 1958 SC 578) (supra) and the propositions of law laid down in the aforesaid decision. Section 2 (d) defines "newspaper establishment" to mean - "(d) "newspaper establishment" means an establishment under the control of any person or body of persons, whether incorporated or not, for the production of publication of one or more newspapers or for conducting any news agency or syndicate; (and includes newspaper establishments specified as one establishment under the Schedule. Explanation:-- For the purpose of this clause, - (a) different departments, branches and centres of newspaper establishments shall be treated as parts thereof; (b) a printing press shall be deemed to be a newspaper establishment if the principal business thereof is to print newspaper);" The Schedule referred to above states as follows : "1. For the purpose of clause (d) of Section 2, - (1) two or more newspaper establishments under common control shall be deemed to be one newspaper establishment; (2) two or more newspaper establishments owned by an individual and his or her spouse shall be deemed to be one newspaper establishment unless it is shown that such spouse is sole proprietor or partner or a shareholder of a corporate body on the basis of his or her own individual funds; (3) two or more newspaper establishments publishing newspapers bearing the same or similar title and in the same language in any place in India or bearing the same or similar title but in different language in the same State or Union Territory shall be deemed to be one newspaper establishment. 2. For the purpose of paragraph 1(1), two more establishments shall be deemed to be under common control -- (a) (i) Where the newspaper establishments are owned by a common individual or individuals; (ii) where the newspaper establishments are owned by firms, if such firms have a substantial number of common partners; (iii) where the newspaper establishments are owned by bodies corporate, if one body corporate is a subsidiary of the other body corporate, or both are subsidiaries of a common holding company or a substantial number of their equity shares are owned by the same person or group of persons, whether incorporated or not; (iv) where one establishment is owned by a body corporate and the other is owned by a firm, if a substantial number of partners of the firm together hold a substantial number of equity shares of the body corporate; (v) where one is owned by a body corporate and the other is owned by a firm having bodies corporate as its partners if a substantial number of equity shares of such bodies corporate are owned, directly or indirectly by the same person or group of persons, whether incorporated or not, or (b) where there is functional integrality between concerned newspaper establishments." The bracketed addition in Sec. 2(d) and the Schedule referred to therein were inserted by the Amending Act 31 of 1989 which came into force retrospectively on 28th August, 1989. The provisions of Sec. 2(i) of the said Amending Act in terms state that the said bracketed portion "shall be deemed always to have been inserted at the end" of the original Sec. 2(d) of the Act. Sec.8 and Section 13-B give power to the Central Government to fix rates of wages in respect of working journalists and non-journalist newspaper employees respectively, and to revise the rates of wages in respect of working journalists and non-journalists newspaper employees respectively, and to revise from time to time the rates of wages fixed at such intervals as it may think fit. S-9 and Sec. 13-B lay down the procedure for fixing or revising the rates of wages in respect of working journalists and non-journalists newspaper employees respectively, and they state that for the purpose, the Central Government shall as and when necessary, constitute a Wage Board. Sub-section (1) of S.10 read with Sec.13-D lays down the procedure which the Wage Board is required to follow while fixing or revising the rates of wages. The provision says that the Board shall, by notice published in such manner as it thinks fit, call upon all interested persons to make such representations as they may think fit as respects the rates of wages which may be fixed or revised under this Act. Sub-section (2) of Sec.10 states that every such representation shall state the rates of wages,which in the opinion of the person making the representation, would be reasonable,having regard to the capacity of the employer to pay the same or to any other circumstance, whichever may deem relevant to the person making the representation. Sub-section (3) thereof states that the Board shall take into account the representations so made and after examining the materials placed before it, make such recommendations as it thinks fit to the Central Government for the fixation or revision of rates of wages and any such recommendation may specify when, prospectively or retrospectively, it should take effect. Sub section (4) thereof makes an important provision. It enjoins upon the Board while making the recommendations to the Central Government, to have regard to the cost of living, the prevalent rates of wages for comparable employment, the circumstances relating to the newspaper industry in different regions of the country and to any other circumstances which to the Board may seem relevant. An explanation was added to the said sub-section (4) by the same Amending Act of 1989 which has a bearing on one of the challenges made to the impugned Award. It states: "Explanation. - For the removal of doubts, it is hereby declared that nothing in this sub-section shall prevent the Board from making recommendations for fixation or revision of rates of wages on all-India basis." (Emphasis supplied) Sub-section (1) of Section 12 gives power to the Central Government to make an order in terms of the recommendations made by the Board or subject to such modifications as it thinks fit, being modifications which in the opinion of the Central Government, do not effect important alterations in the character of the recommendations. Sub section (2) thereof gives power to the Central Government to make such modifications in the recommendations, not being modifications of the nature referred to in sub-section (1), as it thinks fit, after giving to all persons likely to be affected thereby an opportunity to make representations or to refer the recommendations or any part thereof to the Board, as it thinks fit. Sub-section (3) states that every order made by the Central Government together with the recommendations of the Board shall come into operation on the date of publication or on such date, whether prospective or retrospective, as may be specified in the order. Section 13 read with Section 13-D states that on the coming into operation of the order of the Central Government under Section 12, every working journalist and non-journalist newspaper employee shall be entitled to be paid by his employer wages at the rate which shall in no case be less than the rates of wages specified in the order. Section 13-A gives power to the Central Government to fix interim rates of wages after consulting the Wage Board.;


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