SOCIEDADE DE FOMENTO INDUSTRIAL PRIVATE LIMITED Vs. MORMUGAO DOCK LABOUR BOARD
LAWS(SC)-1995-1-92
SUPREME COURT OF INDIA (FROM: BOMBAY)
Decided on January 18,1995

SOCIEDADE DE FOMENTO INDUSTRIAL PRIVATE LIMITED Appellant
VERSUS
Mormugao Dock Labour Board Respondents

JUDGEMENT

- (1.) These appeals, by special leave, arise out of Writ Petition No. 60 of 1983 filed by the appellants in CA No. 258 of 1985, hereinafter referred to as "the petitioners", in the High court of Bombay, Panaji bench, Goa, wherein they had challenged the validity of two circulars dated 19-3-1983 issued by the Mormugao Dock Labour Board, hereinafter referred to as "the Board". By one of those circulars the general levy payable in respect of handling by grab cranes fitted to ships with effect from 30/10/1982 was fixed at 400% on the actual employment of one set of Winch Drivers and on the notional employment of two gangs per hook (400% for each gang) and welfare levy relating to the above operations was fixed at 60% of the time rate wages both in respect of Winch Drivers and in respect of notional employment of two gangs per hook with effect from 30/10/1982. By the other circular a special levy Re 1 per tonne was imposed in respect of all cargoes manually handled from 14/3/19833. By a subsequent circular dated 14/7/1983 it was clarified that the special levy is to be calculated in respect of cargoes handled with the help of registered dock workers, whether gang workers or Winch Drivers. The said circulars were issued in exercise of the powers conferred by clause 54 of the Mormugao Dock Workers (Regulation of Employment) Scheme, 1965, hereinafter referred to as "the Scheme" framed by the government of India in exercise of the powers conferred on it by the Mormugao Dock Workers (Regulation of Employment) Act, 1948 hereinafter referred to as "the Act".
(2.) The Act was enacted with a view to provide for regulating the employment of dock workers. Section 3 of the Act provides for a scheme for registration of dock workers and employers with a view to ensuring greater regularity of employment and for regulating the employment of dock workers, whether registered or not, in a port. Such a scheme, among other provisions, can provide for securing a minimum pay in respect of periods during which employment, or full employment, is not available for dock workers to whom the Scheme applies and who are available for work. Under Section 4 the power to frame the Scheme has been conferred on the central government in relation to a major port and the State government in relation to any other port. Section 5-A of the Act provides for the establishment of a Dock Labour Board for a port or a group of ports. Under Section 5-B the Dock Labour Board has been entrusted with the responsibility of administering the Scheme for the port for which it hasbeen established. The Board has been established by the central government under Section 5-A of the Act for Mormugao Port which is a major port. In exercise of the powers conferred by Section 4 (1 read with Section 3 the Scheme has been made by the central government. As indicated in clause 2 the objects of the Scheme are to ensure greater regularity of employment for dock workers and to secure that an adequate number of dock workers are available for the efficient performance of dock work. The Scheme applies to stevedoring work and cargo-handling from wharf to transit shed and vice versa and the categories of stevedore workers covered by the Scheme are (a) gang workers and (b) winch drivers. The Scheme is only applicable to registered dock workers and registered employers and it does not apply to any dock worker unless he is employed or registered for employment as a dock worker. In clause 3 various expressions including the expressions "daily worker", "dock employer", "monthly worker", "registered dock worker", "registered employer" and "reserved pool" have been defined. Sub-clause (e) of clause 3 defines a daily worker to mean a registered dock worker who is not a monthly worker. The expression "monthly worker" is defined in sub-clause (k) to mean a registered dock worker who is engaged by a registered employer or a group of such employers on monthly basis under a contract which requires for its termination at least one month's notice on either side. A "registered dock worker" is defined in sub-clause (n) to mean a dock worker whose name is for the time being entered in the register or record. The expression "dock employer" is defined in sub-clause (f) to mean the person by whom a dock worker is employed or is to be employed and includes a group of dock employers formed under clause 16 (l) (d). Under sub-clause (o) "registered employer" means a dock employer whose name is for the time being entered in the employers' register. "reserve pool" is defined in sub-clause (p) to mean a pool of registered dock workers who are available for work and who are not for the time being in the employment of a registered employer or a group of dock employers as monthly workers. Clause 32 of the Scheme makes provision for guaranteed minimum wages in a month and reads as under : "32.Guaranteed minimum wages in a month.- (1 A worker in the reserve pool register shall be paid wages at least for fifteen days in a month at the wage rate inclusive of dearness allowance as prescribed by the Board appropriate to the category to which he permanently belongs, even though no work is found for him for the minimum number of fifteen days in a month. The days on which work is allotted to the worker shall be counted towards the fifteen days mentioned above. The guaranteed minimum wages in a month shall be: (A) for the number of days for which wages are guaranteed in a month subject to the condition that the worker attended for work on all days of the month as directed by the Administrative Body; (B) proportionate to the number of days on which the worker attended for work provided he was excused from attendance on all the remaining days of the month. (2 Subject to the provisions of sub-clause (1 the minimum number of days in a month for which wages are guaranteed may be fixed by the Board 538 for each year on the basis of the monthly average employment obtained by the workers in the reserve pool in the lowest categories of stevedore workers during the preceding year until the minimum number of days reaches 21, provided the number so fixed shall not, in any case, be less than the number in the preceding year. Note'. This method of assessing the average employment is detailed in Schedule II. (3 The minimum number of days for which wages shall be guaranteed under sub-clauses (1 and (2 shall not automatically apply to workers in new categories that may be registered after the date of enforcement of the Scheme. The minimum number of days for which wages shall be guaranteed to these categories shall be determined under clause 19 (2 (e). The annual refixation of the minimum number of days as under sub-clause (2 shall be done independently in their case also. Explanation.- In sub-clauses (1, (2 and (3 of this clause a 'day' shall mean a 'shift',"
(3.) In clause 33 provision has been made for payment of attendance allowance to a worker on the reserve pool register who is available for work but for whom no work is found. Clause 35 makes provision for payment of disappointment money where a worker in the reserve pool presents himself for work and for any reason the work for which he has attended cannot commence or proceed. In that event the worker shall be entitled to full-time rate wages subject to the condition that he is available throughout the shift and accepts alternative employment if provided. Clause 39 imposes certain obligations on the registered employers. Under sub-clause (5 (/) it is prescribed that a registered employer shall pay to the Administrative Body in such manner and at such times as the Board may direct the levy payable under clause 54 (1 and the gross wages due to daily workers. Clause 54 deals with the cost of operating the Scheme and provides as under: "54.Cost of operating the Scheme.- (1 The cost of operating the Scheme shall be defrayed by payments made by registered employers to the Board. Every registered employer shall pay to Board such amount by way of levy in respect of reserve pool workers together with and at the same time as the payment of gross wages due from him under clause 39 (5 (i) , as the Board may, from time to time, prescribe by a written notice to registered employers. If considered necessary, the Board may require any registered employer to pay such amount by way of levy in respect of monthly workers at such rate as it may determine and the amount payable by way of such levy shall not be less than such amount as the Board may fix as the minimum payable by every registered employer. (2 In determining what payments are to be made by registered employer under sub-clause (1, the Board may fix different rates of levy for different categories of work or workers, provided that the levy shall be so fixed that the same rate of levy will apply to all dock employers who are in like circumstances. (3 The Board shall not sanction any levy exceeding hundred per cent of the estimated total wage bill calculated on the basis of the daily wage rate without the prior approval of the central government. (4 A registered employer shall on demand make a payment to the Board by way of deposit, or provide such of the security for the due payment of the amount referred to in sub-clause (1 as the Board may consider necessary. (5 The Administrative Body shall furnish from time to time to the Board such statistics and other information as may reasonably be required in connection with the operation and financing of the Scheme. (6 If a registered employer fails to make the payment due from him under sub-clause (1 within the time prescribed by the Administrative Body, the Administrative Body shall serve a notice on the employer to the effect that, unless he pays his dues within three days from the date of receipt of the notice, the supply of registered dock workers to him shall be suspended. On the expiry of the notice period, the Administrative Body shall suspend the supply of registered dock workers to a defaulting employer until he pays his dues. ";


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