High CourtDivision BenchAppeal disposed of; remanded to High Court; no ...

Union of India and Ors. v. M/s Essel Mining & Industries Ltd. and Anr.

Case / Petition Number:Civil Appeal No. 5920 of 1999

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Arijit Pasayat
  • H.K. Sema
Judgment Date
2005-08-09
Court Decision / Holding
The Supreme Court disposed of the appeal, allowing it and remanding to the Orissa High Court to re-hear the writ petition with proper reasons; it did not express any opinion on merits and directed continued interim relief; the matter should be decided expeditiously; no costs.
Final Disposition
Appeal disposed of; remanded to High Court; no costs.

Parties to the Case

Appellants / Petitioners

  • Union of India and Ors.

Respondents

  • M/s Essel Mining & Industries Ltd. and Anr.

Legal Representation & Advocates

Counsels for Petitioners

  • • Amarendra Sharan
  • • Harish Chander
  • • T.A. Khan
  • • Amit Anand Tiwari
  • • B.K. Prasad
  • • Ms. Sushma Suri

Counsels for Respondents

  • • Dushyant Dave
  • • R.R. Kumar
  • • Samyadip Chatterji
  • • Ms. Sangeeta Panicker
  • • Bharat Sangal

Case Synopsis & Summary

Union of India and Ors. v. Essel Mining & Industries Ltd. concerns a challenge to a Government Notification under the Minimum Wages Act, 1948. The notification, No. 514(E) dated 12 July 1994, introduced an Explanation to define 'below ground' for mining-related wage fixation, specifically including clause (iii) that covers open-cast mining where the excavation depth exceeds six metres. The Orissa High Court quashed Clause (iii) of paragraph 7, holding that the authorising notification lacked statutory power to include such an explanation. The appellants contended that the Government acted within the delegated power under s. 3(1)(b) read with ss. 4(1)(iii) and 5(2), and that the mining statutes and rules were not relevant to the fixation of minimum wages. The respondents argued that only the classifications in paragraphs (i) and (ii) were justified, and Clause (iii) created a class of employees not recognised by mining law, undermining the notification's validity. The Supreme Court noted that while the High Court referred to various mining statutes, its reasoning was cryptic and insufficient, and it did not express any opinion on the merits. Instead, it called for a fresh, reasoned order by the High Court. The Court disposed of the appeal, preserved interim relief, and left the merits for reconsideration, while noting a similar notification issued in 2002 for consideration. The matter should be resolved promptly by the High Court, with no costs imposed.

Provisions of Law Cited

Minimum Wages Act, 1948 - s.3(1)(b), s.4(1)(iii), s.5(2)Minimum Wages Act, 1948 - s.3(1)(b)Notification No. 514(E) dated 12.07.1994, Explanation Paragraph 7, Clause (iii)The Mines ActThe Mines Rules

Legal Doctrines & Maxims

  • unspeaking order
  • inscrutable face of a Sphinx

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants contended that the Notification under the Minimum Wages Act, including Clause (iii) of Paragraph 7, was issued within statutory power under s. 3(1)(b) read with ss. 4(1)(iii) and 5(2); the High Court's decision rested on irrelevant mining statutes and failed to justify the lack of statutory power; Clause (i) and (ii) classifications are permissible, while Clause (iii) attempts to create a class not recognized by mining statutes, which cannot invalidate the Notification; the High Court should rehear with reasoned order and the matter should be considered in light of a later 2002 Notification.

Contentions of Respondents

The respondents argued that the classifications in Clause (i) and (ii) were not problematic, but Clause (iii) creates a class of employees not recognized under mining-related statutes; thus the Notification lacks statutory sanctity for that part; the High Court's analysis should be considered to ensure proper statutory compliance.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Rex v. Nat Bell Liquor Ltd.1922 AC 128Mentioned OnlyCited to illustrate the concept of an 'unspeaking order' described by Lord Cairns; used as background authority rather than a direct ruling.
Overseas of the Poor of Walsall Overseas v. London & NWR Co.1879 4 AC 30Mentioned OnlyCited for the doctrine of 'unspeaking order' as discussed by Lord Cairns; referenced to support description of cryptic judgments.

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Extracted Judgment Text

Exact text extracted from official judgment records.

A UNION OF INDIA AND ORS. _v._ ## MIS ESSEL MINING & INDUSTRIES LTD. AND ANR. ## AUGUST 9, 2005 ## B ## [ARIJIT PASAYAT AND H.K. SEMA, JJ.] _Labour Law : Minimum Wages Act, 1948 :_ c _S. 3(J)(b) rlw ss. 4(J)(iii) and 5(2)-Government of India Ministry of Labour Notification No. 514(£) dated 12. 7.1994-Explanation-Paragraph 7-Clause (iii)-Person working or employed "below ground"-Jnterpretation of-Matter remanded to High Court._ D _Rex_ v. _Nat Bell Liquor Ltd.,_ (1922) AC 128 and _Overseas of the Poor of Walsall Overseas_ v. _London & NWR Co.,_ (1879) 4 AC 30, referred to. ## CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5920of1999. From the Judgment and Order dated 4.12.98 of the Orissa High Court at Cuttack in O.J.C. No. 8339 of 1994. E Amarendra Sharan, Additional Solicitor General, Harish Chander, T.A. Khan, Amit Anand Tiwari, B.K. Prnsad and Ms. Sushma Suri for the Appellants. ## F Dushyant Dave, R.R. Kumar, Samyadip Chatterji, Ms. Sangeeta Panicker and Bharat Sangal for the Respondents. The Order of the Court was delivered by ARIJIT PASAYA T, J. : Challenge in this appeal is to the judgment G rendered by a Division Bench of the Orissa High Court quashing Clause-iii of paragraph 7 of the Explanation in Notification No. 514(E) dated 12.07.1994 issued by the Government of India, Ministry of Labour in purported exercise of powers conferred by Section 3(l)(b) read with Section 4(l)(iii) and 5(2) of the Minimum Wages Act, 1948 (in short 'the Act). Stand of the writ H petitioners before the High Court in the writ petition was that the inclusion 510 511 U.0.1. _v._ M/S. ESSEL MINING & INDS. LTD. A c D E sought to be made was impermissible in the background of what has been stated in The Mines Act, the Mines Rules and other pieces of legislation dealing with mining activities. The relevant portion of the Notification reads as follows : EXPLANATION FOR THE PURPOSE OF THE NOTIFICATION: B "A person working or employed in or in connection with a mine is said to be working or employed "below ground" if he is working or employed :- (i) in a shaft which has been or is in the course of being **sunk; or** (ii) in any excavation which extends below superjacent **ground; or** (iii) in an open cast working in which the depth of the excavation measured from its highest to its lowest point **exceeds six metres."** The High Court held that the authority issuing the Notification overlooked that it did not have the source of statutory power to incorporate such explanation in the Notification as done and, accordingly, as noted above, held that though the Notification was in operaiion, the Clause-( iii) of paragraph 7 of the Explanation is non est. Mr. Amarendra Sharan, learned Additional Solicitor General submitted that the High Court failed to notice various facts of the Act and put unnecessary stress on the statutes relating to mining activities which had no **relevance so far as the fixation of minimum wages is concerned. In response,** Mr. Dushyant Dave, learned senior counsel appearing for the respondentCompany submitted that the classification contained in clauses (i) & (ii) of paragrah 7 of the Notification do not pose any problem but clause-( iii) which was impugned creates a class of employees which is not recognized under any statute relating to mining activities and therefore there is no sanctity in the Notification so far as that part is concerned. F G We find that though the High Court referred to various statutes relating H 512 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R. A B c D E _:_ F to the mining activities, e.g. The Mining Act etc., it did not indicate any reason as to why it was of the view that the authority issuing the Notification lacked statutory power to issue the Notification. Though the judgment runs to several pages, after noticing the rival subl!lissions, the High Court in a very cryptic manner, disposed of the writ petition coming to the aforesaid view. It is not the number of pages in a judgment which is relevance. It is on the other hand, the sufficiency ofreasons indicr\ted to justify the conclusions. We may only add here that the paragraphs 28 and 29 of the judgment which are supposed to contain the conclusions are not only confusing, but also make little sense. They to quote the immortal words of Lord Summer in _Rex_ v. _Nat Bell Liquors Ltd.,_ (1922) AC 128 "speak only with the inscrutable face of a Sphink." It is "unspeaking order" as classically described by 1 Lord Cairns IC in _Overseas of the Poor of Walsall Overseas_ v. _London & NWR Co.,_ (1879) 4 AC 30. In the fitness of things, therefore, the Hi'gh Court should re-hear the writ petition and dispose of the same by a reasoned order. We make it clear that we have not expressed any opinion on the merits of the Case. It goes without saying that the parties shall be free to place all relevant aspects for consideration of the High Court when the matter is taken up afresh. It appears that no interim orders were passed by this Court. While the writ petition is being heard by the High Court, the relief that was granted to the writ petitioners, would be continued. By granting this protection, it shall not be construed as if we have expressed ty opinion on the merits of the case. It would be relevant to note one further fact, as contended by the respondent that a Notification containing similar stipulation as was impugned, has been issued on 03.01.2002. The relevance and effect thereof, it goes without saying, shall be considered by the High Court if brought to its notice with appropriate pleadings. Since the dispute raised in the writ petition filed in the year 1994, we request the High Court to dispose of the writ petition as early as prac~cable .. The appeal is disposed of accordingly. No costs. R.P. Appeal disposed of.