GUJARAT MAZDOOR SABHA & ANR. versus THE STATE OF GUJARAT

Citation: [2020] 13 S.C.R. 886 · Decided: 01-10-2020 · Supreme Court of India · Bench: D.Y. CHANDRACHUD · Disposal: Appeal(s) allowed

Cited by 2 judgment(s) · cites 6 · see the full citation network in Lexace

Judgment (excerpt)

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SUPREME COURT REPORTS
[2020] 13 S.C.R.
GUJARAT MAZDOOR SABHA & ANR.
v.
THE STATE OF GUJARAT
(Writ Petition (Civil) No. 708 of 2020)
OCTOBER 01, 2020
[DR. DHANANJAYA Y CHANDRACHUD,
INDU MALHOTRA AND K.M. JOSEPH, JJ.]
Factories Act, 1948 – ss.5, 51, 54, 55 and 56 – Constitution
of India – Arts. 352, 355 and 356 – A trade union with a state-wide
presence and another with a national presence u/Art.32 of the
Constitution challenged the validity of the State’s notifications dated
17.04.2020 and 20.07.2020 – The notification dated 17.04.2020
issued u/s.5 of the Factories Act exempted all registered factories
‘from various provisions relating to weekly hours, daily hours,
intervals for rest etc. for adult workers’ u/ss. 51, 54, 55 and 56 –
The State Government issued another notification on 20.07.2020
and extended the exemption granted to factories from 20.07.2020
till 19.10.2020 – The State government justifies the action on the
ground that industrial employers are faced with financial stringency
in the economic downturn resulting from the outbreak of COVID-19
– It was further contended that the COVID-19 pandemic is a ‘public
emergency’ as defined in s.5 of the Factories Act – Held: The power
u/s.5 of the Factories Act can be exercised in a ‘public emergency’ –
The explanation states that to constitute a public emergency, there
must be a grave emergency – The emergency must be of such a nature
as to threaten the security of India or a part of its territory – The
threat to the security of India or a part of the territory must be caused
by war, external aggression or an internal disturbance – The
expression ‘internal disturbance’ cannot be divorced from its context,
or be read in a manner divorced from the other two expressions
which precede it – They are indicative of the gravity of the cause
which threatens the security of India or a part of its territory – An
internal disturbance must be of a similar gravity – In the instant
case, the economic slowdown created by COVID-19 pandemic does
not qualify as an internal disturbance threatening the security of
the State – The notifications in question make significant departures
from the mandate of the Factories Act – They (i) increase the daily
[2020] 13 S.C.R. 886
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limit of working hours from 9 hours to 12 hours; (ii) increase the
weekly work limit from 48 hours to 72 hours, which translates into
12 hours work-days on 6 days of the week; (iii) negate the spread
over of time at work including rest hours, which is typically fixed at
10.5 hours; (iv) enable an interval of rest every 6 hours, as opposed
to 5 hours; and (iv) mandate the payment of overtime wages at a
rate proportionate to the ordinary rate of wages, instead of overtime
wages at the rate of double the ordinary rate of wages as provided
u/s.59 – The notifications legitimize the subjection of workers to
onerous working condiditions at a time when their feeble bargaining
power stands whittled by the pandemic – Clothed with exceptional
powers u/s.5, the State cannot permit workers to be exploited in a
manner that renders the hard-won protections of the Factories Act
illusory – Therefore, the notifications dated 17.04.2020 and
20.07.2020 are quashed and the overtime wages of all the eligible
workers are directed to be paid, in accordance with the provisions
of s.59 of the Factories Act who were working since the issuance of
the notifications.
The Factories Act, 1948 – Scheme and objects – discussed.
Labour Law – Labour welfare – Social and Economic Value
of ‘Overtime’ – discussed.
Labour Law – Constitution of India – Constitution vision of
social and economic democracy – discussed.
Allowing the Writ Petition, the Court
HELD: 1. The power under Section 5 of the Factories Act
can be exercised in a “public emergency”. The explanation states
that to constitute a public emergency, there must be a grave
emergency. The emergency must be of such a nature as to
threaten the security of India or a part of its territory. The threat
to the security of India or a part of the territory must be caused
by war, external aggression or an internal disturbance. The
expression ‘internal disturbance’ cannot be divorced from its
context, or be read in a manner divorced from the other two
expressions which precede it. They are indicative of the gravity
of the cause which threatens the security of India or a part of its
territory. An internal disturbance must be of a similar gravity.
GUJARAT MAZDOOR SABHA 

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