SECRETARY, PADIPPU K.S. SANGAM LRD . versus C. VARGHESE

Citation: [2007] 4 S.C.R. 241 · Decided: 20-03-2007 · Supreme Court of India · Bench: AR. LAKSHMANAN · Disposal: Appeal(s) allowed

Judgment (excerpt)

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• 
SECRETARY, PADIPPU K.S. SANGAM LRD . 
v. 
C. VARGHESE 
MARCH 20, 2007 
[DR. AR. LAKSHMANAN AND AL TAMAS KABIR, JJ.] 
Labour Law: 
Minimum Wages Act, 1939: 
'Dail)' Farming'-Co-operative Society engaged in purchasing milk 
from its members and distribution thereof-Employed milk tester for two 
hours daily on a fixed monthly payment-Employee claiming minimum wages 
under the Act-Held, activities of Society do not constitute 'dairy farming'-
Employment in question does not attract provisions of the Act. 
Appellant-Co-operative Society was engaged in purchasing milk from 
its members and its distribution. Respondent no. 1 was engaged as milk tester 
A 
B 
c 
D· 
for two hours from 6.30 a.m. to 8.30 a.m. all days, on a consolidated monthly 
payment ofRs.350/-. Respondent no. J filed an application before the Deputy 
Labour Commissioner claiming minimum wages. The application was E 
allowed. The appellant approached the High Court and the single Judge 
allowed the writ petition holding that the Minimum Wages Act was applicable 
to the 'dairy farming' and was not applicable to the employment in question. 
However, the Division Bench, in appeal, allowed the claim of respondent no. 
l, and, therefore, the Society filed the appeal. 
~ 
F 
On the question: Whether the appellant-Society was engaged in 'dairy 
farming': 
Allowing the appeal, the Court 
HELD: The mere activity of buying milk by the appellant-Society from G 
its members and distributing it, will not constitute 'dairy farming' when there 
is no rearing of milch cows and no agriculture or farming activity is carried 
on by the Society. The Division Bench of the High Court ought to have held 
that the appellant-society, which merely collects milk from its members and 
241 
H 
242 
SUPREME COURT REPORTS 
[2007) 4 S.C.R. 
A distributes the same, is not engaged in any employment scheduled under the 
Minimum Wages Act. !Para 91 (243-E-GI 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1497 of 2007. 
B 
From the Final Judgment and Order dated 24.2.2006 of the High Court 
of Kerala at Emakulam in W.A. No. 1578 of2004. 
T.L.V. Iyer, Subramonium Prasad and Karun Mehta for the Appellant. 
Dr. K.P. Kylasanatha Pillai and G. Ramakrishna Prasad for the Respondent. 
C 
The Judgment of the Court was delivered by 
DR.. AR. LAKSHMANAN, J. 1. Delay condoned. 
2. Leave granted. 
D 
3. Heard Mr.T.L.V.lyer, learned senior counsel for the appellant and 
Dr.K.P.Kylasanatha Pillai, learned counsel for the respondent. 
4. This appeal has been filed against the judgment and order dt.24.02.2006 
passed by the High Court of Kerala in Writ Appeal No.1578 of 2004. 
E 
5. The only question arises for our consideration in this appeal is 
whether the appellant-society is engaged in 'dairy farming'. 
6. The appellant is a co-operative Society registered under the Kerala 
Co-operative Societies Act, 1969 and engaged in the collection of milk from 
its members and distribution thereof. The respondent herein is a milk user in 
F the appellant-society whose work, according to the appellant, is mainly between 
6.30 a.m. and 8.30 a.m. on all days. As per the settlement arrived at before the 
District Labour Officer Kasergod on September 20, 1990, the respondent was 
being paid a consolidated pay of Rs.350/- per month from April l, 1990. The 
Assistant Labour Officer, Kasergod also informed the appellant on 25.03.1998 
G that the milk producing in co-operative Societies had not been included under 
the Minimum Wages Act by any Notification and that there was no orders 
fixing minimum wages for employees of such society. 
H 
7. In the meanwhile, the respondent filed an application before the 
Deputy Labour Commissioner claiming payment of minimum wages under the 
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SECRETARY, PADIPPU K.S. SANGAM LRD. v. C. VARGHESE [LAKSl-IMANAN, J] 243 
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Minimum Wages Act for the period 01.01.1993 to 31.12.1994 as ifthe said Act A 
was applicable to co-operative Societies engaged in mere purchase of milk 
from members and distribution thereof. The application was allowed despite 
appellant's contest. The appellant challenged the decision before the High 
Court in writ proceedings contending that the employment in the Society was 
not a scheduled employment under the Act and, therefore, the second B 
respondent was not competent to pass such an order for payment of minimum 
wages under the Act. 
8. The learned Single Judge of the Kerala High Court accepted the 
contention and after a detailed reasoning held tha

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