Blue Star Limited vs The State Of West Bengal & Ors.

SHAMPA DUTT (PAUL), J.:-

The present writ application has been filed assailing order no. 87 dated 12.08.2024 passed by Learned Civil Judge (Sr. Division), Suri, Birbhum in connection with Application No. 01/2013 filed at the instance of the Respondent No. 2 herein alleging non-compliance of minimum rates of wages declared by the Government of West Bengal on 08.11.1995 which was meant for construction or maintenance of roads or in building operations.

The petitioner contends that he is not liable to make payment of minimum wages which is meant for construction and maintenance of roads or in building operations works. It is the contention of the petitioner that the petitioner being a manufacturer of air conditioners, air purifiers and water coolers and also in the business of maintenance of air conditioning systems, air-washer systems, cooling tower overhauling and operational maintenance of central air conditioning systems etc. cannot be considered as per the said notification dated 08.11.1995 meant for construction or maintenance of roads or in building operations.

The background of the case is that the petitioner has a contractual arrangement in connection with Bakreshwar Thermal Power Project of the West Bengal Power Development Corporation Limited (a Government of West Bengal Enterprise) at one of its power-generating units situated at Post Office Bk.T.P.P., district Birbhum, Pin-731104. From the year 2009, which subsequently was amended/extended vide amended order dated 15.05.2012, 01.06.2012, 06.04.2013 in connection with the operation and maintenance of the Central Air Conditioning Plant of the said power generating unit. The present service contract dated 16.11.2022 is valid on renewal till 31.12.2026.

It is stated that without giving any opportunity of personal hearing, the Petitioner Company, received a summons dated 28.01.2014 from the Civil Judge (Senior Division) (hereinafter referred to as the Learned Court) enclosing an Application for claim under Section 20 (2) of the Minimum Wages Act, 1948, filed by the Respondent No.2 on 27.09.2013 alleging that the Petitioner Company failed to pay the minimum rates of wages fixed by the State Government based on the Gazette Notification dated 08.11.1995 as well as the notifications dated 11.11.2011, 21.12.2011, 09.07.2012 and 27.12.2012 payable to the employees employed in the employment of, "Construction or Maintenance of Roads or in Building Operations" in the State of West Bengal which falls within Part-I of the Schedule of the said Act of 1948. The same was filed by the Respondent No. 2 under a misconception to the effect that the said judicial forum, was as if, an authority under Section 20 (1) of the said Act of 1948. The said case was registered as Misc. Case No. 42 of 2013.

The learned Counsel for the petitioner on filing written notes argues that admittedly, Section 4 of the Minimum Wages Act, 1948 (hereinafter referred to as the said Act of 1948) deals with fixation of minimum rates of wages or revision thereof by the appropriate Government in respect of the scheduled employment. Section 2(g) of the said statutory provision defines "Scheduled Employment" to the following effect:-

The petitioner further states that it is explicit from the said definition that the employment specified in the schedule or any process or any branch of work would come within the purview of "scheduled employment" and not otherwise. Keeping this aspect in mind, if we take a turn to Item No.7 of the Part I of the Schedule under which the Respondent no.2 sought to implement the coverage reads as follows:-

Mr. De relies upon the judgment of the Hon‟ble Delhi High Court in the case of Amcon Construction v. Labour Enforcement Officer and Ors. reported in 2019 SCC OnLine Del 1218 wherein while considering the power under Section 20(3)(i) of the said Act of 1948 has been pleased to hold that the possession of power directing of maximum compensation does not mean that the same should be imposed without assigning any reason. In other words, it is not punitive rather equitable in nature. The material portions of the said judgment are being reproduced hereinafter:-

Finally it is argued that the activities carried on by the writ petitioner cannot and does not come within the purview of construction or maintenance of roads or in building operations as mentioned in the notification dated 08.11.1995 and as a consequence thereof the other notifications have got no manner of applicability in any manner what so ever. Secondly, the order impugned is a perverse one since the same is contrary to and inconsistent with the materials on records both oral and documentary. Thirdly, the Learned Court has relied on the notification which has not been exhibited or the copies thereof have been supplied to the petitioner. Fourthly, the order impugned is an unreasoned one and lastly, the decision of Amcon Construction (supra) has made it abundantly clear that the provision of Section 20(3)(i) is not punitive rather equitable in nature and as such the compensation of Rs. 33 lakhs awarded by the Learned Court below is unjust and bad in law. Moreover, the persons named in the application filed by the Respondent No. 2 are not in the system. Under these circumstances, the petitioner prays for an order holding that the decision of the Learned Court below directing the petitioner to pay a sum of Rs. 33 lakhs is unsustainable in law and accordingly the same should be quashed.

The State/respondents have filed their written notes and stated therein that the nature of their duties of the operators was technical and continuous and was directly connected with construction, operation and maintenance activities of the power project. Their employment therefore fell within the scheduled employment of "Construction or Maintenance of Roads or in Building Operations" as included in Part I of the Schedule to the Minimum Wages Act, 1948.

The respondent has also stated that the employees were designated as Technicians, Electricians, Operators and Assistant Technicians. In actual practice, Technicians and Electricians were performing duties requiring a high degree of technical skill, independent judgment, long experience and responsibility for execution of specialized tasks and were therefore covered under the category of "Highly Skilled Work" as defined in the Labour Department Notification published in the Calcutta Gazette Extraordinary dated 08.11.1995. Operators and Assistant Technicians were performing duties involving technical competence, training and experience and were therefore covered under the category of "Skilled Work" as defined in the same notification. That prior to 29.09.2011, the company itself treated these employees as skilled and highly skilled workers and paid them wages corresponding to those categories without any dispute regarding their classification or the nature of work performed by them. Their wage structure was thus settled and protected. On 29.09.2011, the Government of West Bengal revised the minimum wages applicable to the said scheduled employment by issuing Notification No. 742/Stat/RW/68/564/LCS/JLC dated 11.11.2011, followed by subsequent notifications dated 21.12.2011, 09.07.2012 and 27.12.2012. Each of these notifications specifically provided that where the existing wages of any employee were higher than the newly notified minimum wages, such higher wages must be protected and treated as the applicable minimum wages. After the said notification became effective, the company did not change the nature of duties of the workers but changed their wage categories on paper. Highly Skilled workers were shown as Skilled workers and Skilled workers were shown as Semi-Skilled workers. This reclassification was not based on any operational or functional change in job responsibilities but was done only after the revised notification came into force and only to reduce the statutory minimum wage liability of the company. Because of this artificial lowering of categories, the wages paid from 29.09.2011 onwards became lower than the minimum wages applicable to the actual nature of work performed by the workers. This resulted in continuous violation of Section 12(1) of the Minimum Wages Act, 1948.) 1948. On 01.02.2013, all 36 affected employees submitted a joint written complaint alleging payment of wages below the statutory minimum rates. On the basis of the said complaint, an inspection was conducted on 06.02.2013 at the worksite. During inspection, wage registers, pay slips, attendance registers and employment records were examined. It was found that the workers had been paid less than the prescribed minimum wages applicable to skilled and highly skilled categories. An inspection report was prepared on the same date recording contravention of Section 12(1) of the Minimum Wages Act, 1948 and was handed over to the site supervisor with direction to rectify the violations and submit explanation. Upon full consideration of the evidence, the authority found that the workers were performing skilled and highly skilled work, that their wage categories were wrongly lowered after the government notifications, that they were continuously paid less than the statutory minimum wages from 29.09.2011 onwards and that the underpayment was deliberate and systematic. The authority accordingly passed an order directing payment of the differential wages along with compensation under Section 20(3) of the Minimum Wages Act, 1948.

The State has denied the case of the petitioner as stated in the writ application and their written notes. In concluding their argument as noted in the written arguments the State submitted as follows:-

The respondent nos. 4,8,12,14,21,23,25 and 26 have also filed their written notes and have stated that an inspection under the minimum wages Act, 1948. On conducting an inspection in spite of an application for claim under the Minimum Wages Act and inspection was conducted in respect of the nature of their duties of the operators was technical and continuous and was directly connected with construction, operation and maintenance activities of the power project. Their employment therefore fell within the scheduled employment of "Construction or Maintenance of Roads or in Building Operations" as included in Part I of the Schedule to the Minimum Wages Act, 1948.

That the employees were designated as Technicians, Electricians, Operators and Assistant Technicians. In actual practice, Technicians and Electricians were performing duties requiring a high degree of technical skill, independent judgment, long experience and responsibility for execution of specialized tasks and were therefore covered under the category of "Highly Skilled Work" as defined in the Labour Department Notification published in the Calcutta Gazette Extraordinary dated 08.11.1995. Operators and Assistant Technicians were performing duties involving technical competence, training and experience and were therefore covered under the category of "Skilled Work" as defined in the same notification.

That prior to 29.09.2011, the company itself treated these employees as skilled and highly skilled workers and paid them wages corresponding to those categories without any dispute regarding their classification or the nature of work performed by them. Their wage structure was thus settled and protected. On 29.09.2011, the Government of West Bengal revised the minimum wages applicable to the said scheduled employment by issuing Notification No. 742/Stat/RW/68/564/LCS/JLC dated 11.11.2011, followed by subsequent notifications dated 21.12.2011, 09.07.2012 and 27 12.2012. Each of these notifications specifically provided that where the existing wages of any employee were higher than the newly notified minimum wages, such higher wages must be protected and treated as the applicable minimum wages.

It is further stated that after the said notification became effective, the company did not change the nature of duties of the workers but changed their wage categories on paper. Highly Skilled workers were shown as Skilled workers and Skilled workers were shown as Semi-Skilled workers. This reclassification was not based on any operational or functional change in job responsibilities but was done only after the revised notification came into force and only to reduce the statutory minimum wage liability of the company. Because of this artificial lowering of categories, the wages paid from 29.09.2011 onwards became lower than the minimum wages applicable to the actual nature of work performed by the workers. This resulted in continuous violation of Section 12(1) of the Minimum Wages Act, 1948. On 01.02.2013, all 36 affected employees submitted a joint written complaint alleging payment of wages below the statutory minimum rates. On the basis of the said complaint, an inspection was conducted on 06.02.2013 at the worksite. During inspection, wage registers, pay slips, attendance registers and employment records were examined. It was found that the workers had been paid less than the prescribed minimum wages applicable to skilled and highly skilled categories.

An inspection report was prepared on the same date recording contravention of Section 12(1) of the Minimum Wages Act, 1948 and was handed over to the site supervisor with direction to rectify the violations and submit explanation. No satisfactory explanation was submitted within the stipulated period. On 18.02.2013, a representative of the company appeared with certain records but without proper authorization and without making payment of the wage difference.

On hearing the learned Counsel for the parties and on perusal of the materials on record including the judgment relied upon along with documents related to the job of the workers in the present case, it appears that admittedly, the workmen herein are the employees of the petitioner, Blue Star Ltd. Admitedly, the workmen herein are the operators who monitor the Air Conditioning of the factory/plant and/or Air Conditioning (AC) Plant. Operators are responsible for the continuous, safe and efficient operation of large scale commercial or industrial cooling systems. Their job centers on monitoring equipment, regulating temperatures, performing routine preventive maintenance and troubleshooting system faults to ensure optimal climate control and uninterrupted facility operations. Continuously check gauges, dials and thermostats on the central control board to ensure the plant operates within safe parameters temperature.

An AC Plant Operator under the Government of West Bengal (such as in the Public Works Directorate) serves in a vital skilled or technical role. Their core responsibility is the uninterrupted, safe, and efficient operation of central air conditioning and refrigeration systems in government buildings, hospitals, and secretariats. Key responsibilities and the nature of the job include:-

Operating central AC plants, compressor units, chillers, Air Handling Units (AHUs), and cooling towers.

Monitoring: Regulating chilled water valves, monitoring pressure levels, and measuring temperatures to maintain a comfortable, climate-controlled environment.

Preventive Checks: Routinely inspecting terminal connections, air filters, blower motors, and refrigerant lines to prevent equipment failures.

Minor Repairs: Conducting minor mechanical repairs, cleaning filters, and providing routine lubrication and greasing.

Safety Protocols: Taking immediate corrective measures during emergencies. such as power surges, erratic performance, or fire hazards, and coordinating with electrical JEs (Junior Engineers).

Operators typically possess an ITI (Industrial Training Institute) certificate in Refrigeration & Air Conditioning alongside relevant field experience. An AC Plant Operator under the Government of West Bengal (such as in the Public Works Directorate) serves in a vital skilled or technical role. Their core responsibility is the uninterrupted, safe, and efficient operation of central air conditioning and refrigeration systems in buildings, hospitals, and secretariats.

The Government of West Bengal in its notification no. NIQ-17 of 2022-23 for a period of 1 year laid down the following conditions in respect of an agency:-

The terms and conditions are laid down by the Government of west Bengal:-

It appears from the said document that the AC mechanic has been treated as an operator (thus skilled labour) and as such the agency should be responsible for payment of minimum wages to the engaged worker(s) as per relevant circular of Labour Department, Govt. of W.B. in Vogue. The bills have to be produced by the agency through their Letter Head & should contain a certificate that the engaged worker(s) were paid complying the minimum wages as per relevant circular issued by Labour Department, Govt. of W.B. in Vogue and non-compliance of the same may lead to termination of the contract. (minimum wages means daily rate as per recent circular of Labour Department, W.B corresponding to category of labour x 30 days).

Mr. De, learned Counsel for the petitioner submits that admittedly he receives a specified amount from the employer of Bakreswar Thermal Power Plant. The petitioner as the employer on receiving the specified amount makes payment to the staff. It is an admitted case that the petitioner pays the operators the minimum wages which admittedly is not the amount as notified for maintenance of building operations. It is stated that he pays the rate of minimum wages fixed for “semi skilled workers”. It appears that by treating the said operators as “semi skilled workers” the petitioner does not pay the minimum wages which is higher and paid in respect of “skilled workers” in maintenance of building operations.

It is the contention of Mr. De that the specified amount received by him at the rate for semi skilled workers as per Government notification is paid. It is further stated that if the petitioner is directed to pay the minimum wages in respect of „skilled‟ in respect of maintenance of building operation workers, then the petitioner will suffer financial loss. Mr. Dey further contends that he pays the rate of semi skilled workers to the operators as they do not perform any duty, as that of skilled workers. Their only job is to switch on and switch off the AC and it is clear that it does not require a skilled person to do so.

From the materials on record it appears that the petitioner‟s case is that the workers herein are „operators‟ and thus semi skilled.

Admittedly they work to operate air conditioning of the establishment and an air conditioning mistry is classified as “highly skilled” in the Govt. of West Bengal, Gazette, Labour Department dated November 8, 1995.

The petitioner admittedly is in the business of manufacturing air conditioners, air purifiers and water coolers. It is also in the business of maintenance of air conditioning systems, air-washer systems, cooling tower overhauling and operational maintenance of central air conditioning systems etc.

The petitioner‟s further case is that the employees/workers appointed by it are classified into groups being operators, technician, electrician. It is also stated that the nature of work is duly classified among the categories maintained.

It is further stated that herein the operators only switch on and switch off the air conditioning machine, a work which doesn‟t need any technically qualified person as it can also be operated by the user themselves, as done in our homes.

In the present case it is the air conditioning of a plant and the machines installed in the thermal power plants, which are to be operated and maintained. The classification herein thus appears to be a camouflage to deprive a category of workers their lawfully entitled minimum wages.

Admittedly the air conditioning and other cooling system herein is for the thermal power plants, wherein the petitioner admits includes operational maintenance of Central Air Conditioning System etc.

The maintenance of air conditioning is a core part of building operations and maintenance. It falls under the HVAC (Heating. Ventilation, and Air Conditioning) category, which is a standard component of technical services and facility management. Building operations cover all workflows and processes required to keep a facility functional, safe, and comfortable on a daily basis. Technical services and Mechanical & Electrical (M&E) operations explicitly include the servicing of HVAC systems. Routine upkeep ensures optimal air quality, energy efficiency, and temperature control for occupants.

Building maintenance covers a wide range of work, including here are a few examples that most facilities deal with regularly:

HVAC Maintenance Heating, ventilation, and air conditioning systems need regular inspection and cleaning. Filters are replaced, ducts cleaned, and thermostats calibrated. This keeps the air clean, prevents energy waste, and ensures comfort in every season and

Electrical System Maintenance Electrical inspections check for damaged wiring, overloaded circuits, and safety issues. Lighting systems are tested, backup generators are serviced, and emergency lighting is maintained.

As such the minimum wages for „construction or maintenance‟ of roads or in building operations is applicable to all the employees herein, and such nature of work is a skilled trade as, Heating, Ventilation, and Air Conditioning (HVAC) is a skilled trade that requires formal education, specialized technical knowledge, and hands-on experience.

Technicians must understand electrical control circuits, refrigeration theory, computer networking, and airflow dynamics. Finding why a system fails takes years of practice. Workers must interpret electrical, mechanical, and chemical signs at the same time.

Workers usually need a certificate, an associate degree, or a multi-year apprenticeship from a trade school or technical college. Technicians must follow strict safety rules and often hold legal licenses or certifications to handle refrigerants and electrical components.

Routine AC care within building operations typically involves:

-Inspecting and replacing air filters

-Cleaning evaporator and condenser coils

-Checking refrigerant levels and testing pressures

-Calibrating thermostats and examining electrical connections

-Clearing condensate drain lines and lubricating moving parts

Considering the said facts and circumstances, the employees herein are thus entitled to the minimum wages as declared by the State Labour Department for skilled workers in building operations.

Admittedly the petitioner receives a lump sum of payment from principal employer and makes payment as alleged depriving the workers.

The entitlement of these workers is to be paid by the principal employer to the contractor (petitioner herein) as per Govt. rate of minimum wages towards building operations for skilled workers, so no prejudice is caused to the petitioner herein, which can be reimbursed on the amount being paid.

Thus the impugned order no. 87 dated 12.08.2024 passed by Learned Civil Judge (Sr. Division), Suri, Birbhum in connection with Application No. 01/2013 filed at the instance of the Respondent No. 2 herein alleging non-compliance of minimum rates of wages declared by the Government of West Bengal on 08.11.1995 which was meant for construction or maintenance of roads or in building operations, (skilled workers) does not require any interference, being in accordance with law.

WPA 28528 of 2024 is dismissed.

Applications, if any, connected thereto stand disposed of consequently.

Interim order, if any, stands vacated.

Photostat certified copy of this Judgment, if applied for, be given to the parties on priority basis upon compliance of all formalities.