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Chennai, Aug.30: Co-operative societies are covered by the Minimum Wages Act, 1948, and the fact that they are exempted by a notification of 1979 "is not absolute", the Madras High Court has held.
On the contrary, the said notification applied to provisions of Sections 31, 41, 43, 50 and 51 of the Co-operative Societies Act, Mr Justice K. Chandru ruled. The power to exempt co-operative societies under the Act was exercised under Section 6, which itself showed that the society was a commercial establishment, without which no such exemption was necessary.
The Supreme Court, the Judge noted, vide its judgment in the State of Tamil Nadu vs K. Sabanayagam [reported in Jt 1997 (9) SC 316] held that if an employer sought exemption from provisions of an Act that itself would indicate that the Act would apply. Therefore, the said objection must fail.
Dismissing a writ petition by S. Attayampatty Peramanur Primary Agricultural Co-op Bank, Salem District, challenging the order dated July 24, 2000 of the Deputy Commissioner of Labour, Salem (R-1), who was the Minimum Wages Authority, computing the minimum wages paid by the petitioner to its employees, the Judge referred to the contention of the petitioner that they were paying more wages than the statutory minimum wages fixed and said it could not be accepted because such a contention was not raised before the authority under the Act. This Court was not inclined to entertain such objection.
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http://www.thehindubusinessline.com/2010/08/31/stories/2010083151811900.htm |