Supreme Court restrains coercive action against Indian Jute Mills Association for non-payment of wages to employees during lockdown

After the Indian Jute Mills Association moved the Supreme Court to restrain any coercive action for not paying full wages to its workers during the COVID-19 lockdown, the Court extended its earlier interim order for another two weeks.

The Association sought to quash the Ministry of Home Affairs (MHA) notification compelling payment of full wages to workers during the lockdown.

The Association contended that the jute industry is governed under the Essential Commodities Act, Control order, all employers have to pay a fixed amount and that the Jute Mills Assocation’s case should not be tagged with other similar pleas. Senior Advocate Mukul Rohatgi who appeared on behalf of the Association stated, “This is a peculiar one, though during the lockdown they were granted an exemption, they carried on work since jute products are essential commodities.”

The Association argued that imposing conditions such as full payment of wages to all employees regardless of the financial condition of the employer during the prevailing situation is unreasonable and imposes a grave financial burden on the employer and can push a private establishment to bankruptcy and closure, and is violative of Article 19(1)(g) of the Constitution of India. It also stated that, the ramifications of private establishments to abide by such financial burdens do not stand the test of reasonableness under Article 19(6) of the Indian Constitution.

He further pointed out that the MHA passed a circular on May 18 that superseded its earlier orders. The Supreme Court Bench of Justices Ashok Bhushan, Sanjay Kishan Kaul and MR Shah have adjourned the matter further by a two week period and the interim protection earlier granted to the Association would continue. Meanwhile, the Court directed the Central Government to file a reply in the matter.