D.P.WADHWA, K.RAMASWAMY
Bombay Telephone Canteen Employees Association, Prabhadevi Telephone Exchange – Appellant
Versus
Union Of India – Respondent
The legal document discusses the legal status and remedies available to employees working in government or statutory bodies, specifically in the context of disputes regarding termination, employment conditions, and jurisdiction of tribunals. The key points are as follows:
The telecommunication department is classified as a non-industry entity, and its employees holding civil posts are generally excluded from the scope of industrial disputes under the Industrial Disputes Act. Therefore, disputes related to termination or employment conditions of such employees cannot be adjudicated by industrial tribunals (!) (!) .
Employees working in statutory canteens or similar departments, who are paid monthly salaries and hold civil posts, are considered employees but are not classified as workmen under the relevant law. Consequently, the tribunal's jurisdiction to decide disputes involving such employees is limited, and they are entitled to seek remedies through constitutional courts or administrative tribunals instead (!) (!) .
The remedy under Article 226 of the Constitution of India is available to employees who are excluded from industrial dispute jurisdiction, allowing them to challenge arbitrary, unjust, or unfair actions by their employer. Similarly, remedies under Section 19 of the Administrative Tribunal Act are also applicable (!) .
The document emphasizes that the classification of an entity as an industry depends on the nature of the activity, not on whether the activity is profit-making or charitable. The focus is on whether the activity involves organized cooperation between employer and employee for providing goods or services that are capable of being marketed. Activities undertaken for sovereign or sovereign-like functions are generally excluded from the scope of "industry" (!) (!) (!) (!) .
The scope of "industry" is broad, encompassing activities that are organized, systematic, and involve employer-employee cooperation, even if they are charitable or non-profit in nature. The determination relies on the nature of the activity rather than the motive or capacity for profit (!) (!) (!) (!) .
The concept of "sovereign functions" is clarified to mean activities that are governed by constitutional provisions and are part of the state’s ultimate decision-making authority, such as legislative, judicial, or executive functions. These are generally excluded from the definition of industry unless they are part of an economic activity that resembles trade or business (!) (!) .
The law recognizes two concurrent avenues for employees to seek redress: one through statutory references under the relevant industrial law (when applicable), and another through constitutional remedies such as writ petitions under Article 226 or proceedings before administrative tribunals. The choice depends on the specific classification of the employer and the activity involved (!) (!) (!) .
The classification of a body as an instrumentality or agency of the state depends on factors such as control, the nature of functions, and the presence of public interest elements. When such bodies perform public utility or welfare functions, they are often considered part of the state, and their actions are subject to judicial review (!) (!) (!) .
The legal framework supports that activities performed by government or statutory bodies, especially those involved in welfare, public utility, or sovereign functions, are generally outside the scope of industrial disputes, and their employees must seek remedies through constitutional or administrative channels (!) (!) .
Overall, the document underscores the importance of the nature of activity and the classification of the employer in determining the appropriate remedy and jurisdiction for employment disputes, emphasizing that constitutional remedies are a fundamental right for employees, especially when their employment does not fall within the scope of industrial law.
JUDGMENT
K. Ramaswamy, J.-This special leave petition has come up directly, from the award of the Central Government Industrial Tribunal No. 2, Bombay, made on August 9, 1996 in Reference No. CGIT-2/26/91.
Delay Condoned.
2. The admitted position is that the petitioner-Association, representing five dismissed employees, had sought reference under Section 10(1) of the Industrial Disputes Act, 1947 (for short, the Act ) to the Tribunal. The dispute arose on account of termination by the respondent-Management of the services of the said employees on April 28, 1989; It was alleged that the termination was without any notice and payment of retrenchment compensation under Section 25-F. The reference came to be made on April 19, 1991. The Tribunal has held that the Telephone Nigam Limited, Bombay is not an industry . It, therefore, has no jurisdiction to adjudicate the dispute. Prabhadevi Exchange had a total strength of 3000 employees of the Tele-communication Department, working in three shifts. As per the Administrative Instructions issued by the Government, for the first shift there should be a 3A type canteen, for the second shift A type canteen and for the third shift there shoul
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