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1989 Supreme(SC) 631

SUPREME COURT OF INDIA
E.S. Venkataramiah, CJI., K.N. SINGH AND N.M. KASLIWAL, JJ.
Ess Dee Carpet Enterprises, Appellant
Versus
Union of India and others, Respondents
Civil Appeal No. 1372 of 1987, D/-7-12-1989.

Advocates:
A.Subhashini, ANIL DEV SINGH, C.V.SUBBA RAO, HEMANT SHARMA, L.C.AGRAWAL, ROXNA S.SWAMY, SOLI J.SORABJI, SUSHIL JAIN, SUSHMA SURI

Headnote:

Constitution of India – Article 226 – Employees Provident Funds and Miscellaneous Provisions Act, 1952 – Section I9 – legitimately - Disputed - Provident -Appellant is a partnership firm carrying on business of manufacturing and selling carpets in the State of Rajasthan at three factories belonging to it – When steps were taken to direct appellant to comply with provisions of Act by the Regional` Provident Fund Commissioner the appellant contested the applicability of ground that establishment owned by it was not manufacturing textiles included in Regional Provident Fund Commissioner after giving opportunity of being heard to appellant passed an order holding that business of manufacturing carpets carried it made applicable to the appellant as carpets were textiles. Aggrieved order appellant filed a petition under before Central Government – Held, Latin texere which means to weave and it means woven fabric whether cotton, silk, woollen, rayon, nylon or of any other description made out of any other material is woven into a fabric what comes into being is a textile and is known as be mode of weaving employed woven fabric would be textile necessary is no more than weaving of yarn and weaving would mean binding or putting yarn together by some process so as to form a fabric textile need not be of any particular size or strength or weight use to which it may be put is also immaterial and does not bear on its character as a textile dryer felts are used only as absorbents of moisture in process of manufacture in a paper manufacturing unit cannot militate against dryer felts falling within the category of textiles if otherwise they satisfy the description of textiles – Appeal dismissed.

JUDGMENT

VENKATARAMIAH, CJI.:- The question for consideration in this appeal is whether an establishment which is manufacturing carpets is subject to the Employees Provident Funds and Miscellaneous Provisions Act, 1952 (Act XIX of 1952) (hereinafter referred to as the Act). The appellant is a partnership firm carrying on the business of manufacturing and selling carpets in the State of Rajasthan at three factories belonging to it. When steps were taken to direct the appellant to comply with the provisions of the Act by the Regional` Provident Fund Commissioner the appellant contested the applicability of the Act on the ground that the establishment owned by it was not manufacturing textiles included in Schedule 1 to the Act. The Regional Provident Fund Commissioner after giving opportunity of being heard to the appellant passed an order on 27th July, 1979 holding that the business of manufacturing carpets carried. on by it made the Act applicable to the appellant as carpets were textiles. Aggrieved by the said order the appellant filed a petition under section I9A of the Act before the Central Government. The Central Government passed an order on 4th May, 1981 holding that the appellants establishment was engaged in the manufacture of textiles and accordingly the order of the Regional Provident Commissioner was up held. The appellant thereafter filed a petition under Article 226 of the Constitution before the Rajasthan High Court (Jaipur Bench) The High Court by its order dated 15th October, 1984* dismissed the writ petition. The appellant then appealed to the Division Bench of the High Court and the Division Bench of the Rajasthan High Court dismissed the appeal on 29th January, 1985. This appeal, by special leave is filed against the order of the Division Bench of the High Court of Rajasthan.

* Reported in 1985 Rajasthan LR 74

2. The only point urged before us by the learned counsel for the appellant is that the products, namely, carpets which are being manufactured by the appellant did not come within the meaning of the expression textiles described in Schedule 1 to the Act and hence the Act was inapplicable. Clause (a) of subsection (3) of S. 1 of the Act provides that subject to the provisions contained in section 1, the Act applies to every establishment which is a factory engaged in any industry specified in Schedule 1 and in which 20 or, more persons are employed. The relevant part of Schedule 1 to the Act reads thus:

"Any industry engaged in the manufacture of. any of the following, namely:

Cement.

Cigarettes.

Electrical, mechanical or general engineering products.

Iron and steel.

Paper.

Textiles (made wholly or in part of cotton or wool or jute or silk, whether natural or artificial ............

3. Clause (d) of the Explanation contained in Schedule 1 to the Act reads thus:

"(d) the expression "textiles" includes the products of carding, spinning, weaving, finishing and dyeing yarn and fabrics, printing, knitting. and embroidering."

4. It is not disputed that the material with which the carpets are made is wool which is one of the materials mentioned in the schedule, namely, textiles made wholly or in part of cotton or wool or jute or silk, whether natural or artificial. The activity of manufacturing carpets is generally understood as the weaving of carpets and the man who is engaged in such activity is popularly known as a carpet weaver. Weaving means to form a fabric by interlacing yarn on a loom. It also means the method or pattern of weaving or the structure of a woven fabric. The warp means yarn arranged lengthwise on a loom. The fabric which is woven includes the weft which means yarn woven across the width of the fabric through the lengthwise yarn. Thus the activity of the weaving involves passing of the weft through the warp. While doing so even if there are any knets in the yarn still the activity is weaving. The mere fact that there is knotting of the yarn, the fabric which is ultimately produced does not cease to be a







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