Judgment

SAWANT, J.:- This group of petitions concerns the workers in canteens run in the different railway establishments. The relief claimed in all the petitions is that the workers concerned should be treated as railway employees and should be extended all service conditions which are available to the railway employees.

2. For our purpose, these canteens have to be classified into three categories, viz. (i) Statutory Canteens - These are canteens required to be provided compulsorily in view of the provisions of Section 46 of the Factories Act, 1948 (hereinafter referred to as the Act) since the Act admittedly applies to the establishments concerned and the employees working in the said establishments exceed 250; (ii) Non-Statutory Recognized Canteens - These canteens are run in establishments which may or may not be governed by the Act but which admittedly employ 250 or less than 250 employees, and hence, it is not obligatory on the railways to maintain them. However, they have been set up as a staff-welfare measure where the employees exceed 100 in number. These canteens are established with the prior approval and recognition of the Railway Board as per the procedure detailed in the Railway Establishment Manual; and (iii) Non-Statutory Non-Recognised Canteens - These canteens are run at establishments in category (ii) above but employ 100 or. less than 100 employees, and are established without the prior approval or recognition of the Railway Board.

3. The present petitions concern employees in all the three types of canteens. It will be convenient to deal separately with the employees in the three types of canteens, because, the history of litigation and the arguments advanced in respect of each of the categories are different.

4. (i) Statutory Canteens:- Section 46 of the Act which makes it obligatory on an occupier of a factory as defined under the Act, to provide a canteen or canteens where more than 250 workers are ordinarily employed runs as follows:

"Canteens.- (1) The State Government may make rules requiring that in any specified factory wherein more than two hundred and fifty workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the occupier for the use of the workers.

(2)Without prejudice to the generality of the foregoing power, such rules may provide for

(a) the date by which such canteen shall be provided.

(b) the standards in respect of construction, accommodation, furniture and other equipment of the canteen;

(c) the foodstuffs to be served therein and the charges which may be made therefor;

(d) the constitution of a managing committee for the canteen and representation of the workers in the management of the canteen;

(dd) the items of expenditure in the running of the canteen which are not to be taken into account in fixing the cost of foodstuffs and which shall be borne by the employer;

(e) the delegation to the Chief Inspector, subject to such conditions as may be prescribed, of the power to make rules under Clause (c)."

It is evident from the aforesaid provision that the occupier of a factory (a railway establishment for the purposes of the said provision is a factory within the meaning of the Act) is not only obliged to run a canteen where more than 250 workers are employed but is also obliged to abide by the rules which the concerned Government may Make, including the rules for constitution of a managing committee for running the canteen and for representation of the workers in the management of the canteen. The occupier may also be required to bear a part of the expenses of running the canteen and to comply with the rules prescribing standards in respect of construction, accommodation. furniture and other equipment of the canteen the foodstuffs to be served and the prices to be charged for them. In other words, the whole paraphernalia of the canteen has to conform to the statutory rules made in that behalf. As is pointed out on behalf of the Railways, it appears that there are