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1988 Supreme(SC) 303

RANGANATH MISRA AND M.M. DUTT, JJ.
Civil Appeals Nos. 5415 of 1985 and 2168-69 of 1987, D/- 20-4-1988.
Des Raj etc., Appellants
Versus
State of Punjab and others, Respondents.

Advocates:
C.M.NAYAR, D.K.GARG, JITENDRA SHARMA, K.K.Mohan, Mahabir Singh, P.Gaur, R.C.KAUSHIK, S.C.MOHANTY

Headnote:

Industrial Disputes Act, 1947 - Section 33C -2 - Special leave - Recovery of arrears of annual increments – Termination from Service- When his services were terminated without complying with the requirements of law he challenged termination before the Labor Court - Appellant in remaining appeal was an Operator in Mechanical Division under Irrigation Department of Haryana State - His services were terminated and thereupon he approached Labor Court disputing validity of said order - In each of these cases challenge was advanced by governmental authority to the maintainability of application before Labor Court on ground that employer was not an industry and Act did not apply Labor Court by different orders made in each of these cases upheld objection and declined relief to employees - Common question in these appeals therefore is as to whether Irrigation Department of either Government is an industry - Held, Administrative Report of facts found by High Court in instant case have attempted to draw out certain special features - legal position has been indicated in earlier part of our judgment- On tests as already laid down in judgments court do not think these found in this case can take out Irrigation Department outside purview of the definition of industry – Court have already referred to the Dominant Nature test evolved by main functions of irrigation Department when subjected to Dominant Nature test clearly come within ambit of industry – Court have not been able to gather as to why even six years after amendment has been brought to the definition of industry in Section 2(j) of Act the same has not been brought into force - Appeals allowed.

Judgement

RANGANATH MISRA, J.:- Each of these appeals is by special leave and is directed against the Award made in different disputes by the Labour Court. The common justification for ignoring the High Court and approaching this Court directly by way of special leave, according to Mr. Jitendra Sharma for each of the appellants, is that there are a couple of Full Bench decisions of the Punjab and Haryana High Court holding that the Irrigation Department of the State Government of Punjab is not an industry and no useful purpose would have been served by routing the matters through the High Court as the Full Bench decision would have been followed.

2. The appellant in Civil Appeal No. 5415 of 1985 was a foreman in the Mechanical Construction Division under the Irrigation Department and had applied under Section 33C-2 of the Industrial Disputes Act, 1947, (hereinafter referred to as the Act) before the Labour Court for recovery of arrears of annual increments.

3. The appellant in Civil Appeal No. 2168 of 1987 was a T. Mate in the P.W.D. Drainage Division. When his services were terminated without complying with the requirements of the law, he challenged the termination before the Labour Court. The appellant in the remaining appeal was an Operator in the Mechanical Division, Rohtak under the Irrigation Department of Haryana State. His services were terminated and thereupon he approached the Labour Court disputing the validity of the said order. In each of these cases challenge was advanced by the governmental authority to the maintainability of the application before the Labour Court on the ground that the employer was not an industry and the Act did not apply. The Labour Court by different orders made in each of these cases upheld the objection and declined relief to the employees. The common question in these appeals, therefore, is as to whether the Irrigation Department of either Government is an industry.

4. The definition of industry occurring in Section 2 of the Act has not to be seen. The Act defines industry in Section 2(j) to mean :

"any business, trade undertaking, manufacturer or calling of employers and includes any calling service, employment, handicraft, or industrial occupation or avocation of workmen."

By Section 2(c) of the Amending Act (46 of 1982), this definition has been amended but the amendment has not yet been brought into force. The amended definition of "industry" is as follows :-

"Industry means any systematic activity carried on by co-operation between an employer and his workmen (whether such workmen are employed by such employer directly or by or through any agency, including a contractor) for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or not, -

(i) any capital has been invested for the purpose of carrying on such activity; or

(ii) such activity is carried on with a motive to make any gain or profit,

and includes -

(a) any activity of the Dock Labour Board established under Section 5A of the Dock Workers (Regulation of Employment) Act, 1948;

(b) any activity relating to the promotion of sales or business or both carried on by an establishment,

but does not include -

(1) any agricultural operation except where such agricultural operation is carried on in an integrated manner with any other activity (being any such activity as is referred to in the foregoing provisions of this clause) and such other activity is the predominant one,

Explanation : - For the purposes of this sub-clause, agricultural operation does not include any activity carried on in a plantation as defined in clause (f) of Section 2 of the Plantations Labour Act, 195 1; or

(2) hospitals or dispensaries; or

(3) educational, scientific, research or training institutions; or

(4) institutions owned or managed by organisation wholly or substantially engaged in any charitable, social or philanthropic service, or

















































































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