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2002 Supreme(SC) 663
Supreme Court of India
G.B.PATTANAIK, RUMA PAL & H.K.SEMA
Hindustan Aeronautics Limited
Versus
Hindustan Aero Canteen K.Sangh
Civil Appeal 3659 Of 2002
Decided On : 08-07-2002
Under the Contract Labour (Regulation and Abolition) Act, the "Appropriate Government" is the one exercising actual control and authority over the organisation, regardless of whether a licence was issued by a State Government.
Headnote:(A) Contract Labour (Regulation and Abolition) Act - "Appropriate Government" - The government which exercises control and authority over the concerned organisation shall be the "Appropriate Government". (Para 2)
(B) Criteria for determination - Issuance of licence by a State Government is not a criterion to conclude that the State Government would be the "Appropriate Government". (Para 2)
Facts of the case:
An undertaking, which is under the full control of the Central Government, was involved in a legal dispute regarding whether the State Government or the Central Government is the "Appropriate Government" under the provisions of the relevant Act. The High Court had previously held that the State Government was the appropriate government.
Findings of Court:
As the organization is an undertaking of the Central Government and the Central Government exercises full control over it, the Central Government is the "Appropriate Government". The issuance of a licence by the State Government does not alter this determination.
Issues: Whether the High Court was justified in holding that the State Government is the "Appropriate Government" under the provisions of the relevant Act.
Ratio Decidendi: Following the principles laid down by a Constitution Bench, the "Appropriate Government" is determined by the exercise of control and authority over the organisation. Since the organisation in question is an undertaking of the Central Government under its full control, the Central Government is the "Appropriate Government".
Result: Impugned judgment set aside; Central Government held to be the "Appropriate Government".
Legal Category Hierarchy
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labour and employment
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contract labour
- appropriate government
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contract labour
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practice and procedure
- appeal
Judgment :-
G.B.PATTANAIK
(1) Order. Leave granted. Heard the learned Additional Solicitor General for the appellants and the learned counsel appearing for the opposite parties.
(2) The question that arises for consideration in this case is, whether the High Court was justified in holding that the State Government is the "Appropriate Government" under the provisions of the relevant Act. The Constitution Bench recently has considered the relevant provisions of the Contract Labour (Regulation and Abolition) Act in the case of Steel Authority of India and others v. National Union Waterfront Workers and others , AIR 2001 SC 3527 : 2001 (7) SCC 1 : 2001-II-LLJ-1087 and has come to the conclusion that the 'Appropriate Government' will be the Government which exercises control and authority over the concerned organisation. It is undisputed that the Hindustan Aeronautics Ltd. is an Undertaking of the Central Government and it is the Central Government which exercises full control over the same. Issuance of licence by the State Government is no criteria to come to a conclusion that the State Government would be the 'Appropriate Government'. The impugned judgment of the High Court therefore is, on the face of it, erroneous in view of the Constitution Bench decision of this Court referred to earlier. We, therefore, set aside the impugned judgment of the High Court and hold that the Central Government is the 'Appropriate Government'.
(3) The appeal stands disposed of accordingly.
