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2000 Supreme(Kar) 171

Karnataka High Court
BHARAT ELECTRONICS LIMITED - Appellant
Versus
B.E.L.HEAD OFFICE STAFF ASSOCIATION - Respondent
Decided On : 03-07-00
W.P. : 11874 of 1991

Advocates:
A.G.HOLLA, M.C.NARASIMHAN

Headnote:Industrial Employment (Standing Orders) Act, 1946-Sections 2(1), 3, 4 and 5-Standing Orders relating to Industrial Establishment-dispute about the Head office of being establishment attracting provisions of the Act-order passed by Appellate Authority that Head office is situated within precincts of factory is on wrong presumption-said order is also not speaking order and set aside.

       

H. L. DATTU, J.

( 1 ) THE petitioner is a Company incorporated under the provisions of Companies Act. It is functioning under the control of Ministry of Defence, Government of India. The Company at present has nine production units, besides a number of Regional Offices spread across the country in different States. Seven of these units have Standing Orders certified under the provisions of the Industrial Employment (Standing orders) Act, 1946. In respect of the other two units, final certification is pending on appeal before the Appellate Authority. The Company has its head Office at No. 116/2, Trade Centre, Race Course Road, Bangalore city. The production unit is nearly about 10 kms. , away from the Head office. In the petition, it is stated that the main function of the Head office is to lay down broad policies and corporate directions to the various units, which is purely of administrative nature. It is specifically stated that no production activity or manufacturing process as such being carried on at the Head Office. The Head Office is registered under the provisions of Karnataka Shops and Commercial Establishments Act, 1961.

( 2 ) PETITIONER-COMPANY asserts that its Head Office is neither a factory, as defined in the Factories Act, 1948, nor an industrial establishment as defined under the provisions of the Industrial Employment (Standing Orders) Act, 1946, and therefore, Head Office has not made any attempts to frame and get the Standing Orders certified under the provisions of the Act for application to the staff at the Head Office.

( 3 ) B. E. L. Head Office Staff Association is the registered Trade Union functioning at the Head Office. The Union by its letter dated 18-5-1987 addressed to the Certifying Officer and the Regional Labour Commissioner (Central), Bangalore, sought an amendment to the Standing Orders of the Head Office seeking to incorporate a clause for providing for enhanced annual leave. On receipt of such request, the Certifying Officer has notified the same to the petitioner-Company, which in turn has filed its objections opposing the request made by the respondent-Trade Union for amendment to the Standing Orders. Apart from others, they had specifically contended that the Act, 1946 is inapplicable to the Head office and secondly, that the Head Office does not have any Standing orders, certified under the Act and therefore, the application for amendment was wholly misconceived.

( 4 ) THE Certifying Officer after affording an opportunity of hearing to both the parties, by his speaking order dated 8-1-1988 has disposed off the request made by the respondent-Union by holding that the certified Standing Orders in force at the petitioner's factory/unit at Jalahalli, Bangalore, are not applicable to the workmen working at the Head Office but the Act is applicable to the Head Office. Having come to that conclusion, the Certifying Officer has directed the petitioner-Company to submit draft Standing Orders in relation to the workmen at the Head office for certification under the Act.

( 5 ) PETITIONER-COMPANY, aggrieved by the speaking order of the Certifying Officer has preferred an appeal under Section 6 of the Act within the prescribed time before the Appellate Authority, who in turn by his order dated 8-4-1991 has rejected the appeal but chooses to modify the order made by the Certifying Officer dated 8-1-1988. In this order, the appellate Authority holds that the Standing Orders as certified by the certifying Officer and Regional Labour Commissioner, Bangalore, to the factory unit of the petitioner-Company are applicable to the workmen employed in the Head Office of M/s. Bharat Electronics Limited and the management of the petitioner-Company is not required to submit any fresh draft Standing Orders in respect of the employees of the Head office for certification as directed by the Certifying Officer. It is these orders, which are called in question by the petitioner-Company in this petition filed under Arti



























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