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2004 Supreme(Bom) 1609

IN THE HIGH COURT OF BOMBAY
D.Y. Chandrachud, J.
RADHESHYAM DUBEY - Appellant
Vs.
BOARD OF APPRENTICESHIP TRAINING, WESTERN REGION AND ANOTHER - Respondent
(O.S.) W.P. No. 1138 of 2004
Decided On : 23-06-2004

Advocates Appeared:
For the Appellant : Shobha Gopal
For the Respondent: Datta Murti

An educational institution providing training facilities for apprentices qualifies as an industry under Section 2(j) of the Industrial Disputes Act, 1947.

Headnote:

Industrial Disputes Act - Definition of Industry - The court held that an educational institution providing training facilities for apprentices qualifies as an industry under Section 2(j) of the Industrial Disputes Act, 1947. The judgment relied on previous Supreme Court decisions to establish that an organized activity involving the relationship of employer and employee, aimed at providing training facilities, fulfills the criteria for an industry. The Industrial Tribunal's rejection of the reference on the ground that the organization is not an industry was deemed erroneous.

Fact of the Case:

The petition challenged an order by the Industrial Tribunal, which held that the reference for adjudication under Section 10 of the Industrial Disputes Act, 1947 was not maintainable as the organization in question was not considered an industry under Section 2(j) of the Act.

Finding of the Court:

The court found that the organization, an educational institution providing training for apprentices, qualifies as an industry under Section 2(j) of the Industrial Disputes Act, 1947. The Industrial Tribunal's rejection of the reference was deemed erroneous, and the order was quashed and set aside, with the reference restored for disposal on its merits.

Issues: The main issue was whether the organization qualified as an industry under Section 2(j) of the Industrial Disputes Act, 1947.

Ratio Decidendi: The court relied on previous Supreme Court judgments to establish that an organized activity involving the relationship of employer and employee, aimed at providing training facilities, fulfills the criteria for an industry under Section 2(j) of the Industrial Disputes Act, 1947.

Final Decision: The petition was allowed, the order of the Industrial Tribunal was quashed and set aside, and the reference was restored for disposal on its merits.

JUDGMENT :

D.Y. Chandrachud, J.—Rule, returnable forthwith. Counsel for the Respondents waives service. By consent taken up for hearing and final disposal.

2. This Petition is directed against an order dated June 5, 2003 passed by the Industrial Tribunal holding that the reference for adjudication u/s 10 of the Industrial Disputes Act, 1947 was not maintainable on the ground that the First Respondent is not an industry within the meaning of Section 2(j) of the Industrial Disputes Act, 1947. The First Respondent is an organisation called the Board of Apprenticeship Training, Western Region, Mumbai. The First Respondent is an autonomous body under the Ministry of Human Resources Development, Department'. of Education, Government of India and is registered under the provisions of the Societies Registration Act, I860. Under the Memorandum of Association, the main object of the First Respondent is to organize" practical training for graduates and diploma holders in engineering and technology in order to equip them with practical experience for gainful employment. The Board is also conferred with the function of implementing the provisions of the Apprenticeship Act, 1961 in so far as they relate to the training of graduates and technical apprentices. In order to achieve these objects, the Board is required to establish a permanent liaison with technical institutions and industries located in the region comprising of the States as of Maharashtra, Gujarat, Madhya Pradesh and Goa and the Union Territories of Daman and Diu. The Board has to secure and provide training facilities in different establishments both in the private and public sectors; to select student trainees and arrange for their placements; to prepare programmes of training; to supervise training with the help; of training field officers; to disburse stipends to trainees; to award certificates to trainees, to arrange dissemination of information and to provide for expert and advisory services in the field of practical training to both technical institutions and industry. The Board is managed by a fund consisting of amounts sanctioned by the Government of India, fees and other charges received by the Board and monies received by way of gifts and donations.

3. In order to decide as to whether the Board is an industry, evidence came to be recorded. In so far as this issue is concerned, it would be necessary to extract the following answers that was furnished in the course of the cross examination by the witness who deposed on behalf of the Board. The witness was Mr. S.P.S. Rathore, Director of Training. The witness deposed thus:

    "We inspect establishments, assess their training facilities and advice to recruit apprentices and to train them. 32 employees work in the Board, as regular employees. We require the assistance of all these employees. We function in an organized systematic manner. We are rendering training facilities services to the apprentices. Our officers give periodical visit to respective establishments to supervise the apprenticeship training. We maintain record of all the establishments. We charge fees for training programmes from outside apprentices, hosted by Companies. We charge about Rs. 50 per day, per head. In a year we hold about 10 seminars."

4. The aims and objects of the Board and the facts which have emerged from the deposition of the Board's witness leaves no manner of doubt that the Board is an industry within the meaning of Section 2(j) of the Industrial Disputes Act, 1947. That an educational institution is an industry is now well-settled by the judgment of the Supreme Court in Bangalore Water Supply and Sewerage Board Vs. A. Rajappa and Others, (1978) 2 SCC 213. This has subsequently been followed by a Bench of two Learned Judges of the Supreme Court in Miss A. Sundarambal Vs. Government of Goa, Daman and Diu and Others, AIR 1988 SC 1700: There is in the present case undoubtedly a systematic activity to provide services aimed at rendering training f

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