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1995 Supreme(Del) 221

High Court Of Delhi
NAND KISHORE JAIN - Appellant
Versus
PRESIDING OFFICER LABOUR COURT, DELHI - Respondent
Civil 1350 of 1974
Decided On : 03/07/1995

The Khadi and Village Industries Commission is not an industry carried on by or under the authority of the Central Government and, therefore, the Central Government is not the Appropriate Government to make a reference for adjudication of industrial dispute.

Headnote:

INDUSTRIAL DISPUTES ACT - APPROPRIATE GOVERNMENT - KHANDI AND VILLAGE INDUSTRIES COMMISSION - WHETHER AN INDUSTRY CARRIED ON BY OR UNDER THE AUTHORITY OF THE CENTRAL GOVERNMENT - WHETHER THE CENTRAL GOVERNMENT IS THE APPROPRIATE GOVERNMENT TO MAKE A REFERENCE FOR ADJUDICATION OF INDUSTRIAL DISPUTE.

Fact of the Case:

The petitioner was employed as an Accounts Clerk by the Khadi and Village Industries Commission. After the Commission was established under the Khadi and Village Industries Commission Act, 1956, the petitioner's services were taken over by the Commission. The petitioner was posted and worked in the Khadi Gramodyog Bhawan, New Delhi. The management of Khadi Gramodyog Bhawan placed the petitioner under suspension and eventually served a charge sheet accusing him of irregularities and embezzlement of funds. The petitioner denied the allegation and his services were terminated. The petitioner raised an industrial dispute and the Lt. Governor, Delhi referred the dispute for adjudication to the Labour Court, Delhi.

Finding of the Court:

The Labour Court held that the Appropriate Government was the Central Government and, therefore, its order, declining to adjudicate upon the dispute on merits cannot be sustained. The case of the petitioner, in the court's view, falls in the residuary clause and the Appropriate Government would be the State Government, which rightly made the reference.

Issues: 1. Whether the Khadi and Village Industries Commission is an industry carried on by or under the authority of the Central Government? 2. Whether the Central Government is the Appropriate Government to make a reference for adjudication of industrial dispute?

Ratio Decidendi: 1. The court held that the Khadi and Village Industries Commission is not an industry carried on by or under the authority of the Central Government. The Commission is a commercial establishment like any other commercial corporation carrying on purely commercial activities for the promotion of Khadi and village industries. 2. The court held that the Central Government is not the Appropriate Government to make a reference for adjudication of industrial dispute in the instant case. The Appropriate Government would be the State Government, which rightly made the reference.

Final Decision: The court set aside the impugned award of the Labour Court, to the extent it holds that the Lt. Governor was not competent to make the reference in petitioner's case, and remitted the matter back to the Labour Court for adjudication on merits.

D. K. Jain, J.

( 1 ) THE petitioner was emploved as an Accounts Clerk by the All India Khadi and Village Industries Board on 13 December, 1956. After Khadi and Village Industries Commission (hereinafter referred to as the Commission ) was established under Section 4 of the Khadi and Village Industries Commission Act, 1956 (for short the Act), the services of the petitioner were taken over by the A Commission. The petitioner was posted and all through worked in the Khadi Gramodyog Bhawan, New Delhi. The management of Khadi Gramodyog Bhawan (hereinafter referred to as the Management ), placed the petitioner under suspension on 13 October, 1970 and eventually served a charge sheet dated 22 December, 1970, accusing him of certain irregularities and embezzlement of funds. The petitioner denied the allegation. His services were terminated. Aggrieved by the said termination of his services, the petitioner sent a notice of demand to the management on 16 May, 972 asking for his reinstatement. Since his request was not acceded to the petitioner raised an industrial dispute. The conciliation proceedings having failed, the Lt. Governor, Delhi referred the dispute for adjudication to the Presiding Officer, Labour Court, Delhi by a notification dated 16 February, 1973, and the dispute specified in the order of reference was :- "whether services of Shri Nand Kishore Jam have been terminated illegally and/or without any justification and if so, to what relief is he entiled and what directions are necessary in this respect. "

( 2 ) BEFORE the Labour Court, while supporting its action of termination of services of the petitioner, the management raised three preliminary objections, the one relevant presently being in the following terms:

"that the Khadi Gramodyog Bhavan is a unit of Khadi and Village Industries Commission, which, was set up under an Act of Parliament, namely the Khadi and Village Industries Act, 1956 (Act No. 61 of 1. 956 ). Having regard to the provisions of the said Act, it is clear that the activities of the Commission are carried on by or under the authority of the Central Government. As such the appropriate Govt. in the case of the Rhavan is the Central Govenment. The present reference made by the Lt. Governor is, therefore, ultra vires his powers and the present reference cannot, therefore, be entertained by this hon ble Tribunal. "on the pleadings of the parties, the Labour Court framed the following preliminary issues :

" (1) Whether a demand was made on the management in respect of this subject matter of the reference? If not. its effect? (2) Whether the reference is ultra vires of the powers of the Government for the reasons given in para 2 of the preliminary objections in the written statement? (3) Whether the Khadi Gramodyog Bhavan is not an industry?"

( 3 ) DURING the course of arguments before the Labour Court the management did not press the preliminary issue No. 3. By its award dated 11 October 1973, which is impugned in this writ petition, the Labour Court found issues No: 1 and 3 in favour ; of the petitioner. On issue No. 2 the Labour Court returned the finding that the Appropriate Government was the Central Government and as such reference iii the case could only be made by the Central Government and not by the Delhi Administration and, therefore, adjadication of the dispute could not be made in that reference.

( 4 ) IN view of the said award, holding that the Central Government was the appropriate Government to refer the disputes for adjudication, the petitioner, making a specific mention of Labour Court s finding regarding reference by the State Government, filed a statement of daim before the Chief Labour Commissioner (Central) Ministry of Labour and rehabilitation with a request that the industrial dispute raised by him may be referred for adjudication by the Central Government. By a communication dated 30 July 1974, the Chief Labour Commissioner (Central) informed the petitinoer that the Delhi Administra

















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