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2006 Supreme(Guj) 74

Gujarat High Court
Judgename :ANIL R.DAVE, K.A.PUJ
KIRITKUMAR K.RAWAL - Appellant
Versus
DISTRICT COLLECTOR,mehsana - Respondent
Letters Patent Appeal 1524 of 2004
Decided On : 02/03/2006

Advocates Appeared: D.G.SHUKLA, SAURABH J.MEHTA, V.M.PANCHOLI, VIDHI SHODHAN

Headnote:

Labor law - Industrial Disputes Act, 1947 - Constitution of India,1950 - Article 12 – Appeals appellants original petitioners have challenged validity of a common judgment delivered in Special Civil applications - Original petitioners were working Temple Trust, respondent in different capacities like peons and watchmen - Respondent trust wanted to reorganize its activities and therefore it retrenched petitioners and other similarly situated persons by orders upon payment of retrenchment compensation as per provisions - It was specifically stated in retrenchment orders that provisions of ID Act were not applicable to Trust but for sake of abundant caution trust had paid retrenchment compensation to petitioners said orders were challenged in aforesaid writ petitions which have been rejected and being aggrieved by order of rejection petitioners have filed these appeals – Held, Supreme Court has considered several factors which should be considered before considering a particular institution as a state within meaning of Constitution - Looking to observations of Honble Supreme Court which have been reproduced above are of view that single judge has rightly come to conclusion that Trust is not a state - In instant case it is an admitted fact that Trust is not getting any financial aid from State of Gujarat - On Board which manages Trust there is only one member who is a government officer and other members of Board are respected citizens or residents of a particular area - Simply because one of members of board is Collector of District it cannot be said that said Trust is a state especially when no financial assistance is given to Board for managing Trust and no function of State is performed by Trust - Therefore agree with findings arrived at by single Judge that respondent Trust is not a state - In agreement with submission made by advocate appearing for trust that petitioners ought to have approach Labor Court provisions of ID act - He has fairly submitted that though in orders whereby petitioners were retrenched from service it has been stated that provisions of ID Act are not applicable to respondent Trust no objection with regard to jurisdiction would be raised before Labor court if petitioners approach Labor Court for challenging validity of retrenchment orders - Petitions filed by petitioners were maintainable and petitioners should not have been retrenched from service – Appeal dismissed(Para 20)

ANIL R. DAVE, J.

( 1 ) IN both these appeals, the appellants, original petitioners, have challenged the validity of a common judgment delivered in Special Civil applications Nos. 3931 and 3667 of 2004 dated 21st july, 2004. In view of the said fact, at the request of the learned advocates, both the appeals have been heard together.

( 2 ) THE facts giving rise to the said petitions, in a nutshell, are as under:- (1) The original petitioners were working under bahucharaji Mataji Temple Trust, respondent No. 2 herein in different capacities like peons and watchmen. Respondent No. 2-Trust wanted to reorganize its activities and, therefore, it retrenched the petitioners and other similarly situated persons, by orders dated 23rd March, 2004 upon payment of retrenchment compensation as per the provisions of the Industrial Disputes Act, 1947 (hereinafter referred to as the ID Act ). It was specifically stated in the retrenchment orders that the provisions of the ID Act were not applicable to the Trust, but for sake of abundant caution, the trust had paid retrenchment compensation to the petitioners. The said orders were challenged in the aforesaid writ petitions, which have been rejected, and being aggrieved by the order of rejection, the petitioners have filed these appeals.

( 3 ) LEARNED advocate Shri Saurabh Mehta appearing for the petitioners has submitted that respondent no. 2-Trust is a state within the meaning of art. 12 of the Constitution of India. As the Trust is a state within the meaning of Art. 12 of the constitution of India, the petitions filed by the petitioners were maintainable and the petitioners should not have been retrenched from service. According to him, the Trust has made an effort to fill up the posts held by the petitioners by giving contracts to some other persons. In fact, the intention of the employer Trust was to relieve the petitioners from their posts and to appoint other persons under the guise of giving contract for the same work. He has drawn our attention to the advertisement issued by the Trust for inviting offers from persons interested in doing the work which the petitioners were doing and has submitted that such an action on the part of the Trust is not permissible in law.

( 4 ) HE has relied upon the judgment delivered in the cases of Gujarat State Fertilizer Co. Ltd. and Anr. v. Association of officers, GSFC, Fertilizernagar, 1995 (2) GLH 179; Shri Anadi Mukta Sadguru Shree muktajee Vandasjiswami Suvarna Jayanti Mahotsav smarak Trust and others v. V. R. Rudani and others, air 1989 SC 1607; and Uptron India Ltd. v. Shammi bhan and anr. , AIR 1998 SC 1681.

( 5 ) SO far as the judgment delivered in the case of gujarat State Fertilizer Co. Ltd. (supra) is concerned, it has been relied upon to show that the petitioners have a right to livelihood and, therefore, their services ought not to have been terminated by the Trust, which is a state.

( 6 ) SO far as the judgment delivered in the case of shri Anadi Mukta Sadguru Shree Muktajee vandasjiswami Suvarna Jayanti Mahotsav Smarak Trust and others (supra) is concerned, it has been relied upon to submit that mandamus could have been issued by the learned single Judge.

( 7 ) IT has been thereafter submitted that according to the law laid down by the Honble Supreme Court in the case of Uptron India Ltd. (supra), when the state is the employer, service of a person cannot be terminated except in accordance with law.

( 8 ) HE has also relied upon the judgments delivered in the case of R. D. Shetty v. International Airport authority of India, AIR 1979 SC 1628; and in the case of Ajay Hasia v. Khalid Mujib Sehravardi, (1981) 1 SCC 722 : AIR 1981 SC 487 to substantiate his above submissions.

( 9 ) HE has thereafter submitted that the learned single Judge has committed an error by coming to a conclusion that the Trust is not a state. It has been submitted by him that the District Collector of District Mehsana is one of the trustees, who is managing the affairs

















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