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2024 Supreme(Ker) 167

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Basant Balaji, J.
Jayakumar and ors. – Petitioners
Versus
Union Of India Represented By Secretary Ministry Of Defence, New Delhi And Ors. – Respondents
WP(C) Nos.2517 of 2020, 25202 of 2020, 25209 of 2020, 25213 of 2020, 26222 of 2020, 27478 of 2022, 27795 of 2021, 29919 of 2021, 30508 of 2021, 30564 of 2021, 30652 of 2021, 30668 of 2021, 30679 of 2021, 7461 of 2022, 29383 of 2022, 35026 of 2022, 35173 of 2022, 35231 of 2022, 35246 of 2022, 453 of 2023, 456 of 2023, 1548 of 2023, 13827 of 2023, 16984 of 2023, 22466 of 2021, 23782 of 2021, 27386 of 2020, 25635 of 2023, 25814 of 2023 and 17289 of 2023
Decided On : 04-03-2024

Advocates:
Advocate Appeared:
For the Petitioner: R.Sunil Kumar, Smt.A.Salini Lal, Shri.Arun Krishna
For the Respondent: Shri.P.Vijayakumar, Asg, Suvin R Menon

The main legal point established in the judgment is that Unit Run Canteens (URCs) are not considered as 'State' or 'other authority' within the meaning of Article 12 of the Constitution of India.

Headnote:

URC - Employees' Writ Petition - AO/19/2003/QMG, Shops and Establishment Act - The court discussed the maintainability of the writ petition against Unit Run Canteens (URC) under Article 12 of the Constitution of India. The URCs are not considered as 'State' or 'other authority' within the meaning of Article 12. The court analyzed the creation, finance, and control of URCs and concluded that they do not come under the definition of State. The writ petitions were dismissed as not maintainable.

Fact of the Case:

The petitioners, employees of Unit Run Canteens (URC), filed a writ petition against their removal and replacement by contractual employees. The respondents contended that the writ petition is not maintainable as URCs do not come under the definition of State.

Finding of the Court:

The court found that URCs are not considered as 'State' or 'other authority' within the meaning of Article 12 of the Constitution of India. The URCs are established based on provisions laid down in AO/19/2003/QMG and are funded by regimental non-public funds. The court concluded that URCs do not come under the definition of State and dismissed the writ petitions as not maintainable.

Issues: The primary issue was the maintainability of the writ petition against URCs under Article 12 of the Constitution of India.

Ratio Decidendi: The court applied the tests of creation, finance, and control to determine whether URCs come under the definition of State. It found that URCs are not created by any statute or legislation, are funded by regimental non-public funds, and do not have public duty to perform, leading to the conclusion that they do not come under the definition of State.

Final Decision: The writ petitions were dismissed as not maintainable, and the petitioners were given liberty to move to the appropriate forum for redressal of their grievance, if so advised.

JUDGMENT :

In W.P.(C)No.25209 of 2020, the petitioners are employees of Unit Run Canteens (hereinafter referred to as ‘URC’) working at Mavelikkara extension counter functioning under the administrative control of Army Station Head Quarters, Pangode, Thiruvananthapuram. The URCs are run by the Canteen Stores Department (hereinafter referred to as ‘CSD’), is governed by the Board of Control of Canteen Services (BOCCS), is headed by the Minister of Defence and has members like the Defence Secretary, Secretary of Defence (Finance), the Quarter Master General (QMG). The present form of canteen came into existence in 1947 and the funds for CSD were met from the consolidated fund of India to purchase goods for the trade. Petitioners are either Ex-servicemen or dependent on Ex-Servicemen. They joined the canteens on the basis of a Standard Operating Procedure (SOP) issued by the respondents. After a period of probation, the petitioners will be treated as permanent/temporary employees.

2. The petitioners submit that the respondents are trying to remove the petitioners from their office, and they are to be replaced by contractual employees. Aggrieved by the same, the petitioners have filed this writ petition. The connected cases are W.P.(C)Nos.25202, 25209, 25213, 2517, 26222, 27386/2020, 22466, 23782, 27795, 29919, 30508, 30564, 30652, 30668, 30679/2021, 7461, 27478, 29383, 35026, 35173, 35231, 35246/2022 & 453, 456, 13827, 17289/23, in which the petitioners also have the same grievance and they are working at different extension counters, and the respondents are the identical persons. Except the above cases, W.P.(C)Nos. 1548 of 2023, 25814 of 2023, 25635 of 2023 and 16984/2023, the petitioners have different prayers. In W.P.(C)No.16984 of 2023, the petitioners sought the following prayers:

A. Issue writ in the nature of mandamus commanding 5th respondent to assign duties and responsibility of Asst Manager to the petitioner forthwith

B. Issue writ in the nature of mandamus commanding 5th respondent to relieve 7th respondent from the duties and responsibilities of Asst Manager forthwith

C. Issue writ in the nature of mandamus commanding 4 respondent to institute an inquiry against 6th and 7th respondent on the Exhibit P5 complaint lodged by the petitioner

D. Declare that applicant being appointed as Asst Manager is entitled to assigned with duties and responsibilities attached to the post of Asst Manager

E. Such other relief that the Hon'ble Court feel deem fit in the facts and circumstances of the case.

In W.P.(C) No.1548 of 2023, 25814 of 2023 and 25635 of 2023, the petitioners challenge the termination and seek direction for reinstatement in service.

3. A counter affidavit is filed by the respondents. The 1st and foremost contention raised is that the writ petition is not maintainable as the Unit Run Canteens does not come under the definition of State. Three vital aspects and tests to determine whether an organization - institution, or body comes under the definition of other authorities are; i) Creation, ii) Finance, and iii) Control. As far as the first test is concerned, that is, creation, URCs are established in terms of provisions laid down in AO/19/2003/QMG. The canteen services directorate grants sanction to a unit to operate the URCs on the basis of recommendation of higher formation/CSD head office. The URCs are given sanctions on the basis of certain basic criteria. The creation of a unit run canteen arises out of the need for defense personnel posted in a particular unit /formation and not by any Act but by an order from the Quarter Master General branch of the Army. It is not the creation of the constitution or parliament or a State Legislature. AO/19/2003/QMG is an Army order and not a notification nor does it carry any statutory validity. Thus, it is not a State, coming under Article 12 of the Constitution of India, and therefore, the writ petition is not maintainable against the Unit Run Canteen.

4. As regards 2nd test financ

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