P.K. Balasubramanyan, C.J.

1. The Bokaro Steel Plant, a Unit of Steel Authority of India Limited is a Government Company within the meaning of Section 617 of the Indian Companies Act, 1956. The Steel Authority of India Limited (hereinafter referred to as the SAIL) is also a Government Company incorporated with the main object of manufacturing, prospecting, buying, selling, importing, exporting, or otherwise dealing in iron and steel of all qualities, types and kinds and in any other steel and iron related products. The Bokaro Steel Plant is claimed to be a pioneer steel Plant of the country and one of the largest of its kind, having a total production capacity of 2 million tonnes per year. The steel Plant is covered by a network of gas pipelines, water network and steam pipelines. It is claimed that the whole system of network of pipelines is integrated and a very high standard of safety is required to maintain the minimum level of pressure in the pipelines. The pressure in the pipeline is directly proportional to the production level in the Plant and the entire steel Plant is maintained at the functional level, so that there is not even an hour of shut down in the plant. It is claimed that the Bokaro Steel Plant has never been shut down from its very inception. The Plant is of such a nature that if it is compelled to shut down, it may pose environmental hazards and there is an apprehension even of human catastrophe. The Plant itself may be very seriously affected if it is shut down without following the procedures and it requires at least seven days preparation. Even that would be at the risk of 4,000 tonnes of molten steal in the blast furnaces solidifying and the blast furnaces being destroyed for ever, leading to the necessity of erecting another at the cost of more than rupees ten thousand crores, practically compelling the setting up of a new plant. The gas pipeline network may be damaged leading to escape of lethal gas, carbon monoxide, which, if it escapes, might lead to a tragedy, loss of human lives like the one in Bhopal. The same would be the position by the damage being caused to the steam pipelines leading to another catastrophe that may result in loss of lives.

2. The iron and steel industry has been recognized to be the backbone of the country. It has been notified as a public utility service within the meaning of Section 2(n) of the Industrial Disputes Act, 1947. It is also included in the First Schedule to that Act, containing the industries which may be declared to be the public utility services in terms of Clause (vi) of Clause (n) of Section 2 of the Act. Item 7 of the Schedule is "Iron and Steel". Section 22 of the Act places restriction on those who are employed in a public utility service, from resorting to strike without complying with the conditions prescribed therein. The last of the notifications issued under Section 2(n)(vi) of the Act was by the State of Jharkhand on 16.9.2003.

3. According to the Bokaro Steel Plant, certain demands were made by the non- recognised Unions. Respondent 6, the recognized Union did not put forward any demand. Considering the importance of the steel industry and its role in the economy of the nation, a National Joint Committee for the Steel Industry (for short, NJCS) was constituted in October, 1969. The committee arrived at a settlement and drew up on 27.10.1970 a memorandum of agreement on revision of wages and other benefits in steel industries. In February 1971, the scope of the Committee was enlarged. It was given power to decide its own terms of reference from day to day and it covered negotiations for wage agreement and its implementation, review of welfare amenities and facilities, steps to be taken for increase in production, matters on which it was necessary to draw the attention of the Government and any issue pertaining to the steel industry and its employees, as may be agreed to in the NJCS from time to time. Thus, the NJCS practically covered all asp