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1959 Supreme(Ori) 52

HIGH COURT OF ORISSA
BARMAN
SUPERINTENDING ENGINEER - Appellant
Versus
WORKMEN OF MACHKUND HYDRO ELECTRIC PROJECT - Respondent
.
Decided On : NOVEMBER 12, 1959

Advocates Appeared:
A.DAS, A.R.MUKHERJI, D.N.RAJU, GOVIND DAS, N.V.RAMDAS

The situs of an industry for the purpose of determining the appropriate Government under the Industrial Disputes Act, 1947 (Act XIV of 1947) (Act) is the location of the essential or substantial part of the industry.

Headnote:

The Orissa Government was the appropriate Government to make the reference under the Industrial Disputes Act, 1947 (Act XIV of 1947) (Act) as the industry of the Machkund Hydro-Electric Project was substantially in Orissa, though only some portions were on the other side of the river in Andhra Pradesh.

Fact of the Case:

The Machkund Hydro-Electric Project was spread over the border areas of both the States of Orissa and Andhra Pradesh. Although there was no doubt that the substantial portion of the industry was in Orissa but it could not be disputed that some portion of the concern was also in Andhra Pradesh. For clarification, the position was as follows: The Project concerns river Machkund which falls down from over a hill and is locally known as Duduma Water Fall. The river as well as the country on either side of the project area originally appertained to the ex-zamindary of the Maharaja of Jeypore, portion of which was in the present Province of Madras when the Orissa State was formed in 1936. In a dispute between the States of Madras and Orissa regarding the question whether this river was within the limits of one State or the other, there was an agreed arbitration and it was decided that the middle line of the river was the boundary between the two States. It was after this decision that a joint scheme agreement was reached in 1945 between the State of Orissa and the then composite State of Madras out of which Andhra Pradesh was carved out subsequently. The Project was to be worked out by both the States, Orissa contributing 30 per cent of the capital and consuming an equal percentage of the power generated and the other Government was to invest the rest 70 per cent of the capital and consume an equal percentage of power. The scheme was started somewhere in 1947 and by August, 1956 the power house functioned to work generating electricity which is being taken by the States of Orissa and Andhra Pradesh which was by then formed.

Finding of the Court:

The Court held that the industry of the Machkund Hydro-Electric Project was substantially in Orissa, though only some portions were on the other side of the river in Andhra Pradesh. The Court further held that the Orissa Government was the appropriate Government to make the reference under the Act.

Issues: Whether the Orissa Government was the appropriate Government to make the reference under the Act.

Ratio Decidendi: The Court held that the Orissa Government was the appropriate Government to make the reference under the Act as the industry of the Machkund Hydro-Electric Project was substantially in Orissa, though only some portions were on the other side of the river in Andhra Pradesh. The Court further held that the situs of the industry was in Orissa as the main aim of the Project was the generation of electricity from water-power and the power house (including turbines and generators) and of its appurtenant works like flume channel, flume tunnel, tunnel pond dam, pressure tunnel, pen stock valves, transformer yards, etc., were admittedly located exclusively in Orissa.

Final Decision: The Court allowed the writ petition being O. J. C. No. 64 of 1958 on merits so far as it relates to the question of mode of retrenchment and set aside the award dated 30-12-1957 in Industrial Dispute No. 2 of 1956 as aforesaid only so far as it relates to the mode of retrenchment. The Court directed that those workers who were employed in the Project prior to 1-7-1956 may be retrenched in accordance with their seniority in the units in which they were employed prior to that date; those workmen who were employed in the Project after 1-7-1959 may be retrenched in accordance with their seniority in the units in which they were employed on the date of their recruitment; any transfer from one unit to another after 1-7-1956 of those workmen who were employed prior to 1-71856 shall be ignored for the purpose of retrenchment. The Court dismissed the writ petitions O. J. C. No. 244 of 1958 and O. J. C. No. 245 of 1958 and allowed the writ petitions O. J. C. No. 246 of 1958 and O. J. C. No,. 247 of 1958.

BARMAN, J.

( 1 ) THESE nine several writ petitions herein, challenging the validity and correctness of certain awards made by the Industrial Tribunal, Orissa arose out of certain industrial disputes between the Management of Machkund Hydro Electric Project and their workmen. In five of these writ petitions a preliminary point was taken, purported to have been taken on behalf of the Andhra Pradesh Government that the Orissa Government, who had made the reference in all these cases as aforesaid was not the "appropriate Government" within the meaning of the Industrial Disputes Act, 1947 (Act XIV of 1947) and accordingly the said reference having been invalid, it was contended that the awards made thereunder were made by the Industrial Tribunal, Orissa without jurisdiction. We propose to deal with the preliminary point first before we come to the merits of each of these petitions which were analogously heard.

( 2 ) THE appropriate Government as defined in Section 2 (a) of the Industrial Disputes Act, 1947 (Act XIV of 1947) means :

" (i) in relation to any industrial dispute concerning an industry carried oh by Or under the authority of the Central Government or by a railway Company or concerning any such controlled industry as may be specified in this behalf by the Central Government or in relation to an industrial dispute concerning a banking or insurance company, mine, an oil-field or a major port, the Central Government and (ii) in relation to any other industrial dispute the State Government:"

It is not clear from the definition to what particular Government the "state Government" refers whether it is the Government where the industrial dispute arises or whether it is the Government where the industry is situated Or whether it is the employer Government who owns the industry. Nor does the definition make it clear whether more than one Government are also contemplated by the term "state Government" in the definition. ' Under Section 10 reference is made by the approprite Government to the Industrial dispute. Where the appropriate Government is of opinion that any industrial dispute exists or is apprehended, it may at any time, by order in writing, refer the dispute or refer any matter appearing to be connected therewith or relevant to the dispute where it relates to any matter specified in the Second Schedule or the Third Schedule of the Act, to a Tribunal for adjudication. The provision is quite simple in its terms and normally there is no difficulty in the way of interpretation and application of the Section to particular cases. But in the present case because of the peculiar situation of the industry, namely the Machkund Hydro-Electric Project with which we are concerned, there arises some difficulty.

( 3 ) IN this context, at this stage, it is necessary to describe the situation of the project. Evidence shows that the Machkund Hydro-Electric Project is spread over the border areas of both the States of Orissa and Andhra Pradesh. Although there is no doubt that the substantial portion of the industry is in Orissa but it cannot be disputed that some portion of the concern is also in Andhra Pradesh. For clarification, the position is as follows : The Project concerns river Machkund which falls down from over a hill and is locally known as Duduma Water Fall. The river as well as the country on either side of the project area originally appertained to the ex-zamindary of the Maharaja of Jeypore, portion of which was in the present Province of Madras when the Orissa State was formed in 1936. In a dispute between the States of Madras and Orissa regarding the question whether this river was within the limits of one State or the other, there was an agreed arbitration and it was decided that the middle line of the river was the boundary between the two States. It was after this decision that a joint scheme agreement was reached in 1945 between the State of Orissa and the then composite State of Madras out of which Andhra Pradesh was



















































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