IN THE HIGH COURT OF ORISSA
Biswanath Rath, M.S. Sahoo, JJ.
Bhismaraj Meher - Appellant
Versus
The Director, State Labour Institute - Respondent
W.P.(C) No. 21798 of 2016
Decided On : 18-05-2023
INDUSTRY - LABOUR DISPUTE - ACT SECTION LIST: Section 2(j) of the Industrial Disputes Act, 1947 - The court examined whether the State Labour Institute qualifies as an 'industry' under Section 2(j) of the Industrial Disputes Act, 1947. The court interpreted the definition of 'industry' to exclude entities engaged in sovereign functions or those not producing goods or services for market consumption. The Labour Court's finding that the State Labour Institute does not meet the criteria for an industry was upheld, influencing the decision to dismiss the writ petition.
Fact of the Case:
The petitioner, a Chowkidar-cum-Peon, challenged the Labour Court's award that denied his claim for reinstatement after being terminated from his position at the State Labour Institute. He argued that the Institute was an industry under the Industrial Disputes Act, 1947, and that his termination was unjustified.
Finding of the Court:
The court found that the Labour Court correctly determined that the State Labour Institute did not qualify as an 'industry' under Section 2(j) of the Industrial Disputes Act, 1947. The court noted that the Institute's activities were not aimed at producing goods or services for market consumption, thus supporting the Labour Court's decision.
Issues: 1) Whether the State Labour Institute is an industry as defined under Section 2(j) of the Industrial Disputes Act, 1947? 2) Whether the termination of the petitioner's services was legal and justified? 3) What relief, if any, is the petitioner entitled to?
Ratio Decidendi: The court emphasized that the definition of 'industry' under Section 2(j) excludes entities engaged in sovereign functions or those that do not produce goods or services for market consumption. The court upheld the Labour Court's finding that the State Labour Institute's activities did not constitute an industry.
Final Decision: The writ petition was dismissed, affirming the Labour Court's award and finding no grounds for interference.
JUDGMENT
Biswanath Rath, J.
This Writ Petition at the instance of the so called workman involves a challenge to the award of the Labour Court, Bhubaneswar dated 5.12.2015 in I.D. Case No.35 of 2014 disfavoring the Petitioner-workman.
2. Background of this case appears to be; Petitioner upon becoming successful in an walk-in-interview was engaged as a Chowkidar-cum-Peon in the State Labour Institute-the sole Opposite Party herein at a monthly honorarium of Rs.1500/- vide the engagement letter dated 02.01.2006 (Anexure-2). It is claimed that Petitioner was appointed as Chowkidar-cum-Peon being asked to work 24 hours in a day with a sum of Rs.1500/- per month. While the matter stood thus Petitioner made a representation to the Commissioner-cum-Secretary, Labour & Employment Department who was also then functioning as the Vice Chairman of the State Labour Institute, with a prayer to either increase his remuneration or to allow him to work for eight hours in a day and or even relaxing the working hours to enable himself to take up part time job elsewhere to maintain his livelihood. Petitioner claims that as a consequence of the representation vide Annexure-3 he was favored with a letter dated 2.04.2007 with allotment of working hours from 10.A.M. to 5 P.M. with as usual wages vide Annexure-4. Petitioner alleges that immediately after issuing of Annexure-4 in a surprise move on 1.05.2007 he was denied with employment, for which he again made a representation to Opposite Party No.1 on 1.05.2007 on the premises of illegal refusal of employment with effect from 1.05.2007 that too a verbal denial to work. It is claimed that this application was refused to be received by the authority. Petitioner through the communication vide Annexure-6 made a request to allow him to continue to work. In the meantime on the premises of his long absence from duty with effect from 30.03.2007 Petitioner was issued with a show cause. To which Petitioner replied on 2.04.2007. It is here vide Annexure-10 Petitioner was communicated on 9.05.2007 that he had himself abandoned his service. In the meantime on his complain before the Labour authority the matter was taken up for conciliation on 26.09.2007 and vide Annexure-11 Petitioner was communicated with failure of conciliation. In the meantime finding no respite Petitioner under bona fide impression that Government is not taking any positive decision, filed Writ Petition vide W.P.(C) No.28465 of 2013 for appropriate direction. During pendency of the Writ Petition a reference was made on the issue by the competent authority and the dispute was accordingly registered as I.D. Case No.35 of 2014 before the Labour Court, Bhubaneswar. It is claimed that based on the statement of claim by the alleged workman and the written statement of the Management the Labour Court framed the following issues:-
"ISSUES
1) Whether the organisation of the first party management is an Industry as defined under Section 2-J of I.D. Act, 1947?
2) Whether the action of the management of State Labour Institute, Bhubaneswar in terminating the services of Sri Bhismaraj Meher, Choukidar-cum-Peon w.e.f. 1.5.2007 is legal and/or justified?
3) If not, what relief Sri Meher is entitled to? "
3. Petitioner claims that in the adjudication of dispute the learned Labour Court entered into the evidence by respective parties with marking of documents as Exhibits. Finally through the award dated 5.12.2015 the Presiding Officer, Labour Court came to reject the reference on the premises that the proceeding is not maintainable on account of the Management therein doesn9t come within the definition of "Industry" as per provision; section 2(J) of the Industrial Disputes Act, 1947 (hereinafter in short be reflected as "the I.D. Act, 1947"). Hence this Writ Petition.
4. This Court here takes note of the reference undertaken in the Industrial adjudication by the Labour Court, which runs as follows:-
"Whether the action of the management of State Labour Institute, Bhuban
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The definition of 'industry' under Section 2(j) of the Industrial Disputes Act, 1947 excludes organizations engaged in sovereign functions or those not producing goods or services for market consumpt....
The main legal point established in the judgment is that the management's activities met the criteria of an 'industry' under the I.D. Act, and the workman's termination was held to be illegal under S....
Point of Law : Cost of maintaining the association is met partly by members and partly by grants from government and other sources. It will thus be dear that in effect the association has been establ....
Labour Court has decided the preliminary issue of jurisdiction raised to the effect that the Labour Court has no jurisdiction. The Labour Court has held that it has jurisdiction to entertain the refe....
The main legal point established in the judgment is the application of the 'triple test' and 'dominant nature test' to determine an establishment's status as an 'industry' under the Industrial Disput....
The court held that the termination of the workman violated Section 25-F of the Industrial Disputes Act, 1947, and awarded a lump-sum compensation of Rs. 2.00 lakhs instead of reinstatement due to th....
It is settled law that additional documents placed on record cannot be examined for first time by this Court while deciding veracity of preliminary order/award-rendered by Industrial Dispute Act.
Research institutions like the Central Institute of Medicinal & Aromatic Plants do not qualify as 'industries' under the Industrial Disputes Act, as they lack a commercial objective.
A research institution under the control of the government does not qualify as an 'industry' under the Industrial Disputes Act, 1947, as it lacks commercial intent and primarily focuses on research.
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