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2003 Supreme(All) 2995

IN THE HIGH COURT OF ALLAHABAD
R.K. AGRAWAL, J.
New Okhla Industrial Development Authority - Appellant
Versus
Presiding Officer, Labour Court And Others - Respondents
C.M.W.P. No. 32256 of 1990
Decided On : 04-11-2003

Advocates Appeared:
For the Appellant : U.S. Awasthi.
For the Respondent: P.C. Shukla, Gopal Narain and Shyam Narain and S.C.

Headnote:

Labour Court - U. P. Industrial Disputes Act, 1947 - Section 4K, Section 6N - The court discussed the applicability of the U. P. Industrial Disputes Act, 1947, and the provisions of Section 4K and Section 6N. It also referred to the dominant nature test and various case laws to determine whether the petitioner falls within the definition of 'industry' and concluded that the planned development undertaken by the petitioner is in the nature of work undertaken in an industry and cannot be said to be a sovereign function. Therefore, the provisions of the Act are applicable.

Fact of the Case:

The petitioner, New Okhla Industrial Development Authority, sought to quash the award passed by the Labour Court and the reference made by the State Government u/s 4K of the U. P. Industrial Disputes Act, 1947. The respondent, a casual labor, was terminated, and the dispute was referred for adjudication.

Finding of the Court:

The Labour Court found the termination of the respondent's services to be illegal and void, directing for reinstatement with continuity of service and back wages. The court held that the planned development undertaken by the petitioner falls within the definition of the word 'industry' and consequently the provisions of the Act are applicable.

Issues: The issues revolved around the applicability of the U. P. Industrial Disputes Act, 1947, to the petitioner, the nature of the petitioner's activities as falling within the definition of 'industry', and the compliance with Section 6N of the Act.

Ratio Decidendi: The court applied the dominant nature test and referred to various case laws to determine the applicability of the Act to the petitioner. It concluded that the planned development undertaken by the petitioner is in the nature of work undertaken in an industry and cannot be said to be a sovereign function, thus making the provisions of the Act applicable.

Final Decision: The petition was dismissed based on the court's finding that the provisions of the Act are applicable to the petitioner, and the termination of the respondent's services was deemed illegal and void.

JUDGMENT :

R.K. Agrawal, J.

By means of the present writ petition, the petitioner, New Okhla Industrial Development Authority, Ghaziabad, (hereinafter referred to as 'the Noida') seeks a writ, order or direction in the nature of certiorari quashing the award dated 26th June, 1990, passed by the Labour Court, Ghaziabad, respondent No. 1, filed as Annexure-2 to the writ petition, and also the reference made by the State Government u/s 4K of the U. P. Industrial Disputes Act, 1947, (hereinafter referred to as 'the Act') and other consequential reliefs.

2. Briefly stated, the facts giving rise to the petition are as follows:

According to the petitioner, it is an authority created u/s 3 of the U. P. Industrial Area Development Act, for the object of development of land for industrial, commercial and residential purposes in the industrial area in Noida in the district of Ghaziabad, now Gautam Buddh Nagar. K.D. Sharma, respondent No. 3, was employed on daily wages as a casual labour for a specified period with effect from 13th December, 1984. His work was not found satisfactory and the petitioner did not assign any work from 21st August, 1986, According to the petitioner, the respondent No. 3 worked from 13th December, 1984, to 20th August, 1986, for different periods. The details of the period during which he had worked is given below :

13.12.1984 to 20.12.1984

8 days

21.12.1984 to 20.1.1985

19 days

21.2.1985 to 20.3.1985

16 days

(break 12.3.1985)

21.3.1985 to 20.4.1985

23 days

21.4.1985 to 20.5.1985

23 days

21.5.1985 to 20.6.1985

22 days

21.6.1985 to 20.7.1985

25 days

21.7.1985 to 20.8.1985

24 days

21.8.1985 to 6.9.1985 and 10.9.1985 to 20.9.1985

23 days

21.9.1985 to 20.10.1985

22 days

21.10.1985 to 20.11.1985

22 days

21.11.1985 to 7.12.1985 and 12.12.1985 to 20.12.1985

19 days

21.12.1985 to 20.1.1986

23 days

21.1.1986 to 20.2.1986

26 days

21.2.1986 to 10.3.1986

14 days

12.3.1986 to 20.3.1986

8 days

21.3.1986 to 20.4.1986

20 days

21.4.1986 to 20.5.1986

23 days

21.5.1986 to 8.6.1986 and 12.6.1986 to 20.6.1986

20 days

21.6.1986 to 20.7.1986

24 days

21.7.1986 to 20.8.1986

24 days

3. On a dispute being raised by the respondent No. 3, the Reconciliation Officer, Ghaziabad, made efforts to amicably settle the dispute but on its failure, State of U. P. referred the following dispute for adjudication to the Labour Court :

"Kya sewayojako dwara apne shramik D. Sharma putra Shri Satyadeo Sharma pad Junior Engineer ki sewayen dinank 21.8.1986 se samapt kiya jana uchit tatha/athwa uaidhanik hai, Yadi ha, to sambandhit shramik kya labh/anutosh (relief) pane ka adhikari hai, tatha anya kin vivrano sahit."

4. The reference was registered as Adjudication Case No. 230 of 1989, before the Labour Court (II), U. P., Ghaziabad. The parties filed their written statements and rejoinder statement before the Labour Court. An objection was raised by the petitioner that it does not come within the ambit of the definition of the word "industry" and the provisions of Section 4K of the Act, has no application. Consequently, the provisions of Section 6N of the Act, will have no application. The Labour Court after considering the written statements, the objections and the material and evidence on record, vide award passed on 26th June, 1990, had held that the termination of the services of the respondent No. 3 with effect from 21st August, 1986, is illegal and void. It directed for reinstatement with continuity of service and back wages. The award dated 26th June, 1990, is under challenge in the present writ petition.

5. I have heard Sri U, S. Awasthi, the learned counsel for the petitioner and Shri Shyam Narain on behalf of the respondent No. 3.

6. The learned counsel for the petitioner submitted that the respondent No. 3 was not continuously employed wit

























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