High Court Of Madhya Pradesh
G. P. Singh and C. P. Sen, JJ.
AJIT SINGH SAUDAGAR SINGH
Versus
STATE INDUSTRIAL COURT INDORE
Decided On : Apr 04,1975
Some important attributes of industry are:--
(i) It must bear the definite character of 'trade' or 'business' or 'manufacture' or 'calling', or must be capable of being described as an undertaking in material goods or material services.
(ii) The activity must not be casual but must be distinctly systematic. The work for which labour or workmen is required, must be productive and the workmen must be following an employment, calling or industrial avocation.
(iii) The labour force includes not only manual or technical workmen, but also those whose services are necessary or considered ancillary to the productive labour of others.
(iv) Liberal arts, learned professions, educational undertakings and professional services dependent on the personal qualification and ability of the donor of services are not included. Domestic employment and administrative services of public officials are also excluded. AIR 1968 SC 554 relied on. [Para 9
It cannot be said that the Construction Department of the Bhilai Steel Plant is an 'industry' M/s Hindustao Steel, Ltd., is not carrying on any trade or business in building constructions or other constructional activities. The industry that is being run is that of manufacture of iron and steel. Whatever construction work is carried on is for providing services or facilities to its employees. It is on 'no profit basis'. In fact actual works are executed by private contractors. The Construction Department only supervises the work. The Department is temporary and of a casual nature. The Department will be wound up as soon as targets are received. 1968 JLJ 242 followed. AIR 1964 SC 737 referred to. [Para 10
( 1. ) THIS is a petition under Articles 226 and 227 of the Constitution of India for quashing the orders of the State Industrial Court and State Labour Court. By this order, the connected Petition Misc. Petition No. 297 of 1974 (Gomti Prasad v. The Industrial Court, M. P. , Indore and others) is also disposed of, wherein also the prayer is for quashing of the orders of the State industrial Court and the Labour Court.
( 2. ) IN this petition, the petitioner Ajit Singh was employed as a driver on the Work-charged Establishment of the Construction Department of the bhilai Steel Plant from 6-5-1963 and his services were terminated with effect from 3-4-1968. In the connected case, the petitioner Gomti Prasad was also employed as a driver in the same department since 29-11-1963 and his services were terminated with effect from 31-3 1966. Both filed separate applications along with others similarly placed under section 31 (3) of the M. P. Industrial relations Act, 1960, before the Labour Court, Raipur. Their application were opposed by the respondent No. 3 and a preliminary objection was raised by the management that both were employed in the construction side of the steel Plant, which is not an industry within the meaning of the definition of industry under the Act. The Labour Court framed a preliminary issue on this objection and after recording evidence on the point, the objection was accepted and the applications were accordingly rejected by a common order. In revisions, the State Industrial Court confirmed the order of the Labour court by a common order. Both the Courts had relied on a decision of this court in Jamul Cement Works, Jamul v. President, State Industrial Court, M. P. , indore and others (1968 M PL J 95. ). It is now contended that the Construction Department is a part and parcel of the Bhilai Steel Plant and it is incidental and ancillary to the industry of Iron and Steel and in the alternative, the Construction Department comes within the meaning of engineering Industry as given in the Schedule to the Act.
( 3. ) THE respondent No 3 has opposed the petitions and supported the orders of the Courts below. It is submitted that the Work-charged Establishment of the Construction Department was a temporary department and it was entrusted with construction work of new units of the plant for expansion of the capacity of the Plant from 1 million to 2. 5 million tons. In the year 1966, the construction work was practically in the last phase as most of the units had been constructed and commissioned. The construction work was accordingly tapering off. The construction work was done for the requirements of the plant on no profit basis and could not be an industry. It was not done by way of trade or business. The management made every effort to deploy the employees working in the Construction Establishment and in fact the petitioners were provided with alternative jobs in the Border Roads Organisation, but it seems, the petitioners did not like the jobs and left the same. However, after receiving pay merits of all their dues, the present proceedings were started The petitions are liable to be rejected.
( 4. ) THE Courts below have found that the Construction Department only carries on such construction, which pertain to the Bhilai Steel Plant and which is aimed at affording facilities to the employees of the Plant. The works of the Banks, Posts and Telegraphs, Special Armed Police Force were undertaken for affording facilities to the Plant employees. Such works were constructed on the request of the parties concerned. The works were not carried on commercial lines and no profits were earned. Estimates of these works were prepared and tenders were invited and the works were given to the contractors for execution and cost of the works were recovered by instalments from the parties. The staff employed on the construction side supervised these works. Along with these works, certain works pertaining to the Plant were also ca
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