university grant commission

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 STRIKE AND LOCK-OUTS Strike Strike is the collective stoppage  of work by workmen.  To bring pressure upon those who depend on the sale or use of the product of work. Lockout L ockout is a weapon in the hand of the employer to compell the persons employed by him to accept his terms or condition affecting employment. Section 22 Prohibition of Strike and Lockouts Applies to industries carrying public utility services Strike and lockout not absolutely prohibited Intention of legislature in this section is to provide sufficient safeguards against sudden strike or lockout in public utility services Section 22(1)³No person shall go on strike in breach of  contract unless 6 weeks notice to the employer before striking. Within 14 days of giving such notice. Before the date of strike specified in notice During Pendency of conciliation proceeding. Section 22(2)³Prohibition on Lockout Notice within 6 weeks before locking out. Within 14 days of giving such notice. Before the date of lockout specified in the notice. During pendency of  conciliation proceeding. Section 22(3)³Notice not necessary L ockout already in existence

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 STRIKE AND LOCK-OUTS

Strike

Strike is the collective stoppage  of work by workmen.

 To bring pressure upon those who depend on the sale or use of the product of 

work.

Lockout

L ockout is a weapon in the hand of the employer to compell the persons

employed by him to accept his terms or condition affecting employment.

Section 22 Prohibition of Strike and Lockouts

Applies to industries carrying public utility services 

Strike and lockout not absolutely prohibited

Intention of legislature in this section is to provide sufficient safeguards against

sudden strike or lockout in public utility services

Section 22(1)³No person shall go on strike in breach of  contract unless

6 weeks notice to the employer before striking.

Within 14 days of giving such notice.

Before the date of strike specified in notice

During Pendency of conciliation proceeding.

Section 22(2)³Prohibition on Lockout

Notice within 6 weeks before locking out.

Within 14 days of giving such notice.

Before the date of lockout specified in the notice.

During pendency of  conciliation proceeding.

Section 22(3)³Notice not necessary

L ockout already in existence

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Strike already in existence

22(4)--- Notice of  strike to such number of  persons and in such number as

may be prescribed. 

22(5)³Noticeof 

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t given

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er asm

ay be prescribe

d. 

22(6)--- Reporting of   notice to appropriate government within 5 days

Section 23. General Prohibition of Strike and Lockouts

Section applies to both public and non public utility service

Strike and lockout prohibited in following cases:

  During pendency of conciliation proceeding before the board and

Within seven days of the conclusion of such proceedings

  Pendency of proceeding before the L abour Court, Tribunal or National

Tribunal

Within two months of the conclusion of such proceedings.

  Pendency of arbitral proceedings and two months after the conclusion

of such proceedings.

  Settlement of  award in operation.

Section 24. Illegal Strikes and Lockouts

Commenced or declared in contravention of section 22 of the public Utility 

Service

Commenced in contravention of Section 23 of the Act.

Continued in contravention of an order made by the Appropriate government.

Under Section 10(3) of sub-section (4-A) of Section 10 A of the the Act.

Section 25. Prohibition of  f inancial aid to illegal strikes and lockouts

Essentials:

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Spending or applying money 

Money spent or applied in direct furtherance or support of an illegal strike or

lockout

 The strike or lockout must actually be illegal

Knowledge on the part of the person expending or applying money that strike

or lockout is illegal

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LAY-OFF AND RETRENCHMENT 

Retrenchment means the discharge of surplus labour or staff by the employer

for any reason whatsoever, otherwise than on a punishment inflicted by way of 

disciplinary action.

It has no application where the services of all workmen have been terminated

by the employer on a real and bonafide closure of business or where the

services of all workmen have been terminated by the employer on the business

or undertaking being taken over by another employer.

Meaning of  L ayoff  

L ay-off is a practice whereby the employer cannot give employment to workmen

for various reasons including:

shortage of raw materials, coal or power,

accumulation of stocks,

break-down of machinery etc, or

for any other connected reason.

Section 2(kkk)

If a workman, whose name is on the muster rolls of the industrial

establishment presents himself for work and is not given employment within

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two (2) hours of presenting himself, he shall be deemed to have been laid-off 

for that day.

Section 25A:

It states that industrial establishments with below fifty (50) workmen on

an average per working day in the preceding calendar month, or industrial 

establishments which are of a seasonal character, or industrial 

establishments to which Chapter 5B3 of the Act applies, will not be bound

by Section 25C to 25E (both inclusive).

 This implies that such workmen:

  Will not be entitled to any compensation for being laid off.

  Will not be entered into the muster rolls of the employer.

  Will not fall under any of the exceptions to avail compensation.

Continuous Service:

It is important to note that workmen are entitled for compensation only if they 

have been in continuous service.

Section 25 B of  the Act:

A workman is said to be in continuous service if he provides uninterrupted

service, which includes interrupted service due to sickness, accident, strikes

which are not illegal, lock out or cessation of work not due to the fault of the

workman.

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In other words, the duration when the workman is out of the office on account

of illness is not excluded while computing continuous service.

Meaning of One Year Continuous Service

 The service is construed as continuous for a period of 1 year if the workman

works in the previous year for:

  190 days- below the ground in a mine.

  240 days- in any other job.

Meaning of Six Months Continuous Service

 The service is construed as continuous for a period of 6 months if the workman

works in the preceding 6 months for:

  95 days- below the ground in a mine.

  120 days- in any other job.

Compensation for lay off  

Section 25 C of  the Act

L aying-off workmen results in depriving them of the opportunity to work and

earn wages. Therefore, it becomes the duty of the employer to provide

compensation to the workmen if their case falls within the scope of the Section

25C of the Act. However, no compensation can be awarded in advance of actual

lay-off on grounds of social justice. This particular section states that any 

workman:

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  whose name is borne on the muster-rolls of an industrial establishment

and,

  who has completed at least one (1) year of continuous service under the

employer,

shall be paid compensation for the period during which he was laid-off, which

shall be equal to fifty (50) percent of the total of the basic wages and dearness

allowance that should be payable to him had such workman not been so laid-

off.

Section 25 D of  the Act:

According to Section 25D, it is the duty of the employer to maintain muster-

rolls of workmen and failure to comply with this provision can attract penalty 

under Section 31(2)8 of the Act.

W orkman Laid off for more than 45 days 

If during the one (1) year period of continuous service, the workman is laid-off 

for more than fortyfive (45) days, no further compensation will be paid if there

is an agreement in that respect between the workman and the employer. Upon

the expiry of this period, the employer can retrench the workman and the

compensation then paid would exclude the amount already paid during the

forty-five (45) day period of layoff 

Badli W orkman 

Further, if the workman is a ´badliµ workman or a casual workman, he would

fall outside the ambit of Section 25C. However, if a ´badliµ workman has

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completed one (1) year of continuous service in the industrial establishment, he

will be treated as a permanent workman for all purposes.

Workman Not Entitled to Compensation 

S ection 25E of the Act highlights situations when a workman is not entitled

to compensation even after being laid-off. This section 25E works like an

exception to Section 25C. A workman is not entitled to compensation if:

Refuses to accept any alternate employment 

  He refuses to accept any alternate employment offered by the employer in

the same establishment, or in any other establishment of the same

employer, provided such establishment is within a f ive (5) miles radius 

from the previous establishment. Further, such alternate employment

should not call for any  special skill or experience and the employer

must pay at least the same wages as were previously paid to the

workman.

D oes not present himself for work at the establishment 

  he does not present himself for work at the establishment at the

appointed time during normal working hours at least once a day;

Layoff due to strike or slowing down of production 

  Such lay-off is due to a strike or slowing-down of production by workmen

in another part of the establishment.

Burden of proof  

 The burden of proof is on the employer to show that the workman is disentitled

to claim compensation because his case falls under the purview of Section 25E.

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Special Provision relating of  L ayoff  

P rior approval of Appropriate Government 

Section 25M in Chapter 5B of the Act further points out that prior approval

from the ´appropriate governmentµ is required to lay-off a workman when the

industrial establishment (not being of a seasonal character or in which work is

performed only intermittently), has more than hundred (100) workmen  

employed on an average per working day for the preceding twelve (12) months.

  The appropriate government has the final authority to decide whether the

establishment is in fact seasonal or not and such decision shall be final. It also

provides stringent penalties for contravention of the provisions of Chapter 5B

along with providing compensation to the workman for any ´illegalµ lay-off 

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Registration of Trade Union 

 The registration of a trade union is not necessary. However, upon registration,

a trade union gets several benefits including some immunities that are not

available to an unregistered Trade Union.

In the case of W orkers of B and C Co vs Labor Commissioner, AIR 1964  

Mad it was held that a Trade Union can raise or sponsor a trade dispute and

represent on behalf of its members in legal proceedings arising out of a trade

dispute.

Section 13 specifies that upon registration, a trade union gets a legal entity 

status, due to which it

  has perpetual succession and a common seal.

  can acquire and hold movable as well as immovable properties.

  can contract through agents.

  can sue and can be sued.

Procedure of Registration 

S ection 3 (Appointment of the Registrar) :  

  The appropriate government appoints a person to be the registrar or trade

unions for each state.

S ection 4 (Mode of registration): 

 Two register a Trade Union

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  an application must be sent to the   Registrar  of Trade Unions

appointed by an appropriate government.

  the application must be made by  seven or more persons  who are

engaged in the trade or industry in connection to which the Trade Union

is to be formed.

  all the applicants must subscribe their names to the rules of the 

T rade Union  and comply with the provisions of this act regarding

registration.

  there must be at least 10% or 100 , whichever is less, members who are

engaged or employed in the establishment or industry to which it is

connected.

  there must be not be less than seven members  who are engaged or

employed in the establishment or industry to which it is connected.

P erson applied ceased to be members 

If more that half of the persons who applied for the registration cease to be

members of the union or expressly disassociate themselves from the

application, the application will be deemed to be invalid.

Section 5 (Application of Registration)

It says that the application should be sent to the registrar along with the copy 

of the rules of the trade union and a statement of the following particulars:

  The name, occupation, and addresses of the applicants.

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  The name of the trade union and the address of its head office.

  The titles, names, ages, addresses, and occupations of the office bearers

of the trade union.

  If the trade union has been in existence for more than 1 yr, a general

statement of its assets and liabilities.

Section 6 (Provisions to be contained in the rules of  a Trade Union)

It specifies the provisions that should be contained in the rule book of the

trade union. A copy of this rule book must be supplied along with the

application for registration of the trade union. This rule book details the

internal administration of the trade union and also determines and governs the

relationship between the trade union and its members. It must contain the

rules for the following matters:

  name of the trade union.

  the whole object of the trade union

  the whole purposes for which the general funds can be used.

  the maintenance of the list of members and adequate facilities to inspect

it by the members of the trade union.

  the membership of ordinary members who are actually engaged or

employed in an industry with which it is connected as well as the

membership of the honorary or temporary members.

  the appointment of members of the executive body.

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  the membership or subscription fee, which shall not be less that 25 paisa

per member per month

  the conditions under which a member can get the benefits or has to pay 

fines.

  the safe custody of funds and provisions for inspecting or auditing the

statements, or other documents of the trade union.

  dissolution of the trade union.

Section 7 Powers of  the Registrar regarding registration  of  the Trade

Union:

the registrar has the   power to ask for further information from the trade

union to satisfy himself that the trade union complies with section 5 and is

eligible to be registered under section 6. The registrar can refuse to register the

trade union until he receives the information. Further, he has the   power to 

ask to change the name of the trade union if a union with the same name

already exists or if he feels that the name could be deceiving or confusing to the

public or the members of the trade union.

Section 8 of  the Trade Union Act 1926

Upon satisfaction of all the requirements, the Registrar of the Trade Unions will

register the trade union. It is mandatory for the registrar to register a trade

union if the union satisfies all the technical requirements of this act.

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 Section 9- Certif icate of Registration 

  The registrar will issue the certificate of registration in the prescribed form,

which shall be a conclusive evidence that the trade union is registered under

this act.

Procedure for amalgamation 

S ection 24 says that any two or more registered trade unions may become

amalgamated together into one trade union with or without dissolution or

division of the funds of such trade unions or either or any of them, provided

that votes of at least one half of the members  of each trade union are

recorded and at least 60% of the votes of each trade union are in favor of 

the proposal.

 The notice   of such amalgamation, signed by the secretary and seven 

members of each of the trade unions, should be sent to the registrar of the

state where the head office of the amalgamated trade union is to be located. If 

the registrar is satisfied that all the provisions of this act have been complied

with and the trade union formed thereby is entitled to registration under

section 6, he will register the new trade union under section 8 and the

amalgamation will take effect from the date of registration

Cancellation of Registration 

Under section 10 , the Registrar of Trade Unions has the power to cancel the

registration of a trade union in the following conditions:

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  On the application of the trade union  

  registration was obtained by fraud or mistake .

  the trade union has ceased to exist .

  If the trade union willfully, upon notice of the registrar, has contravened 

or allowed any rule to continue in force , which is inconsistent with

the provisions of this act.

  If the trade union rescinds any rule providing for any matter, provision

for which is required to be made in section 6.

  trade union of workmen has ceased to have the requisite number of 

members.

Section 27, upon dissolution of  a trade union, seven or more members

must send a notification to the registrar within 14 days of dissolution and

the registrar shall register it after verifying that the dissolution has been

done as per the provisions of this act. Further, if the rules of the trade union

do not provide for distribution of the funds upon dissolution, the registrar

may distribute the funds in such manner as may be prescribed. 

Appeal against the decision of Registrar

Section 11 grants a limited right to appeal the decisions or orders passed by 

the registrar.

An appeal may be made to

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The high court, if the head office of the trade union is located in a presidency 

town.

The labour court or industrial tribunal, if the head office of the trade union is

located in its jurisdiction.

If the head office of the trade union in any other location, to such court, not

inferior to the court of an additional or assistant judge of a principal civil court

of original jurisdiction, as the appropriate govt. may appoint in this behalf for

that area.

An appeal must be made within 60 days of the date on which registrar

passed the order against which the appeal is made.

L iabilities of  a Registered Trade Union 

A registered trade union must follow the provisions of the Trade Unions Act

1926. In particular, the following are some restrictions in a registered trade 

union: 

S  pending of funds by T rade Union 

A Trade Union cannot spend the funds on anything the office bearers want. It

can spend funds only on the activities specified in Section 15. These include:

y  salaries of the office bearers.

y  expenses required for the administration of the trade union

y  compensation to workers due to loss arise of any trade dispute.

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y  welfare activities  of the workers including housing, clothing, or any 

such activity.

y  benefits to the workers or their dependents in the case of unemployment,

disability, or death .

y   publishing material for creating awareness in the workers.

y  legal expenses required for defending or bringing a suit.

y  education of workers or their dependents.

y  expenses for medical treatment of workers.

y  taking insurance policies for workers

y  A trade union cannot force members to subscribe to political fund  

under section 16 .

y  Under section 20 a trade union must make available all its record 

books of accounts and list of membership for inspection upon request

of any member or his representative.

y  Section 21 allows minors more than 15 yrs of age to be members of a

trade union. However, such minors cannot hold office.

y  Under section 21-A, a trade union cannot appoint a person who has

been convicted of a crime  involving moral turpitude and has been

imprisoned for 6 months or more within last 5 years .

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y  As per section 22 , at least half of the office bearers of a trade union of 

workers of unorganized sector must be engaged or employed in an

industry to which the trade union is connected. Also, while a union has a

right to remove any office bearer , this power must be used judiciously 

and rules of natural justice must be followed.

y  Under section 28 , a general statement, audited  in a prescribed

manner, of all income and expenses must be sent to the registrar every 

 year.

Rights and Priviledges of  a registered Trade Union 

S ection 13 

y  a trade union becomes a legal entity  

y  it gets perpetual succession and a corporate seal ,

y  it can acquire and hold movable and immovable property , contract

through agents, and

y  can sue and get sued.

Under section 15  

a registered trade union has a right to establish a general fund.

Under section 16 ,

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a registered trade union has a right to establish a political fund .

Subscription to this fund is not necessary for a member.

Under section 17, 18, and 19  

a registered trade union gets immunity in certain criminal, civil, and 

contractual proceedings.

Under section 24 ,

trade unions have the right to amalgamate.

Under section 28-F ,

y  the executive of a registered trade union has a right to negotiate with 

the employer  the matters of employment or non-employment or the

terms of employment or the condition of labor of all or any of the

members of the trade union and the employer shall receive and send

replies to letters and grant interviews to such body regarding such

matters.

y  the executive is entitled to post notices of the trade union meant for

its members at any premises where they are employed and that the

employer shall provide reasonable facilities for that.

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Immunites available to a registered Trade Union 

Criminal Liability 

Section 17 confers immunity from liability in the case of criminal conspiracy  

under section 120-B of I P C , committed by an office bearer or a member.

However, this immunity is partial in the sense that it is available only with 

respect to the legal agreements created by the members for the furtherance

of valid objects of a trade union as described in section 15 of the act. The

immunity cannot be claimed for an act that is an offence. Registered Trade

Unions have certain rights to do in furtherance of their trade disputes such as

calling for strike, persuading members.

In the case of W est India S teel Company Ltd. vs Azeez 1990 Kerala , a trade 

union leader obstructed work inside the factory for 5 hrs while protesting against

the deputation of a workman to work another section. It was held that while in

a factory, the worker must submit to the instructions given by his superiors. A

trade union leader has no immunity against disobeying the orders. A trade 

union leader or any worker does not have any right by law to share managerial 

responsibilities . A trade union can espouse the cause of workers through legal

ways but officials of a trade union cannot direct other workers individually or

in general about how to do their work. They do not have the right to ask a 

worker to stop his work or otherwise obstruct the work of the establishment. An

employer may deal with a person causing obstruction in work effectively.

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Civil Liability 

Section 18 confers immunity from civil proceedings in certain cases to a trade

union or its office bears or members.

Immunity from liability in torts for inducing another person to breach 

his contract of employment 

In general, a person is liable in torts for inducing another person to breach his

contract of employment or for interfering with the trade or business of another.

However, a trade union, its officers, and its members are immune from this

liability provided that such an inducement is in contemplation or furtherance

of a trade dispute. Further, the inducement should be lawful. There is no

immunity against violence, threats, or any other illegal means. 

In the case of P Mukundan and others vs Mohan Kandy P avithran 1992 

Kerala, it was held that strike per se is not an actionable wrong. Further, it

was held that the trade union, its officers, and its members are immune

against legal proceedings linked with the strike of workmen by the

provisions of section 18.

In the leading case of Rohtas Industries S taff Union vs S tate of Bihar 

  AIR 1963 , it was held that employers do not have the right to claim

damages against the employee participating in an illegal strike and thereby 

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causing loss of production and business.

In the case of S impson & Group Companies W orkers & S taff Union vs 

 Amco Batteries Ltd 1992 Karn., it was held that  physical obstruction of 

movement of management officials, contractors, goods, or vehicles carrying 

raw materials, is not a trade union right or a fundamental right under art 19.

Immunity under section 18 cannot be claimed for such activities . Right to

picket is a very intangible right and it extends only up to the right of free

movement of others. The methods of persuasion are limited to oral and

visual and do not include physical obstruction of vehicles or persons.

S ection 19 Enforceability of agreements ² 

In India, an agreement in restraint of trade is void  as per section 25 of 

Indian Contract Act. However, such an agreement between trade union 

members is neither void nor voidable . It is important to note that this right

is available only to registered trade unions. An unregistered trade union must

follow the principles of general contract law.

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INDUSTRY, INDUSTRIAL DISPUTE AND WORKMEN

EVER since the enactment of Industrial Disputes Act, 1947, the definition of 

`industry' has been surrounded by controversy. However, after a clarification

by a seven-judge bench of the Supreme Court the question to be asked is not

what is an industry but what is not an industry? In a recent judgment, the

Court has set aside an award of the L abour Court of Gujarat holding that the

Physical Research L aboratory, Ahmedabad, was an industry within the

meaning of section 2(j) of the Industrial Disputes Act.

Concept of  Industry

 The term industry as defined by section 2(j) of  the Industrial Disputes Act

1947, reads as under:

``industry means any business, trade, undertaking, manufacture 

or calling of employees and includes any calling, service,

employment, handicraft, or industrial occupation or avocation of 

workmen.''  

  The first part of the definition gives the statutory meaning and the

second part deliberately refers to several other items of industry and

includes them in the definition. The first part defines it from the point of 

view of the employers and the other from the stand point of the

employees.If an activity falls under either part of the definition, it will be

an industry.

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D iverse judicial interpretations 

  Though the definition has not undergone any amendment, it has undergone

diverse judicial interpretations by the Supreme Court and different High

Courts. The Supreme Court sought to put at rest the confusion by declaring

that (a) where (i) systematic activity, (ii) organised by co-operation between

employer and employee (iii) for the production and/or distribution of goods and

services calculated to satisfy human wants and wishes (not spiritual or

religious but inclusive of material things or services geared to celestial bliss e.g.

making, on a large-scale prasad or food), prima facie there is an industry in

that enterprise. It made it clear that absence of profit motive or gainful

objective is irrelevant, be the venture in the public, joint, private or other

sector.

 The true focus is functional and the decisive test is the nature of the activity 

with special emphasis on employer-employee relations. If the organisation is a

trade or business it does not cease to be one because of philanthropy 

animating the undertaking.

 This ruling was given in the Bangalore W ater S upply and S ewerage Board 

v A Rajappa (supra). But even after this, the question to be asked is not what

is industry but what is not. Despite their efforts to find a working formula for

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determining as to what activity is an industry and what not, practically all

 judges have cried in frustration for legislative relief.

It is obvious that even after Bangalore Water Supply and Sewerage decision,

the judges themselves are not satisfied with respect to the interpretation of the

definition of industry. The need for legislative reform has been stressed by all

the judges. It may be relevant to point out here that a very sensible and

pragmatic definition was attempted in the Industrial Relations Bill of 1978 

(Bill No. 137 of 1978), under  S ection 2(17) . But with the dissolution of 

Parliament in August, 1979, the Bill had lapsed. This definition with some

additions and alterations was, however, enacted by Parliament in the Industrial

Disputes (Amendment) Act, 1982, (Act 46 of 1982). The definition of industry in

section 2(j) had been substituted with the new definition by the Industrial

Disputes (Amendment) Act, 1982 (Act 46 of 1982). Though the Act has been

substantially brought into force effective 21.8.1984, this definition has not

been brought into force.

After the aforesaid judgment, labour courts/industrial tribunals, High Courts

and the Supreme Court stopped entertaining any objection of the employer that

a particular organisation/establishment or institute was not an industry under

the Industrial Disputes Act, 1947.

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However, a breakthrough came in one case wherein the Supreme Court while

rejecting the contention that as sovereignty vested in the people the concept of 

sovereign functions would include all welfare activities -- on the ground that

taking of such a view would erode the ratio in Bangalore Water Supply case ³ 

observed that ``the dichotomy of sovereign and non-sovereign functions did not

really exist ³ it would all depend on the nature of the power and manner of its

exercise''. After referring to the three traditional sovereign functions, legislative

power, the administration of laws and the exercise of the judicial power and

also the decision of the Gujarat High Court ³ wherein famine and drought

relief works undertaken by the State Government were held not to be an

industry, the Supreme Court observed that ``what really follows from this

 judgment is that apart from the aforesaid three functions, there may be some

other functions also regarding which a view could be taken that the same too is

a sovereign function''.

In another case, the Supreme Court had to consider whether the 

establishment of  S ub- D ivisional Inspector of  P ost at Vaikam was an 

`industry' . Therein the Supreme Court observed, ``India as a sovereign,

socialist, secular, democratic republic has to establish an egalitarian social

order under rule of law. The welfare measures partake the character of sovereign 

  functions and the traditional duty to maintain law and order is no longer the 

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concept of the State. The Directive Principles of State Policy enjoin on the State

diverse duties under Part IV of the Constitution and the performance of the

duties are constitutional functions. One of the duties of the State is to provide

telecommunication service to the general public as an amenity and so is an

essential part of the sovereign functions of the State as a welfare State. It is

not, therefore, an industry''.

  The Supreme Court in its judgment on April 8, has set aside an award of a

labour court of Gujarat, holding that the P hysical Research Laboratory 

( P RL), Ahmedabad, an institute under the D epartment of S  pace, was not 

an industry within the meaning of section 2(i) of the Industrial Disputes Act.

In its appeal, the appellant challenged the award of the labour court as the

Gujarat High Court had already taken the view that PRL  was an industry and

different high courts and industrial tribunals expressed conflicting views on

this issue.

PRL was not engaged in a commercial or industrial activity and it could not be

described as an economic venture or a commercial enterprise. It was not an

industry even though it was carrying on the activity of research in a systematic

manner with the help of its employees, as it lacked that element which would

make it an organisation carrying on an activity which could be said to be

analogous to the carrying on of a trade or business, because it was not

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producing and distributing services which were intended or meant for

satisfying needs of consumers.

  The appellant contended before the Court that PRL  was a public trust

registered under the Bombay Public Trusts Act, 1950 and it was financed

mainly by the Central Government. Furthermore, PRL  was not directly or

indirectly carrying on any trade or business and its activities did not result in

production or distribution of goods or services calculated to satisfy human

wants and wishes. The knowledge acquired as a result of the research carried

on by it was not sold but was utilised for the benefit of the Government and

therefore, it could not be termed as an industry as defined by section 2(j) of the

Industrial Disputes Act.

It is pertinent to mention here that the Madras High Court has also held that

the S tates Farms Corporation of India  having a predominant activity to

produce high breed quality of seeds to be supplied to state governments and

local farms would not attract the definition of `industry' under the Industrial

Disputes Act.

 The above ruling has cleared certain cobwebs and will go a long way in the field

of industrial jurisprudence. Also, it has become imperative on the part of 

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government to implement the definition of industry as amended by Amendment

Act (46 of 1982).

D efinition of Industrial D ispute 

As per S ection 2(k) of I D Act,1947  

´industrial disputeµ means any dispute or difference between employers 

and employers ,or between employers and workmen, or between workmen 

and workmen , which is connected with the employment or non- 

employment or the terms of employment or with the conditions of labour 

, of any person; 

D efinition of W orkman 

As per S ection 2(s) of I D Act,1947  

´workmanµ means any person (including an apprentice) employed in any 

industry to do any manual ,unskilled ,skilled ,technical ,operational ,clerical or

supervisory work for hire or reward ,whether the terms of employment be

express or implied ,and for the purposes of any proceeding under this Act in

relation to an industrial dispute ,includes any such person who has been

dismissed ,discharged or retrenched in connection with ,or as a consequence

of ,that dispute ,or whose dismissal ,discharge or retrenchment has led to that

dispute ,but does not include any such person-

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i) who is subject to the   Air Force Act ,1950 (45 of 1950),or the Army 

Act,1950(46 of 1950), or the Navy Act,1957(62 of 1957); or

ii) who is employed in the police service or as an officer or other employee

of a prison; or

iii) who is employed mainly in a managerial or administrative capacity; or

iv) who, being employed in a supervisory capacity , draws wages 

exceeding one thousand six hundred rupees  per mensem or exercises

,either by the nature of the duties attached to the office or by reason of the

powers vested in him ,functions mainly of a managerial nature.