Case Note & Summary
The dispute arose between the General Manager of Kisan Sahkari Chini Mills Ltd. and the workmen regarding the termination of their services. The workmen claimed they had been employed for periods ranging from 5 to 12 years and sought relief through writ applications in the High Court after their services were terminated without notice or retrenchment compensation. The Mill contended that it was a co-operative society and not a State under Article 12 of the Constitution, thus the writ jurisdiction was not applicable. The High Court ruled in favor of the workmen, leading to appeals by the Mill. The Supreme Court analyzed whether the Mill qualified as an instrumentality of the State, applying tests from previous judgments. It concluded that the Mill did not meet the criteria as it was not wholly owned by the State, did not receive substantial financial assistance, and operated independently. The court emphasized that the Mill's operations did not involve public functions, thus the High Court's jurisdiction under Article 226 was not invoked correctly. The Supreme Court allowed the appeal, set aside the High Court's judgment, and directed the parties to resolve the dispute through the appropriate industrial dispute mechanisms under the Industrial Disputes Act, 1947.
Headnote
A) Constitutional Law - Article 12 - Definition of State - The Mill was not an instrumentality or agency of the State as it did not fulfill the tests laid down for determining the status under Article 12. The court found that the Mill operated independently without deep and pervasive control from the State, thus the High Court lacked jurisdiction to entertain the writ applications. Held that the parties should raise an industrial dispute under the provisions of the Industrial Disputes Act, 1947 (Paras 1-5).
Issue of Consideration
Whether the Mill is an instrumentality or agency of the State under Article 12 of the Constitution and if the High Court had jurisdiction to entertain the writ applications.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and dismissed the writ applications, directing the parties to raise an industrial dispute for adjudication under the provisions of the Industrial Disputes Act, 1947.
Law Points
- Writ jurisdiction
- Article 12
- Industrial Disputes Act
- 1947
- seasonal workers
- public function
- industrial dispute adjudication
