Case Note & Summary
The dispute concerned the validity of directions issued by the Central Government on 23 July 1975 to Air India under Section 34(1) of the Air Corporations Act, 1953, providing reservation for Scheduled Castes and Scheduled Tribes in services under the Corporation. The original writ petitioners, B.R. Age and others, challenged these directions before the Bombay High Court, contending that they were ultra vires Section 34(1) and could not be justified under Article 16(4) of the Constitution because the Central Government had not formed the requisite satisfaction regarding inadequate representation. A learned Single Judge of the Bombay High Court allowed the writ petition and quashed the directions, holding that the power under Section 34(1) was confined to directions regarding the exercise and performance by the Corporation of its functions, and the expression 'functions' should be understood in light of Section 7, which did not include regulating conditions of service. Aggrieved, Air India and its Scheduled Caste employees filed Civil Appeal Nos. 325 and 551 of 1981 respectively, with the Union of India supporting them. Separate writ petitions under Article 32 challenging the constitutional validity of the same directions were also filed. The Supreme Court examined the scheme of the Air Corporations Act and held that the High Court erred in confining the Corporation's functions to those mentioned in Section 7 alone. The Court noted that the Act uses the expressions 'powers' and 'functions' interchangeably, as evident from Section 7(2) which refers to the functions in sub-section (1) as powers conferred, and from Section 45(2)(b) which empowers the Corporation to make regulations regarding terms and conditions of service of officers and employees. Regulating service conditions was therefore a function of the Corporation. Consequently, the directions issued by the Central Government pertained to the exercise and performance by the Corporation of its functions within the meaning of Section 34(1) and were valid. The Court did not consider the submission based on Article 16(4) since the validity was established on statutory grounds. The appeals were allowed, the judgment under appeal was set aside, and the directions were held to be within the four corners of Section 34(1) and valid. The writ petitions were dismissed with no order as to costs.
Headnote
A) Air Corporations Act, 1953 - Scope of Central Government's Directions under Section 34(1) - 'Functions' of Corporation includes regulation of service conditions and is not confined to Section 7 - Sections 7, 34(1), 45(2)(b), Air Corporations Act, 1953 - The Bombay High Court quashed directions issued by Central Government to Air India for reservation of Scheduled Castes and Scheduled Tribes in services, holding that 'functions' under Section 34(1) were limited to those specified in Section 7, which did not include regulating conditions of service - The Supreme Court, examining the scheme of the Act, held that powers and functions are used interchangeably, Section 7(2) refers to functions as powers, and Section 45(2)(b) empowers regulations for service conditions, therefore the impugned directions pertained to 'exercise and performance by the Corporation of its functions' and were valid - Held that the directions issued under Section 34(1) were intra vires and effective. (Paras not mentioned) B) Constitutional Law - Article 16(4) Reservation for Scheduled Castes and Scheduled Tribes - Not Addressed - Article 16(4), Constitution of India - The argument that directions could be justified under Article 16(4) was not considered because the Court found them valid under Section 34(1); no opinion expressed on whether requisite satisfaction under Article 16(4) was necessary. (Paras not mentioned)
Issue of Consideration
Whether directions issued by Central Government under Section 34(1) of Air Corporations Act, 1953 providing reservation for Scheduled Castes and Scheduled Tribes in services under Air India are ultra vires, being not within the ambit of 'functions' of Corporation as per Section 34(1) read with Section 7
Final Decision
Appeals allowed; judgment of Bombay High Court set aside; directions dated 23.07.1975 held within Section 34(1) of Air Corporations Act, 1953 and valid and effective; Writ Petition (C) Nos.145-148 of 1980 dismissed; no costs.
Law Points
- Powers and functions are interchangeable under Air Corporations Act
- 1953
- Section 34(1) directions extend to regulation of service conditions
- Section 7 does not exhaust functions of Corporation
- Section 45(2)(b) empowers regulations for service conditions
- statutory provisions must be read as a whole
