Bombay High Court Dismisses Appeal by Khadi & Village Industries Commission in Industrial Dispute Jurisdiction Case. State Government Held to Be Appropriate Government Under Section 2(a) of Industrial Disputes Act, 1947 for KVIC.

High Court: Bombay High Court
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Case Note & Summary

The case involves an appeal by the Khadi and Village Industries Commission (KVIC) against a judgment of a single Judge of the Bombay High Court, which had upheld an award of the Labour Court in an industrial dispute. The sole contention raised by the appellant was that the appropriate Government in relation to an industrial dispute concerning KVIC is the Central Government under Section 2(a)(i) of the Industrial Disputes Act, 1947. The appellant argued that since KVIC is a statutory body established by the Central Government, the industrial dispute should have been referred by the Central Government, and the reference by the State Government was invalid. Consequently, the award of the Labour Court and the judgment of the single Judge lacked legal sanctity. The Court examined Section 2(a) of the Industrial Disputes Act, 1947, which defines 'appropriate Government'. The Court noted that clause (i) of Section 2(a) applies to industries carried on by or under the authority of the Central Government, or by a railway company, or concerning any controlled industry as specified by the Central Government, or certain specified corporations like the Dock Labour Board, Industrial Finance Corporation, ESIC, etc. The Court held that KVIC does not fall under any of these categories. KVIC is not an industry carried on by or under the authority of the Central Government, nor is it a controlled industry specified by the Central Government, nor is it one of the corporations enumerated in clause (i). Therefore, the appropriate Government for KVIC is the State Government. The Court dismissed the appeal, upholding the reference by the State Government and the subsequent proceedings.

Headnote

A) Industrial Law - Appropriate Government - Section 2(a) Industrial Disputes Act, 1947 - Khadi and Village Industries Commission (KVIC) - The appellant contended that the appropriate Government for KVIC is the Central Government under Section 2(a)(i) of the ID Act. The Court rejected this contention, holding that KVIC is not an industry carried on by or under the authority of the Central Government nor a controlled industry specified under clause (i). Therefore, the State Government is the appropriate Government. The reference by the State Government and the subsequent award by the Labour Court and judgment of the single Judge were upheld. (Paras 2-4)

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Issue of Consideration

Whether the appropriate Government in relation to an industrial dispute concerning the Khadi and Village Industries Commission is the Central Government under Section 2(a)(i) of the Industrial Disputes Act, 1947.

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Final Decision

The appeal is dismissed. The Court held that the State Government is the appropriate Government for KVIC under Section 2(a) of the Industrial Disputes Act, 1947, and the reference by the State Government was valid.

Law Points

  • Interpretation of 'appropriate government' under Section 2(a) of Industrial Disputes Act
  • 1947
  • Khadi and Village Industries Commission not covered under clause (i) of Section 2(a)
  • State Government is appropriate government for KVIC
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Case Details

2005 LawText (BOM) (05) 165

Letters Patent Appeal No.55 of 2004 in Writ Petition No.5312 of 2001

2005-05-05

R.M. Lodha, R.S. Mohite

Mr. Vijay Kantharia alongwith S.D. Bhosale for the appellant, Mr. Y.M. Pendse for Respondent No.1

Khadi & Village Industries Commission

Jagdish B. Patil & Anr.

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Nature of Litigation

Appeal against judgment of single Judge upholding Labour Court award in an industrial dispute concerning Khadi and Village Industries Commission.

Remedy Sought

Appellant sought to set aside the award of the Labour Court and judgment of the single Judge on the ground that the reference was made by the State Government instead of the Central Government.

Filing Reason

Appellant contended that the appropriate Government for KVIC is the Central Government under Section 2(a)(i) of the Industrial Disputes Act, 1947, and therefore the reference by the State Government was invalid.

Previous Decisions

Labour Court passed an award in the industrial dispute; single Judge of the Bombay High Court upheld the award in Writ Petition No.5312 of 2001.

Issues

Whether the appropriate Government in relation to an industrial dispute concerning the Khadi and Village Industries Commission is the Central Government under Section 2(a)(i) of the Industrial Disputes Act, 1947.

Submissions/Arguments

Appellant argued that KVIC is a statutory body established by the Central Government, and therefore the appropriate Government is the Central Government under Section 2(a)(i) of the ID Act. Respondent contended that KVIC does not fall under any of the categories specified in Section 2(a)(i) and thus the State Government is the appropriate Government.

Ratio Decidendi

The appropriate Government under Section 2(a) of the Industrial Disputes Act, 1947, for an industrial dispute concerning the Khadi and Village Industries Commission is the State Government, as KVIC is not an industry carried on by or under the authority of the Central Government, nor a controlled industry specified by the Central Government, nor one of the corporations enumerated in clause (i) of Section 2(a).

Judgment Excerpts

Section 2(a) of the Industrial Disputes Act 1947 defines 'appropriate Government' thus :- 'appropriate Government' means,- (i) in relation to any Industrial Disputes concerning any industry carried on by or under the authority of the Central Government or by a railway company [or concerning any such controlled industry as may be specified in this behalf by the Central Government] or in relation to an Industrial Dispute concerning [a Dock Labour Board established under Section 5-A of the Dock Workers (Regulation of Employment) Act,1948 (9 of 1948), or [the Industrial Finance Corporation of India Limited formed and registered under the Companies Act,1956], or the Employees’ State Insurance Corporation established under Section 3 of the Employees’ State Insurance Act, 1948 (34 of 1948), or the Board of Trustees constituted under Section 3-A of the Coal Mines Provident Fund and Miscellaneous Provisions Act,1948 (46 of 1948) or the Central Board of Trustees and the State Boards of Trustees constituted under Section 5-A and Section 5-B, respectively, of the Employees’ Provident Fund and Miscellaneous Provisions Act,1952] The contention of the learned Advocate for the appellant cannot be accepted.

Procedural History

An industrial dispute concerning Khadi and Village Industries Commission was referred by the State Government to the Labour Court. The Labour Court passed an award. The appellant challenged the award by filing Writ Petition No.5312 of 2001 before the Bombay High Court, which was dismissed by a single Judge. The appellant then filed Letters Patent Appeal No.55 of 2004 before the Division Bench of the Bombay High Court.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 2(a)
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High Court Bombay High Court Dismisses Appeal by Khadi & Village Industries Commission in Industrial Dispute Jurisdiction Case. State Government Held to Be Appropriate Government Under Section 2(a) of Industrial Disputes Act, 1947 for KVIC.
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