Case Note & Summary
The case involves two writ petitions: one by the State of Karnataka and its forest authorities challenging the Industrial Tribunal's award dated 14.09.2011 in Reference No.131/2004, which declared the Department of Forest as an 'industry' under Section 2(j) of the Industrial Disputes Act, 1947; and another by the workman, B.V. Rangaswamy, challenging the same award insofar as it denied him reinstatement with full back wages and continuity of service. The workman was employed as a daily wage Field Watcher in the Forest Department and was retrenched without following the procedure under Section 25-F of the Act. The Tribunal held that the Forest Department is an 'industry' as its activities are not sovereign functions, and directed reinstatement but denied back wages and continuity of service. The High Court upheld the Tribunal's finding on the definition of 'industry', relying on the broad interpretation under the Act and the exclusion of sovereign functions only when the activity is inherently governmental. Regarding the workman's claim, the Court noted that the workman was a daily wager and there was no scheme for regularisation, and therefore, the denial of back wages and continuity of service was justified. The Court dismissed both petitions, affirming the award.
Headnote
A) Industrial Law - Definition of Industry - Section 2(j) Industrial Disputes Act, 1947 - Forest Department performing sovereign functions - The Industrial Tribunal held that the Department of Forest is an 'industry' under Section 2(j) of the Act, as its activities are not sovereign functions but involve commercial and administrative activities. The High Court upheld this finding, relying on the broad definition of 'industry' and the exclusion of sovereign functions only when the activity is inherently governmental. (Paras 1-5)
B) Industrial Law - Regularisation of Daily Wage Workers - Reinstatement and Back Wages - The workman, a daily wage Field Watcher, was retrenched without following Section 25-F of the Industrial Disputes Act, 1947. The Tribunal directed reinstatement but denied back wages and continuity of service. The High Court upheld the denial of back wages and continuity, noting that the workman was a daily wager and there was no scheme for regularisation. The Court held that reinstatement without back wages was appropriate in the absence of a regularisation policy. (Paras 6-10)
Issue of Consideration
Whether the Department of Forest is an 'industry' under Section 2(j) of the Industrial Disputes Act, 1947, and whether the workman is entitled to reinstatement with full back wages and continuity of service.
Final Decision
Both writ petitions were dismissed. The High Court upheld the Industrial Tribunal's award dated 14.09.2011 in Reference No.131/2004, affirming that the Forest Department is an 'industry' under Section 2(j) of the Industrial Disputes Act, 1947, and that the workman is entitled to reinstatement but without back wages and continuity of service.
Law Points
- Definition of industry under Section 2(j) of Industrial Disputes Act
- 1947
- Sovereign functions exception
- Regularisation of daily wage workers
- Reinstatement with back wages
Case Details
2013 LawText (KAR) (09) 16
Writ Petition No.45180 of 2012 (L-RES) c/w Writ Petition No.35893 of 2012 (L-RES)
H Venkatesh Dodderi (AGA for petitioners in W.P.45180/2012 and respondents in W.P.35893/2012), Siddarudha B Pujari (for respondent in W.P.45180/2012 and petitioner in W.P.35893/2012)
The Secretary to Government, Department of Forest, Environment & Ecology, Bangalore; The Deputy Conservator of Forest, Hassan District; The Range Forest Officer, Hassan Range (in W.P.45180/2012); B.V. Rangaswamy (in W.P.35893/2012)
B.V. Rangaswamy, represented by President, Karnataka State Government Daily Wage Workers Association, Hassan District Unit (in W.P.45180/2012); The Deputy Conservator of Forest, Hassan Division; Range Forest Officer, Hassan Range (in W.P.35893/2012)
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Nature of Litigation
Writ petitions under Articles 226 and 227 of the Constitution of India challenging an award of the Industrial Tribunal, Mysore in Reference No.131/2004.
Remedy Sought
The State and its authorities sought to quash the award insofar as it held the Forest Department to be an 'industry'; the workman sought reinstatement with full back wages and continuity of service.
Filing Reason
The State challenged the finding that the Forest Department is an 'industry'; the workman challenged the denial of back wages and continuity of service.
Previous Decisions
The Industrial Tribunal, Mysore, by award dated 14.09.2011 in Reference No.131/2004, held that the Forest Department is an 'industry' under Section 2(j) of the Industrial Disputes Act, 1947, and directed reinstatement of the workman but denied back wages and continuity of service.
Issues
Whether the Department of Forest is an 'industry' under Section 2(j) of the Industrial Disputes Act, 1947?
Whether the workman is entitled to reinstatement with full back wages and continuity of service?
Submissions/Arguments
The State argued that the Forest Department performs sovereign functions and is not an 'industry' under the Act.
The workman argued that he was retrenched without following Section 25-F and is entitled to reinstatement with full back wages and continuity of service.
Ratio Decidendi
The Forest Department's activities are not sovereign functions and fall within the definition of 'industry' under Section 2(j) of the Industrial Disputes Act, 1947. A daily wage workman retrenched without following Section 25-F is entitled to reinstatement, but back wages and continuity of service may be denied in the absence of a regularisation scheme.
Judgment Excerpts
W.P.No.45180/2012 is filed by the State and its authorities, calling in question the award dated 14th September 2011 of the Industrial Tribunal, Mysore, in Reference No.131/2004 – Annexure-A insofar as it relates to the finding that the Department of Forest is an 'industry' under Section 2(j) of the Industrial Disputes Act, 1947.
W.P.No.35893/2012 is filed by the workman against the very same award insofar as it relates to the denial of reinstatement with full back wages and continuity of service.
Procedural History
The Industrial Tribunal, Mysore, passed an award on 14.09.2011 in Reference No.131/2004, holding the Forest Department to be an 'industry' and directing reinstatement of the workman without back wages or continuity of service. The State filed W.P.45180/2012 challenging the finding on 'industry', and the workman filed W.P.35893/2012 challenging the denial of back wages and continuity. Both petitions were heard together and dismissed by the High Court on 10.09.2013.
Acts & Sections
- Industrial Disputes Act, 1947: 2(j), 25-F
- Constitution of India: 226, 227
