JUDGMENT 1. The petitioner was appointed as Checker in the Office of the Deputy Director, Census Operations vide order (Annexure-1) dated February 18. 1981 and he joined on the said post on February 28, 1981. He was promoted as Supervisor vide order (Annexure-2) dated April 2, 1981, he remained in Service from February 28, 1981 to April 20, 1982 i. e., more than one year. Annexure 3 is the Discharge Certificate dated March 19, 1982 issued by the Deputy Director, Regional Census Office, .Jodhpur. It has been stated therein that the petitioner was appointed on February 28, 1981 and he shall be discharged on April 30, 1982. It has further been stated therein that the petitioner was drawing Rs. 380/- as consolidated salary allowances. His services were terminated from the afternoon of April 30, 1982. Being aggrieved by the order (Annexure-3) dated March 19, 1982 the petitioner has filed this writ petition for the following reliefs:- "a) It may be declared that the petitioner continues to be in service of the respondents and the respondents in turn may be directed to pay to the petitioner all his salary upto date and to continue to pay the same to the petitioner thereafter. b) That the Discharge Order dated 19-3-82 (Annex. 3), be declared to be invalid. c) Any other appropriate writ, order or direction, which the circumstances of the case warrant, be issued in favour of the petitioner. d) Costs of the writ petition be awarded to the petitioner." 2. On behalf of the respondents, reply to the writ petition was filed and the facts stated above have been admitted. It has been submitted that orginally, the petitioner was appointed on the post of Checker on the consolidated pay of Rs. 330/- per month inclusive of all allowances by Deputy Directorate Census Operations, Jodhpur, a Regional Office of this Directorate on February 18, 1981. It has further been submitted that the petitioner was thereafter posted as Supervisor by order No. 1131 dated April 2, 1981. 3. I have heard Mr. M. Mridul, learned counsel for the petitioner, Mr. J.Y. Joshi, learned counsel for Union of India and Mr. N.L. Jain, Advocate General. 4.
It has further been submitted that the petitioner was thereafter posted as Supervisor by order No. 1131 dated April 2, 1981. 3. I have heard Mr. M. Mridul, learned counsel for the petitioner, Mr. J.Y. Joshi, learned counsel for Union of India and Mr. N.L. Jain, Advocate General. 4. Learned counsel for the petitioner contends that the Office of the Deputy Director, Census Operations is an industry within the meaning of s. 2 (j) of the Industrial Disputes Act, 1947 (for short -the Act' herein) as the said Department undertakes the work of enumeration and compilation etc. of the data for the purpose of Census. He further submits that this is a work which is undertaken by co-operation of employees and workmen and is for the purposes of' rendering services to the community at large; that such work can be undertaken by any individual or by any firm and that as a matter of fact, there are large number of organisations which undertakes surveys and samplings and the work of census is in no matter different than that. According to the learned counsel, the petitioner whether taken as Checker or Supervisor is a workman within the meaning of s. 2(a) of the Act as his duties are of clerical or at best supervisory nature in which case also, his salary being less than Rs. 500/- per month, he will be a workman as per s. 2(a) of the Act. Learned counsel submits that before effecting the discharge of the petitioner, no notice whatsoever was given to him and nothing was paid to him by way of compensation. Learned counsel further submits that the discharge of the petitioner is a retrenchment within the meaning of s 2 (on) of the Act: that his retrenchment has been effected without fulfilling the conditions precedent stipulated by sub-s. (a) and (b) of s. 25F of the Act as also without fulfilling the requirement of sub-s. (c) of section 25 F of the Act and that the discharge is, therefore, void and the petitioner continues to be an employee of the respondents notwithstanding the aforesaid discharge. 5. Mr. N.L.Jain, learned Advocate General submits that the Census Department cannot be said to be an industry within the meaning of s. 2 (j) of the Act. According to Mr.
5. Mr. N.L.Jain, learned Advocate General submits that the Census Department cannot be said to be an industry within the meaning of s. 2 (j) of the Act. According to Mr. Jain learned Advocate General, the primary work of the Census Department is to collect various types of data used for the planning of the various schemes of the Government and in order to complete the tabulation work relating to these data, a large number of persons are appointed on consolidated pay (till the tabulation work is not completed) and by appointing them in the Census Department, it is made known to them in writing that they are being appointed temporarily and their services will be terminated on the specific date mentioned in their appointment order. It was further submitted that the term of the employee is extended in case the work of census is net completed and that while making the appointment in the Census Department for the purpose of collecting data and tabulation work, it is made clear to the employees that they will have no claim for absorption in the regular establishment of Census Department or any concession on this account. According to the learned Advocate General, the collection of data and its tabulation cannot be said to be the industry for the simple reason that the work undertaken by the Census Department cannot be assinlated to the position of trade, business or calling or service within the meaning of s 2(j) of the Act. Learned Advocate General, however, submits that the appointment of the petitioner was in the nature of casual employment and he would have no claim for regular establishment of the Census Organisation or for any other conception on this account. It was submitted that as the petitioner is not a workman within the meaning of s 2(s) of the Act and as the Census Department is not an industry within the meaning of s. 2 (j) of the Act. there was no necessity for the respondents to give a notice to the petitioner as alleged by him in his writ petition. It was further submitted that the services of for petitioner have been terminated by way of termination simpliciter as he was employed for a fixed tenure. 6.
there was no necessity for the respondents to give a notice to the petitioner as alleged by him in his writ petition. It was further submitted that the services of for petitioner have been terminated by way of termination simpliciter as he was employed for a fixed tenure. 6. The question involved in this case is purely a question of law and the fate of this writ petition depends upon the interpretation of the provisions of law. 7. Mr. Mridul, learned counsel appearing on behalf of the petitioner has invited my attention to the following extract of Encyclopaedia Britannies. Volume 5, page-167: "CENSUS is an enumeration of people, houses, firms or other important items in a country or region at a particular time. Used alone, the term usually refers to a population census-the type to be described in this article. However, many countries, including the United States, take censuses of housing, manufacturing and agriculture. Since it relates to a particular moment of time, a census differs from registration statistics. A census corresponds to an inventory in business, whereas registration statistics (called vital statistics when they after to human events) correspond to the daily record of sales, purchases and other transactions... ... ... Censuses being expensive are taken only at infrequent intervals: every ten years in many countries, every five years or at a regular intervals in other countries. In non-census years to a population is estimated with the aid of vital statistics if those are sufficiently satisfactory. The history of modern census taking thus involves three parallel developments: (i) the invention and gradual spread of the idea of country- wide enumerations for general scientific and governmental purposes; (2) the improvement of administrative machinery, techniques and accuracy of enumeration, including legal safeguard assuring that individual answers would he kept in confidence; and (3) the deepening and systematization of the types of information obtained. All three developments tended to increase the effectiveness of censuses as sources of essential information. Uses of Census Data : The population Census is probably the most prolific and fundamental source of information about a nation. It is it multipurpose instrument serving a wide range of goals, both practical and scientific. It reveals not only the basic demographic trends.
All three developments tended to increase the effectiveness of censuses as sources of essential information. Uses of Census Data : The population Census is probably the most prolific and fundamental source of information about a nation. It is it multipurpose instrument serving a wide range of goals, both practical and scientific. It reveals not only the basic demographic trends. such as population growth internal redistribution urbanization, and alterations in the age and sex structure, but also contributes indispensably to a knowledge of changes in the nation's occupational and industrial composition, in its level of living education and employment and is regional and group differentiation. Knowledge derived from the census underlies the attainment of other kind of knowledge. For example, the census is essential to the drawing of samples for all kinds of surveys: for the computation of birth and death rates and the making of life tables: for the analysis of economic development and business cycles Above all, the census makes possible the estimation of future trends and is therefore essential to all kinds of planning: national, local, public and private. It is essential for knowing future military and economic manpower potentials, future consumer needs, forthcoming school requirements. future growth in metropolitan areas, potential costs of social security measures, future requirements fur highways, utilities, parks, water, energy and health services. Given its great utility, there is little wonder that the census is now a necessary feature of virtually every nation and that the information provided by censuses over the world is contributing to a revolutionary expansion of global economic, sociological and demographic knowledge." The Census Act, 1948 (Act No. 37 of 1948) (hereinafter referred to as the Act of 1948') provides for certain matters in connection with the taking of census. section 4 of the Act of 1948 deals with appointment of census staff'.
section 4 of the Act of 1948 deals with appointment of census staff'. S. 6 relates to the discharge of duties of census-officers in certain cases and s. 7 empowers the District Magistrate or such authority as the State Government may appoint in this behalf for any local area to call upon (a) all owners and occupiers of land, tenure-holders and farmers and assignees of land revenue, or their agents; (b) all members of the district municipal, Panchayat and other local authorities and officers and servants of such authorities; and (c) all officers and members of staff of any factory, firm or establishment to give such assistance as shall be specified in the order towards the taking of census of the persons who arc, at the time of taking of the census, on the lands of such owners, occupiers, tenure-holders farmers and assignees or in the premises of factories, firms and other establishments or within the areas for which such local authorities are established, as the case may be, and the persons to whom an order under this section is directed shall be bound to obey it and shall, while acting in pursuance of such order, be deemed to be public servants within the meaning of the Indian Penal Code. S. 8. deals with asking of questions and obligation to answer and subs. (2) of s. 8 lays down that every person of without any question is asked under sub section (1) shall be legally bound to answer such question to the best of his knowledge or belief S. 10 imposes a duty upon the occupier manager or any officer of any commercial or industrial establishment to fill the schedule to the best of to knowledge. S. 11 provides that any census officer or any person lawfully required to give assistance towards the taking of a census who refuses or neglects to use reasonable diligence in performing any duty imposed upon him or in obeying any order issued to him in accordance with this Act or any rule made thereunder, or any person who hinders or obstructs another person in performing any such duty or in obeying any such order.
S. 15 deals with records of census and it has been provided that no person shall have a right to inspect any book, register or record made by a census-officer in the discharge of his duty as such or any schedule delivered under Section 10, and notwithstanding any thing to the contrary in the Indian Evidence Act, 1872, no entry in any such book, register, record or schedule shall be admissible as evidence in any civil proceeding whatsoever or in any criminal proceedings other than a prosecution under this Act or any other law for any act or omission which constitutes an offence under this Act. S. 17 relates to Grant of statistical abstracts and it authorises the Department to supply these statistical datas. 8. Here, it will be useful to consider the relevant provisions of the Act also S. 2(g) of the Act defines 'employer" as follows:- (g) 'employer' means (i) in relation to an industry carried on by or under the authority of any department of the Central Government or a State Government, the authority prescribed in this behalf or where no authority is prescribed, the head of the department; (ii) in relation to an industry carried on by or on behalf of a local authority, the chief executive officer of the authority." 9. The aforesaid definition is neither exhaustive nor inclusive. The term includes within its scope industries owned by the Government or local authorities as well as private persons. Learned counsel for the petitioner has submitted that the aforesaid definition will have to be read with other relevant provisions of the Act including the Schedule to show that the legislature in its wisdom gave very wide definition of the employer specifically mentioning that the Government is an employer.
Learned counsel for the petitioner has submitted that the aforesaid definition will have to be read with other relevant provisions of the Act including the Schedule to show that the legislature in its wisdom gave very wide definition of the employer specifically mentioning that the Government is an employer. The appropriate Government' has been defined in s. 2(a) of the Act which reads as under:- "(a) 'appropriate Government' means: (i) in relation to any industrial dispute 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 the Industrial Finance Corporation of India established under section 3 of the Industrial Finance Corporation Act, 1948(15 of 1948) or the Employees' State Insurance Corporation established under Section 3 of the Employees' State Insurance Act, 1948 (34 of 1948), or the, Indian Airlines" and "Air-India" Corporations established under Section 3 of the Air Corporation Act, 1953 (27 of 1953), or the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956), or the Agricultural Refinance Corporation established under section 3 of the Agricultural Refinance Corporation Act, 1963 (10 of 1963), or the Deposit Insurance Corporation established under section 3 of the Deposit Insurance Corporation Act, 1961 (47 of 1961), or the Unit Trust of India established tinder section 3 of the Unit Trust of India Act. 1963 (52 of 1963), or the Food Corporation of India established tinder section 3 or a Board of Management established for two or more contiguous States under section 16, of the Food Corporation Act, 1964 (37 of 1964), or a banking or an insurance company, a mine, an oil- field, a Cantonment Board, or a major port, the Central Government, and (iii) in relation to any other industrial dispute, the State Government" S. 2(j) deals with Industry". It is a follows:- (j) "Industry" means any business, trade, undertaking manufacture or calling of employers and includes any calling, service, employment, handicraft or industrial occupation or a vocation of workmen." "Retrenchment" has been defined in s. 2(oo) of the Act. which is as follows:- "(oo).
It is a follows:- (j) "Industry" means any business, trade, undertaking manufacture or calling of employers and includes any calling, service, employment, handicraft or industrial occupation or a vocation of workmen." "Retrenchment" has been defined in s. 2(oo) of the Act. which is as follows:- "(oo). "retrenchment" means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include:- (a) voluntary retirement of the workman; or (b) retirement of the workman on reaching the age of superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf: and (c) termination of the service of a workman on the ground of continued ill-health; S 2(s) deals with "workman" and it is as under: "(s) "workman" means any person (including an apprentice) employed in any industry to do any skilled or unskilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be expressed 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 consequence of, that dispute, or whose dismissal. discharge or retrenchment has led to that dispute, but does not include any such person (i) who is subject to the Army Act, 1950 (46 of 1950), or Air Force Act, 1950 (45 of 1950), or the Navy (Discipline) Act 1934 (34 of 1934); or (ii) who is employed in the police service or as an officer or other employee of 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 five 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." 10. Learned counsel for the petitioner submits that the persons who are called upon to serve in the Census Department are rendering their services and the data collected by theta is obtained by the Industrialists for the development of the industries, which is an essential part of the industries.
Learned counsel for the petitioner submits that the persons who are called upon to serve in the Census Department are rendering their services and the data collected by theta is obtained by the Industrialists for the development of the industries, which is an essential part of the industries. He further submits that the growth of Industries depend upon the finding of the fact about the availability and non-availability of the articles so produced and that it is relevant fur the Government to take the census for the purpose of creating the infrastructure of industrialisation in non-developed and backward parts of the countrty. According to the learned counsel, a very wide interpretation should be given to the word 'industry' as defined in s. 2(j) of the Act. Learned counsel has invited trey attention to (l) State of Bombay v. Hospital Mazdoor Sabha ( AIR 1960 SC 610 ) , wherein their Lordships of the Supreme Court have observed as under:- "Let us first read the definition. Section 2(j) provides that '-industry" means any business, trade, undertaking, manufacture or calling of employers and includes any calling service, employment, handicraft or industrial occupation or a vocation of workmen, ...... The word "calling" again is very wide, it means "one's usual occupation, vocation, business or trade" so is the word service very wide in its import. Prima facie, if the definition has deliberately used words of such wide. import, it would be necessary to read those words in their wide denotation; and so read, Hospitals cannot be excluded from the definition." "The conventional meaning attributed to the words trade and business has lost some of its validity for the purpose of industrial adjudication. Industrial adjudication has necessarily to be aware of the current of socio-economic thought around; it must recognise that in the modern welfare State healthy industrial relations are a matter of paramount importance and its essential function is to assist the State by helping a solution of industrial disputes which constitute a distinct and persistent phenomenon of modern Industrialised Starts. In attempting to solve industrial disputes industrial adjudication does not and should not adopt a doctnaire approach. It must evolve some working principles and should generally avoid formulating or adopting abstract generalization.
In attempting to solve industrial disputes industrial adjudication does not and should not adopt a doctnaire approach. It must evolve some working principles and should generally avoid formulating or adopting abstract generalization. Nevertheless it cannot hard back to old-age notions about the relations between employer and employee or to the doctrine of laissez Paine which then governed the regulation of the said relation, 'That is why, we think, in construing the wide words used in S. 2 (j). it would be erroneous to attach undue importance Lo attribute: associated with business or trade in the popular mind in days gone by.") "It is clear, however, that though S. 2 (j) uses words of very side denotation a line would have to be drawn in a fair and just manner so as to exclude some callings, services or undertaking. If all the word; used are given their widest meaning, all services and all callings would come within the purview of the definition; even service rendered by a servant purely in a personal or domestic matter or even in a casual way would fall within the definition. It is not and cannot be suggested that in its wide sweep the word ''service" is intended to include set vice howsoever rendered in whatsoever capacity and for whatsoever reason." "It is true that under the old world notion prevailing under the Capitalist form of society industry generally means an economic activity involving investment of capital systematically carried on for profit for the production or sale of goods by the employment of how. When it is urged by the appellant that an undertaking should be analogous to trade or business what is really intended is that unless the undertaking in question shares Elie aforesaid essential features associated with the conventional notion of trade or business it should not be treated as filling under S. 2(j). There are two serious difficulties in accepting such a suggestion, and indeed the appellant concedes the presence of these two difficulties. It is not disputed that under s. 2 (j) an activity can and must be regarded as industry even though in carrying out profit motive may be absent. It is also common ground that the absence of investment of any capital would not make a material difference to the applicability of S. 2 (j).
It is not disputed that under s. 2 (j) an activity can and must be regarded as industry even though in carrying out profit motive may be absent. It is also common ground that the absence of investment of any capital would not make a material difference to the applicability of S. 2 (j). Thus, two of the important attributes conventionally associated with trade or business are not necessarily predicated interpreting S. 2 (j). What then can be said to be the attributes on features which should be common between trade and business on the one hand and an undertaking and other items mentioned in S. 2 (j) on the other ? "It would be possible to exclude some activities from S. 2 (J) without any difficulty. Negatively stated the activities of the Government which can be properly described as regal or sovereign activities are outside the scope of S. 2 (j). These are functions which a constitutional Government can and must undertake for governance and which no private citizen can undertake." "The activities which do not fall within S. 2 (j) and which are described as governmental or regal or sovereign have been pithily described by Lord Watson as "the primary and inalienable functions of a constitutional Government" (Vide Coomber v. Justice of Berks. (1983) 9A.C.-61) : and it is only these activities that are outside the scope of s. 2 (j). It sounds incongruous and self contradictory to suggest that activities under- taken by the Government in the interests of socio-economic progress of the country as beneficial measures should be exempted from the operation of the Act which in substance is a very important beneficial measure itself." "It is the character of the activity which decides the question as to whether the activity in question attracts the provision of S. 2 (j) ; who conducts the activity and whether it is conducted for profit or not do not make a material difference." It was further observed as follows: "Such an activity generally involves the co-operation of the employer and the employees: and its object is the satisfaction of material human- needs. It must be organised or arranged in a manner in which trade or business is generally organised or arranged. It must not be casual nor must it be for oneself nor the pleasure.
It must be organised or arranged in a manner in which trade or business is generally organised or arranged. It must not be casual nor must it be for oneself nor the pleasure. Thus the manner in which the activity in question is organised or arranged, the condition of the co-operation between an employer and the employees necessary for its success and its object to render material service to the community can be regarded as some of the features which are distinctive of activities to which S. 2 (j) applies." "If the absence of profit motive is immaterial why should an activity be excluded from S. 2 (j) merely because the person responsible for the conduct of the activity expects no consideration, does not want any quid pro quo and is actuated by philanthropic or charitable motive ? In our opinion, in deciding the question as to whether any activity in question is an undertaking under S. 2 (j), the doctrine of quid pro quo can have no application. Therefore, we are satisfied that the High Court was right in coming to the conclusion that the conduct and running of the group of Hospitals by the appellant amounted to an undertaking under s. 2 (j) and the relevant provisions of the Act were applicable." 11. In Nagpur Corporation v. Its Employees ( AIR 1960 SC 675 ) , it was held as follows:- ''Let us scrutinise the definition of "industry" to ascertain whether all or some of the conditions are implicit in the definition and whether the said conditions constituted the necessary basis for it. The true meaning of the section must be gathered from the expressed intention of the Legislature. Maxwell in his book "On the interpretation of Statutes 19th Edn." rightly points out at P 2 that "If the words of the statute are in themselves precise and unambiguous no more is necessary than to expound those words in their natural and ordinary sense, the words themselves in such case best declaring the intention of the legislature". The words used in the section are clear and unambiguous and they prima facie are of the widest import." "It is said that in construing the definition, we must adopt the rule of construction noscuntur a socils.
The words used in the section are clear and unambiguous and they prima facie are of the widest import." "It is said that in construing the definition, we must adopt the rule of construction noscuntur a socils. Maxwell explains this doctrine at P. 332 thus "When two or more words which are susceptible of analogous meaning are coupled together noscantur a socils. they are understood to be used in their cogitate sense. They take, as it were, their colour from each other, that is, the more general is restricted to a sense analogous to the less general." On the basis of this doctrine, it is argued that the words following the words "any business, trade, manufacturing or mining undertaking" shall partake the characteristics of any business, trade, manufacturing or mining undertaking and the words ''ally calling, service, employment, handicraft or industrial occupation or avocation of employees" shall share the qualities of an industrial occupation or avocation. In other words, the general word --Calling" in cl. (a) is controlled by the words preceding it, and the general words "calling service etc." in cl. (b) are restricted by the subsidiary words "industrial occupation or avocation." This doctrine was dealt with by this Court in AIR 1960 SC 610 . Therein this Court has considered the scope of this doctrine and has observed thus : "It must be borne in mind that noscuntur a socils is merely a rule of construction and it cannot prevail in cases where it is clear that the wider words have been deliberately used in order to make the scope of the defined word correspondingly wider. It is only where the intention of the legislature in associating wider words with words of narrower significance is doubtful that the present rule of construction can be usefully applied. It can also be applied where the meaning of the words of wider import is doubtful; but, where the object of the legislature in using wider words is clear and free of ambiguity, the rule of construction in question cannot be pressed into service." The said doctrine, therefore, cannot be invoked in cases where the intention of the Legislature is clear and free of ambiguity. The phraseology used in the section is very char and it is not susceptible of any ambiguity. The words used in the first part of cl.
The phraseology used in the section is very char and it is not susceptible of any ambiguity. The words used in the first part of cl. (b) are unqualified, and the qualification is introduced only in the later part. If the words, 'calling, service, employment, handicraft" are really intended to be qualified by the adjective ''industrial" one would expect the' Legislature to affix the adjective to the first word "scalling" rather than to the last word ,occupation". The inclusive definition is a well recognised device to enlarge the meaning of the word, defined, and. therefore, the word ''industry" must be construed as comprehending not only such things as it signifies according to its natural import but also those things the definition declares that it should include: See Stroud's Judicial Dictionary. Vol. 2, p. 1416. So construed, every calling. service, employment of an employee or any business, trade or calving of an employer will be an industry. But such a wide meaning appears to over-reach the objects for which the Act was passed. It is, therefore, necessary to limit its scope on permissible grounds, having regard to the and scope and the object of the whole Act. To arrive at the real meaning of the words. Lord Coke in Heydon's case (1584) 7 Co Pep. 7A says that the following matters are to be considered what was the law before the Act was passed; (2) What was the mischief or defect for which the law had not provided; (3) what remedy Parliament has appointed; and (4) The reason of the remedy. The word --employers" in cl (b) indicates that the fundamental basis for the application of the definition is the existence of that relationship. The cognate definitions of '-industrial dispute", "employer", "employee" also support it. The long title of the Act as its preamble show that the Act was passed to make provision for the promotion of industries and peaceful and amicable settlement of disputes between employers and employees in an organised activity by conciliation and arbitration and for certain other purposes. If the preamble is read with the historical background for the passing of the Act, it is manifest that the Act was introduced as an important step in achieving social justice.
If the preamble is read with the historical background for the passing of the Act, it is manifest that the Act was introduced as an important step in achieving social justice. The Act seeks to ameliorate the service conditions of the workers, to provide a machinery for resolving their conflicts and to encourage co- operative effort in the service of the community. The history of labour legislation both in England and India also shows that it was aimed more to ameliorate the conditions of service of the labour in organised activities than to anything else. The Act was not intended to reach the personal services which do not depend upon the employment of a labour force." It was further observed as follows:- "It is said that in a modern State the sovereign power extends to all statutory functions of the State except to the business of trading and industrial transactions undertaken by it in its, quasi-private personality. Sustenance for this contention is sought to be drawn from Holland's Jurisprudence, wherein the learned author divides the general heading "public law" into four sub-heads and under the subhead '-Administrative Law" he deals with a variety of topics including welfare and social activities of a State. The treatment of the subject "Public Law" by Holland & other authors. in our view has no relevance in appreciating the scope of the concept of regal powers which have acquired a definite connotation. Lord Watson, in Coomber v. Berks justices, (1883) 9AC 61 at P. 74 describes the functions such as administration of justice, maintenance of order and repression of crime, as among the primary and inalienable functions of a constitutional government. Issacs. J., in his dissenting Judgment in Federated State School Teachers' Association of Australia v. State of Victoria, (1928-29) 41 CLR 569 , concisely states thus at p. 585: "Regal functions are inescapable and inalienable. Such are the legislative powers, the administration of laws, the exercise of the judicial power. Non-regal functions may be assumed by means of the legislative power, but when they are assumed the State acts simply as a huge corporation, with its legislation as the charter.
Such are the legislative powers, the administration of laws, the exercise of the judicial power. Non-regal functions may be assumed by means of the legislative power, but when they are assumed the State acts simply as a huge corporation, with its legislation as the charter. Its action under the legislation, so far as it is not regal execution of the law is merely analogous to that of a private company similarly authorised." "These words clearly make out the ambit of the regal functions as distinguished from the other powers of a State. It could not have been, therefore, in the contemplation of the legislature to bring in the regal functions of the State within the definition of industry and thus confer jurisdiction on Industrial Courts to decide dispute in respect thereof. We, therefore, exclude the regal functions of a State from the definition of industry." "A corporation may, therefore, discharge a dual function; it may be statutorily entrusted with regal functions. Strictly so called, such as making of laws, disposal of certain cases Judicially etc , and also with other welfare activities. The former, being delegated regal functions, Must be excluded from the ambit of the definition of --industry." "The result of the discussion may be summarised thus : (1) The definition of "industry" in the Act is very comprehensive. It is in two parts: one part defines it from the stand-point of the employer and the other from the stand-point of the employee. If an activity falls under either part of the definition, it will be an industry within the meaning of the Act (2) The history of industrial disputes and the legislation recognises the basic concept that the activity shall be an organised one and not that which partains to private or personal employment; (3) The regal functions describe as primary and inalienable functions of State though statutorily delegated to a corporation are necessarily exlcuded from the purview of the definition. Such regal functions shall be confined to legislative power. administration of law and judicial power; (4) If a service rendered by an individual or a private person would be an industry, it would equally be an industry in the hands of a corporation.
Such regal functions shall be confined to legislative power. administration of law and judicial power; (4) If a service rendered by an individual or a private person would be an industry, it would equally be an industry in the hands of a corporation. (5) if a Service rendered by a Corporation is an industry, the employees in a department connected with that service, whether financial, administrative or executive, would be entitled to the benefits of the Act; (6) If a department of a municipality discharges many functions, some pertaining to industry as defined in the Act and other non-industrial activities, the predominant functions of the department shall be the criterion for the purpose of the Act." "We, therefore, must accept the finding of the State Industrial Court that the Staff of this department doing clerical or manual work predominantly does the work connected with scavenging taxes and water rate. The said rates are really intended as fees for the service rendered. The services, namely, scavenging and supply of water, can equally be undertaken by a private firm or an individual for remuneration and the fact that the municipality does the same duty does not make it any the less a service coming under the definition of "Industry". We would, however, prefer to sustain the finding on a broader basis." 12. Learned counsel for the petitioner has further cited Bangalore Water Supply v. A. Rajappa ( AIR 1978 SC 548 ) , and has particularly invited my attention to pars 39, 37, 46, 49, 54, 56, 57, 60, 73, 83, 85, 116, 118, 119, 124, 134, 135 and 161 of the report. In that case, Krishna Iyer, J. on behalf of Himself, Bhagwati and Desai, JJ. in para 161 of the report observed as follows:- "161. Industry' as defined in section 2 (j) and explained in Banerji ( AIR 1953 SC 58 ) has a wide import.
In that case, Krishna Iyer, J. on behalf of Himself, Bhagwati and Desai, JJ. in para 161 of the report observed as follows:- "161. Industry' as defined in section 2 (j) and explained in Banerji ( AIR 1953 SC 58 ) has a wide import. (a) Where (i) systematic activity, (ii) organised by co-operation between employer and employee (the direct and substantial element is clerical), (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 i. e. making, on a large scale prasad or food) prima facie, there is an 'industry' in that enterprise, (b)Absence of profit motive or gainful objective is irrelevant, be the venture in the public, joint, private or other sector, (c) the true focus is functional and the decisive test is the nature of the activity with special emphasis on the employer-employee relations. (d) If the organistion is a trade or business it does not cease to be one because of philanthrophy animating the undertaking. II. Although Section 2 (j) uses words of the widest amplitude in its two limbs, their meaning cannot be magnified to overreach itself. (a) 'Undertaking' must suffer a contextual and associational shrinkage as explained in Banerji and in this Judgment: so also, service, calling and the like. This yields the inference that all organised activity possessing the triple elements in 1 (supra), although not trade or business may still be 'industry' provided the nature of the activity. viz., the employer employee basis, bears resemblance to what we find in trade or business. This takes into the fold -industry' undertakings, callings and services, adventures analogous to the carrying on of trade or business. All features, other than the methodology of carrying on the activity viz.. in organising the co-operation between employer and employee, may be dissimilar. It does not matter, if on the employment terms there is analogy." III. Application of these guidelines should not stop short of their logical reach by invocation of creeds, cults or inner sense of incongruity of outer sense of motivation for or resultant of the economic operations. The ideology of the Act being industrial peace, regulation and resolution of industrial dispute between employer and workman, the range of this statutory ideology must in form the reach of the statutory definition. Nothing less, nothing more.
The ideology of the Act being industrial peace, regulation and resolution of industrial dispute between employer and workman, the range of this statutory ideology must in form the reach of the statutory definition. Nothing less, nothing more. (a) The consequences are (i) professions, (ii) Clubs (iii) educational institutions (iv) co-operatives, (v) research institutes (vi) charitable projects and (vii) other kindred adventures, it they fulfil the triple tests listed in I (supra), cannot be exempted from the scope of Section 2(j). (b) a restricted category of professions, clubs, co-operatives and even gurukules and little research labs. may qualify for exemption if, in simple ventures, substantially and, going by the dominant nature criterion, substantively, no employees are entertained, but in minimal matters, marginal employees are hired without destroying the non- employee character of the unit. (c) If, in a pious or altruistic mission many employees themselves, free or for small honoraria or like return, mainly drawn by sharing in the purpose of cause such as lawyers volunteering to run a free legal services clinic or doctors serving in their spare hours in a free-medical centre or ashramites working at the bidding of the holiness, divinity or like central personality, and the services are supplied free or at nominal cost and those who serve are not engaged for remunaration or on the basis of master and servant relationship, then, the institution is not an industry even if stray servants, manual or technical are hired. Such eleemosynary or like undertakings alone are exempt not other generality, compassion, developmental passion or project. IV. The dominate nature test: (a) Where as complex of activities, some of which qualify for exemption, others not, involves employees on the total undertaking, some of whom are not 'workmen' as in the University of Delhi case ( AIR 1963 Sc 1873 ) or some departments are not productive of goods and services if isolated, even then, the predominant nature of the services and the integrated nature of the departments as explained in the Corporation of Nagpur ( AIR 1960 SC 675 ) will be the true test. The whole undertaking will be industry although those who are not 'workmen' by definition may not benefit by the status. (b) Notwithstanding the previous clauses, sovereign functions, strictly understood, (alone) qualify for exemption, not the welfare activities or economic adventures undertaken by Government or statutory bodies.
The whole undertaking will be industry although those who are not 'workmen' by definition may not benefit by the status. (b) Notwithstanding the previous clauses, sovereign functions, strictly understood, (alone) qualify for exemption, not the welfare activities or economic adventures undertaken by Government or statutory bodies. (c) Even in departments discharging sovereign functions, if there are units which are industries and they are substantially severable, then they can be considered to come within S. 2 (j). (d) Constitutional and competently enacted legislative provisions may well remove from the scope of the Act categories, which otherwise may be covered thereby. v. We overrule Safdarjung ( AIR 1970 SC 1407 ), Soliciters case (AIR 1962 SC 1630) Gyamkhana (AIR 1966 SC 554), Delhi University ( AIR 1963 SC 1873 ) Dhanrajgirji Hospital ( AIR 1975 SC 2032 ) and other rulings whose ratio runs counter to the principles enunciated above. and Hospital Mazdoor Sabha ( AIR 1960 SC 610 ) is hereby rehabilitated." 13. While agreeing with the views taken by Krishna lyer, J. (as he then was), Y. V. Chandrachud. C. J. in para 172 of his separate judgment which has been reported in (3-A) A.I.R. 1978 S.C. 969 ruled as follows : "172. One of the exceptions carved out by the Court is in favour of activities undertaken by the Government in the exercise of its inalienable functions under the Constitution, call it regal, sovereign or by any other name. I see no justification for excepting these categories of public utility activities from the definition of industry'. If it be true that one must have regard to the nature of the activity and not to who engages in it, it seems to me beside the point to enquire whether the activity is undertaken by the State, and further in so, whether it is undertaken in fulfilment of the State's constitutional obligations or in discharge of it as constitutional functions. In fact, to concede the benefit of an exception to the State's activities which are in the nature of sovereign functions is really to have regard not so much to the nature of the activity as to the consideration who engages in that activity for, sovereign functions can only be discharged by the State and not by a private person.
In fact, to concede the benefit of an exception to the State's activities which are in the nature of sovereign functions is really to have regard not so much to the nature of the activity as to the consideration who engages in that activity for, sovereign functions can only be discharged by the State and not by a private person. If the State's inalienable functions are excepted from the sweep of the definition contained in section 2 ( j), one shall have unwittingly of jetted the fundamental test that it is the nature of the activity which ought to determine whether the activity is an industry. Indeed, in this respect, it should make no difference whether, on the one hand, an activity is undertaken by a corporate body in the discharge of its statutory functions or, on the other, by the State itself in the exercise of its inalienable functions. If the water supply and sewerage schemes or fire fighting establishments run by a Municipality can be industries, so ought to be the manufacture of coins and decurrency, arms and ammunition and the mining of oil and uranium. The fact that these latter kinds of activities are, or can only be undertaken by the State does not furnish any answer to the question whether these activities are industries. When undertaken by a private individual, they are industries. Therefore, when undertaken by the Sate, they are industries. The nature of the activity is the determining factor and that does not change according to who undertakes it l item 6, 11, 12, 17 and 18 of the First Schedule read with section 2 (n) (vi) of the Industrial Dispute-, Act render support to this view. These provisions which were described in Mazdoor Sabha ( AIR 1960 SC 610 ) as very significant at least show that, conceivably, a defence Establishments a Mint or a Security Press can be an industry even though these activities are. ought to be and can only be undertaken by the State in the discharge of its constitutional obligations or functions. The State does not trade when it prints a currency note or strikes a coin. And yet, considering the nature of the activity, it is engaged in an industry when it does so." 14.
ought to be and can only be undertaken by the State in the discharge of its constitutional obligations or functions. The State does not trade when it prints a currency note or strikes a coin. And yet, considering the nature of the activity, it is engaged in an industry when it does so." 14. In Vinoy Kumar v. State (1968 RLW 325) , Kansingh, J. (as he then was) held that Junior Engineer and Overseer in P. W. D. (B & R) arc work- men within the definition of s. 2(s) of the Act. A learned Single judge of this Court in Hospital Employees Union v. State ( AIR 1971 Raj. 66 ) , ruled that Group of Hospitals attached to teaching institution falls within the definition of s. 2(j) of the Act. 15. In Bhavani Singh v. Judge, Industrial Tribunal Rajasthan, Jaipur (1975 RLW 331) , this Court has held that (a) Farrashiana and Baggikhaiia including Kapatdwara in the Gity Palace (b) Hulse Breeding & Riding Association; and (c) S. M. S. Investment Corporation (p). Ltd. fall within the ambit of the word -Industry" as defined in the Industrial Disputes Act. 16. This Court in Rajasthan Khadi & Village Industries Board, Jaipur v. State of Rajasthan (1972 RLW 2) , observed as follows : "The activities carried on by the Board within the aurbit of the functions enumerated in the 1955 Act are the activities in the nature of trade or business and the operation of the employees of the Board result in the production of material services and material goods. It is no doubt true that the objects with which these activities are carried or are not profit making but in order to test whether the particular activity of the organisation comes within the definition of --industry" or not, it is not necessary to see whether the activity is being carried on to make profit out of it. It is immaterial whether the object is charitable or that it is not profit making as the object has no bearing on this question whether the activity comes within the definition of "industry" or not. Looking to the activities of the Board which partakes the character of organised business or trade-, the Board falls within the term industry and thereof this point is decided against the Board." 17.
Looking to the activities of the Board which partakes the character of organised business or trade-, the Board falls within the term industry and thereof this point is decided against the Board." 17. In Mahesh Chandra Sharma v. State of Rajasthan (1974 RLW 338) , it was held that the Irrigation Department is an industry was in The abmit of s. 2(s) of the Act. 18. A learned single judge of this Court in Jaipur Milk Supply Scheme v. Judge. Labour Court (1976 WLN 123) , held that Jaipur, Milk Supply Scheme is industry as defined in s 20 (j) of the Act. 19. In Ananpa Ram v. Union of India ( 1979 WLN 524 ) , it was observed as follows:- "The Anti locust Department of the Government of India falls within the definition of the term -industry' in as much as it carried on systematic activity. Its functional activity is to survey the Scheduled desert area and to control the inflow of locust and its activities The activity of the Anti Locust Department is to eradicate locust and for that purpose. it keeps vehicles. power dusters, nozzle sprayers, hand ousters, wireless sets etc. its operations are to check growth of locust and to destroy them. All this is organised by the Anti locust department of the Government of India (employer) and the employees. The nature of the activities of the Anti locust Department Organization is to protect growing crops by appropriate steps for eradication of locust. After considering the activities, it was held that Anti-locust Department is an industry as defined in s. 2(j) of the Act. 20. Learned counsel for the petitioner has invited my attention to Union of India v. Mahaveer Pd. (1981 \1WLN 12) , wherein it was observed as follows : "It cannot now, therefore, be held chat the Central And Zone Research Institute is not an 'industry' within the meaning of the Act. Following the decision of their Lordships of the Supreme Court in Banglore Water Supply Case (2) the Institute is held to be an -industry' for Lite purposes of the Act. 21. In Chhaju Ram v. State of Rajasthan ( 1982 RLR 663 ) , a learned single judge of this Court had occasion to consider the scope of s. 2(i) & (s) of' the Act.
21. In Chhaju Ram v. State of Rajasthan ( 1982 RLR 663 ) , a learned single judge of this Court had occasion to consider the scope of s. 2(i) & (s) of' the Act. While considering the aforesaid provisions of the Act, it was held that a Department of Panchayat Samiti, engaged in work of constructing buildings and roads is an industry and it falls within the purview of s. 2(i) of the Act. 22. In Gopalji Jha Shastri v. State of Bihar ( AIR 1976 SC 145 ) , the Supreme Court has herd that Bihar Khadi Gramodyog Sangh is an industry. 23. Learned counsel for the petitioner has further cited the case of (13-A) Workmen, I. S. Institution v. I.S. Institution ( AIR 1976 SC 145 ) , wherein it was observed as follows : "To summarise, an activity can be regarded as an -industry' within the meaning of Section 2(j) only if there is relationship of employer and employees and the former is engaged in business, trade, undertaking, manfacture or calling of employers and the latter, 'in any calling, service, employment. handicraft or industrial occupation or avocation." 'though 'undertaking' is a word of large import and it means anything undertaken or any project or enterprise in the context in which it occurs, it must be read as meaning an undertaking analogous to trade or business. In order that an activity may be regarded as an undertaking analogous to trade or business, it must be organised or arranged in manner in which trade or business is generally organised or arranged. It must not be casual nor must it be for oneself nor for pleasure, and it must rest on co-operation between employer and employees who associate together with a view to production, sale or distribution of material goods or material services. It is entirely irrelevant whether or not there is profit-motive or investment of capital in such activity. Even without these two features an activity can be an undertaking as anlogous to trade or business. It is also immaterial that its objects are charitable or that it does not make profits or even where profits are made, they are not distributed amongst the members, Management of FICCI v. Workmen, (1972) 2 SCR 355 at P. 376 ( AIR 1972 SC 763 at p. 777-1972 Lab IC 413) or that its activity is subsicised by the Government.
Again it is not necessary that the employer must always be a private individual'. The Act, in terms, contemplates case of industrial disputes where the Government or a local authority are public utility service they be the employer...." Madras Gymkhana case, at p. 766 of the Report (1968) 1 SCR 742 (at p. 563 of AIR 1968 SC 554 ). It also makes no difference that the material services rendered by the undertaking are in public interest. The concept of public interest in modern welfare State where new social values are fast emerging and old dying out, is indeed so wide and so broad and comprehensive in its spectrum and range that many activities which admittedly fall within the category of 'industry' are clearly designed to subserve public interest in fact. Whenever any industry is carried on by the Government, it would be in public interest, for the Government can act only in public interest. Whether an activity is carried on in public interest or not can, therefore, never be a criterion for determining its character as an industry. Having thus examined the legal concept of industry as expounded in the decisions of this Court, we may now proceed to consider whether the activity of the Institution can be characterised as an industry in the light of the broad test discussed by us". 24. In Abdul Wahab K Lal v. C K. Patankar (1980 Lab I. C. 623) , a Division Bench of the Bombay High Court held that the ociroi Depart- ment of Municipal Council is industry. 25. A Division Bench of the Madhya Pradesh High Court in C. M. Security Paper Mill, Hoshangabad v. Hari Shanker (1980) Lab. I. C. 367) , Observed : "It is open to the legislature to include even undertaking established be, the Government, in the exercise of its sovereign functions. within the definition of "Industry". 'I lie definition of "Industry" as given in s. 2 (j) does not expressly exclude the Governmental undertaking established in exercise of sovereign functions. S. 2 (4) of the Act defines -public utility services'. Sub-cl. (vi) of this definition includes within it any industry specified in the 1st Sch.
within the definition of "Industry". 'I lie definition of "Industry" as given in s. 2 (j) does not expressly exclude the Governmental undertaking established in exercise of sovereign functions. S. 2 (4) of the Act defines -public utility services'. Sub-cl. (vi) of this definition includes within it any industry specified in the 1st Sch. Which the appropriate Government may, if satisfied, the public emergency or public interest so requires, by notification in the official Gazette, declare to be a public utility services for the purpose of the Act for such period as may be specified in the notification. The first Sch. to the Act contains a list of industries which may be declared to be public utility services under sub-clause (vi) of Section 2 (4). Items 8. II and 12 of 1st Sch. specifiy, defence establishments, India Government mints and India security press respectively as industries which can be declared to be public utility services. Even assuming that these industries are established by the Central Government in the exercise of its sovereign functions, yet it is clear that the intention of the Act was to include them within the definition of "Industry", otherwise they would not have been mentioned in the 1st Schedule. By necessary implication defence establishments, India Government mints, and India Security press are industries within the Act. The Security Paper Mills is included within "India Security Press "mentioned at item No. 12 in the First Schedule as is clear from the notification D/-13-4-1973 under which the Central Government declared the Security Paper Mill to be a public utility service under sub clause (vi) of Section 2 (n) and is by necessary implication included as an -Industry' under the Act. The application of the Act to this Governmental under- taking cannot be excluded on any general principle that it is undertaking in fulfilment of the State's Sovereign functions. Held that Security Paper Mill, Hoshangabad is an Industry." 26. In Bihar Relief Committee v. State of Bihar (1979 Lab. I. C. 445) , a Division Bench of the Patna High Court held that the Bihar Relief Committee is an industry as it undertook minor irrigation schemes in the State of Bihar with all the ancilliary and systemetic operations and its activities are the product of an organised co-operation between employer and employees, leading to distribution of goods and services which in its turn fulfills human wants and wishes. 27.
27. In Management of the Federation of Indian Chambers of Commerce and Industry v. Their Workman, Shri R. K. Mittal ( 1971 LLJ 630 ) , the Supreme Court held that Federation of Indian Chambers of Commerce and Industry is an industry and the absence of profit motive or distribution of profits is not relevant in deciding the question. 28. A Division Bench of the Calcutta high Court in Registrar of Trade Unions v. Mihir Kumar Gooha ( 1963 LLJ 100 ) , held that the activities carried on by the Employees' State Insurance Corporation is an industry. 29. Mr. N. L. Jain, learned Advocate General has submitted that the census operations carried out by the Government are the obligatory duties of the State He his referred entry 69, List I. Schedule VII of the Constitution of India and has pointed that the Act of 1948 has been enacted under entry 69. list 1, Schedule VII of the Constitution. He has invited my attention to a number of the provisions of the Census Act. 1948 and has submitted that the information collected cannot be inspected by the Public. It was submitted that it is a casual work which is carried out at the intervals of every ten years. Learned Advocate General submits that there are provisions under which the persons who are not complying with the provisions of the Act of 1948 can be punished. He further submits them in it democratic set up, census is a must for carrying out the obligations imposed under the law as well as under the Constitution. My attention was drawn to Article 82 of the Constitution, which reads as follows:- "82. Readjustment after each census.
He further submits them in it democratic set up, census is a must for carrying out the obligations imposed under the law as well as under the Constitution. My attention was drawn to Article 82 of the Constitution, which reads as follows:- "82. Readjustment after each census. Upon the completion of each census, the allocation of seats in the House of the People to the States and the division of each State it to territorial constituencies shall be re-adjusted by such authority and in such manner as Parliament may by law determine : Provided that such readjustment shall not affect representation in the House of the People until the dissolution of the then existing House : Provided further that such readjustment shall take effect from such date as the President may by order specify and untill such readjustment takes effect, and election to the House may be held on the basis of the territorial constituencies existing before such readjustment : Provided also that until the relevant figures for the first census taken after the year 2000 have been published, it shall not be necessary to re- adjust the allocation of seats in the House of the People to the States and the division of each state into territorial constituencies under this Article." It was submitted by the learned Advocate General that upon the completion of each census, the allocation of seats in the House of the People to the States and the division of each State into territorial constituencies shall be readjusted by such authority and in such manner as Parliament may by law determine. It was further submitted that it is the mandate of' Article 82 of the Constitution that after completion of each census the allocation of seats should be made in accordance with the census report. It may be mentioned that proviso II to Article 82 lays down that such readjustment shall take effect from such date as the President may by order specify and until such readjustment takes effect, any election to the House may be held on the basis of the territorial constituencies existing before such readjustment. Article 82 enables the President to allocate the seats in the House of the People, and the division of each State into territorial constituencies after each census.
Article 82 enables the President to allocate the seats in the House of the People, and the division of each State into territorial constituencies after each census. For one reason or the other, if the census cannot be held in time, the allocation of the seats in the House of the People to the States and the division of each State into territorial constituencies shall continue on the basis of the previous census also. If the President does not notify by order, such readjustment cannot take effect though the census has been completed. 30. Learned Advocate General has further submitted that census is a regal function of the State and that no other party can conduct the census operations. According to the learned Advocate General, the activities carried out by the Census Department is not mechanical activities and it cannot be said to be analogous with trade or industry. It was submitted that the Census Department is a temporary Department and not a regular Department. A quarry was made whether Census Department can he said to be a casual department or not ? Learned Advocate General submitted that it can be said as a temporary department and that though it is a temporary department, it can be equated to the casual workmen. He further submitted that the duties cast are not of a regular nature and it does nut fall within the purview of s. 2 (j) of the Act. Learned Advocate General has invited my attention to State of Punjab v. Shri Kuldip Singh (1983 Lab. I.C. 83) . For the purpose of understanding the case of State of Punjab , the relevant paras No. 11, 15, 19, 21, 23, 24, 25, 35, 36 and 37 may he quoted. 11. Now, it appears to me that within the narrow confines of State or Government activity alone, the matter admits of a fourfold classification in this context. For the sake of terminological exactitude, these may be categorized as follows : 1. The sovereign or the regal functions of the State which are the primary and inalienable rights of a constitutional Government. 2. Economic adventures clearly partaking of the nature of trade and business undertaken by is as part of its welfare activities. 3. Organized activity not stamped with the total indicia of business yet hearing a resemblance to or being analogous to trade and business.s 4.
2. Economic adventures clearly partaking of the nature of trade and business undertaken by is as part of its welfare activities. 3. Organized activity not stamped with the total indicia of business yet hearing a resemblance to or being analogous to trade and business.s 4. The residuary organised governmental activity which may not come within the ambit of the aforesaid three categories." "15. There is then the third category of State activity, which though cannot possibly be stamped as strictly trade or business, yet bears some resemblance or analogy thereto. This is the slightly pemmbral area, which appears to be now authoritatively covered by what was originally laid down in Bannerji's case ( AIR 1953 SC 58 ) and later elaborated and affirmed in Hospital Mazdoor Sabha (AIR 1960 SC6610) and Nagpur Corporation's case ( AIR 1960 SC 675 ) and ultimately bearing a final seal of approval in the Bangalore Water Supply Board's case (1978 Lab. IC 467 SC.) It must be highlighted that Bannerji's case recently seems to have secured such unstinted and unreserved confirmation that the observations therein must virtually be deemed as authoritative as those in the Bangalore Water Supply Board case. The Constitution Benches observations unanimously expounded by Chandrasekhara Aiyar.J. were extolled by Krishna Iyer, J. repeatedly in Bangalore Water Supply Board's case as ..........................." "19. There further remains the fourth residuary category of governmental activity of the modern State, spread over a wide spectrun which does not come within either of the aforesaid three categories, i. e it is neither the regal or sovereign function of the State, nor governmental activity of a strictly analogous to it. Wherein does this category fall ? The answer appears to be plain that this area of governmental activity, which may be beyond the widest amplitude of trade, business or economic ventures or activities analogous thereto would consequently be outside the ambit of an industry. Indeed if it were not so, the whole arudite discussion or on the point in the Bangalore Water Supply Board's case (1978 Lab. I.C. 467 S.C.) and the ding dong swing of the judicial pendulum ranging from Banerji's case ( AIR 1953 SC 58 ) for three decades till today would seem to be an exercise in futility. It is elementary that governmental activity is inevitably organised and systematized and not chaotic.
I.C. 467 S.C.) and the ding dong swing of the judicial pendulum ranging from Banerji's case ( AIR 1953 SC 58 ) for three decades till today would seem to be an exercise in futility. It is elementary that governmental activity is inevitably organised and systematized and not chaotic. That being so, on the contrary view, the issue would become so simpliciter as to hold that apart from the very few limited sovereign or regal function a like policing, justicing, Legislating, Defence, Foreign affairs. all the rest of the Governmental activity would be an industry. I do not think that it is rationally possible to subscribe to any such abstraction and indeed the longest line of precedents in the final Court and unending mass thereof in the high Court has at no stage ever said so. I would notice that even the most vehement amongst the learned counsel for the respondents did not at any stage take up the extreme and if I may say so, the illogical position that apart from regal and sovereing functions, all other governmental activities is industrial in nature. Indeed this seems to have been authoritatively recognised in the following words of Krishna Iyer, J. in Bangalore Water Supply Board's case (1978 Lab. 1. C. 467) (Para 68) "Thus it is well recognised that public servants in the key sectors of Administration stand out of the industrial sector. The Committee of Experts of the I/O had something to say about the carrying out of the public servants from the general category." And his express approval and explanation of Banerji's case in this context is in the following words: (Para 60) "The limiting role of Banerji ( AIR 1953 SC 58 ) must also be noticed so that a total view is gaind. For instance analogous to trade or business cuts clown undertaking, a word of fantastic sweep, Spiritual undertakings, casual undertakings, domestic undertakings, war waging, applicing, justicing legislating, tax collecting and the like are, prima-facie, pushed out. Wards are not merchantable nor justice sale able, nor divine grace marketable. So the problem shifts to what is analogous to trade or business." It seems plain from the above that the real problem herein is as to what is the true import to he attributable to the phrase 'analogous to trade or business'.
Wards are not merchantable nor justice sale able, nor divine grace marketable. So the problem shifts to what is analogous to trade or business." It seems plain from the above that the real problem herein is as to what is the true import to he attributable to the phrase 'analogous to trade or business'. As observed in the Bangalore Water Supply Board's case, these indeed are the prescient words. 'they alone provide the real key to the problem before the courts. As has been authoritatively said by Krishna lyer J., some kinship, some resemblance or some analogy to trade or business is the guide star for determining whether the activity is industrial or not." 21. It is obvious that it could be more than wasteful to examine this issue in a doctrinaire fashion. It has to be analysed and adjudicated upon in the particular conditions of this country and its constitution. Attention in this context may first be drawn to entry 23 of the Union List, which is in the following terms : "25. Highways, declared by or under law made by Parliament to be national highways." And again to entry 13 of State List (List II to Seventh Sch. to the Constitution) : "13. Communications, that is to say roads, bridges, ferries, and other means of communication not specified in List. 1." 23. Again it seems to be undisputed that the creation, construction and maintenance of national and State highways, as a matter of history, as also of present day function, is essentially a governmental activity in this country. Even though pointedly pressed, learned counsel for the respondents could quote no example either ancient or modern where the life lines of the nations communication has been it entrusted to hands other than the Government. On the other hand. the learned Additional Advocate General Mr. Mohinderjit Singh Sethi was not wrong in pointing out that even more than five centuries ago the Grand Truck Road extending from Peshawar to Bengalwas first built entirely as it State Enterprise by Sher Shah Suri, which has recently been aptly renamed after him. Indeed at one stage. the learned counsel for the respondents were compelled to concede that at least within this country the creation, construction and the maintenance of national and State highways and even their connecting network has been a pristinely governmental function." "24.
Indeed at one stage. the learned counsel for the respondents were compelled to concede that at least within this country the creation, construction and the maintenance of national and State highways and even their connecting network has been a pristinely governmental function." "24. Now in the aforesaid context what deserves pointed highlighting is the fact that an meaningful road building activity today would involve the compulsory acquisition of land for its successful completion and which can only be done by exercise of the legislative power of the State by taking it away even from the original prive owners for the larger public purpose of communications. Equally the building of National and State highways involves the creation of bridges, culverts, etc. over large rivers or smaller strearxs, which vest In the Government and can only be done under the umbrella and cloak of the sovereign governmental powers. Plainly enough, therefore, the very creation of a meaningful roadways system far from being a trading or business activity may on the very threshold involve the exercise of the sovereign right of the State to compulsorily take away the property from the citizenry, and to legislate for its creation and protection. Viewed from this angle can it he said that construction of national and State highways which are progressively becoming the life line of the present day development of the country is analogous to commercial trading or business activity ? I believe the answer to this on ordinal)' cannons of logic appears to be in a categoric negative." "25. Equally one has to remind oneself that a national or State road system is many times, though not invariably, linked inserparablv to the defence of the country as well. 'That there may be roads which are primarily strategic is plain, but even otherwise the left of the road net- work within the country is sometimes equally necessary for utilisation for its defence. In the present day conditions no meaningful defence or warfare can be conducted in areas which may be totally inaccessible or nut covered by roads. Therefore, in a way road building is an activity far from being either trade or business in nature or even remotely analogous thereto, but equllay akin to the preslincly inalienable function of a constitutional Government for the defence of its citizenry.
Therefore, in a way road building is an activity far from being either trade or business in nature or even remotely analogous thereto, but equllay akin to the preslincly inalienable function of a constitutional Government for the defence of its citizenry. Indeed it has to be recalled that in many areas the construction of roads and their maintenance far from being an economic or trading or business venture is so oriented to defence or development so as to make deeps in roads by way of deficit financing into State revenues. The construction of the strategic; roads by Border Roads organisation in the inaccessible and inhospitable legions bordering on the Tibet-China border are clear examples of this governmental activity which would be motivated entirely by defence and foreign affairs considerations, rather than by any economic, trading or business considerations." "35. I am unable to subscribe to the somewhat dogmatic stand aforesaid. In the context of Governmental activity, one can hardly visualise an instance where the employer and employees relationship. i e., between the Government and its employees would not exist. Nor can it he said that such activity would not have a modicum of organisation behind it. Inevitably, it must conform to some kind of a system, unless one is willing to hold that governmental activity can be wholly chaotic in nature. A systematic organisation and utilisation of the Employees seems to be rather elementary in governmental activity. Mostly, all such governmental activity has necessarily to be directed to some public interest and thus provides either services to the community or goods for its benefit. If these three tests are taken to be decisive, the end-result would be that all governmental activity even including the sovereign regal functions would come within the scope of industry and that, as already noticed, is nobody's case. It bears repetition that to be within the ambit of industry, a governmental activity must at least. be analogous to trade and business though both the words 'analogous' and the phrase 'trade' and 'business' may be construed with large liberality. It calls for highlighting that there must be an element of an economic venture in govern- mental activity before it can be brought within the four corners of an industry.
be analogous to trade and business though both the words 'analogous' and the phrase 'trade' and 'business' may be construed with large liberality. It calls for highlighting that there must be an element of an economic venture in govern- mental activity before it can be brought within the four corners of an industry. If even by remote analogy, the character of the activity is neither that of trade or business nor partakes any economic venture, then it necessarily is out of the ambit of the industrial activity." 36............ It was in this peculiar context that their Lordships even held that the Tax Department of the Corporation was an industry though it is settled beyond cavil that the taxing power of tile Government is sovereign regal function which can never be brought within the ambit of an industry. Again, their Lordships noticed that the Public Works Department of the Corporation, apart from roads, was dealing with such menial and ministerial functions like the maintenance of drains, public latrines, markets, buildings etc. and employing time keeper mates, carpenters, masons, blacksmiths and coolies. Specifically with regard thereto, they observed as under:- This department performs both administrative and exucutive functions. The services rendered are such that they can equally be done by private individuals and they come under the defintion of industry' satisfying both the positive and negative test laid down by us in this regard." It would be plain that only after holding that the functions were of petty and ministerial nature and further that these could be equally and indeed preferably left to private enterprise, that their Lordships upheld the finding or the State Industrial Court of the same being an industry. It is manifest that the considerations are not even remotely attracted here and none of the tests arofesaid would be at all applicable. The observations in Corporation of the City of Nagpur ( AIR 1960 SC 675 ) (Supra) made in the narrow confines and the particular context thereof, in no way, advance the case of the respondents." Learned Advocate General has also submitted that census operations conducted under a particular enactment or legislature cannot be considered as industry as defined in s. 2 (j) of the Act. 31. I have given considered thought in the matter.
31. I have given considered thought in the matter. Their Lordships of the Supreme Court in Bangalore Water Supply's case (supra) after considering in detail the definition of s, 2 (j) of the Act have held that where there is (i) systematic activity, (ii) organised by co-operation between employer and employee (the direct and substantial element is chimercial), and (iii) for the production and/or distribution of goods and services calculated to satisfy human wants and wishes (not apritural or religious but inclusive of material things or services geard to celestial bliss) prima facie, there is an industry in the enterprise. Their Lordships have further held that the absence of profit motive or gainful objective is irrelevant, be the venture in the public, joint, private or other sector; that the true focus is functional and the decisive test is the nature of the activity with special emphasis on the employer employee relations and that if the organisations is a trade or business, it does not cease to be one because of philanthropy animating the undertaking. In para 143 (h) of the report, in Bangalore Water Supply's case (supra), their Lordships of the Supreme Court have further observed as under ; "143 (b). Notwithstanding the previous clauses, sovereigns, functions, strictly understood. (alone) qualify the exemption, not the welfare activities or economic adventures undertaken by Government or statutory bodies." The words -strictly understood (alone) are relevant for the purpose of interpretation and understanding the sovereign functions of the State. 32. Y. v. chandrachud C.J. in his separate Judgment in Bangalore Water Supply's case (supra) in para 172 of the reports has expressed the view that one of the exceptions carved out by the Court is in favour of activities undertaken by the Government in the exercise of its inalienable functions under the Constitution, call it regal, sovereign or by any other any other name and I see no justification for excepting these categories of public utility activities from the definition of industry' and that if it be true that one must have regard to the nature of the activity and not to who engages in it, it seems to me the beside the point to enquire whether the activity is undertaken by the State and further if so, whether it is undertaken in fulfilment of the State's constitutional obligations or in discharge of its constitutional functions.
Thus, the relevant consideration about the regal and sovereign function of the State ate very important for the purpose of considering the definition of s. 2 (j) of the Act. 33. Sir John Salmond in his treatise Jurisprudence' Seventh Edition at page 139 while dealing The State' has stated:- "A state or political society is an association of human beings established for the attainment of certain ends by certain means. It is the most important of all the various kinds of society in which men unite, being indeed the necessary basis and condition of peace, order and civilisation. ............... But the modern state does many things, and different things at different nines and places. It is a common carrier of letters and parcels, it builds ships, it owns and manages railways, it conducts savings banks, it teaches children and feeds the poor. All these cannot be of its essence. It is possible, however, to distinguish among the multitudinous operations of government, two of which are set apart as primary and essential. 'These two are war and the administration of justice. The fundamental purpose and end of political society is defence against external enemies., and the maintenance of peaceable and orderly relations within the community itself. ................ It is not difficult to show that war and the administration of justice, however, diverse in appearance, arc merely two different species of a single genus........ What, then, is the essential difference between these two functions. ? It lies apparently in this, that the administration of justice is the judicial while war is the extrajudicial use of the force of the state in the maintenance of right. Force is judicial when it is applied by or through a tribunal whose business is to judge or arbitrate between the parties who are at issue. It is extra-judicial when it is applied by the State directly, without the aid or intervention of any such judge or arbitrator......... Judicial force is regulated by law, while the force of arms is usually exempt from such control.,Justice is according to law; war is according to the good pleasure of those by whom it is carried on....... Judicial force is commonly exercised against private persons, extra judicial force against States. The secondary functions of the State may be divided into two classes.
Judicial force is commonly exercised against private persons, extra judicial force against States. The secondary functions of the State may be divided into two classes. The first of those which serve to secure the efficient fulfilment of the primary functions, and the chief of these are two in number, namely, legialation and taxation. Legislation is the formulation of the principles in accordance with which the State intends to fulfil its functions of administering justice. Taxation is the instrument by which the State obtains that revenue which is the essential condition of all its activities. The remaining class of secondary functions comprises all other forums of activity which are for any reason deemed specially fit to be undertaken by the State." 34. Thus, considering the observations made by the Supreme Court in Bangalore Water Supply's case in para 143 (b) of the report it can be said that the sovereign functions are the primary functions of the State and does not include any secondary functions. Thus, the sovereign functions of the State are defence and administration of Justice. Thus. at the most it can be said that primary functions of the State can only by said the sovereign functions of the State and the secondary functions may not fall within the purview of soverign functions or regal functions of the State. 35. In Encyclopaedia Britannica, Volume 17-, at page 609, the concept of the State and the sovereignty and the State has been discussed as follows:- "The Concept of the State : The use of the word State politically organised society is relatively recent, it became prominent in the 18th century, being first popularised by the Italian Political theorist Niccole Machiavelli in the prince ( 1513). The ancient Greek Spoke of the polis ("city care"). In classical Latin as for example, in Cicero-res publices ("common wealth") was the most favoured expression, though civitas ("community of citizens") was also used, Medieval writers tended to prefer the terms civitas and regmm ("realm" or "kingdom"). The Greek polis differed from a modern state not only in being smaller but also in embracing more of social life. The Greek conception of the polis included religious and cultural activities as well as government, so that the later distinction between church and state could not be expressed in terms of church and polis.
The Greek polis differed from a modern state not only in being smaller but also in embracing more of social life. The Greek conception of the polis included religious and cultural activities as well as government, so that the later distinction between church and state could not be expressed in terms of church and polis. The Roman res publics was a larger entity, for it extended beyond the city of Rome to Roman citizens throughout Italy and the presences. Another difference, at least in Cicero's usage, was that the Roman idea of res publica emphasised the legal structure of political association. In medieval political writings the words regmm and civitas were used sometimes indiscriminately but often with a distinction, civitas referring to the city state that existed in some parts of Europe and specially in Itally, regnim referring to the larger type of monarch that was growing up is other parts of Europe. The term res publica came to be used for a larger entity still, res publica christiane, the community of christendom. Sovereignty and the State : Sovereignty is the most fundamental of the distinctive attirbutes of the state as it has been conceived and understood since the 16th century. Some theorists have emphasised sovereignty in its legal aspect, supreme and independent authority for making, interpreting, and applying a system of law over a defined territory. Other theorists have laid down stress on "political" servereignty, the possession of coercive power sufficient to enforce obedience internally and to maintain independence in external relations. The two forms of sovereignty in fact go together, because the effectiveness of legal authority depends in the last resort its being backed by coercive power superior to any possessed by individuals or groups within the state." "The primary function of a state, maintaining order and security by means of law backed by force naturally entails a member of permanent institutions. There must be governmental bodies for forming policies and making laws : a civil service for carrying out governmental policy; a judicial system with police and penal services to apply the law; and armed forces for defence against external enemies and, if need be, for putting down internal riot. It is all these organs of administering a state that are referred to when the wold state is used in the narrower of the two senses described at the begining of this article.
It is all these organs of administering a state that are referred to when the wold state is used in the narrower of the two senses described at the begining of this article. "The fact is that, when Bodin described the sovereign's authority as absoulte, he meant unlimited by the authority of any other office. The sovereign's commands are subordinate to natural law but not to the interpretation of natural law by the church; the sovereign in perfectly capable of seeing for himself what natural law requires. Bodin's purpose was to deny that feudal lords, whether temporal or spiritual, had any final right of jurisdiction independent of the king's authority." "Lock's theory had a considerable influence on the basic political ideas of the American Declaration of Independence, except that the pursuit of happiness replaced property as the third of the cardinal natural rights. Although Locke himself said that property, understood in a wide sense, comprises all natural right it would be more accurate to regard liberty as the most comprehensive of his natural rights. The State for Locke has the negative function of preventing men from encroaching on each other's proper square of liberty in regard to their persons, property and desires generally. From the perspective Locke's political theory marked the begining of liberalism. The same tendency (albeit qualified) appears in his arguments for the toleration of religious dissenters. But Locke's distinction between the legislative and executive functions of Government is less about liberty. It was the 18th Century French theorist Montesquien who saw the separation of the legislative, executive, and judicial powers as the best gurantee of liberty in the State. The explicit separation of powers in the American Constitution is due to the influence of Montesquien." 36.
But Locke's distinction between the legislative and executive functions of Government is less about liberty. It was the 18th Century French theorist Montesquien who saw the separation of the legislative, executive, and judicial powers as the best gurantee of liberty in the State. The explicit separation of powers in the American Constitution is due to the influence of Montesquien." 36. George White cross Paton in his text book 'Jurisprudence' (third Edition) at page No. 301 to 309 stated as follows ; "There are three main juristic theories of the relationship between the State and the law which can be tersely expressed thus: the State is superior to and creates law, law precedes the State and binds it when it comes into existence., law and the state are same thing looked at from different points of view." "The first theory is illustrated by the work of Austin, who defines law as the command of the sovereign ...........The relation between subject and sovereign is therefore one of the power the sovereign can have no legal rights against his subjects nor can he be bound by legal duties, for a legal relationship can exist between two parties only when there is above them a sovereign who will enforce the rules of law." The second theory regards law as more fundamental than, and as anterior to, the State. Hence law may bind the State. Some turn to the amedieval solution of natural law the sovereign has absolute power over positive law, but is bound by ius naturale. Thering considered that law in the full sense was achieved only when it bound both ruler and ruled. But, as Thering regards the State as the maker of law, we may well ask how the creator may be found by the creature of his fancy ? "Kelsen illustrates the third type of theory that law and the State are really the same. The State is only the legal order locked at from another point of view. Human individuals alone cannot, and legal force is imputed to their behaviour only if it is in accordance with a rule of law. Just as men personified world forces and created deity, so the jurist has personified the hierarchy, of norms and created a state.
The State is only the legal order locked at from another point of view. Human individuals alone cannot, and legal force is imputed to their behaviour only if it is in accordance with a rule of law. Just as men personified world forces and created deity, so the jurist has personified the hierarchy, of norms and created a state. When we think of the abstract rifles, we speak of the law." Sovereign functions of the State will have to be considered also in the light of the Constitution of India. In the preamble of the Constitution of India, it has been stated that 'we' the people of India, having solemnly resolved to constitute India into a Sovereign Socialist Secular Democratic Republic and to secure to all its citizens the justice, liberty, equality and fratority, Thus, the objects laid down to secure justice, liberty, equality and fratority will have to be achieved by the State. Thus, it can be said that the enactments made by the State to achieve the objects laid down in the Constitution cannot be said to be sovereign acts or the sovereign legislation of the State. The enactments so made are for the fulfilment of the objects laid down in the preamble of the Constitution. 37. Learned Advocate General his submitted that if any departmentaled under a statute then it will not fall within the purview of s 2 (j) Act but it will fall within the purview of the sovereign acts of the State. 38. The Irrigation projects of the State are controlled under the Irrigation and Drainage Act, 1954. This Court has already held the Irrigation Department as an Industry in Mahesh Chandra Sharnia's ease (supra). The Rajasthan Khadi & Village Industries Board has been constituted under the Rajasthan Khadi Gramodhyog Act, 1955. This court has already held in Rajasthan Khadi & Village Industries Board, Jaipur's case (supra) that Rajasthan Khadi & Village Industry, Board is an industry as defined in s. 2(j) of the Act. There are various activities of the State which are carried out by the State in exercise of its powers conferred under different statutes. For illustration, Panchayat Samiiti and 'Zila Parishads Act, empowers the Panchayats and Zila Parishads to carry out the development activities and this Court has already held that Panchayat Samiti is as industry for a particular purpose.
There are various activities of the State which are carried out by the State in exercise of its powers conferred under different statutes. For illustration, Panchayat Samiiti and 'Zila Parishads Act, empowers the Panchayats and Zila Parishads to carry out the development activities and this Court has already held that Panchayat Samiti is as industry for a particular purpose. Thus, the creation of department of a State or a corporate body under a particular statute does not take away the department or the corporate body so created from the definition of s. 2(j) of the Act. Lists I, II and III of Schedule 7 of the Constitution of India enables the Union and the State Govt. to legislate in the matters referred therein but does not cast any obligatory duty that the legislation shoed be enacted under every entry. The act must be of the nature which are inalienable. Number of duties of the State can be carried out through the statutory bodies carved under the law. Firstly, the census is not an inalienable sovereign act. The legislature can enact and delegate its power to any corporate body, lit fact, the provisions of s. 17 of the Act of 1948 provides that the servicers of the employees and the citizens can be taken for carrying out the census operations. It is also a known fact that number of the teachers of the private schools are called upon to render their services. Lord Watson (in Goomber v. Works Justices, (1883) 9 AC 61 at p. 74) has described the regal and sovereign functions "as primary and inalienable functions of a constitutional Government." It sounds incongruous and self contradictory to suggest that activities undertaken by the Government in the interests of socio-economic progress of the country as beneficial measuress should be exempted from the operation of the Act and should be termed as regal or sovereign functions or the State. 39. Issacs, J., in his dissenting judgment in Federated State School Teachers' Association of Australlia, v. State of Victoria, ('1928-29) 41 CLR 569 has said that regal functions are inescapable and inalienable. Such are the legislative powers, the administration of laws, the exercise of the judicial power. Non-regal functions may be assumed by means of the legislative power. But when they are assumed the State acts simply as a huge corporation, with its legislation, as the charter.
Such are the legislative powers, the administration of laws, the exercise of the judicial power. Non-regal functions may be assumed by means of the legislative power. But when they are assumed the State acts simply as a huge corporation, with its legislation, as the charter. Its action under the lagislation, so far as it is not regal execution of the law is merely analogous to that of a private company similarly authorised. 40. These words clearly mark out the ambit of the regal functions as distinguished from the other powers of a state. There is no prohibition that a Corporation or any body cannot discharge the regal functions strictly so called. The Corporation may discharge a dual function; it may be statutorily entrusted with regal functions strictly so called, such as making of laws, disposal of certain cases judicially etc., and also with other welfare activities. It is an admitted position that integrity of the nation and defence of the country are regal functions ,if the State 'Number of countries are entering into treatise and thereby delegating The powers of defending their country to the foreign powers. Foreign powers are having bases in the number of countries and it is a known fact that super powers have their military bases. The regal functions of the State, thus, have been delegated by that State to the foreign country to protect their bodies. Issacs. J.while considering the regal functions has clearly laid down that a corporation may be statutorily entrusted with regal functions strictly so called. Now in the changing time, the position has changed and the regal functions of the State to defend one's border area entrusted to the other powers under treatise. Thus, regal functions can be entrusted to the statutory authorities of the State. Issacs. J.'s observations referred above have been accepted by the Supreme Court in Bangalore Water Supply's case (supra) and is now the law of the land. 41. For the reasons mentioned above, I find no substance in the sweeping arguments urged by the learned Advocate General that functions of the State created under any of the Statutes does not fall within the purview of the industry as defined in s. 2(j) of the Act. 42.
41. For the reasons mentioned above, I find no substance in the sweeping arguments urged by the learned Advocate General that functions of the State created under any of the Statutes does not fall within the purview of the industry as defined in s. 2(j) of the Act. 42. The census operations is neither a regal function of the State nor it can be said that it cannot be delegated to any of the Corporations under the Statutes enacted by the authorities. Even otherwise, while agreeing with the views taken by Issacs, J., Y.V. Chandrachud, C.J. in para 172 of his separate Judgment in Bangalore Water Supply's case (supra) has clearly expressed his views that one of the exceptions carved out by the Court is in favour of the activities undertaken by the Government in the exercise of its inalienable functions under the Constitution, call it regal, sovereign or by any other name and I see no justification for excepting these categories of public utility activities from the definition of industry. Every case should be decided looking to the nature of the activities and thereafter, it should be considered whether it falls under s. 2 (j) of the Act ? 43. section 2(n) of the Act defines 'public utility service'. Clause (vi) of S. 2(n) of the Act is as follows:- "S.2 (n) ''public utility service" means:- (vi) any industry specified in the First Schedule which the appropriate Government may, if satisfied that public emergency or public interest so requires, by notification in the official Gazette, declare to be a public utility service for the purpose of this Act, for such period as may be specified in the notification:- Thus, it presupposes that the list given in First Schedule appended to the Act is an industry as defined in s. 2(j) of the Act. 44. To appreciate the view to be taken in the matter, I should like to quote items No. 8. 11 and 12 of the First Schedule appended to the Act: "8 Defence establishments; 11. India Government Mints; 12. India Security Press." The defence is the primary and inalienable duty of the State. Inspite of that, in item No. 8 of First Schedule appended to the Act, defence establishments have been considered as industries, Thus, the intention of the Parliament is very clear that defence establishments though falling within the primary duty can be considered as industries.
India Security Press." The defence is the primary and inalienable duty of the State. Inspite of that, in item No. 8 of First Schedule appended to the Act, defence establishments have been considered as industries, Thus, the intention of the Parliament is very clear that defence establishments though falling within the primary duty can be considered as industries. The currency is also a primary duty and item No. 11 of First Schedule appended to the Act presupposes that India Government Mints fall within the definition of s. 2(j) of the Act. The duties rendered by the India Security Press is also of primary in nature and function of state. Yet item No. 12 of First Schedule appended to the Act presupposes that India Security Press fall within the definition of Industry as defined in s. 2(j) of the Act. The exception made in the matter of industries referred to in Schedule First appended to the Act is only that these industries have been defined as public utility service under s. 2(n) of the Act Chapter V of the Act deals with ''Strikes and Lock outs". S. 22 of the Act deals with prohibition of strikes and lock outs in the industries falling within the First Schedule appended to the Act. It reads as follows:- "22. Prohibition of strikes and lock outs. (1) No person employed in a public utility service shall go on strike in breach of contract:- (a) .................... .................... .................. (b) ..................... ..................... .................. (c) ..................... ..................... .................. (d) ................... ..................... .................. 2. No employer carrying on any public utility service shall lock out any of his workmen:- (a) ............ .................. ............... (b) ...........,. .................. ............... (c) .............. .......... ...... ............... (d) .... ... ..... .................. .. ............ 45. Thus, the Act creates two categories of industries-one of general nature and other of public utility service. India Government Mints and India Security press are governed by a statutory laws and for this reason also, 1 am of the view that the submission made by the learned Advocate General that as census operations at a carried out under the statutes and so, it cannot be termed as industry is without force. With due humility at my command, I am unable to agree with the view taken by the Punjab High Court in the case of State of Punjab (supra). Transport, Darking.
With due humility at my command, I am unable to agree with the view taken by the Punjab High Court in the case of State of Punjab (supra). Transport, Darking. Cemient, Coal, Cotton taxtiles, Foodstuffs, Iron and Steel, Defence establishments, service in hospitals and dispensaries. Fire Brigade Service, India Government Mints, India Security Press, Copper Mining, lead Mining, Zinc Mining, Iron ore Mining. and service in any oil field have been included in the First Schedule appended to the Act. The First Schedule appended to the Act has not at all been discussed in State of Punjab's case (supra). If we take the view that the roads are necessary for the defence purpose and for this reason, they should be excluded from the definition of s 2(j) of the Act then, what would be position of the defence establishments, which have been declared as industries falling within the purview of public utility service. The First Schedule appended to the Act is guide for this purpose and I am of the view that any of the services which are analogous to the trade or business may fall within the purview of the industry. I, therefore, hold that the census operation is not a regal function of the State. 46. Now I will have to consider the census operations in general and also will have to consider whether they are analogous to trade or business or not. 47. In Encyclopaedia Britannica, Volume 5 page 197, it has been stated that a census corresponds to an inventory in business whereas registration statistics (called vital statistics when they refer to human even(s) correspond to the daily record of sales, purchases and other transactions. It has been further stated that the history of modern census taking thiss involves three parallel developments: (1) the invention and gradual spread of the ideas of country wide enumerations for general scientific and governmental purposes: (2) the improvement of administrative machinery, techniques and accuracy of enumeration, including legal safeguards assuring that individual answers would be kept in confidence: and (3) the depening and systematization of the types of information obtained and all these three developments tended to increase the effectiveness of censuses as sources of essential information.
Census reveals not only the basic demographic trends, such as population growth internal redistribution organisation and alterations in the age and sex structure, but also contributes indispensably to a knowledge of changes in the nation's occupational and industrial composition in its level of living, education and employment and in its regional and group differention. Knowledge derived from the census underlies the attainment of other kinds of knowledge. For example, the Census is essential to the drawing of samples for all kinds of surveys: for the computation of birth and death rates and the making of life tables: for the analysis of economic development and business cycles. Above all, the census makes possible to estimation of future trends and is therefore, essential to all kinds of planning: national, local, public and private. It is essential for knowing future military and economic man power potential, future consumer needs, forth-coming school requirements, future growth and metropolitan areas, potential source of social security, measures, future requirements for high ways, utilities, parks, water, energy and health services. 48. Census operations are carried out to collect essential statistics for the purpose of human needs. It is necessary to find out the growth of population, the nature of requirements of the consumer goods, their present production and future potentiallity. If the goods are not produced in the country to the extent required then it will adversely affect the economy of the country. Even the goods imparted may not fulfil the requirements and the human needs may not he served, the infrastructure of the industries requires the study of the existing industries and their future potentialities, the needs of the consumer goods and above all the, availability of the raw-materials labourmen power, water resources and the availability of the energy. In Encyclopedia Britannicca, Volume 5. Page 167, it has rightly been stated that a Census corresponds to an inventry in business whereas registration Statistics corresponds to the daily record of sales, purchases and other transactions. Thus, the census is analogous to the trade or industries and it falls within the definition of s- 2 (j) of the Act. 49. Mr. N L. Jain. the learned Advocate General has submitted that the census operation is a casual work. S. 25-B of the Act deals with the definition of continuous Service.
Thus, the census is analogous to the trade or industries and it falls within the definition of s- 2 (j) of the Act. 49. Mr. N L. Jain. the learned Advocate General has submitted that the census operation is a casual work. S. 25-B of the Act deals with the definition of continuous Service. Under s. 23 C of the Act the "Badli workman" means a workman who is employed in an industrial establishment in the place of another workman whose name is borne on the muster rolls of the establishment, but shall cease to be regarded as such for the purpose of this section, if he has completed one year of continuous services in the establishment. According to the definition of Badli workman, the name of a badli workman should not be found in the muster rolls of an establishment. The workman cannot be said to be a 'badli workman' simply because the management has chosen the describe him as a badli workman' in the muster rolls. The explanation to s 25-C of the. Act was put in for the reason that when a workman had been continuously working in a year within the course of which he had been working for 240 days. it was reasonable to presume that in the ordinary circumstances he would be provided with alternative employment. I do not agree with the learned Advocate General that the petitioner was a casual workman. The census operations are carried for years together and that the staff is appointed on temporary basis and at the most, it can be said that the staff is temporary only for the period during which the census operations are carried out. It cannot be said by any stretch of imagination that the staff so employed is casual staff. 50. The economic Justice has been enshrined in the Constitution of India. If a workman is retrenched then what he will get and what is the burden on the employer needs a further consideration. Under clause (b) of s. 25-F of the Act, the workman should be paid at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months.
Under clause (b) of s. 25-F of the Act, the workman should be paid at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months. If an employee puts the service for a period of about two years, can he not expect from the Starr that one month's salary should be paid to him by way of retrenchment compensation so that he may be able to find out the alternative job. The economic justice requires that the retrenchment compensation should be paid to the workman. Ifs the provisions of s. 25-F of the Act are strictly followed then the petitioner who joined the service on February 28, 1981 and continued upto April 30, 1982 will be entitled to get by way of compensation only 15 days average salary. The burden on the State will be only of about Rs. 165/- if they act according to the law. It is expected from the welfare State that the persons who have worked for continuously more than one year should be paid salary as provided by say of retrenchment compensation and the provisions of s 25-F of the Act should be followed. Mr. N. L. Jain, learned Advocate General submits that if the writ petition is accepted, it will create number of problems including the State. Our State is a welfare State and it is expected that the persons who arc retrenched from the service should be paid retrenchment compensation as provided in s. 25-F of the Act. It is an obligatory duty of the welfare state to follow the law. 51. The net result of the above discussion is that there is clear violation of the provisions of s. 25-F of the Act. 52. For the reasons mentioned above, I accept the writ petition and set aside the order Annexure 3 dated March 19, 1982 of the Deputy Director, Regional Census Office, Jodhpur. It is made clear that the petitioner shall be entitled to all consequential reliefs as prayed by him in his writ petition by way of salary and he shall be treated on duty. However, if the petitioner has joined service at another place or has earned by way of business then the petitioner shall be entitled to 50% of his salary. *******