HINDUSTAN AERONAUTICS LIMITED Vs. WORKMEN

JUDGEMENT

(1.) This is an appeal by special leave filed by Hindustan Aeronautics Ltd. from the award dated 8-3-1969 made by the fifth Industrial Tribunal, West Bengal. The Governor of West Bengal made the reference under Section 10 (1) of the Industrial Disputes Act 1947 - hereinafter called the Act, for adjudication on the following 5 issues:

(2.) The competency of the Government of West Bengel to make the reference was challenged before the Tribunal as also here. Mr. V. S. Desai, learned counsel for the appellant. submitted that the appropriate Government within the meaning of Section 2 (a) of the Act competent to make the reference was the Central Government, or, if a State Government it was the Government of Karnataka where the Bangalore Divisional Office of the Company is situated end under which works the Barrackpore branch. Counsel stressed the point that the Central Government owned the entire bundle of shares in the company. It appoints and removes the Board of Directors as well as the Chairman and the Managing Director. All matters of importance are reserved for the decision of the President of India and ultimately executed in accordance with his directions. The memorandum and Articles of Association of the company unmistakably point out the vital role and control of the Central Government in the matter of carrying on of the industry owned by the appellant. Hence, counsel submitted that the industrial dispute in question concerned an industry which was carried on "under the authority of the Central Government" within the meaning of Section 2 (a) (i) of the Act and the Central Government was the only appropriate Government to make the reference under Section 10. The submission so made was identical to the one made before and repelled by this Court in the case of Heavy Engineering Mazdoor Union v. The State of Bihar, (1969) 3 SCR 995 = (AIR 1970 SC 82 = 1970 Lab IC 212) wherein it has been said at page 1,000 (of SCR) = (at p. 86 of AIR and at p. 216 of Lab IC) :

(3.) Mr. Desai made a futile and unsubstantial attempt to distinguish the case of Heavy Engineering Mazdoor Union, (AIR 1970 SC 82 = 1970 Lab IC 212) on the ground that that was the case of a Government Company carrying on an industry where Private Sector Undertakings were also operating. It was not an industry, as in the instant case, which the Government alone was entitled to carry on to the exclusion of the private operators. The distinction so made is of no consequence and does not affect the ratio of the case in the least. We may also add that by amendments made in the definition of "appropriate Government" in Section 2 (a) (i) frorn time to time certain statutory corporations were incorporated in the definition to make the Central Government an appropriate Government in relation to the industry carried on by them. But no public company even if the shares were exclusively owned by the Government was attempted to be roped in the said definition.