RADHU K KAKDE Vs. UNION OF INDIA

JUDGEMENT

(1.) In this appeal by special leave against the judgment of a Division Bench of the High Court of Bombay, the only question raised is whether the provisions of the Payment of Bonus Act, 1965 (hereinafter called the 'Act') are applicable to the employees of the Canteen Stores Department. The answer to this question will depend upon whether the Canteen Stores Department is an 'establishment' engaged in any industry carried on by or under the authority of any department of the Central Government; that is because Section 32(iv) of the Act lays down that "Nothing in this Act shall apply to employees employed by an establishment engaged in any industry carried on by or under the authority of any department of the Central Government or a State 'Government or a local authority." In the judgment under appeal, the High Court has held that the exemption provided for in Section 32(iv) is attracted inasmuch as the Canteen Stores Department is an establishment engaged in an industry carried on. by or under the authority of a department of the Central Government. The correctness of the said conclusion recorded by the High Court is assailed by the appellant in this appeal.

(2.) After bestowing our careful consideration to all aspects of the case we are clearly of opinion that the view taken by the High Court is perfectly correct and that this appeal has only to be dismissed. That the Canteen Stores Department is engaged in an industry is not in dispute before us and the sole question is whether the said industry is carried on by or under the authority of any department of the Central Government. For a determination of the said question one has to examine inter alia the history, origin and organisational structure of the establishment, which are the authorities exercising financial, administrative and executive control over it and the rules that govern its functioning.

(3.) The High Court has in its judgment set out in elaborate detail all the relevant facts pertaining to origin and development of this Department right from the period of Second World War up till the present time. It is unnecessary for us to recapitulate in this judgment all those materials in full. However, we shall refer to certain salient features emerging from the record produced in the case which according to us conclusively go to show that the Canteen Stores Department is an establishment engaged in an industry carried on by or under the authority of a department of the Central Government.