RESERVE BANK OF INDIA Vs. STATE

JUDGEMENT

(1.) Challenge in these appeals is to the judgment of the learned Single Judge of the Bombay High Court, dismissing the applications filed questioning issuance of process and also prosecution by which they are sought to be prosecuted for alleged contravention of provisions of Section 7 of the Contract Labour (Regulation and Abolition) Act, 1970 (in short the Act). The appellant in Criminal Appeal No. 62/2002 is Principal of the College of Agricultural Banking, Pune (in short the College, which is run by the Reserve Bank of India (in short RBI, the appellant in criminal appeal No.61/2002. The Labour Enforcement Officer (Central) issued show-cause notice alleging that there was violation of the provisions of the Act thereby attracting prosecution. The appellants in Criminal Appeal No.61/2002 took the stand before the High Court that the Act does not apply to the RBI and/or the college because neither can be treated to be an establishment under the act. The High Court did not accept the stand and held that there was no scope of exercising power in terms of Section 482 of the Code of Criminal Procedure, 1973 (in short the Code) or Article 226 of the Constitution of India, 1950 (in short the Constitution). The High Court found that the appellants are not prosecuted as an industry but as a Government department/office and, therefore, can be treated to be an establishment under the Act. Accordingly, the petitions were dismissed.

(2.) Learned counsel for the appellants submitted that the High Court has failed to notice that neither the RBI nor the College can be treated to be an establishment as it is neither a Governmental department nor an office.

(3.) Learned counsel for the respondent submitted that whether it is a Governmental department or office has to be adjudicated in the trial and the High Court was justified in rejecting the petitions filed in terms of Section 482 of the Code and Article 226 of the Constitution.