R C JAIN Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) Is the Delhi Development Authority (DDA) a "local authority" within the meaning of section 3(31) of the General Clauses Act is the question raised by this writ petition. The definition is as follows :

(2.) . It is with the second sub-division of the second part of this definition that we are concerned. The DDA is of the view that it is a local authority because it is an authority legally entitled to or entrusted by the Government with the control or management of a "local fund". The crucial question to' be discussed will be the meaning of a "local fund".

(3.) . The Delhi Development Authority was established by the Delhi Development Act, 1957. Under the wide meaning given to the definition of "industry" in section 2(j) of the Industrial Disputes Act, 1947 by the decision of the Supreme Court in Bangalore Water Supply & Sewerage Board v. A. Rajappa & others, (1978) 2 SCO 213(1), the DDA has been taken to be an industry. It is engaged in the production of goods, such as developed land and of service such as development of land. This definition of industry has been incorporated in the Payment of Bonus Act, 1965 because section 2(22) thereof says that the words and expressions used but not defined in that Act and defined in the Industrial Disputes .Act. 1947 shall have the meanings respectfully assigned to them in the latter Act. Under section 8 of the Payment of Bonus Act every employee is entitled to be paid by the: employer in an accounting year, bonus, in accordance with the provisions of the said Act. Accordingly, the DDA has been paying bonus to its employees for some time. By the impugned circular of 29th February, 1976, however, the employees were informed by the Vice-Chairman of the Authority that the Ministry of Works and Housing on the advice of the Ministry of Law have decided that bonus would no longer be admissible to the employees of the DDA. The payment of bonus to the employees has since then been stopped by the authority.