MADRAS STATE ELECTRICITY BOARD Vs. COMMISSIONER OF LABOUR

JUDGEMENT

(1.) THIS writ appeal is preferred by the Madras State Electricity Board represented by its Secretary against the decision of Rajagopalan, J., holding that the clerical staff of the Board, which is an industrial undertaking, is a commercial establishment as defined by the Madras Establishment Act. The appellant, the Madras State Electricity Board, was constituted under the Electricity (Supply) Act (Act 54 of 1948). The Madras Electricity Board was constituted with effect from 1 July, 1957. On its constitution the Board took over the employees, who were up to then in the employment of the Government of Madras in the Electricity Department. Many of them were clerks and typists appointed by the Government on a temporary basis. According to the rules, their services were liable to be terminated without notice. After the clerks and typists came under the Electricity Board, the Board recruited its own clerical staff and many of the clerks and typists, who were recruited on a temporary basis by the Government, were ousted on giving a month's notice. The discharged clerks and typists appealed to the Commissioner for Workmen's Compensation under S.41 of the Madras Shops and Establishments Act. The Electricity Board applied to the Commissioner of Labour for determination of the question whether the employees were governed by the provisions of the Madras Shops and Establishments Act. In these proceedings the contention of the Electricity Board was that the provisions of the Madras Shops and Establishments Act were not applicable to these employees. The Commissioner of Labour by his order dated 23 December, 1959 held that the provisions of the Madras Shops and Establishment Act applied to the discharged clerical employees.

(2.) AGAINST the said order a writ petition was preferred and the writ petition was dismissed by Rajagopalan, J., and this appeal is preferred by the Electricity Board against that judgment.The questions that arise for consideration in this appeal are whether the Madras State Electricity Board is a commercial establishment as defined in the Madras Shops and Establishments Act and whether the Electricity Board is exempted from the operation of the Act by S.4 of the Act. The Madras Shops and Establishments Act (Act 36 of 1947) was enacted for the purpose of regulating the conditions of work in shops, commercial establishments, etc. The Act regulated among others the hours of work, spread-over periods of work, holidays, employment of children and young persons, healthy and safety, leave, wages, etc. The word "establishment" is defined as meaning a shop, commercial establishment, restaurant, etc. The definition of "commercial establishment" so far as it is relevant to this case is an establishment which is a clerical department of industrial undertaking. The term "person employed" is defined under S.2(12) of the Act, as, in the case of a factory or an industrial undertaking, a member of the clerical staff employed in such factory or undertaking. The preamble to the Electricity (Supply) Act provides that the Act is for the rationalization of the production and supply of electricity and for taking measures conducive the electrical development.

(3.) IN this case, if the production and distribution of electricity was undertaken by a private body, there can be no doubt that it would be an industrial undertaking and the fact that the undertaking is by the State Government cannot make any difference.The learned counsel for the appellant contended that the clerks employed under the Board could not be said to constitute a clerical department of an industrial undertaking. He submits that the Board has innumerable offices situated all over the State and the clerks so situated cannot be said to form the clerical department of the industrial undertaking. IN order to make a person come under the definition of S. 2, Cl. (3), all that is necessary is that the person should be a member of clerical staff employed in the clerical department of the industrial undertaking. It does not require that the whole department should be in one particular office and the section will be applicable to all the clerks employed by the Electricity Board.