EXECUTIVE DIRECTOR DISTRICT SCHEDULED CASTE SERVICE CO OPERATIVE SOCIETY LTD Vs. AUTHORITY UNDER THE A P SHOPS AND ESTT ACT AND THE DY COMMISSIONER OF LABOUR GUNTUR

JUDGEMENT

(1.) Heard. Learned Counsel for the Appellant. Disputes were raised under the A.P. Shops and Establishment Act, 1988, by some of the employees of the Appellant - Co-operative Society against termination of their service on the ground that they were surplus. Competent authority and the appellate authority under the A.P. Shops and Establishments Act, 1988, decided in favour of the employees and against the society. Society has filed a Writ Petition and has raised a contention that it is not an establishment as defined under the A.P. Shops and Establishments Act, 1988 and in any case it is an authority under Article 12 of the Constitutionof India and thus it is not amenable to the jurisdiction of any authority under the A.P. shops and Establishments Act 1988.

(2.) On the first contention, it appears to us, it will be necessary to examine whether, as defined under the Act, the society is a commercial establishment so as to qualify as an establishment amenable to the jurisdiction of the competent authority and for the same it will be necessary to take notice of the activities of the society. The second contention that it is a State in itself and thus is out of the purview of the Act will also require a careful examination of the character of the society, which is a legal entity in itself, but it, for the reasons established by such facts as are shown by the writ petitioner-appellant, is an agency or instrumentality of the State and thus an authority for the purpose of Article 12 of the Constitution and as agency it in nothing but an extension of the Commercial activities of the Government of the State. Learned Single Judge, however, has dismissed the writ petition in limine. He has not gone into any of such issues. It is a fit case, in our opinion, for admitting the Writ Petition for a decision on the vital question of the jurisdiction of the authorities under the Act.

(3.) We accordingly allow the appeal and set aside the order of the learned Single Judge and order the writ petition be admitted to hearing. Let the writ petition be posted for final hearing before a Division Bench.