HEAVY ENGINEERING MAZDOOR UNION Vs. STATE OF BIHAR

JUDGEMENT

(1.) In this application under Articles 226 and 227 of the Constitution the petitioner, who is one of the Trade Unions of the workers of the Heavy Engineering Corporation Limited, Ranchi (hereinafter referred to as the company) has challenged the validity of the order of the Government of Bihar (vide notification III/DI- 1905/66 L & E-12795) dated the 15th November, 1966, passed in exercise of the powers conferred by Clause (d) of Sub-section (1) of Section (1) of the Industrial Disputes Act (hereinafter referred to as the Act) referring the following dispute between the employer and the workmen to the Industrial Tribunal, Bihar for adjudication namely.

(2.) Mr. Roy for the petitioner has challenged the validity of the said notification on the following two important grounds:

(3.) The company is one of those Government companies that have been constituted in several places in India whose constitution and control are regulated by the provisions of Sections 617 to 620 of the Companies Act, 1956. The entire share capital was contributed by the Central Government and all the sharps in the company are held by the president of India and a few officers of the Central Government. The memorandum of association and the articles of association confer extensive powers on the Central Government to give appropriate directions for the proper functioning of the company. Even the wages and salary of the employees are determined and paid in accordance with the directions of the Central Government. Annexure A attached to the petition shows that for the purposes of grant of project allowances to officers and staff of the company, sanction of the Government of India was obtained. The directors of the company are also appointed by the President of India. In the printed standing orders of the company filed before us the company was described as a "Government of India undertaking". So far as the control of the Central Government over the working of the company is concerned, it may be stated that it is almost similar to the control exercised by the Central Government over the Sindri Fertilisers Limited referred to in AIR 1959 Pat 36, the Mazgaon Dock limited referred to in 1962-2 Lab LJ 693 : (AIR 1963 Bom 267) and Hindustan Antibiotics Ltd. referred to in AIR 1967 SC 948.