Page 169 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes The question arose in the Heavy Engineering Mazdoor Union vs. State of Bihar (1969-II LLJ 549),
whether the Government of India which owned 99 per cent of the shares in the company
(HEC) or the Government of the State where the factory was situated was the appropriate
government. The Supreme Court held that since it was a company and not a Government
department, the State Government was the appropriate Government.
The position however got changed in the landmark judgment of Supreme Court, 1997 in
Air India case, where the Central PSUs were considered as limbs of Central Government
and were brought under the jurisdiction of Central Government for the purpose of ID Act.
This created difficulty both for Central Government and State Governments. The Central
Government did not have infrastructure to administer ID Act in all the States and State
Governments, which have created infrastructures to run ID Act were left high and dry.
However, the situation again got changed in Supreme Court judgement, 2002 in SAIL case,
wherein the court held that the appropriate government for central undertakings would
be those covered under Section 2A of IDA 1947.
2. Public Utility Service [Sec.2(m)]:
(a) any railway service or any transport service for the carriage of passengers or goods
by air;
(b) any section of an industrial establishment on the working of which the safety of the
establishment or the workmen employed therein depends;
(c) any postal, telegraph or telephone service;
(d) any industry which supplies power, light or water to the public;
(e) any system of public conservancy or sanitation;

(f) any industry specified in the First Schedule which the appropriate Government
may, if satisfied that public emergency or public interest so requires, by notification
in the Official Gazette, declare to be a public utility service for a specified period not
exceeding six months in the first instance. It may be extended from time to time by
the appropriate Government if it deems such extension necessary.
Some of the industries mentioned in the First Schedule are as follows:
(i) Transport (other than railways) for the carriage of passengers or goods by
land or water;
(ii) Banking;
(iii) Defence Establishments;
(iv) Fire Brigade Services;

(v) India Government Mints;
(vi) Indian Security Press;
(vii) Coal.
3. Industry: The term "Industry" has been defined under Sec. 2(j) to mean any business, trade,
undertaking, manufacture or calling of employers and includes any calling, service,
employment, handicraft or industrial occupation or avocation of workmen.

The Supreme Court by a judgement of far-reaching importance delivered on February 22,
1978, gave a wide implication to the meaning of industry. It laid down a triple test to
decide the applicability of the ID Act to them. The triple test is: (i) Systematic Activity; (ii)
Cooperation between employer and employees; (iii) Production and/or distribution of

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