GOPAL versus THE ADMINISTRATIVE OFFICER, MADHYA PRADESH KHADI AND VILLAGE INDUSTRIES BOARD AND ORS.

Citation: [1985] SUPP. 2 S.C.R. 641 · Decided: 19-08-1985 · Supreme Court of India · Bench: V. BALAKRISHNA ERADI · Disposal: Appeal(s) allowed

Judgment (excerpt)

' 
·GOPAL 
v. 
THE ALtlINIS'IRATIVE OFFICER, 
MADHYA PRADESH KllADI AND VILLAGE INDUSTRIES 
• BOARD AND ORS. 
AUGUST 19, 1985 
[V. l!ALAKRISHNA ERADI AND V. KHALID, JJ ·] 
641 
A 
ll 
Labour· and Service - Industrial Disputes Act, 1947 - M.P. 
c 
Industrial Relations Act, 1960 - s. 2 (19) and (33) - M.P. Khadi 
and Village Industries Act, 1959 - s. 14 -
Khadi and Village 
Industries Board - Whether "Industry" and "Undertaking"- Applica-
bility of Notific~tion No. 9952 - XVI dt. 31st December, 1960. 
The appellant was appointed as Store Keeper-cum-Accountant 
D 
in one of the branches of the Madhya Pradesh Khadi and Village 
Industries Board, a body corporate constituted under the 
M.P. 
Khadi aDd Village Industries Act, 1959. His' service& were termi-
nated by an Order dated 23.9.1964 after giving one month's 
notice. 
The termination was challenged before the Labour Court as 
amounting to retrenchment because it had been passed without 
complying with provisions of the M.P. Industrial Relations Act, 
1960, the charge sheet that was given to him on 27.4.1964 was 
based on falae aDd baseless grouruls aDd no enquiry was held prior 
to removal. The appellant claimed reinstatement with full wages. 
E 
The Respondent Board contested the application contending that 
F · 
the Board was not an industry aDd that neither the M.P. 
Industrial Relations Act, 1960 nor the Industrial Disputes Act, 
1947 applied to it. 
The Labour Court held that the termination of the services 
of the appellant amounted to retrenchment, set aside the Order of 
termination aDd directed reinstatement with half salary from the 
G 
date of the Order till reinstatement. 
The Board preferred a revision. The Industrial Court affirm-
ed the order of the Labour Court aDd dismissed the revision 
petition. 
H 
A 
B 
• 
c 
D 
F 
G 
642 
· SUPP.EMF. COURT REPORTS 
[1985] SUPP.2 s.c.R. 
The Board filed a petition under Art. 226 and 227. The High 
Court allowed the writ petition, quashed the ordP.r of the 
Industrial Court and remitted the case to it to decide the facts 
afresh. The Industrial Court after taking fresh evidence, again 
held in favour of the appellant, reaffirming its previous 
decision to reinstate the appellant. 
The Board again moved the High Court, wMch set aside the 
· orders of· the Industrial Court and the Labour Court on the ground 
that they acted without jurisdi~tion. The appellant appealed to 
this Court by certificate which was resisted by the Board on two 
grounds: (i) that it is not an industry within the meaning of the 
Act and (ii) that J.t does not P.mploy more than 100 persons. 
Allowing the appeal of the appellant-employee, 
HELD: 1. The order passed by the High Court is set aside and 
that of· the Labour Court and the Industrial Court are restored. 
[651 B-C] 
2 •. The M.P. 
Industrial Relations Act, 1960 is a separate 
Act in the State of Madhya Pre.desh to regulate the relations of 
employees in certain matters and makes provisions for settlement 
of industrial disputes. Any concern, to become an industry, has 
to satisfy the definitions of "industry" and "undertaking" as 
contained in ss. 2(19) and 2(33) thereof. Such concerns have to 
satisfy yet another condition to attract the provisions of the 
said Act which relates to the number of the employees the. concern 
employs. Notification No. 9952 XVI dated 31st 
December, 
1960 
issued under sub s. (3) of s. 1 of the Act, makes the provisions 
of the Act applicable only to an undertaking in the industries 
specified in the Schedule wherein the number of the employees on 
any date during twelve months preceeding or on the date of the 
notification or any day thereafter was or is more· than one 
hundred. In the instant case, the evidence on record admits of no 
doubt that tlie Board employed more than 100 persons• [ 645 A-ii; 
646 A-D; 647 CJ 
3 •. One of the functions of the Board 'under s .• 14 of the M.P. 
Khadi and Village Industries Act 1959 is "to support, encourage, 
assist and carry on Khadi and Village Industries and in the 
matters incidental to such trade or business". The evidence.shows 
that the Board supplies raw wool to Co-operative Societies, so 
GOPAL v. M.P. KHADl VILLAGE BOARD [KHALID, J.] 
643 
that the Societies can engage themselves in useful work. The 
Society after weaving raw wool, convert them into spun blankets 
and supply them to the Board. The blankets so spun are not the 
properties of the Societies. They have to be given back to the 
. Board. The 

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