LexaceLexace Ask the AI ›
โš–๏ธ Ask the AI about your situation:๐Ÿš— Car Accident๐Ÿ’ผ Work / Job๐Ÿ  Housing / Eviction๐Ÿ‘ช Family / Divorce๐Ÿ“‹ Contract Dispute๐Ÿ’ฐ Money Owed

HOUSING BOARD OF HARYANA versus HARYANA HOUSING BOARD EMPLOYEES UNION AND ORS.

Citation: [1995] SUPP. 4 S.C.R. 533 · Decided: 30-10-1995 · Supreme Court of India · Bench: KULDIP SINGH, S. SAGHIR AHMAD · Disposal: Dismissed

cites 1 · see the full citation network in Lexace

Open in Lexace · Ask the AI about this case

Judgment (excerpt)

HOUSING BOARD OF HARYANA 
v. 
HARYANA HOUSING BOARD EMPLOYEES UNION AND ORS. 
OCTOBER 30, 1995 
[KULDIP SINGH AND S. SAGHIR AHMAD, JJ.j 
Payment of Bonus Act, 1965-Section 32(iv}-Local authorif}-Mean-
ing of-Whether Haryana Housing Board is a local authmity-Deep and per-
vasive control of Government over the functioning of the Board-Members of 
A 
B 
the Board appointed by the Government-Held, the Board is not a Local C 
authority-General Clauses Act, 1897-Section 3(31). 
Words and Phrases-Local Authmity-Meaning of-Oiaracteristics 
of-Statutory body consisting of members appointed by the Government and 
under pervasive control of the Government-Whethe,.._A local authority. 
D 
Haryana Housing Board Act, 1971-Section 2(1}-Local Authority--
Deeming provisiol!-'lmplication of-Held, Haryana Housing Board is a local 
authority only for the purpose of the Land Acquisition Act and the Haryana 
Housing Board Act-Not a local Authority othe1wise--Land Acquisition Act, 
1894. 
Interpretation of Statute-Ejusdem geneiis-Meaning of-Necessary 
requisites fo,.._aeneral words following the specific word-Specific words 
must fonn the same genus for applicability of 1ule of ejusdem generis cannot 
be applied to A1ticle 12 of Constitution of India-Words and Phrases. 
. The Haryana Housing Board was constituted under section 3 of the 
Haryana Housing Board Act, 1971. Its main object was to implement the 
housing programmes. It was a body corporate having perpetual succession 
E 
F 
and a common seal and had power to acquire, hold, administer and 
transfer property-movable or immovable, and to enter into contracts. The G 
members of the Board were appointed by the State Government and were 
to hold office for a period of three years from the date of their appoint-
ment, The members were to hold office during the pleasure of the State 
Govern
1ment. The exercise of power by the Board was subject to the control 
of the State Government apart from the provisions of the Act. The H 
533 
534 
SUPREME COURT REPORTS (1995] SUPP. 4 S.C.R. 
A expenditure incurred by the Board was also subject to the control of the 
State Government. The accounts of the Board were subject to audit by 
persons deputed by the Government and the Board was bound to comply 
with the directions of the State Government in respect of financial matters. 
The Board was duty bound to comply \\ilh the directions of the Govern-
B ment although it had a right to state its objections to any such directions. 
Under section 72 of the Haryana Housing Board Act, the State Govern-
ment was given power of superintendence and control over the Board and 
its olliccs. The Board had a fund called the Housing Board Fund which 
consisted of money received from sale of land and property, rents interest, 
profits, grants, donation and gifts under section 72A. The Government 
C could suo moto or on an application of a party, call for and examine any 
record of any proceedings, decisions and orders passed by the ollicers of 
the Board and could pass order as deemed fit by it modifying, anulling or 
revising the order of the officer of the Board. 
A question arose as to whether the Board was a "Local Authority" 
D within the meaning of section 32(iv) of the Payment of Bonus Act, 1965. 
E 
F 
Local authority has not been defined in Payment of Bonus Act, 1965 but 
in section 3(31) of the General Clauses Act, 1897 "Local authority" has been 
defined as meaning a Municipal Committee, district board, body of portยท 
commissioners or other authority legally entitled to, or entrusted by the 
Government with, the control and management of a Municipal or local 
fund. The Haryana Housing Board Act, 1971 in section 2(j) also defines 
"Local authority" as meaning a municipality, Gram Panchayat, Zilla 
Parishad, an Improven.ent Trust. The word "Local authority is also men-
tioned in Entry 5 list II of the Seventh Schedule of the Constitution of 
India. Under section 3(3) of the HaryJna Housing Board Act, the Board 
has been deemed to be a local authority for the purpose of the Haryana 
Housing Board Act and the Land Acquisition Act 1894. 
The Hig:h Court ยทheld that the Haryana Housing Board was not a 
"Local authority" for the purpose of payment of Bonus Act. 1965. Hence 
G the present appeal. 
Dismissing the appeal, this Court 
HELD : I.I. The Municipal Committees, the District Boards, Gram 
Panchayats and Panchayat Samities etc., represent the units of Local self 
H Government where people of a local area go

Excerpt shown. Read the full judgment & AI analysis in Lexace.