LexJESTAMANI GULABRAI DHOLKIA AND OTHERS versus THE SCINDIA STEAM NAVIGATION COMP ANY, BOMBAY AND OTHERS
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
2 S.C.R. SUPREME COURT REPORTS
SU
though locality always plays a considerable pa.rt.
1960
Shift the l?cality, ai;id t~e goodwill ~ay be lost., At
M/s. s. c.
the same time, locality is not everythmg.
The:~power cambatta a;. Co
to attract. custom depends on one or more of the other
Pr{vate Ltd.,
factors as well. In the case ofa theatre or restaurant,
Bombay
what is catered, how the service is run and what the
c v .. ,
t•t•
··
t "b t
I
t th
d ill
The
ommissson
compe i ion is, con ~i ~ e a s~ o
e goo w .
of Excess Profit
From the above; it is marufest that the matter of
Tax, Bombay
goodwill needs to be considered in a much broader
way than what the Tribunal has done. A question Hidayatullah J
of law did arise in the case, and, in our opinion, the
High Court should have directed the Tribunal to state
a case upon it.
Civil Appeal No. 776 of 1957 is allowed. The High
Court will frame a suitable question, and ask for a
statement of the case from the Tribunal, and decide
the question in accordance with law. The costs of
this appeal shall be borne by the respondent; but the
costs in the High Court shall abide the result. There
will be no order in Civil Appeal No. 777 of 1957.
· O. A. No. 776 of 1957 allowed.
JESTAMANI GU~ABRAI DHOLKIA
AND OTHERS
v.
THE SCINDIA STEAM NAVIGATION
COMP ANY, BOMBAY AND OTHERS
(P. B. GAJENDRAGADKAR and K. N. WANCHoo, JJ.)
Industrial Dispute--:-Employee loaned to existing air company,
if and when its employ~e'-Air Corporations Act, z953 (XXV II of
x953), s. 20(1).
Section 20(1) of the Air Corporations Act, 1953 (XXVII of
1953)" read with the proviso, is a perfectly reasonable provision
and in the interest of the employees- and it is not c;orrect to say
that it can apply only to the di-rect recruits of the existing air
r960
Novemb" 30
812
SUPREME COURT REPORTS
[1961]
I960
compa.nies and not at all to loaned employees working under
them .
. Jest~mani .
The two conditions of its applications are (i) that the officer
Gulabrltt Dholkia or employee was employed by the existing air company on July
<!> Othm
1, 1952, and (ii) that he was still in its employment on August r.
v.
1953, the appointed day.
The ~ci~di~. Steam
In the instant case where the appellants who had been
av•ga '
0
"
recruited by the Scindia Steam Navigation Co., Ltd., and on pur-
Compan~, hB;mbay chase by it of the Air Services of India Ltd., loaned to the latter,
<!>
1 e 5
and were working under its direction and control on and between
the said dates and being paid by it,
Wanchoo ).
Held, that in law they were the employees of the Air Ser-
vices of India from the appointed day, notwithstanding the
existence of certain special features of their employment, and as
such governed by s. 20(1) of the Act and since they did not
exercise the option given to them under the proviso, they
became employees of the Corporation established under the Act
and ceased to have any rights against the original. employers.
Nokes v. Doncaster Amalgamated Collieries Ltd., [1940] A.C.
1014, considered.
CIVII. APPELLATE
JURISDICTION:
Civil Appeal
No. 395 of 1959.
Appeal by special leave from the A ward dated
November 25, 1957 of the Industrial Tribunal, Bom-
bay, in Reference (I. T.) No. 24 of 1956.
N. G. Chatterjee, D. H. Buch and K. L. Hathi, for
the appellants.
M. G. Setalvaa, Attorney-General for India, J. B.
Dadachanji and S. N. Andley, for the respondent Nos.
1and2.
M. G. Setalvaa, Attorney-General for India, Dewan
Ghaman Lal Pandhi and I. N. Shroff, for the respon-
dent No. 3.
1960. November 30. The Judgment of the Court
was delivered by
WANCHOO, J.-This is an appeal by special leave in
an industrial matter. It appears that the appellants
were originally in the service of the Scindia. Steam
Navigation Co. Ltd. (hereinafter called the Scindias).
Their services were transferred by way of loan to the
Air Services of India. Limited (hereinafter referred to
as the ASI). The ASI wa.s formed in 1937 a.nd wa.s
2 s.c.R. SUPREME COURT REPORTS
813
purchased by the Scindias.in 1943 and by 1946 was a
rgdo
full subsidiary of the Scindias. Therefore from 1946
1
.
b
1
·
b
f
l
f
estamani
to a out 1951, a arge num er o emp oyees o the Gulabrai Dholki
Scindias were transferred to the ASI for indefinite
c;. Others
periods. The Scindias had a number of subsidiaries
v.
and it was usual for the Scindias to transfer their em- The Scindia Stea•
ployees to theiExcerpt shown. Read the full judgment & AI analysis in Lexace.