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M/S. DAMODAR MANGALJI AND CO. ETC. versus THE REGIONAL DIRECTOR

Citation: [2001] 2 S.C.R. 182 · Decided: 27-02-2001 · Supreme Court of India · Bench: S. RAJENDRA BABU · Disposal: Dismissed

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Judgment (excerpt)

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MIS. DAMODAR MANGALJI AND CO. ETC. 
v. 
THE REGIONAL DIRECTOR 
FEBRUARY27, 2001 
[S. RAJENDRA BABU AND S.N. PHUKAN, JJ.] 
Employees State Insurance Act I 948/Mines Act J 952-Section 2(1 ), 
2(12)/2(a)(i)-"Appropriate government" and "mines"-Scope of-Wonf 
'mine' confines to case concerning a mine where extraction of ores actually 
takes place and not office-Furthe1; the appropriate Gorernment in respect of 
such offices is the State Government. 
Mines of the appellant is situated at 'P' and office of the mines is at 
Sanquelin. Payment to the staff and workers is made through the office at 
Sanquelin. But the mining operations and incidental work is done at Pisarlen 
and head officeβ€’ of the establishment is at Panaji. Government of Goa, 
Daman & Diu issued a notification under the Employee's State Insurance 
Act, 1948, which is under challenge. 
Appellant contended before this court that the notification was not 
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applicable to the mining industry because the appropriate Government in 
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respect of mines was the Central Government and not the State Govern-
ment. The expression 'mine' under section 2(1) of the ESI Act read with 
expression 'in respect of' would include the area where extraction of ores 
takes place and the other offices. 
Dismissing the appeals, the Court 
HELD : 1.1. The expression 'mine' under section 2(a)(i) of the 
Mines Act, 1952 confines to case concerning a mine where extraction of 
ores takes place and not offices or the other parts of establishment. 
Further the expression 'the appropriate Government' in 'the Industrial 
Disputes Act, 1947 is identical with the expression β€’tt.e appropriate 
Government' defined under the Mines Act, 1952.[184-A-E] 
Mis. Sc.rajuddin and Co. v. Their Workmen, [1962] Supp. 3 SCR 934, 
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held applicable. 
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DAMODAR MANGAUI v. THE REGIONAL DIRECTOR [R. BABU, l.] 183 
T1ie Ballarpur Colleries Co. v. State Industrial Court, Nagpur and Ors., 
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[1966) 2 SCR 589, distinguished. 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 8890of1997. 
From the Judgment and Order dated 12.2.97 of the Mumbai High Court 
in F.A. No. 88 of 1988. 
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wrrn 
Civil Appeal No. 8891 of 1997. 
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R.F. Nariman, Pratap Venugopal, P.S. Sudheer, K.J. John, for the Appel-
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!ants. 
V.J. Francis and Ms. Sheela Goel, for the Respondent. 
The Judgment of the Court was delivered by 
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RAJENDRA BABU, J. C.A.No.8890/97 
The appellant before us is aggrieved by the application of the notification 
dated 21.6.1977 issued by the Government of Goa, Daman & Diu under :he 
Employees' State Insurance Act, 1948 [hereinafter referred to as 'the Act']. 
The.appellant raised a contention that since they are engaged in mining indus-
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try and as a part of the integrated activity of such industry have an oflice away 
from the mines as such. The contention put forth before the ES! Court is that 
the said notification, in so far as it is applicable to a mining industry, is beyond 
the scope of the Act for the reason that "the appropriate Government" means, 
in respect of the establishment under the control of the Central Government or 
a railway administration or a major port or a mine or oilfield, the Central 
Government, and in other cases, it is the State Government. The submission 
made on behalf of the appellant is that the expression "mine" used in Section 
2(1) of the Act has to be read along with the expressions such as "in respect 
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of' and read so, would mean not only the area where extraction of ores takes 
place, but also the other oftices and that the enactment itself intends to make 
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a distinction, it.has so been made as is clear from Section 2(12) which defines 
the expression "factmy", and mine which is subject to tl1e operation of tl1e 
Mines Act, 1952 is excluded from the purview of the Act and placed heavy 
reliance on the decision of this Court in The Ballarpur Collieries Co. v. State 
Industrial Court, Nagpur & Ors., [1966] 2 SCR 589. On behalf of the respond-
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SUPREME COURT REPORTS 
(2001] 2 S.C.R. 
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cnt, strong reliance is placed upon the decision in Mis Serajuddin & Co. v. 
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Their Workmen, (1962) Supp. 3 SCR 934, where the specific question what is 
the appropriate Government has been considered and held the expression 
"mine" used in Section 2(a)(i) of the Mines Act, 1952 to confine only to those 
cases where it really concerns a mine where extraction of ores actually talces 
place as defined under the Mines Act and not

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