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MANAGEMENT OF VISHNU SUGAR MILLS LIMITED, HARKHUA, DISTRICT SARAN, BIHAR versus THEIR WORKMEN REPRESENTED BY CHINI MILL MAZDOOR UNION, HARKHUA, DIST. SARAN, BIHAR

Citation: [1960] 3 S.C.R. 214 · Decided: 09-03-1960 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR · Disposal: Appeal(s) allowed

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Judgment (excerpt)

214 
SUPREME COURT REPORTS 
[1960] 
z960 
based on mere surmises and is entirely opposed to the 
. . 
. weight of evidence adduced in this case. 
Tea D"'''.'1'. 
The result is that that portion of the award which 
Labou1' Association . 
d. 
. 
. 
v. 
issues 
irect10ns to the appellant on the basis that 
Their 
the closure, in the eyes of law, had not taken place is 
Ex-Employees 
set aside. The appeal succeeds to that extent and 
must be allowed. There will be no order as to costs in 
. ,. 
Gojendragadkar J. the circumstances. 
z960 
March 9. 
Appeal allowed. 
MANAGEMENT OF VISHNU SUGAR MILLS 
LIMITED, HARKHUA, DISTRICT 
SARAN, BIHAR 
v. 
THEIR WORKMEN° REPRESENTED BY CHINI 
MILL MAZDOOR UNION, HARKHUA, DIST. 
SARAN, BIHAR 
(P. B. GAJENDRAGADKAR ANDK. N. WANCHOO, JJ.) 
Industrial Dispute-Reference by State Governmcnt-Compe-
tence-C ontrolled industry -
"Appropriate Government," meaning 
of-Industries (Development and Regulation) Act, r95r (65 of r95r). 
-Industrial Disputes Act, I947 (r4 of r947), s. z (a) (i). 
A dispute relating to a workman in the appellant sugar mill, 
situate in Bihar, was raised by the Workers Union and a refer-
ence was made by the State Government. Under s. 2 (a) (i) of 
the Industrial Disputes Act, 1947, "'Appropriate Government' 
means in relation to any industrial dispute concerning any indus-
try carried on by or under the authority of the Central Govern-
ment.: .... or concerning any such controlled industry as may be . 
specified in this behalf by the Central Government.. .... the 
Central Government". The question was whether the State 
Government was competent to make the reference, as sugar was 
a controlled industry under the Industries (Development and 
Regulation) Act, 195I. 
Held, that in order that the appropriate government under 
s. 2 (a) (i) of the Industrial Disputes Act, 1947, may be the 
Central Government for a controlled industry it is necessary that 
such controlled industry should be specified by the Central 
Government, and that in the absence of a notification for the 
..... 
-
-
• 
3 S.C.R. SUPREME COURT REPORTS 
~15 
·purposes of s. 2 (a) (i) of the Act, the State Government was. 
competent to make the reference. 
. 
The Bijoy Cotton Mills Ltd. v. Their Workmen and Another 
[1960] 2 S.C.R. 982, followed. 
CIVIL APPELLATE JURISDICTION: 
Civil Appeal 
No. 402 of 1958. 
Appeal by special leave from the Award dated 
January 29, 1957, of the Industrial Tribunal, Bihar, 
at Patna in Reference No. 7 of 1956. 
Sukumar Ghose, for the appellant. 
M. K. Ramamurthi, R. K. Garg, A. N. Nag and 
Buresh Aggarwal, for the respondents. 
S. P. Varma, for the intervener (State of Bihar). 
1960. March 9. The Judgment of the Court was 
delivered by 
WANCHOO, J.-This is an appeal by special leave 
against the award of the Industrial Tribunal, Patna. 
The appellant is a Sugar Mill in District 8aran in the 
State of Bihar. One Ramkrishna Prasad was appoint-
ed as clerk in this mill in 1933. Gradually, he work" 
ed his way up an:d was drawing Rs. 140 per month in 
October 1952. The mill created a new post of store 
in-charge about that time as the work in the Stores 
Department of the Mill had increased. On October 4, 
1952, Babulal Parekh was appointed to this new post 
on a consolidated salary of Rs. 180 per mensem. A 
letter of appointment was issued to him on that. date 
and he was told that he would be on probation for one 
year. He was also asked by another letter to. take 
charge immediately. He took charge on October 7, 
1952. On November 28, 195,2, an order was passed by 
the mill distributing the duties between the various 
clerks employed in the Stores Department and it was 
stated therein that all the staff of the Stores Depart-
ment would work as subordinate to Babula! Parekh. 
On December 2, 1952, another order was passed by 
which Ramkrishna Prasad was ordered to hand over 
the keys of the stores to Babula! Parekh. Thereafter 
Ramkrishna Prasad made a representation against 
his being made subordinate to the stores in-charge . 
. This representation was rejected. A dispute was then 
raised by the union and a reference was made by th~. 
Government of Bihar on May 9, .1956, in which the 
Vishnu Sugar 
Mills Ltd. 
v. 
Their W orkinen 
Wanshoo ]. 
Vishnu Sugar 
Mills Ltd. 
v. 
Their Workmen 
Wanchoo ]. 
216 
SUPREME COURT REPORTS 
[1960) 
following three matters were referred to the tribu- · 
nal:-
1.. Whether the status of workman, Sri Ram-
krishna Prasad, Store-keeper, and the 

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