LexSMT. LEELABAI GAJANAN PANSARE & ORS. versus THE ORIENTAL INSURANCE CO. LTD. & ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
(2008] 12 S.C.R. 248
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A
SMT. LEELABAI GAJANAN PANSARE & ORS.
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v.
THE ORIENTAL INSURANCE CO. LTD. & ORS.
(Civil Appeal No. 5136 of 2008 etc.)
B
AUGUST 20, 2008
[5.H. KAPADIA AND 8. SUDERSHAN REDDY, JJ.]
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Maharashtra Rent Control Act, 1999 - s. 3 (1) (b) - Ex-
emption from protection under the Act - To Government Com-
c pany as defined u/s. 617 of Companies Act - Held: govern-
ment Company falls within the meaning of 'Public Sector Un-
dertakings ('PSUs') - Hence not entitled to protection under
·the Act in view of the exemption provision - Exclusion of Gov-
ernment Company from the meaning of 'PSUs' and inclusion
D of the Corporations established- under Central/State Statute
alone, would make the provision violative of Article 14 of the
Constitution - By application of the principle of noscittur a -
sociis, the provision applies to different categories of tenants
i
having financial capability to pay the rent - Such differentia
E has a rational nexus to the object sought to be achieved by
the Statute - Constitution of India, 1950 - Article 14 - Com-
panies Act, 1956 - s. 617.
Interpretation of Statutes - Definition of an expression in
one Act must not be imported to .another Act, unless the same
F is incorporated or referred to in the latter.
Doctrines/Principles - Principle of noscittur a sociis -
·t-
Applicability of
Words and Phrases - 'Public Sector Undertakings' -
G Meaning of in the context of s. 3 (10) (b) of Maharashtra Rent
;. •
control Act, 1999.
t-
,,_
The question for consideration in the present ap-
pea1s is whether a Government Company, as defined un-
der s. 617 of Companies Act, falls within the compendi-
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248
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SMT. LEELABAI GAJANAN PANSARE & ORS. v.
249
THE ORIENTAL INSU. CO. LTD. & ORS.
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ous expression "any public sector undertakings or Cor-
A
poration established by or under any Central or State Act"
in s. 3 (1) (b) of Maharashtra Rent Control Act, 1999.
Disposing of the appeals, the Court
HELD: 1. Government companies as defined under B
•, f.
Section 617 of the Companies Act are not entitled to pro-
tection of the Maharashtra Rent Control Act, 1999 in view
of the provisions of Section 3(1)(b). The view of the High
Court that Government companies stand excluded from
PSU under Section 3(1)(b) of Maharashtra Rent Control c
Act, 1999, as Government companies are separate and
distinct entities from PSUs and since Government Com-
pany is not in the enumerated items in Section 3(1 )(b) one
cannot include the said entity within the meaning of the
word PSU is erroneous. The word PSU is not defined D
under any Act. It is indicated in various Parliamentary
y
Committees on Administrative Reforms so that in finan-
cial, employment and in policy matters, the Central/ State
Government could evolve norms/standards. It is the pub-
lie character of the functions of the undertaking which E
makes it a PSU. However, there is no conclusive test for
determining the status of an undertaking as a PSU. In judg-
ing the character of an entity, the court has to keep in mind
the context in which the word PSU is used in a given en-
actment. There are a number of tests which could be ap-
plied in judging the character of an entity, namely, the test F
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of origin, the test of agency or instrumentality of the State,
the functional test, the monopolistic status of an entity,
test concerning areas of operations, the test of econo-
mies of scale, the test of control, the role of the entity in
the priority sector etc. Therefore, there is no one conclu-
G
...,
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sive test applicable to decide the character of an entity .
Government companies under Section 617 of Companies
Act, 1956 are understood by the Legislature to be a part
of PSUs. [Paras 42 and 49] [303,E; 296,A-F, 296,G]
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250
SUPREME COURT REPORTS
[2008] 12 S.C.R.
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A
Som Prakash Rekhi v. Union of India and Anr. 1981 (1)
SCC449 - relied on.
"Growth of Trade, Commerce and PSUs" by Shri Suresh
Prasad Padhy; "Public Enterprise in Theory and Practice" by
B
Bishwa Nath Singh- referred to.
2. On a plain meaning of the words 'PSUs' as under-
v
stood by the Legislature, it is clear that, India's PSUs are
in the form of statutory corporations, public sector com-
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panies, Government companies and companies in which
c the public are substantially interested. When the word PSU
is mentioned in Section 3(1 )(b), the State Legislature is
r-
presumed to know the recommendations of the Excerpt shown. Read the full judgment & AI analysis in Lexace.