LexWORKMEN OF INDIAN STANDARDS INSTITUTION versus MANAGEMENT OF INDIAN STANDARDS INSTITUTION
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138
WORKMEN OF INDIAN STANDARDS INSXITUTION
v.
MANAGEMENT OF INDIAN STANDARDS INSTITUTION
October 6, 1975
[A. ALAGIRISWAMI, P. N. BHAGWATI AND P. K. GOSWAMI, JJ.]
Industrial
Disputes
Act,
1947-Sections 2(k), 2(g), 2(i) and 2(s)-
"lndustrial Dispute"'-Concept of 'Industry'-Meaning of-Tests to be satisfied
for treating an "activity" as an "Industry" within the meaning of Section 2(i).
Words and Phrases-Term "undertaking" used in the definition in Section
2 (g) of the Industrial Disputes Act, 1947-Meaning and scope of.
lndian Standards Jnstitutfon is an undertaking analo!iOlls to trade of busi•
ness and is an "Industry" within the meaning of Section 2(j).
The workmen of the Indian Standards Institution, a registered society, under
the Societies Registration Act, 1860 made certain demands which were not
accepted by the management and the dispute arising therefrom was taken in
conciliation. Unable to settle it, the Conciliation Officer made a "failure report"
to the Lt. Governor, who referred the dispute for adjudication to the Industrial
Tribunal u/ss. lO(l){d) and 12(5) of the Act.
Opposing the claim of the
workmen on merits, the management raised before the Tribunal, a preliminary
objection that the Institution was not an "Industry" within the meaning of
Section 2 (j) of the Act and, therefore, the dispute between the ma.nagement
and its workmen was not an "Industrial dispute" as defined in s. 2 (k) and
the Lt. Governor had no jurisdiction to refer it for adjudication under the
provisions of the Act.
The Tribunal applying the five tests laid down by the Supreme Court in
"Gymkhana C.lub's case" and "The Cricket Club's case" found that though
capital was employed in the Imtitution, it was not run with a profit motive
and so the fifth test was not satisfied.
So viewing, the Tribunal held that (a)
the Institution was not an "industry", (b) that the reference was outside the
power of the Lt. Governor and (c) that its jurisdiction to entertain the reference
and adjudicate upon it was ousted.
Allowing the appeal by special leave against the order of the Industrial
Tribunal.
(Alagiriswami, J. dissenting), the Court
HELD; (Per Bhagwati and P. K. Goswami, JJ.)
(i) The definition of an "industrial dispute" in s. 2(k) does not in so
many words refer to "industry". Ihlt on the grammar of the expression itself,
an "industrial dispute" must necessarily be a dispute in an industry and moreover
the expressions "employer" and "workman" used in the definition of "industrial
dispute" .carry the requirement of iudu·stry iu that definition by virtue of their
own definitions in sections 2(g) and 2(s).
[143A-B]
(ii) According to the dictionary meaning an "undertaking" means· "anything
undertaken; any business or work or project which one engages in or attempts;
an enterprise". It is a term of very wide connotation. But an "undertaking"
to be within the definition in s. 2(j) of the Act must be read subject to a
limitation viz., that it must be analogous to trade or business. In order that
an undertaking should be analogous to trade or business, profit motive and
capital investment are not essential requisites.
There can be such an under-
taking without the presence of both or either of these attributes or features.
No rigid and doctrinaire approach can be adopted in considering the question
\
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WORKMEN I.S.I, v. MANAGEMENT l.S.l.
139
as to what are .the attributes or features which make an unde,rtaking analogous
to trade or busmess.
Such an approach would fail to measure up to the needs
of the growing welfare State which is constantly engaged in undertaking new
and varied activities as part of its social welfare policy. The concept of industry,
which is intended to be a convenient and effective tool in the hands of industrial
adjud\cation for. bringing about industrial peace and harmony, would lose its
capacity for ad1ustment and change. It would be petrified and robbed of its
dynamic content.
[145-B, D, 146A, C, DJ
(iii) An activity can be regarded as an "industry" within the meaning of
s. 2 (j) only if there is relationship of employer and employees and the forme~
is engaged in "business, trade, undertaking, manufacture or c~lling of ef?ploye~s'·
and the latter "in any calling, service employment, handicraft or md_ustnal
occupation or avocation". Though "undertaking" is a wor1 of. large import
and it means anything undertaken or any pro1ect or eExcerpt shown. Read the full judgment & AI analysis in Lexace.