JUDGEMENT
-
(1.) Leave granted.
(2.) Air India Limited was constituted under the Air Corporations Act,
1953. By virtue of Section 3 of the Air Corporations (Transfer of
Undertakings and Repeal) Act, 1994, Air India has vested in Indian Airlines
Limited. It has Ground Services Department at Indira Gandhi International
Airport, Delhi. Respondent No. 2 is Hotel Corporation of India, which is a
Government Company incorporated under the Companies Act. The authorized
share capital of the Hotel Corporation of India, hereinafter referred to as
the Corporation, is Rupees 10 crores, divided into 10 lakhs equity shares
of Rs. 100/- each. The Corporation is a wholly owned subsidiary of Air
India and its entire share capital is held by Air India and its nominee.
Excepting 6 shares, 4,99,994 shares have been subscribed by Air India and
rest by its nominees. Air India controls the composition of the Board of
Directors and appoints Directors in consultation with the Government of
India. The power to remove the Directors from office before the expiry of
the term is vested with Air India, in consultation with the Government of
India, so also the power to fill up the vacancies caused by death,
resignation, retirement or otherwise. General management of the
Corporation is vested in the hands of the Managing Director.
Notwithstanding that, Air India is conferred with the power to issue such
directions or instructions as it may think fit in regard to the finances
and the conduct of the business and affairs of the Corporation. Duty has
been cast upon the Corporation to comply with and give effect to such
directions and instructions. The main objects for which the Corporation is
incorporated are large and include carrying the business of hotels, motels,
restaurants, caf s, kitchens, refreshment rooms, canteens and depots etc.
in general and its incidental and ancillary objects are establishment of
catering and opening hotels, which would tend to promote or assist in Air
India's business as an international air carrier. Respondent No. 3, Chef
Air Flight Catering, hereinafter referred to as 'Chef Air', is one of the
units of the Corporation.
(3.) Section 46 of the Factories Act, inter alia, confers power on the
State Government to make rules requiring a specified factory where more
than 250 workers are ordinarily employed, to provide and maintain a canteen
for the use of the workers. In exercise of the aforesaid power, Rules 65
to 71 have been incorporated in the Delhi Factory Rules, 1950, hereinafter
referred to as 'the Rules'. Rule 65(1) was to come into force in respect
of any class or description of factories on such dates as the Chief
Commissioner may by notification in the Official Gazette appoint. Rule
65(2) of the Rules, inter alia, contemplates that the occupier of every
factory notified by the Chief Commissioner, where more than 250 workers are
ordinarily employed, shall provide in or near the factory an adequate
canteen in accordance with the standard prescribed in those Rules. In
pursuance of the provisions of sub-rule (1) of Rule 65 of the Rules, the
Lieutenant-Governor of the Union Territory of Delhi, by notification in the
Official Gazette, dated 21st of January, 1991, directed that Rules 65 to 70
of the Rules shall apply to the factories specified in the said Rules with
effect from the date of publication of the notification in the Official
Gazette. It included M/s. Air India Ground Services Department, Indira
Gandhi International Airport, Delhi (Engineering Unit).;
Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.