COIR BOARD ERNAKULAM COCHIN Vs. INDIRA DEVI P S
LAWS(SC)-1998-3-39
SUPREME COURT OF INDIA (FROM: KERALA)
Decided on March 04,1998

COIR BOARD,ERNAKULAM,COCHIN Appellant
VERSUS
INDIRA DEVI P.S Respondents

JUDGEMENT

- (1.) In these appeals from a judgment of the Full Bench of the Kerala High Court, we have to examine whether the appellant-Coir Board is an industry as defined in the Industrial Disputes Act, 1947. The appellant-Coir Board, Ernakulam, Cochin, has been set up under the Coir Industry Act, 1953. In the Statement of Objects and Reasons for the Act, it is stated "(1) The Coir Industry has definite role to play in our national economy. It is of very great economic importance to Travancore Cochin where it is concentrated and also, from the point of view of earning foreign exchange, of importance to the whole country. It has, however, been passing through acute depression since the middle of 1952 as a result of the marked decline in exports. With a view to controlling production, improving its quality, weeding out the undesirable elements in the export trade and developing the internal market so as to reduce the industry's dependence on exports, it is considered necessary to establish a Statutory Board on the lines of Boards set up for other plantation industries. (2) In order to finance the development of this industry it is proposed that a duty up to Re. 1/- per cwt. should be levied on coir fibre, coir yarn as well as coir mats and matting exported . . . . . . " The Preamble to the Acts states that it is an Act to provide for the establishment of a Board for the development of the coir industry and for that purpose to levy a customs duty on coir fibre, coir yarn and coir products exported from India and for matters connected therewith. Section 10 of the Coir Industry Act, 1953 lays down the functions of the Board :- Section 10 : "Functions of the Board :- (1) It shall be the duty of the Board to promote by such measures as it thinks fit the development under the Control of the Central Government of the coir industry. (2) Without prejudice to the generality of the provisions of sub-sec. (1), the measures referred to therein may relate to - (a) promoting exports of coir yarn and coir products, and carrying on propaganda for that purpose; (b) regulating under the supervision of the Central Government the production of husks, coir yarn and coir products by registering coir spindles and looms for manufacturing coir products as also manufacturers of coir products, licensing exporters of coir, coir yarn and coir products and taking such other appropriate steps as may be prescribed; (c) undertaking, assisting or encouraging scientific, technological and economic research and maintaining and assisting in the maintenance of one or more research institutes; (d) collecting statistics from manufacturers of, and dealers in, coir products and from such other persons as may be prescribed, on any matter relating to the coir industry; the publication of statistics so collected or portions thereof or extracts therefrom; (e) fixing grade standards and arranging when necessary for inspection of coir fibre, coir yarn and coir products; (f) improving the marketing of coconut husk, coir fibre, coir yarn and coir products in India and elsewhere and preventing unfair competition; (ff) setting up or assisting in the setting up of factories for the production of coir products with the aid of power. (g) promoting co-operative organisation among producers of husks, coir fibre and coir yarn and manufacturers of coir products; (h) ensuring remunerative returns to producers of husks, coir fibre and coir yarn and manufacturers of coir products; (i) licensing of resting places and warehouses and otherwise regulating the stocking and sale of coir fibre, coir yarn and coir products both for the internal market and for exports; (j) advising on all matters relating to the development of the coir industry; (k) such other matters as may be prescribed. (3) The Board shall perform its functions under this section in accordance with and subject to such rules as may be made by the Central Government." For the purpose of improving the marketing of coir products and for promoting exports the Coir Board, inter alia, maintains show rooms and sales depots. The function of the show rooms is to exhibit quality samples of coir and coir products, and make intends for products and, receive consignments from manufacturers and/ or merchants of coir products. The products are sold through the show rooms for which the Coir Board charges a commission. The consignors of such products have to be registered with the Coir Board and these are private co-operatives of coir manufacturers. The marketing personnel in each of the show rooms or sales depots helps in promoting their sale.
(2.) The Coir Board had employed certain temporary clerks and typists who were discharged. They claim that their services could only be terminated in accordance with the provisions of the Industrial Disputes Act, 1947.
(3.) A Full Bench of the Kerala High Court considered the question of application of the Industrial Disputes Act to the appellant-Coir Board along with a similar question raised in respect of a large number of Government Departments, Government Companies, other statutory corporations and local bodies, in the impugned judgment. After extensively dealing with the various decisions of this Court on what is an 'industry' and who is a 'workman' under the Industrial Disputes Act, the High Court has come to the conclusion, inter alia, that Coir Board is an 'industry' as defined in the Industrial Disputes Act. Hence Chapter V-A of the Industrial Disputes Act would be applicable in respect of termination of the services of its temporary clerks and typists.;


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