THE MANAGEMENT OF BIHAR KHADI GRAMODYOG SANGH, MUZAFFARPUR Vs. THE STATE OF BIHAR & OTHERS

JUDGEMENT

(1.) This is an application under Articles 226 and 227 of the Constitution by the Management of Bihar Khadi Gramodyog Sangh, an institution allegedly having lofty ideals and commendable activities with laudable objectives in view. The application is directed against an interim award dated the 18th November, 1974, made by the Presiding Officer, Labour Court, Muzaffarpur (respondent no. 3) which was published on the 16th of December, 1974 in Reference case No. 6 of 1973. A copy of the aforesaid interim award has been marked Annexure '8' to the writ application. The prayer made is for the issuance of a writ of certiorari quashing Annexure '8'. The reference aforesaid has been made regarding a dispute arising out of discharge of 216 workers from service by the petitioner. The relevant facts giving rise to this application are these. The petitioner, hereinafter to be mentioned as "the Sangh", is a Body registered and incorporated under the Societies Registration Act, 1860, with its head office at Sarvodaygram, Muzaffarpur. The case of the petitioner is as follows. It is charitable and philanthropic institution. It has been formed with the object of establishing a non -violent society free from exploitation for attempting to bring about a change in the values of life so that the "self" in the human being may be prompted by the desire for universal good on the basis of truth and non -violence. The organisation is dedicated to render services to the people and to undertake philanthropic and constructive work based on the philosophy of Sarvodaya. A copy of the Memorandum of Association and Bye -laws of the Sangh has been marked Annexure '1' to the petition. In furtherance of the aforesaid objectives the petitioner undertakes programmes relating to (a) establishing Gram Swaraj: (b) Bhoodan, Gramdan, Sampattidan, (c) development of agriculture, Khadi, village and Home Industries (d) publication of Sarvodaya literatures: and (a) imparting training to workers. Other activities incidental to these programmes are also undertaken by the Sangh. It has got large number of workers who are said to be dedicated. It is claimed that no relationship of master and servant or employer and employee exists amongst the staff and personnel of the Sangh at various levels for carrying on the aforesaid activities in furtherance of the objectives mentioned above. Every worker irrespective of the post he holds in the institution gets monthly "Samvatan" (equal pay) for his substance. The workers are, so to say, living partners of the institution. The Sangh, it is said, renders services to the misses besides other constructive work through Khadi and home industries. These programmes are job -oriented programmes and provide employment opportunities to agricultural labourers, who remain unemployed during a major part of the year, widows and pardanashin ladies, who cannot go out of their homes to undertake any employment outside. These activities are claimed to have been carried on no profit, no loss, basis. The necessary funds for executing these programmes are provided by the Government of India through Khadi and Village Industries Commission, Bombay. The Sangh has not established any factory or any Industry nor does the relationship of master and servant exist between the Sangh and its workers. It was initially recognised by the All India Charkha Sangh and subsequently by All India Khadi Gramodyog Board and All India Khadi Gramodyog Commission as and when these bodies came into existence. The Khadi and Village Industries Commission Act 1956, (Central Act 61 of 1956), hereinafter to be referred to as the "Khadi Act," was enacted by Parliament with the object to provide for the establishment of a Commission for the development of Khadi and village Industries and for other allied and incidental matters. A Commission has accordingly been established by the Central Government in the year 1957 and is functioning since then. The Commission has to take suitable steps to maintain or assist in the maintenance of institutions of the nature of the Sangh for the development of Khadi and village Industries. The Sangh, according to the petitioner, is financed by the Central Government through the Khadi and Village Industries Commission which supervises and controls its activities, the Commission has appointed a Certification committee which regulates the production of Khadi through different affiliated centres and institutions, which act according to the regulation framed by the certification committee. Any deviation from the regulations so framed renders the affiliation liable to cancellation. In order to ensure that the institutions are functioning strictly in conformity with the rules, the committee conducts periodical audit and inspection of the institutions. It also investigates into complaints made against the institutions. The Certification committee has certified several institutions in India including the petitioner Sangh. The Account of the Sangh is audited by the Deputy Accountant General of the Government of India. On these averments the petitioner claims that the Sangh carries on its activities Under the authority of the Central Government. It is financed by the Central Govt. and planned, organised and controlled by the Commission established under the Khadi Act. The Sangh, it is said, is exempted from the operation of the sales tax and income -tax laws also. In furtherance of the objectives aforesaid, the Sangh trains the villagers in spinning, weaving, dyeing, bee, keeping and Gramdan movement, inter alia, and runs schools and training centres. On these assertions the Sangh claims that its activities are not analogous to "industry" and so it does not come within the definition of the term "Industry" as laid down in Sec. 2(j) of the Industrial Disputes Act, 1947, hereinafter to be called "the Act." If at all, it be held to be an 'Industry' then the "appropriate Government" in relation to the Sangh for the purpose of Sec. 2(a) of the Act is the Central Government and not the State Government of Bihar. The contesting respondent in the Bihar Khadi Gramodyog Sangh Karyakarta Union, which is respondent no. 2. It is admitted that the Sangh terminated the services of 216 persons working in the institution. The Union (respondent no. 2) took up their cases and made a grievance against such termination. The Government of Bihar by its Department of Labour and Employment Notification No. III/DI -5033/73L & E 1594, dated the 3rd May, 1973, referred the undernoted matter for adjudication to the Labour Court, Muzaffarpur, under Sec. 10(1)(c) of the Act.

(2.) The Labour Court, Muzaffarpur, registered the matter as Reference Case No. 6 of 1973 and issued notices to the parties to submit their written statements, lists of witnesses, documents etc. and to serve copies of the same on the other side. The Government did not send any copy of the statement of demand along with the notification on the basis of which the alleged dispute was referred to the labour court. The Management of the Sangh in the absence of the statement of demand, aforesaid, was unable to prepare and file its written statement. The Union (respondent no. 2) filed its written statement on 5.12.1973 in a sealed cover. It also filed a petition for granting interim relief to 216 workers, whose services have been terminated. A prayer was made on behalf of the petitioner for further time to file written statement but it was rejected. Thereafter it filed a petition raising objections to the maintainability of the reference and the jurisdiction of the Labour Court to proceed with the same. The Labour Court by its order dated 18 -12 -1973 fixed 19 -12 -1973 as the date for hearing of the preliminary objections and the petition for granting interim relief. The petitioner being aggrieved by the orders of the Labour Court dated 5 -12 -1973 and 18 -12 -1973 filed a writ petition before this Court bearing C. W. J. C. No. 7 of 1974. When that case was placed for admission before a Bench of this Court on 7 -1 -1974, Untwalia, C. J. and N. P. Singh, J. passed an order to the effect that the statement of demands on behalf of the workmen be served upon the petitioner within one week from that date and the petitioner should thereafter file its written statement. With such a direction the writ petition was allowed to be withdrawn. Thereafter respondent no. 2 supplied copies of its letter dated 30 -12 -1974 and 12 -3 -1973 addressed to the Deputy Labour Commissioner and conciliation officer, Patna. A copy of the written statement filed by the workmen was served upon the petitioner on 31 -1 -1974 asserting these points as preliminary objections to the maintainability of the reference :

(3.) In reply to the application for interim relief of the Union (respondent no. 2) on merits it was stated as follows :