LABOUR LAW PPT ONIS MUNICIPAL CORPORATION AN INDUSTRY?

TEAM PLAYERS:01 ABHAY RAJ02 ABHILEKH VERMA03 ABHISHEK KHANDELWAL04 ABHISHEK SINGH05ADITI MAHESHWARI06AMAR SINHA07AMBIKA MAHTO09ANKIT TIBREWAL10ANKITA KUMARI

INTRODUCTION

MUNICIPAL CORPORATIONA municipal corporation is the legal term of

local governing body including(but not necessarily limited to)cities,countries,towns,townships,charter townships,villages and boroughs.

INDUSTRY

Sec. 2(j) of the ID Act,1947 defines “Industry” means any business,trade,undertaking,or calling of employers and includes any calling,service,employment,handicraft,or industrial occupation or avocation of workmen.

INDUSTRY IMPLICATIONS KEEPING OBJECTIVE OF ID ACT,1947 IN MIND

In the ordinary sense,industry or business means an undertaking where capital and labour co-operate with each other for the purpose of producing wealth and for making profits.

Nothing prevents the statute from giving a wider meaning.

The ID Act is intended to bring about industrial peace and harmony.

Hence,Industry is given a wider meaning.The Judiciary has interpreted industry in

a no. of cases.

1st Phase: Wider Meaning(1953-1962)

1)D.N Banerji vs P.R Mukherjee[AIR 1953,Sec 58]The judiciary dealt with the question whether Municipality

is an Industry?The SC held through municipal activity could not be

regarded as “business or trade”,it would fall within the scope of the expression “undertaking” and it is an industry.2)State of Bombay vs Hospital Mazdoor Sabha[AIR 1960,Sec 610]

The SC held that hospital comes under the term “undertaking”,hence industry.

Industry includes even activities which have no commercial implications.

Activities carried on by Govt. or charitable organizations will also be an industry.

Soverign or Regal activities are outside the scope of an industry.

3)Baroda Borough Municipality vs Its Workman[AIR 1957]

The SC here in this case reiterated the view of D.N Banerji case,but travelled further by introducing a proposition,i.e. ‘analogous to trade or business ‘and accordingly it was being observed.

The last but the main case in the 1st Phase:

Corporation of city of Nagpur vs Its Employees[AIR 1960,Sec 675]

Here unlike the definition of industry in the ID Act,the word undertaking in this definition is qualified by the words manufacturing or mining.

The judiciary couldn’t use the earlier cases and call corporation as an undertaking.

In this case,the SC said that the municipal functions are analogous to “business or trade”.

Hence,corporation was held to be an industry.

Departments like Tax,Health,Building,Estate,etc were declared as industries.

2nd Phase:Narrow Meaning(1963-1978)

In this phase,the trend was narrowing down the meaning of the term industry.1)University of Delhi vs Ramanath[AIR 1963,Sec 1873]The SC held that University is not an industry because:

Main scheme of an educational institution is imparting education.

Teaching is not in the purview of industry as there is no commercial motive.

The subordinate staff plays a minor or insignificant role in the process of imparting education.

Permitting the insignificant role of the subordinate staff to lend the colour of industry is unreasonable.

2)Cricket Club of India vs Bombay Labour Union[AIR 1969,Sec 276]

The SC held that Cricket Club is not an industry.

The Clubs activity is basically promotion of the game of cricket.

It is a self-serving institution.It is not carrying any trade or

business.In the course of promoting the

game,it has incidentally earned some profits.

It is not setup for earning profits.

3)Sardarjung Hospital vs Kuldipsingh Sethi[AIR 1970,Sec 1407]

In the management of this hospital,the SC held that hospital is not an industry.

They overruled the earlier hospital Mazdoor Sabha case.

Hospitals run by the Govt. or charitable institutions are not run on commercial lines.

If an hospital or nursing home is run on commercial basis,then it may be an industry.

The hospitals in question are not industry as they are not run on terms analogous to trade or business.

4)Bangalore Water Supply Sewerage Board vs A. Rajappa[AIR 1978,Sec 548]

This was a seven judge bench constituted to review all the earlier cases and explain what is the meaning of an industry.

This case reviewed the pre 1962 cases and overruled the post 1962 cases.

The Law developed in this case is an amalgamation of Hospital Mazdoor Sabha and Nagpur city Corporation case,with minor elaborations.

CONSENSUS AD IDEM/CONCLUSION:

If an activity falls under either part i.e. from standpoint of employer/employee,it will be an industry within the meaning of the act.

Recognition of the activity for being the organized one,must be there instead of which pertains to private or personal employment.

Regal functions shall be confined to legislative ,administrative and judicial powers.

CONTINUED CONCLUSION

If a service rendered by an individual would be an industry,it would equally be an industry in the hands of a corporation.

If a service rendered by a corporation is an industry,the employees in the departments connected with that service would be entitled to the benefits of the Act.

If a department of a municipality discharges many functions,some pertaining to industry defined in the Act,the predominant functions of the department shall be the criterion for the purposes of the Act.