(Delivered by S.J.MUKHOPADHAYA,J.) The Tamil Nadu Labour Welfare Board (hereinafter referred to as "Welfare Board") has preferred this writ appeal against the order of the learned Judge dated 3.12.1999 in W.P.No.13340 of 1988.
2. By the said order, the learned Judge, presumed that the Council of Scientific and Industrial Research, New Delhi (in short "CSIR") and its unit Central Leather Research Institute (for brevity "Leather Research Institute") are Central Government Institutions and not covered by the Tamil Nadu Labour Welfare Act, 1972 (Act 36 of 1972), as amended by the Tamil Nadu Act 37 of 1982 with effect from 15.9.1982 and thereby, allowed the writ petition preferred by CSIR and Leather Research Institute in part and held that they are liable to pay their welfare fund contribution only for the period from 1973 to 15.9.1982.
3. The main plea taken by the Welfare Board is that the respondent Leather Research Institute, Adyar, Madras, being a place deemed to be a factory under sub-
Section 2 of Section 85 of the Factories Act, 1948 and being a factory as defined in clause (m) of
Section 2 of the Factories Act, 1948, is an establishment within the meaning of Clause (d) of
Section 2 of the Tamil Nadu Labour Welfare Fund Act, 1972 (Act 36 of 1972). Further, CSIR, a Society registered under the Societies Registration Act cannot be presumed to be an establishment of the Central Government, as presumed by the learned Judge.
4. In fact, no reasoning has been given by the learned Judge while passing the impugned order on 3.12.1999 for coming to the conclusion that CSIR and Leather Research Institute are Central Government institutions. This will be evident from the order quoted hereunder:
"In view of the fact that the petitioners, a Central Government Institution is not covered by the Tamil Nadu Act 37 of 1982 with effect from 15th September 1982, the petitioners are not liable to pay the contribution to the welfare Fund on and after that date. The petitioners are liable for payment for the period from the date of commencement of the Act till the date of the amendment, viz. 15th September 1982.
2. In view of this position in law, which is not disputed by the learned counsel for the respondents, as also the learned counsel for the petitioners and having regard to the fact that the petitioners are research institution, the delay in applying for setting aside the order of dismissal for non prosecution is condoned. The order dismissing the petition for non prosecution is recalled. The writ petition shall stand allowed to the extent indicated above. To reiterate, the petitioners are liable to pay the contribution from 1973 to 15th September 1982. That amount shall be paid within a period of six months from the date of receipt of a certified copy of this order. No costs."
5. To understand the case of the respondent, it is desirable to notice the relevant fact as was pleaded in the writ petition.
6. According to the respondent, CSIR is a Society registered under the Societies Registration Act, 1860. It is functioning under the aegis of the Department of Scientific and Research Institute, Government of India. The other respondent Leather Research Institute, Adyar, is of the chain of National Laboratories/Institutes established by CSIR for research and development activities in the field of leather and allied products. It is recognised by the University of Madras as a Teaching Centre leading to B.Tech., M.Tech. and Ph.D. courses in leather technology. CSIR is controlling and financing the Leather Research Institute earlier. The main object of the CSIR is to carry on research and development projects sponsored by industries in the public/private sectors and others, in consonance with national priorities. Thus, it would be evident from the pleading that it is not an organisation of the Central Government.
Therefore, from the aforesaid pleading, it is clear that CSIR or Leather Research Institute, Adyar is a Society registered under the Societies Registration Act, and not an organisation of the Central Government nor a wing of the Central Government nor working at the instance of the Central Government to perform any public duty to bring it within the meaning of State, as defined under
Article 12 of the Constitution of India.
7. From the judgment of the learned single Judge, it would be evident that the Tamil Nadu Labour Welfare Fund Act, 1972 (Act 36 of 1972) is applicable and for that, the Court ordered that CSIR and Leather Research Institute are liable to pay contribution for the period from 1973 to 15.9.1982. This part of the judgment has not been challenged by the respondents to suggest that the said Act is not applicable to them. The learned judge has allowed the writ petition preferred by the respondents only with regard to the period from 1973 to 15.9.1982, in view of the amendment made in
Section 2(d) of the Tamil Nadu Labour Welfare Fund Act, (Act 37 of 1982). It will be evident from Letter No.11933/A3/444/74 dated 21.10.1976 written by the Labour Welfare Board, as pleaded in paragraph 7 of the writ petition, that the said Welfare Board has intimated to Leather Research Institute, Adyar that its establishment is registered under the Factories Act. Therefore, the respondent Leather Research Institute is liable to pay labour welfare fund to the constituted Board for the year 1973-76 as per Section 2(d)(i) of the Act. No dispute was made with regard to the period prior to 15.9.1982. In fact, the respondents disputed its liability to pay its contribution under the Tamil Nadu Labour Welfare Fund, 1972 on the ground that it do not fall within the meaning of
Section 2(d) of the said Act. In this back ground, it is desirable to notice the meaning of "establishment" provided under
Section 2(d) and amended by Act 37 of 1982 with effect from 15.9.1982 and quoted here under:
"Section 2(d):
"establishment", means,--
(i) a factory as defined in clause (m) of
section 2 of the Factories Act, 1948 (Central Act LXIII of 1948), or any place which is deemed to be a factory under sub-section (2) of section 85 of that Act;
(ii) a motor transport undertaking as defined in clause (g) of
section 2 of the Motor Transport Workers Act, 1961 (Central Act 27 of 1961);
(iii)a plantation as defined in clause (f) of
section 2 of the Plantations Labour Act, 1951 (Central Act LXIX of 1951);
(iv) a catering establishment as defined in section 2(1) of the Tamil Nadu Catering Establishments Act, 1958 (Tamil Nadu Act XIII of 1958) which employs, or on any working day during the preceding twelve months employed, five or more than five persons;
(v) an establishment, including a society registered or deemed to be registered under the Tamil Nadu Societies Registration Act, 1975 (Tamil Nadu Act 27 of 1975) and a charitable or other trust whether registered under any law applicable to such charitable or other trust or not, which carries on any business or trade or any work in connection therewith or ancillary thereto and which employs, or on any working day during the preceding twelve months employed, five or more person; but does not include an establishment (not being a factory) of the Central or any State Government;
(vi) any other establishment which the Government may, by notification, declare to be an establishment for the purposes of this Act;
Explanation.-- For the purposes of this Act, where an establishment consists of different departments or has branches whether situate in the same place or in different places, all such departments or branches shall be treated as part of the same establishment."
8. We have heard the learned counsel appearing on behalf of the appellant and learned Additional Government Pleader appearing for the third respondent and perused the stand of the respondent CSIR and Leather Research Institute, as was taken in the writ petition. There was no appearance on behalf of respondents 1 and 2.
9. In the present case, it is not required to determine whether CSIR falls within the meaning of "establishment" because, claim is made against the respondent Leather Research Institute, Adyar. It is also not necessary to notice whether the respondent Leather Research Institute, Adyar, is an "establishment" falls within the meaning of
Section 2(d)(v) of the Act, as, admittedly, it is a factory as defined in Clause (m) of
section 2 of the Factories Act, 1948, as was intimated to it by the Welfare Board and not disputed by the respondent. As the factory defined under clause (m) of the Factories Act and a place which is deemed to be a factory under sub Section (2) of section 85 of the said Act comes within the definition of establishment under Section 2(d)(i) of the Act, 1972, we are of the view that the respondent Leather Research Institute cannot derive any advantage of the amendment made with effect 15.9.1982 in
Section 2(d)(v) of the Act, vide Act 37 of 1982.
10. The learned single Judge, having failed to notice the fact that the respondent Leather Research Institute is a factory within the meaning of Clause (m) of
Section 2 of the Factories Act, 1948 and passed the order on presumption that it is an Institute of the Central Government, we have no option except to set aside the order. We, accordingly, set aside the impugned order dated 3.12.1999 made in W.P.No.13340 of 1988 and allow the writ appeal.
In fine, the writ appeal is allowed. However, there shall be no order as to costs. CMP No.4351 of 2000 is closed.
kpl To The Commissioner & Secretary to Government Labour and Employment Department Fort St.George, Madras