Case: University Of Delhi &amp; Anr Vs. Ram Nath

thus passed by the State Industrial Court was challenged by the Corporation before the High Court by a writ petition under Art. 226 of the Constitution. The High Court rejected the Corporations plea that its activities did not constitute an industry, but remanded the case to the Industrial Court for determining which of the departments of the Corporation fell within the definition. After remand, the Industrial Court found all the departments of the Corporation to constitute an industry except five. Against the said award, the Corporation came to this Court by special leave. No appeal was, however, preferred by the employees in respect of the five departments which were included form S. 2(14) by the award. The appeal preferred by the Corporation failed and this Court added that the finding of the Industrial Court excluding five departments form the definition under S. 2 (14) need not be examined, since it had not been challenged by the employees. That, in substance is the decision of this Court.16. It would be noticed that the main argument which was urged on behalf of the Corporation was that its activites were regal or governmental in character, and so, it was entirely outside the purview of the Berar Act. This argument was carefully examined. It was conceded that the regal functions described as primary and inalienable functions of the State are outside the purview of the Berar Act and if they are delegated to a Corporation, they would be excluded form S.2(14); but the Court held that these regal functions must be confined to legislative power, administration of law and judicial power. That is how the broad and main argument urged by the Corporation was rejected. Dealing with the work carried on by the several departments of the Corporation this Court observed that if a service rendered by individual or a private person would be an industry, it would equally be an industry in the hands of a corporation, and it held that if a department of municipality discharges many functions, some pertaining to industry as defined in the Act and other non-industrial activities, the predominant functions of the department shall be criterion for the purposes of the Act. Amongst the departments which were then examined was the education department under which the Corporation looked after the primary education of the citizen within its limits. In connection with this department, it was observed that the service rendered by the department could be done by private persons, and so, the subordinate menial employees of the department came under the definition of employees and would be entitled to the benefits of the Act.17. Reading the judgment as a whole, there can be no doubt that the question as to whether education work carried on by educational institutions like the University of Delhi which have been formed primarily and solely for the purpose of imparting education amount to an industry within the meaning S.2(14), was not argued before the Court and was not really raised in that form. The main attack against the award proceeded on the basis that what the Corporation was doing through its several departments was work which could be regarded as regal or governmental, and as such, was outside the purview of the Act, and that argument was rejected. The other point which is also relevant is that one of the tests laid down by this Court was that if a department was carrying on predominantly industrial activities, the fact that some of its activities may not be industrial did not matter. Applying the same test to the Corporation as a whole, the question was examined and the inclusion of the education department in the award was upheld. It would: thus be dear that if the test of the character of the predominant activity of the institution which was applied to the Corporation is applied to the University of Delhi, the answer would be plainly against the respondents. The predominant activity of the University of Delhi is outside the Act, because teaching and teachers connected with it do not come within its purview, and so, the minor and incidental activity carried on by the subordinate staff which may fall within the purview of the Act cannot alter the predominant character of the institution.18. It would be recalled that in the case of the Hospital Mazdoor Sabha, (1960) 2 SCR 866 : (AIR 1960 SC 610 ) the question about educational institutions was deliberately and expressly left open and if the said question was intended to be decided in the case of the Corporation of the City of Nagpur, (1960) 2 SCR 942: (AIR 1960 SC 675 ) naturally more specific arguments would have been urged and the problem would have been examined in all its aspects. Incidentally, we may add that the Bench that left the question open in the case of Hospital Mazdoor Sabha (1960) 2 SCR 866 : (AIR 1960 SC 610 ) was the same Bench which heard the case of the Corporation of the City of Nagpur? (1960) 2 SCR 942: (AIR 1960 SC 675 ) and the two matters were argued soon after each other though the judgment in the first case was delivered on the 29th January1960 and that in the latter case on the l0th February 1960. We are making these observations with a view to emphasise the fact that the question which has been raised for our decision in the present appeals was not raised nor argued in case of the Corporation of the City of Nagpur (1960) 2 SCR 942: (AIR 1960 SC 675 ) and cannot, therefore, be said to have been decided even incidentally only by reason of the fact that amongst the departments which were held to have been properly included in the award was the education department of the Corporation. If we had been satisfied that the said Judgment had decided this point we would either have followed the said decision, or would have referred the question to a larger Bench.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]17. Reading the judgment as a whole, there can be no doubt that the question as to whether education work carried on by educational institutions like the University of Delhi which have been formed primarily and solely for the purpose of imparting education amount to an industry within the meaning S.2(14), was not argued before the Court and was not really raised in that form. The main attack against the award proceeded on the basis that what the Corporation was doing through its several departments was work which could be regarded as regal or governmental, and as such, was outside the purview of the Act, and that argument was rejected. The other point which is also relevant is that one of the tests laid down by this Court was that if a department was carrying on predominantly industrial activities, the fact that some of its activities may not be industrial did not matter. Applying the same test to the Corporation as a whole, the question was examined and the inclusion of the education department in the award was upheld. It would: thus be dear that if the test of the character of the predominant activity of the institution which was applied to the Corporation is applied to the University of Delhi, the answer would be plainly against the respondents. The predominant activity of the University of Delhi is outside the Act, because teaching and teachers connected with it do not come within its purview, and so, the minor and incidental activity carried on by the subordinate staff which may fall within the purview of the Act cannot alter the predominant character of the institution.18. It would be recalled that in the case of the Hospital Mazdoor Sabha, (1960) 2 SCR 866  : (AIR 1960 SC 610  ) the question about educational institutions was deliberately and expressly left open and if the said question was intended to be decided in the case of the Corporation of the City of Nagpur, (1960) 2 SCR 942: (AIR 1960 SC 675  ) naturally more specific arguments would have been urged and the problem would have been examined in all its aspects. Incidentally, we may add that the Bench that left the question open in the case of Hospital Mazdoor Sabha (1960) 2 SCR 866  : (AIR 1960 SC 610  ) was the same Bench which heard the case of the Corporation of the City of Nagpur? (1960) 2 SCR 942: (AIR 1960 SC 675  ) and the two matters were argued soon after each other though the judgment in the first case was delivered on the 29th January1960 and that in the latter case on the l0th February 1960. We are making these observations with a view to emphasise the fact that the question which has been raised for our decision in the present appeals was not raised nor argued in case of the Corporation of the City of Nagpur (1960) 2 SCR 942: (AIR 1960 SC 675  ) and cannot, therefore, be said to have been decided even incidentally only by reason of the fact that amongst the departments which were held to have been properly included in the award was the education department of the Corporation. If we had been satisfied that the said Judgment had decided this point we would either have followed the said decision, or would have referred the question to a larger Bench.