02 May 1997
Supreme Court
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THE EXECUTIVE ENGINEER(STATE OF KARNATAKA) Vs K. SOMASETTY & ORS.


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PETITIONER: THE EXECUTIVE ENGINEER(STATE OF KARNATAKA)

       Vs.

RESPONDENT: K. SOMASETTY & ORS.

DATE OF JUDGMENT:       02/05/1997

BENCH: K. RAMASWAMY, D.P. WADHWA

ACT:

HEADNOTE:

JUDGMENT:                          O R D E R      Leave granted.      The respondent  was  appointed  on  daily  wages  in  a project taken  up by  the appellant  and July  25, 1986. The respondent was  discharged from  the work  on its closure on January 15, 1989. Thereafter, he approached the Labour Court under Section  10 of  the  Industrial  Disputes  Act.  On  a reference, the  Labour Court  held that  the  respondent  is entitled to  continuity of  service with back wages since it amounts to dismissal. The order was confirmed by the learned single Judge  of the High Court subject to payment of 50% of the back  wages. Writ Appeal No. 878/96 was dismissed by the Division Bench. Thus, this appeal by special leave.      It  is   now  well  settled  legal  position  that  the Irrigation Department  and Telecommunication  Department are not an ‘Industry’ within the meaning of definition under the industrial Disputes  Act as  held in  Union of India vs. Jai Narayan Singh  [(1995) Supp. 4 672] and in the State of H.P. s. Suresh  Kumar Verma  [JT 1996  (2) 455].  The function of public   welfare of the State is a sovereign function. It is the constitutional  mandate under  the Directive Principles, that the  Government should bring about welfare State by all executive   and    legislative    actions.    Under    these circumstances, the  State is  not an  ‘industry’  under  the Industrial Disputes  Act. Even  otherwise, since the Project has been  closed, the  respondent has  no right  to the post since he had been appointed on daily wages. It is brought to our notice  that respondent has reinstated. The order of the reinstatement has been placed before us which indicates that at the  threat of  contempt of  Court, the  order  has  been enforced. it  is stated  therein that  it is  subject to the final order of this Court in this appeal.      Under these  circumstance, the  appeal  is  accordingly allowed. The  order of the Labour Court stands set side. The order and judgment too stand set aside.