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N. Karuppannan Vs. Additional Registrar of Trade Union and ors. - Court Judgment

LegalCrystal Citation
SubjectLabour and Industrial
CourtChennai High Court
Decided On
Judge
Reported in(1977)ILLJ132Mad
AppellantN. Karuppannan
RespondentAdditional Registrar of Trade Union and ors.
Cases ReferredSafdar Jung Hospital New Delhi v. Kuldip Singh Seth (supra) In
Excerpt:
- - but, when a teacher, or an engineer, or a lawyer or a doctor exerts by himself, or in working for an employer, produces or helps to produce goods or service of a commercial character as the motive and end of the enterprise, then, of course, it will be different and may well fall inside the inclusive part of the definition. the main object of the organisation was not only the purposes just mentioned, but also to see how best the results achieved by the two bodies could be utilised in practice. the council has been registered as a society under the registration of societies act, 1860, and the actual administration of its affairs as well as its funds have been entrusted to a governing body of the council constituted according to the rules and regulations of the council. it has set up.....k. veeraswami, c.j.1. whether the pasteur institute of southern india, coonoor, and the council of scientific and industrial research, madras, arc industries within the meaning of the industrial disputes act, 1947 is the common question for decision in these otherwise unrelated matters. by an order dated may 22, 1970, the state government declined to refer for adjudication the non-employment of one a. jesudoss in the institute, and certain demands raised by its work-men through the institute staff union. the government did so on the view that the institution could not be considered as an industry for the purposes of section 2(j) of the industrial disputes act. the staff union unsuccesstully moved under article 226 of the constitution for a direction to the state government to reconsider.....
Judgment:

K. Veeraswami, C.J.

1. Whether the Pasteur Institute of Southern India, Coonoor, and the Council of Scientific and Industrial Research, Madras, arc industries within the meaning of the Industrial Disputes Act, 1947 is the common question for decision in these otherwise unrelated matters. By an order dated May 22, 1970, the State Government declined to refer for adjudication the non-employment of one A. Jesudoss in the Institute, and certain demands raised by its work-men through the Institute Staff Union. The Government did so on the view that the institution could not be considered as an industry for the purposes of Section 2(j) of the Industrial Disputes Act. The Staff Union unsuccesstully moved under Article 226 of the Constitution for a direction to the State Government to reconsider the question of making a reference. 'That is the subject-matter of the will appeal. The Additional Registered of Trade Unions, Madras, by an older dated July 24, 1973, cancelled the registration dated August 27., 1973 as Trade Union of I he Madras Council of Scientific and Industrial Research Employees and Workers union. He was of the opinion that the CSIR Madras Complex a branch of the Council of Scientific and Industrial Research was not engaged in any trade or industry, but the complex was established for the purpose of assisting the Scientific and Industrial search, and that, therefore, the employees of tic Complex were not workmen within the meaning of Section 2(g) of the Trade Unions Act, 1926 the union had appealed under Section 11 of the Trade Union. Act from that order. This appeal was directed to be treated as a petition to be dealt with in the original side of the Court. but later withdrawn and posted along with connected writ petition which is also by that union to direct the State Government to re-consider the question of making a. reference of certain items of disputes fur adjudication. Since the Government had earlier declined to make a reference on the view that the Complex was not an industry, but a department of Scientific Research and Service, the question we are called upon to resolve is eventually tied up with the fact relating to the character of each of these institutions. Hut in considering the problem, a basic, and general understanding of what is an industry for the purpose of the Industrial Disputes Act and the Trade Unions Act is necessary for its appropriate application to the facts, it maybe taken that if the institutions we arc concerned with are not industries for the purposes of the Industrial Disputes Act, it will be so also for the purposes of the Trade Unions Act.

2. Section 2(j) defines 'industry'' as meaning 'any business, trade, undertaking, manufacture or calling of employers and includes any calling service, -employment, handicraft, or industrial occupation or avocation of workmen'. Simple as the definition may at first sight appear, its scope has proved lobe one of complexity in judicial thinking as evident from the decided cases. Divergence of opinion on that matter is more in the application of the definition rather than in the conception of industry as defined by the statute.

3. In the abstract, the world -'industry' is capable of a much wider significance or import than when it is related and confined 10 any business, trade, undertaking, manufacture or calling of employers as is done by the first part of the definition in Section 2(j). The dominant element in the first part of the definition. as it appears to us, is the commercial character of productive activity resulting in goods service distinct from one of a professional nature. When the first part of the definition is so understood, the inclusive part, having regards to its intimate relation with the first part, is also highlighted by the commercial character of the activity involved in any calling, service, Employment, handicraft or industrial occupation or avocation of workmen. These different activities may have as their end to produce goods or material service which, understood In the context of the first part, involved the commercial sense. For instance, any calling for the inclusive part of Section 2(j) may exclude a teacher engaged in mere instruction of pupils in an educational institution as in a law college or engineering college or even an industrial school. Service may not lake w thin its scope under Section 2(j) the professional service of a lawyer or a doctor. But, when a teacher, or an engineer, or a lawyer or a doctor exerts by himself, or in working for an employer, produces or helps to produce goods or service of a commercial character as the motive and end of the enterprise, then, of course, it will be different and may well fall inside the inclusive part of the definition.

4. E.I. Sykes and H.J. Glasbeek in 'Labour Law in Australia' after examining certain Australian decided cases, sum up that;

(i) If the dispute has reference to employment of a manual character, then regardless of whether a private or State enterprise, or any other potentially determining feature is involved, (lie dispute will be an 'industrial' one.

(ii) An enterprise which is directly concerned with the production, maintenance, repair, distribution or transport of tangible things, or With the provisions of intangible things, such as gas and electricity, and with the services of banking and insurance, is an industrial one.

(iii) Certain occupations are never 'industrial'. They include the work done by medical practitioners, lawyers, the police force, people in armed services, apparently school teachers and scientists working as university employees.

They point out that the nature of the employees' work or the nature of the enterprises, among others, may be the-deciding criterion to identify an activity as 'industry ' or 'industrial'. in our country there are numerous decisions on the scope of Section 2(j), including those of the Supreme Court, all of which may not be reconcilable.

5. Safdar Jung Hospital, New Delhi v. Kuldip Singh Sethi : (1970)IILLJ266SC , reviewed almost all the earlier decisions which we need not, therefore, notice. The Supreme Court held that the hospital was not an industry it said:

Before the work engaged can be described as an industry it must bear the define character of 'trade' or 'business' or 'manufacture' or 'calling' or must be capable of being describe as an undertaking resulting in material goods or material services..

If a hospital, nursing home or dispensary is run as a business in a commercial way there may he found elements of an industry there. Then the hospital is more than a place where persons can get treated for..

Hospitals run by Government and even by private associations, not on commercial lines but on charitable lines or as part of the functions of Government Department of Health cannot be included in the definition of industry. The first and the second parts of the definition are not to be read in isolation as if they were different industries but only as aspects of the occupation of employers mid employees in an industry. They are two counterparts in one industry.

It is noteworthy that the emphasis is on industry being an activity run or done as a business in a commercial way. In a recent judgment of the Supreme Court in Workmen of Indian Standard Institution v. Management of India Standard Institution , Civil Appeal No. 1297 of 1970 [ : (1976)ILLJ33SC ] Bhagwati, J. with whom Goswami, J agreed, but from both of whom Alagiri swami, J., dissented, it was held that the Indian Standards Institution was an industry. State of Bombay v. Hospital Mazdoor Sadha : (1960)ILLJ251SC , atone end, and the Safdar Jung Hospital case at the other were referred to extensively. The majority judgment was devoted practically in its entirety in ascertaining the meaning and scope of the term as used in Section 2(j) of the industrial Disputes Act. On a carefully reading of the majority judgment, we do not, with all respect, think that it departed from the ratio of Safdar Jung Hospital New Delhi v. Kuldip Singh Seth (supra) In fact, the majority judgment has made extensive reference to extracts from the Safdar Jung Hospital case. In this background, let us see the facts relating to the character of each of the two institutions in these eases.

6. By a resolution of the Department of Commerce, dated April 27, 1940 and February 1, 1941, the constitution of the Board of Scientific and Industrial Research and the Industrial Research Utilisation Committee were made. Since then, the need was felt for a body which could co-ordinate and generally exercise administrative control over the work of the two organisations. The Department of Commerce in the Government of India by a resolution dated September 26, 1942 with a view to fulfil that need constituted a Council of Scientific and Industrial Research on a permanent footing. The main object of the organisation was not only the purposes just mentioned, but also to see how best the results achieved by the two bodies could be utilised in practice. The Council has been registered as a Society under the Registration of Societies Act, 1860, and the actual administration of its affairs as well as its funds have been entrusted to a governing body of the Council constituted according to the rules and regulations of the Council. The Council has set up its own Advisory Bodies to examine proposals of Scientific and Industrial Research and to report to the governing body on the feasibility of the proposals and to advise on any other question referred to them by the governing body. The governing body, as it was originally constituted consisted of the Member of the Council of the Governor General in charge of the portfolio of Commerce, a representative of the Commerce Department of the Government of India, a representative of the Finance Department of the Government of India, two members of the Board of Scientific and Industrial Research elected by the Board, two members of the Industrial Research Utilisation Committee elected by the said Committee, the Director of Scientific and Industrial Research, and one or more members to be nominated by the Government of India to represent interests not otherwise represented. The functions of the Council, among other things, were to implement the resolution passed by the Legislative Assembly on November 14, 1911 to wit :

This Assembly recommends to the Governor General in Council that a fund called the Industrial Research Fund be constituted, for the purpose of fostering industrial development in this country and that provision be made in the budget for an annual grant of rupees ten lakhs to the fund for a period of five years.

The other objects of the Council were-

the promotion, guidance end co-ordination of scientific and industrial research including the institution and the financing of specific researches ;

the establishment or development and assistance to special institutions or departments of existing institutions for scientific study of problems affecting particular industries and trade ; the establishment and award of research studentships and fellow. ships ; the utilisation of the results of the researches conducted under the auspices of the Council towards the development of industries in the country and the payment of a share of royalties arising out of the development of the results of researches to those who are considered as having contributed towards the pursuit of such researches.

the establishment, maintenance and management of laboratories, workshops, institutes and organisations to further scientific and industrial research and to utilise and exploit for purposes of experiment or otherwise any discovery or invention likely to be of use to Indian industries; the collection and dissemination of information in regard not only to research but to Industrial matters generally; publication of scientific papers and a journal of industrial research and development; and any other activities to promote generally the objects of the resolution.

The Board of Scientific and Industrial Research has on its membership, mostly distinguished men of Science and various disciplines, and so too the Industrial Research Utilisation Committee. The Industrial Research Fund at the disposal of the Council would consist of grants from the Central Revenues from time to time, other sources by grants from State Governments, by Industrialists for special or general purposes, contributions from universities or local bodies, donations or benefactions, royalties, etc., received from the development of the results of Industrial research, and miscellaneous receipts. The Council of Scientific and Industrial Research will exercise full powers in regard to the expenditure to be met out of the Industrial Research Fund, subject to its Bye-Laws. While forming the Council, the Government of India expressed the hope that the facilities afforded by the Council of Scientific and Industrial Research will be availed by all interested in Indian Industrial Development and that the State Government would assist the Council in its work by establishing Provincial Advisory Boards of Scientific and Industrial Research to form liaison' with the Board of Scientific and Industrial Research. The Memorandum of Association of the Council of Scientific and Industrial Research mentions its objects which include-

(a) implementation and giving effect to the resolution of the Assembly we have already referred to ;

(b) the promotion, guidance and coordination of scientific and industrial research including the institution and the financing of specific researches ;

(c) the establishment or development and assistance to special institutions or departments of existing institutions for scientific study of problems affecting particular industries and trade.

(d) the establishment and award of research studentships and fellow, ships;

(e) the utilisation of the results of the researches conducted under the auspices of the Council towards the development of industries in the country and the payment of a share of royalties arising out of the development of the results of researches to those who are considered as having contributed towards the pursuit of such researches ;

(f) the: establishment, maintenance and management of laboratories, workshops, institutes and organisations to further scientific and industrial research and to utilise and exploit for purposes of experiment or otherwise any discovery of invention likely to be of use to Indian Indus, tries;

(g) the collection and dissemination of information in regard not only to research but to industrial matter generally;

(h) publication of scientific papers and a journal of industrial research and development;

(i) for the purposes of the society to draw and accept and make and endorse discount and negotiate Government of India and other promissory notes, bills of exchange, cheques or other negotiable instruments ;

(j) to invest the funds of, or money entrusted to, the Society upon such securities or in such manner as may from time to time be determined by the governing body and from time to time sell or transpose such investment;

(k) to purchase, take on lease, accept as a gift or otherwise acquire, any land or building wherever situated in India which may be necessary of convenient for the Society;

(l) to construct or alter any building which may be necessary for the society ;

(m) to sell lease, exchange and otherwise transfer all or any portion of the properties of the society ;

(n) to establish and maintain a research and reference library in pursuance of the objects of the Society with reading and writing rooms and to furnish the same with books, reviews, magazines, newspapers and other publications;

(o) to employ and pay the necessary staff for the purpose of the Society and maintain a provident fund for the benefit of such staff or any portion thereof ; and

(p) to do all other such things as the Society may consider necessary incidental or conducive to the attainment of the above objects.

7. Since 1942 the CS1R has gathered momentum. It has set up a chain of national laboratories and research institutes in various parts of the country especially after 1950. We find from the introduction to 'Our Research Institutions,' the CSIR, along with other major scientific organisations, like the Indian Council of Agricultural Research set up in 1929, the Department of Atomic Energy,. set up in 1954, and the Defence Research and Development Organisation set up in 1958, accounts for over 68 per cent of the total expenditure, on scientific research and development in this country, and the CSIR is the largest among them all. Under the CSIR, there are about 30 national laboratories and other research institutions, four of which are regional laboratories. Two other organisations are devoted to dissemination of scientific information, and there are two industrial and technological museums, besides, ten industrial co-operative research associations functioning under auspices of the CSIR. Six of them are said to be concerned with textile industry, and the other four with cement, plywood, automotive research and tea. Financial assistance to the extent of 50 per cent of their capital and recurring expenditure is provided by the Council to each of these research associations. It is also useful to note the following from the introduction to 'Our Research Institutions.'

As can be seen from a quick survey of their work, all these research institutions, except for a very few, like the National Chemical Laboratory and the National Physical Laboratory, deal with specific areas, such as food, fuel, buildings, and roads or with problems of interest to specific industries, like electronics, glass and ceramics; leather, minerals and metals marine, chemicals, drugs and scientific instruments, or with applied science and technology, like mechanical engineering, electrochemistry, geo-physics, oceanography, experimental medicine and toxicology. The functions of the four regional laboratories are primarily related to industrial development in their respective geographic areas.

Each research institution is headed by a Director and is guided by an executive council. The CSIR, which controls all these institutions, is headed by a Director-General. The Council has a Hoard of Scientific and Industrial Research, which is the Chief advisory body in all scientific matters, and a Governing Body, with the Prime Minister as its President.

With the establishment of the chain of laboratories and other research institutions, India has laid the frame work for sustained scientific pursuit and endeavour. Along with other research agencies, these institutions provide ' the flesh, muscle and sinews through which policy decisions at the national level can be translated into practical results.' These firmly supported by pilot plants, workshops, libraries and documentations and extension services, provide a strong infrastructure for a corps of over 9,500 highly qualified scientists and technologists. This sizable scientific potential,, apart from undertaking prolonged investigations on basic and fundamental problems, also tackles 'specific time targetted projects lying in more than one discipline.'

The CSIR laboratories, along with other scientific and technological institutions in this country, try 'to provide technological and engineering inputs and indicate the pathways into which the industry and economy must move to harmonise with the national concert of self reliance', as Dr, T. Nayudamma, Director General of the CSIR, put it.

7-A. The Madras Complex, within which we are concerned of the CSIR is thus a Union Agency set up for promotion of special studies and research and for co-ordination in Institutions for higher research and Scientific and Technical Institutions. The Complex gets its funds for expenditure from the fund of the CSIR. The Appropriation Acts of 1971 to 1974 of the Union of India show that for the three years, 1971 to 1973, sums of Rs, 23,21,21,01)0, Rs. 4,12,22,000 and Rs. 4,03,91,000 were made over to the CSIR as grants from the Union of India.

8. The CSIR is thus financed by the Government of India. The receipts and expenditure of the CSIR for the years 1971 to 1973 under broad and major heads throw light to a certain extent, on the character of the CSIR:

_______________________________________________________________________________________

Receipts 1970-71 971-72 1972-73

_______________________________________________________________________________________

Rs. Rs. Rs.

1. Grants from Government of India 19,67,30.507/73 21,43,37,146/88 24,56,30.000/-

2. Miscellaneous (Laboratories &

Institutes.) 1,30,85,702/73 1,42,68,120/77 1,69,46,375/2

________________ ______________ ______________

Expenditure

1. Pay and Allowance 8,29,00,504/76 8,90,11,133/32 9,71.96,487/36

2. Contingencies (Laboratories Store

Institutes, etc,) 1,64,69,105/85 1,85,39,531/66 2,07.43,803/37

3. Scientists pool. 26,41,334,48 28,50,641/52 81,18,467/40

4. Felloships & Scholarships. 13,38,126/42 13,40,919/75 13,61,404/85

5. Special Research Programmes

(Grant in aid retired/meritus

Scientists.) 1,00,00,000/00 1,00,00,000/00 1,00.00.000/00

6. Pilot Plan Stud P/L Allowance, etc.1,46,52,045/41 1,31,65,526,56 1,19,57,940/00

________________________________________________________________________________________

It may be seen from the table above that bulk of the funds for the expenditure come from the Government of India, and miscellaneous receipts from laboratories and Institutes, and the expenditure is mostly on pay and allowances, contingencies, Scientists, pool, Fellowships, and Scholarships, Special Research Programmes as Grant-in-aid and Pilot Plan Staff Allowances. The receipts from Laboratories and Institutes are through what ;is called job work and consultancy service. The Laboratories and Institutions of the CSIR carry out research programmes under the plans of Scientific and Industries Research approved by the National Council for Science and Technology. In the Research Institutions, Scientists undertake various research projects. They develop processes and inventions, and some of the processes are also patented. Under an agreement entered into between the National Research Development Corporation of India, a company registered under the , Indian Companies Act, 1913, and the CSIR, the Corporation pays the CSIR a share of the royalties arising from the exploitation of inventions, patents and technical and engineering know-how of processes, in consideration of the CSIR assigning and transferring to the Corporation all its rights in such inventions and patents and engineering know-how and processes. The Corporation exploits the patents and inventions by granting licences to parties who use them for industrial purposes. Development of such inventions and processes and supply of know how and their exploitations as just mentioned, do not, in our opinion, amount to rendering material service of an industrial character in a commercial sense. As a matter of fact, it appears that the royalties received by the CSIR are small in comparison with the total income and expenditure of the CSIR. The Laboratories and Institutions, as we find, also do consultancy service in rendering of which they undertake job work as part of such service. If any industry encounters a difficult problem, the Council provides expert service to solve it. The Council investigates the problem with its expert knowledge and the solution found is extended to the industry. A nominal charge is collected by the Council for the service, which is also very little when compared to the total receipts and expenditure of the CSIR. It is explained that when the work is done inside the Institution, it is treated as job work, and when the experts are called upon to proceed outside and carry out the investigation, it is called ' Consultancy Service'. Guidelines are given by the council regarding rendering of consultancy services. A perusal of the descriptions of some of the job work or consultancy service so undertaken and fees received, convinces us that the object and nature of the job work and consultancy service are not business carried on in a commercial sense.

9. The Madras Complex are said to consist of the units:

(1) Central Mechanical Engineering Re. search Institute, Durgapur ;

(2) Structural Engineering Research Centre, Rourkela ;

(3) Central Scientific Instruments Organisation, Chandigarh ;

(4) Central Electrochemical Research Institute, Marakudi ;

(3) Central Public Health Engineering Research Institute, Nagpur ;

(6) National Metallurgical Laboratory, Jamshedpur ; and

(7) C.E.E.R.I.

The nature of the work and the financing, almost wholly by Government, show that these institutions are research institutions in the course of working of which as detailed earlier, they can hardly he said to be engaged in any commercial enterprise in the sense of rendering material service, supplying goods and Ors. as a business of trade. The Council produces, as has been stated in the counter statement of the CSIR, certain number of items more to serve as prototypes of goods which can be produced by others utilising the processes developed by the Institution. Sometimes pilot plants are set up with the object of demonstrating that the processes developed by the institutions are commercially and technically viable. When the demonstration is over, the pilot plants appear to be dismantled. Seldom such pilot plants are sold to serve as a prototype, and even when there is a sale, it is only for a very nominal amount.

10. No doubt, factory licence has been taken by the CSIR Madras Complex. But, it has to be noted that the Institute consists of various sections and departments and factory licence seems to have been obtained only with reference to one of those sections. Though such a factory licence is taken for a section, the Government of Tamil Nadu, having regard to the character of the CSIR, have exempted it from certain provisions of the Factories Act.

11. On behalf, of the employees and workers union it is stated that the CSIR Research Laboratories advertise in open market for selling industrial know-how and processes, the CSIR has arrangement with all industries in India to help the industrial community at large, does workshop activities collecting service charges, shares the profits of the Indian industries by collecting royalties, distributes the profits to the participating scientists of the concerned projects, manufactures and sells products in the name of pilot plants. It is also stated that the Central Leather Research Institute one of the CSIR Laboratories, has taken out a factory licence, and as a factory it cannot be regarded as an educational institution.

11A. We have given our careful consideration to the character of the Madras Complex of the CSIR and are of opinion that they are merely research institutions engaged in research work in order to help industries, and develop industries with their scientific and technological experience and know-how. The entire activity of the Complex, as it appears to us, is, therefore, educational and is not industry in a commercial sense. There is no trade or business involved in a commercial sense. The mere fact that royalties are collected or pilot plants are sold and a small nominal amount is realised, or job work is done for a consideration, will not on a proper perspective of the character of the entire activity of the CSIR complex, make any difference to the real nature of the Complex as consisting of educational institutions.

12. The CSIR Complex is one of those Agencies and Institutions contemplated by ''Entry 65 of the Union List in the Seventh Schedule to the Constitution. That Entry relates to Union Agencies and Institutions for professional, vocational or technical training, including the training of police officers or the promotion of special studies or research; or scientific or technical assistance in the investigation or detection of crime. Entries 63 to 66 are carved out and put down separately in the Union List from Entry 11 of the State List which is 'education including universities,' subject to the provisions of Entries 63 to 66 of List I and Entry 25 of List III. Entry 63 in the Union List relates to the Benares Hindu University, the Aligarh Muslim University as they were known at the commencement of the Constitution, and other institutions to be declared by Parliament to be institutions of national importance. Entry 65 comprises of institutions financed by the Government of India wholly or in part and declared by Parliament by law to be institutions of national importance. The CSIR is one of those institutions for scientific and technical education. The CSIR is a professional, vocational and technical training institution. It is also engaged in promotion of special studies and research. As we have already noticed, one of the objects of the CSIR is Co-ordination and determination of standards in institutions for higher education or research and scientific and technical institutions which is comprehended by Entry 66 of the Union List.

13. We are not, therefore, persuaded that merely on account of the receipt of royalties or nominal price for some job work dun, sale of some goods in the course of Industrial Research and Development of Industries, what is really an institution essentially educational in character, should be stamped as an industry in a commercial sense. We hold that the Madras Complex is not an industry either for the purpose of Industrial Disputes Act, or the Trade Unions Act.

14. We have next to determine the Character of the Pasteur Institute of Southern India, Coonoor, in the Nilgiris. The object and main work of the Pasteur Institute, as the record shows, is to carry on research on communicable diseases of national importance. It has done research on rabies and laboratory work on influenza. In fact, the Institute appears to be the Influenza Centre of the Government of India. Research on intestinal virus and other respiratory viruses, vaccine, small pox and tranchamos is made in the institute, Other studies on tissue culture and bacterial diseases like cholera, syphillis are also made in this institute. The institute runs a clinical laboratory and its purpose is stated to be to keep in touch with the medical profession in connection with its research programmes. It may thus be seen that the Institute is basically a research centre. It seems to be a training centre as well, because training is given in the institute in rabies, other virus diseases and general bacteriology for workers sponsored by the World Health Organisation, Central and State Government and other institutions in the country. The institute has been recognised by universities for training candidates for the post-Graduate Degrees in Bacteriology and Virology. The members of the Central Committee of the Pasteur Institute consist of Heads of Medical, Public Health, Veterinary, Public Works Department, Senior Administrative Officers of the Government of Tamil Nadu and others like awyers, chartered accountants and engineers. By a notification of the Government of India, the Institute has been recognised as a charitable organisation as well. In our opinion, the Institute is not, therefore, an industry, but a Research Institute and a Training Centre. No doubt, antirabies vaccine is prepared in the Institute and it is supplied to State Governments, the Army and the Railways; but, it is not, as we understand, sold in open market. This feature by itself does not enable us to hold the institution to be commercial. The sale of antirabies vaccine by the institute docs not convert it into a trading or commercial or industrial concern. We note that the institute does not distribute any profits, though of course, this is not determinative in itself of the character of the institute. But the fact is noteworthy, and is not irrelevant to the issue of character of the institute. It was said that medical services were rendered in the institute on payment of fees; but what is pointed out to us by the Institute is that indigent patients are treated free of charges in the Antirabies Treatment Centre run by the institute, and that in the case of paying patients, the cost of vaccine alone is recovered without charging any fees for the services rendered. On this background of facts, the claim of the institute that it is essentially a Research-cum-charitable organisation working for the benefit of humanity without any profit motive, is well founded. Too much importance cannot be attached to the fact that the institute is making an income of rupees 20,000 per annum from the clinical laboratory, for the institute asserts that is not even sufficient to meet the cost of the materials used and also the pay and allowances of the staff employed in the laboratory. Nor are we satisfied with the fact that the Institute has undertaken preparation of polio-vaccine for the protection of 50 millions of susceptible children in the country, on behalf of the Government of India, as a national service on 'no profit no loss' basis, makes the institutes activity a trading activity. Until April 1969), the Ministry of Health, Government of India, was making grants to the institute to carry out research on communicable diseases of national importance, and thereafter, the grant is routed through the Indian Council of Medical Research which is concerned with the medical research in the country under the auspices of the Government of India. We hold that the Pasteur Institute of Southern India, Coonoor, is not an industry either for purposes of the Industrial Disputes Act, or the Trade Unions Act.

15. The original petition, the application, the writ petition, and the writ appeal are dismissed. No costs.


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