Introduction:

In a groundbreaking decision, the Lucknow Bench of the Allahabad High Court has declared the U.P. Forest Corporation as an “industry” within the purview of the Industrial Disputes Act, 1947. The ruling, delivered by Justice Alok Mathur, emphasizes that employees engaged in systematic activities, such as the ‘mali’ involved in forest-related tasks, are not to be considered as casual workers. The court’s decision sets a precedent for the classification of government entities undertaking sovereign functions as industries under labor laws.

Arguments:

The case emerged from an industrial dispute where 15 workers, despite continuous service, were not made permanent, leading to a conflict referred to the Industrial Tribunal. The petitioner, disputing the Tribunal’s jurisdiction, argued that the Forest Department did not qualify as an industry. The Tribunal disagreed, relying on the fact that the workers were engaged in systemic activities and, despite being casual workers, worked for 240 days a year. The petitioner relied on the State of Gujarat v. Pratamsingh Narsinh Parmar to contest the jurisdiction, emphasizing the need for a positive delineation of ‘industry.’

Court’s Judgement:

Justice Alok Mathur, drawing on precedents like State of U.P. Forest Department, recognized the U.P. Forest Corporation as an industry. The court cited Fisheries Department v. Charan Singh, where the Supreme Court held that regular engagement of employees fulfills the purpose of an establishment, making it an industry. The High Court rejected the petitioner’s argument against declaring sovereign functions as industries, affirming the Tribunal’s jurisdiction and dismissing the writ petition. This landmark decision sheds light on the scope of entities considered industries under labor laws.