Central Institute Of Medicinal & Aromatic Plants, Lucknow Not 'Industry' Under Industrial Disputes Act: Allahabad High Court

The Allahabad High Court has held that Central Institute of Medicinal & Aromatic Plants, Lucknow, a constituent/ Institute of Council of Scientific and Industrial Research, New Delhi is not an industry under 2(j) of Industrial Disputes Act, 1947.Definition of 'Industry' under the Act of 1947 reads as"2(j) "industry" means any business, trade undertaking, manufacturer or calling of employers and includes any calling, service, employment, handicraft, or industry occupation or avocation of workmen.” While deciding 19 year old petitions, Justice Irshad Ali held “the Central Institute of Medicinal and Aromatic Plants, Lucknow being a purely research and scientific organization functioning under the Council of Scientific and Industrial Research does not fall within the definition of 'Industry' under Section 2(j) of the Industrial Disputes Act, 1947.”Certain dispute was raised by the employees of Central Institute of Medicinal & Aromatic Plants, Lucknow consequent to which conciliation proceedings before the Regional Labour Commissioner (Central), Kanpur under the provisions of Industrial Tribunal Act, 1947 regarding their employment. After failure of the conciliation proceedings, matter was referred to Central Government Industrial Tribunal-cum- Labour Court, Kanpur who passed a common award dated 25.09.2005 without considering evidences and without deciding the issue as to whether Central Institute of Medicinal & Aromatic Plants, Lucknow/ CSIR, New Delhi were 'industry' under 2(j) of Industrial Disputes Act, 1947. This decision was challenged by both the employees and the employer. Counsel for Central Institute of Medicinal & Aromatic Plants, Lucknow/ CSIR, New Delhi argued that it was a purely research facility not engaged in any trade, business, or commercial activities and therefore, could not be termed as an industry. Accordingly, the Industrial Tribunal-cum- Labour Court did not have power to pass award in disputes raised by the employees.Further, it was argued that by virtue of the notification dated 31.10.1986 issued under Section 14(2) of the Administrative Tribunals Act, 1985, CSIR had been brought under the ambit of Administrative Tribunals Act, 1985 and therefore, Central Institute of Medicinal & Aromatic Plants, Lucknow would also be governed by the Administrative Tribunals Act, 1985. In Physical Research Laboratory v. K.G. Sharma, the Supreme Court had held that 'Physical Research Laboratory' is not an industry as the activity of organised research which it carries cannot be equated to carrying out trade and business “because it is not producing and distributing services which are intended or meant for satisfying human wants and needs, as ordinarily understood.”Relying on the aforesaid, Justice Ali held society in question was only primarily engaged in scientific research concerning medicinal and aromatic plants and was not carrying out any trade or business. “The object of the institute is not to carry on trade or business or to earn profit, but to carry out research in the national interest and for public welfare. The activity undertaken by C.I.M.A.P. is thus academic and scientific in nature and cannot be equated with any commercial or industrial venture.”Accordingly, the Court held that Central Institute of Medicinal & Aromatic Plants, Lucknow, a constituent/ Institute of Council of Scientific and Industrial Research, New Delhi is not an industry under 2(j) of Industrial Disputes Act, 1947. Case Title: Central Institute of Medicinal and Aromatic Plants and Ors. Versus Sri Rishi Dev Mishra and Other [WRIT - C No. - 1005010 of 2006]Click Here To Read/Download Order

Central Institute Of Medicinal & Aromatic Plants, Lucknow Not 'Industry' Under Industrial Disputes Act: Allahabad High Court

Upasna Agrawal

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