By numberification dated 01.4.1987, issued in exercise of powers under sub section 3 of section 3 of the U.P. Shops and Commercial Establishments Act, 1962, all stores, depots and canteens run by the Corporation have been exempted from the provisions of section 4 b of the said Act.
The multiple test which is to be applied to ascertain the character of a body as falling within Article 12 or outside as laid down by majority view in Pradeep Kumar Biswas case supra is to ascertain nature of financial, functional and administrative companytrol of the State over it and whether it is dominated by the State Government and the companytrol can be said to be so deep and pervasive as described the minority view in Pradeep Kumar Biswas case supra so as to satisfy the companyrt of brooding presence of the government on the activities of the Corporation.
Ex officio Director Shri H. C. Saxena Secretary, Industries Deptt.
Letter sent on 7.3.2001 by the Executive Director of the Corporation to all District Magistrates indicates overall companytrol on the activities of the Corporation by the functionaries of the State.
The members and office bearers of the Corporation are all executive officers of the State representing different departments companycerned with civil supplies.
In accordance with Rule 4 of the Rules of Association, other employees of the State Government can be included as members of the Corporation only with the previous approval of the State Government.
Similarly, in accordance with rule 12, Executive Director can delegate his powers to any officers of the State Government.
The letter, however, directs the Corporation to return the said amount with interest through a cheque to Commissioner, Department of Food and Civil Supplies before 31.3.2000.
From the memorandum of the Articles of Association, it is clear that one of its objects is that it can act as an agent or stockist on behalf of the government.
Relying on decisions of the Lucknow Bench of the same Court in the case of Vijay Kumar Verma vs. U.P. Government Employees Welfare Corporation Writ Petition No.
On the expenditure of the working capital provided some restrictions have been placed which read thus Out of this working capital, the Corporation will purchase products already approved or to be approved in future by the Product Approval Committee of U.P. State Employees Welfare Corporation companystituted vide GO dated 4.9.1999.
Chairman of the Ex officio Board Board Shri V. M. Bhide Commissioner Secretary, Finance Deptt.
District Magistrate.
And the Executive Director of the Corporation that to solve the problem of pending bills of the Corporation with the Secretariat Administrative Department, against the total bill of Rs.1.12 crores, the Food Department will immediately pay the amount from its trading account which will be reimbursed to the Department on receipt of budget.
Officio Director Shri B. B. Malik Director of Industries, UP Ex officio Director Shri B. L. Chak Secretary, Appt.
We may, therefore, briefly indicate the evidence produced by the parties relevant to the multiple test to determine the companyposition and character of the Corporation Administrative Control The Corporation was formed by a decision of the government with the object of providing articles of daily requirement to the government servants at reasonable rates.
They are on the management of the Corporation in their capacity as officers of the State Government.
The Board may, likewise delegate any of its powers, number being the powers under clause b , c , h , i and k of sub rule 5 of rule 3 of the said Rules in favour of any officer of the Corporation or to an officer of the State Government, number below the rank of a District Magistrate which will include an Additional District Magistrate also .
The companytents of the letter directing physical verification of stocks of essential companymodities in various stores of the Corporation through the Commissioner and Secretary of Food and one gazetted officer numberinated by District Magistrate is a clear pointer to the pervasive companytrol exercised by the State and its officers on the functioning and activities of the Corporation.
45 lacs every quarter shall be made available by the Food Department to the Corporation on which the Corporation will pay interest at the rate of 12.34.
Ex officio Exe.
By letter dated 16.9.1999, the Secretary informed the Commissioner of Food and Supplies Department and Executive Director of the Corporation that the Food Department will provide amount up to Rs.10 crores from its trading account to the Corporation as working capital for its business and Food Department will be responsible for return of the working capital made available to the Corporation within time.
A preliminary objection was raised by the Corporation to the maintainability of writ petition on the ground that the Corporation does number fall in the definition of State under Article 12 of the Constitution.
The rules of the Corporation can be added to, amended, varied or deleted only with prior approval of the State Government.
It reads thus The Board may with the previous approval of the State Government admit any employee of the State Government as member of the Corporation.
It reads thus The Executive Director may, subject to his general companytrol and supervision and such restrictions as he may like to impose delegate all or any of his powers to any officer of the Corporation or of the State Government.
Rule 4 of the Rules of Association of the Corporation is also relevant for the purpose of finding out the real nature of the Corporation.
Secretary, Chief Secretaries Branch, UP Govt.
The Food Commissioner will separately maintain account for the arrangement and will ensure that it functions smoothly.
Letter dated 14.1.1992 of Joint Secretary, Govt.
The services of the petitioner from the post of Salesman in one of the stores of the Corporation have been terminated against which he approached the High Court of Allahabad.
By letter 6.9.1997, the earlier grant of 75 in the year 1996 97 was increased to cent percent to meet the expenditure of salaries and allowances of employees of canteens run by the Corporation.
By letter dated 15.9.1994 the State Government granted sanction for revival of the post of Assistant Director earlier sanctioned in the year 1980 for the Corporation.
Emphasis supplied So far as funding and financing of the Corporation are companycerned, petitioner has filed additional documents in this appeal companytaining various grants annually made from time to time by the State Government to the Corporation.
In accordance with rule 6, the Board may delegate specified powers to the officers of the State Government number below the rank of District Magistrate or Addl.
By letter dated 16.12.1999, the Secretary of Government of Uttar Pradesh wrote to the Commissioner, Food and Supplies Deptt.
The names of the members and office bearers of the governing body are as under Shri K. K. Dass Chief Secretary to Govt.
Similarly, rule 6 is also relevant and reads thus The Board may, subject to its general companytrol and supervision and subject to such restrictions as it may like to impose, delegate all or any of its powers to any one or more members of the Board.
Emphasis supplied Similarly, rule 12 companyfers powers of the delegation on Executive Director in favour of any officer of the Corporation or the State.
It was also directed that a sum of Rs.
Director of the Board The most important is clause 4 of the Memorandum of Association of the Corporation which reads thus If on the winding up or dissolution of the Corporation there shall remain, after the satisfaction of its debts and liabilities, any property, the same shall number be paid to any of its members or distributed amongst them but subject to the provisions of section 14 of the Act shall be disposed of in such manner as the State Government may determine.
Provided that numbersuch rules shall be added to, amended, varied and deleted unless a resolution to that effect has been passed by number less than 3/5th of the members present in the meeting of the Corporation specially called for that purpose and provided further that numbersuch rules shall be added to, amended, varied or deleted without the prior approval of the State Government.
of U.P. to the Executive Director of the Corporation informed that additional grant of 50 lacs was granted for the financial year 1991 92 for expenditure of 100 amount on the salary allowances of employees working in the Headquarters of the Corporation and 50 of the amount spent on salaries and allowances of employees working at the canteens.
UP Govt.
G.A.D. Ex officio Director Shri S. B. Saran Dy.
Rule 17 dealing with amendments of the rules puts restriction on amendments or variation of the rules which can be done only with prior approval of the State Government Rule 17 The Corporation may add to, amend, vary or delete the rules.
8246 ss of 1992 decided on 13.4.1993, the writ petition filed by the petitioner in the High Court was dismissed as number maintainable against which the petitioner has preferred the present appeal.
Ex officio Director Shri Bhagwant Singh Commissioner Secretary, PC Deptt.
In this respect, the companytents of the minutes of the meeting held on 1.10.1971 in the Chairmanship of Minister of Food for companysidering the numbere prepared by the Cabinet of the Government with Chief Secretary, Commissioner and Secretary to Food and Commissioner and Secretary, Finance is revealing.
