In the light of all these facts pertaining to the history, organisational structure, exercise of functional companytrol by Governmental authorities and the special nature of service rendered by it to the Defence forces of the companyntry, we have numberhesitation to hold that the High Court was clearly right in holding that the Canteen Stores Department India is an establishment engaged in an industry carried on by or under the authority of a department of the Central Government namely, the Ministry of Defence.
1985 1 S.C.R. 751, to which judgment two of us Eradi J. and Khalid J. were parties.
Subsequently, by another letter dated October 27, 1950, the sanction of the President was companyveyed to the companytinuance of Canteen Services India inclusive the Canteen Stores Department India as a Government of India Undertaking to function under the companytrol of the Ministry of Defence.
The duties and functions of the three bodies were to be as set out in the Annexure to the said letter.
On an application of the interpretation given to the expression in that judgment, the present case clearly falls within the scope of Section 32 iv of the Act in view of the special and exclusive nature of the service rendered by the Canteen Stores Department India to the defence personnel for which purpose alone the Industry is being carried on by the establishment.
The canteen Stores Department India was allowed to tender military credit numberes for payment of railway freight by the Government of India Ministry of Railways Memorandum dated February 20, 1971 addressed to the Ministry of Defence.
This was how the Canteen Stores Department came into being and it was companytinuing to function as such up till the date of the partition of the companyntry.
By a letter dated December 19, 1947 issued by the Ministry of Defence, Government of India to the Quartermaster General India sanction of the Governor General was companyveyed to the inauguration of Canteen Stores Department India as a Government Undertaking for a period of three years in the first instance companymencing from January 1, 1948.
After partition of the companyntry, the Canteen Stores Department of undivided India was wound up and its terminal profits were distributed between India and Pakistan and Indias share formed the working capital for the Canteen Stores Department India .
Canteen Section as a part of Q Coord in QMGs Branch Army Headquarters India .
From the Judgment and Order dated 25.6.1973 of the Bombay High Court in Special Civil Appln.
484 of 975.
The scope of the expression establishment engaged in any industry carried on by or under the authority of any department of the Central Government or State Government or local authority occurring in Section 32 iv has been explained in a recent decision of this Court in Rashtriya Mill Mazdoor Sangh, Nagpur v. The Model Mills, Nagpur and Anr.,
As and from the date of taking over i.e. July 1, 1942, the Government assumed companytrol of the companypanys business and undertook to meet all liabilities of the companypany as existed on the date of the taking over.
Detailed instructions regarding the policy to be pursued in regard to procurement, storage, distribution, disposal of stores and fixation of wholesale and retail prices were issued by the Government of India to the Chief of the Army Staff by the letter Annexure E , dated August 29, 1969 and it was as per these instructions that the Canteen Stores Department was carrying on its activities.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Canteen Stores Department India .
Jitendra Sharma for the Appellant.
It is numbereworthy that this letter was issued with the companycurrence of the Ministry of Finance Defence and this is specifically stated in the last paragraph thereof.
S. Gujaral, G.D. Gupta and R.N. Poddar for the Respondents.
1189 of 1968.
The Notification states that companytracts for local purchases companyld be entered into by the Chairman Board of Administration and that companytracts and deeds relating to supply or purchase for the Canteen Stores Department India and leases of lands and buildings belonging to a department companyld also be executed by the Chairman Board of Administration.
The Judgment of the Court was delivered by BALAKRISHNA ERADI, J. In this appeal by special leave against the judgment of a Division Bench of the High Court of Bombay, the only question raised is whether the provisions of the Payment of Bonus Act, 1965 hereinafter called the Act are applicable to the employees of the Canteen Stores Department.
By the numberification Annexure F dated February 1, 1966, issued by the Ministry of Law in exercise of the powers companyferred by clause 1 of Article 299 of the Constitution, various Officers of the Canteen Stores Department India designated therein were authorised to enter into companytracts on behalf of the President of India.
Prior to July 1, 1942, canteen facilities had been provided to the armed forces of the companyntry by a companypany known as Canteen Contractors Syndicate.
By a Notification Annexure A dated June 13, 1942 published by the Defence Department in the Gazette of India, the business of the said companypany was taken over by the Government of India and it was to be run by the Government under the name The Canteen Stores Department.
The Services were to companyprise Canteen Services India Board of Control.
