University XYZ is a newly form State University in Jaipur, Rajasthan in 2007. University is providing variety of professional courses like MBA, MBBS, LLB, B.Tech., MCA, B.Ed. etc. The university is situated at the outski

CS Professional · Labour Laws & Practice · PYQS · June 2019
University XYZ is a newly form State University in Jaipur, Rajasthan in 2007. University is providing variety of professional courses like MBA, MBBS, LLB, B.Tech., MCA, B.Ed. etc. The university is situated at the outskirts of city Jaipur, around 20 km from main bus-stand north-east direction. University provides residential facilities to students as well as academic and non-academic staff. For day scholar, it provides the community transport facility from University to Central Park, Jaipur. The University has been ranked as the 7th upcoming University in higher education. Government of Rajasthan has invested around ₹500 crore for its development. University has around 200 teaching staff in various departments and 250 non-teaching staff including bus driver, library staff, administrative staff. Teachers have formed association named 'XUTA' (XYZ University Teachers Association) and non-academic staff has formed 'XUTU' (XYZ University Trade Union). Apart from specific complain, both groups have some general grounds of complain of the following nature : University has not implemented 7th pay commission salary structure. Working conditions are harsh and not as per UGC guidelines. University not providing pension scheme of any nature. Infrastructure conditions of building and buses are pathetic. As per the guidelines of XYZ University, seats in the University for Rajasthan domicile is 85% reserved and 15% of seat are reserved for students from outside state. Around 300 students stay in the hostel of University and 450 students are day scholars. Students have their Union named as 'SXUA' (Student of XYZ University Association). Students have certain regular complains to the University about poor infrastructure, poor conditions of buses/transport facility, lack of basic amenities, lock of good canteen and playing grounds. University has not responded to any complain of teaching staff, non-teaching staff and student's union positively. It has not deliberated on the issue at any forum showing their non-sensitiveness to the complaints. On 15 January 2015, while commuting from Jaipur to University in early hours, the University bus met with an accident. Driver of the bus along with 2 students suffered injury. Ramlal, the driver due to accident lost his left eye and broken left hand. Students with minor injuries are safe. Instead of making proper inquiry to the issue, the university administration issued a show cause notice of termination to Ramlal, saying that he was driving bus in inebirated conditions and therefore, he alone is responsible for the accident. Ramlal is not the member of the "XYZ University Staff Union" on the day of accident and notice. His reply to the notice of termination was not taken into consideration on this ground. Realizing the injustice to Ramlal, the XUSU, XUTA and SXUA joined together and gheraoed the administrative head of University for 2 hours on 30 January, 2015. After the intervention of enforcement agency the matter was sorted out on that day. However, these three groups continued with strike in the University. On the basis of above facts, please advise on the following issues : Whether the University is an 'industry'?

Answer & Explanation:

According to section 2(j) of the Industrial Disputes Act, 1947, "Industry" means any business, trade, undertaking, manufacture or calling of employers and includes any calling service, employment, handicraft, or industrial occupation or avocation of workmen. In the case of Bangalore Water Supply and Sewerage Board vs. A Rajiappa, AIR 1978 SC 548 , the Supreme Court, laid down the following tests (known as "Triple Test") to determine whether an activity is covered by the definition of "industry" or not. There is an "industry" in an enterprise, where there is (i) systematic activity, (ii) organised by co-operation between employer and employee, (iii) for the production and/or distribution of goods and services calculated to satisfy human wants and wishes (not spiritual or religious but inclusive of material things or services geared to celestial bliss e.g., making, on a large scale, prasad or food) prima facie. The Supreme Court observed that professions, clubs, educational institutions, co-operatives, research institutes, charitable projects and other kindred adventures, if they fulfil the triple tests listed above, cannot be exempted from the scope of Section 2(j). It was held that even a university would be an industry if it satisfies triple test. As University XYZ satisfies triple test as follows: (i) Systematic Activity: As University XYZ is providing variety of professional courses, providing residential facilities to students, academic and non-academic staff, providing community transport facility, is ranked 7th upcoming University in higher education, having an appreciable number of academic and non-academic staff which are having organized associations and trade unions... This all shows that University XYZ is carrying systematic activity of providing education. (ii) Organised by co-operation between employer and employee: The University has such a huge academic as well as nonacademic staff and vast number of residential and day scholar students, it has got huge funds from Government of Rajasthan for development, 7th Pay Commission recommendations are applicable to it... These all indicate that University XYZ is organized by co-operation between employer and employee. (iii) Prima facie purpose of University is to render higher educational services to students, therefore third test of Bangalore Water Supply Case is satisfied. As all the three tests are satisfied. Therefore, University XYZ may be considered as an "industry" in accordance with the Industrial Disputes Act, 1947.

Topics: Industrial Disputes Act, 1947

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