ABC Ltd. is a company incorporated under the Companies Act, 2013. The paid-up share capital of the company is held as under: Government of India 20%, Government of Andhra Pradesh 20%, Government of Tamil Nadu 10%, Govern

Section 2(45) defines a "Government Company" as any company in which not less than fifty one per cent of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, and includes a company which is a subsidiary company of such a Government company. In the given case Government of India together with government of Andhra Pradesh, Tamil Nadu, and Maharashtra hold 60% in ABC Ltd. Hence this is a Government Company. Employees of Government companies are not Government servants, they have no legal right to claim that the Government should pay their salary or that the additional expenditure incurred on account of revision of their pay scales should be met by the Government. This has been decided in A.K. Bindal v. Union of India (2003) 114 Com Cases 590 (SC). It was decided that since employees of Government companies are not Government servants. Hence the employees of ABC Ltd. are not the employees of Government therefore, they cannot claim salaries from the Government. They are the employees of the Government Company.