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TMI Blog1997 (4) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... cted the contention of the appellant that it was not an 'industry' within the meaning of Section 2(j) of the I.D. Act. Though it recorded a finding that PRL is purely a research institute and the research work carried on by it is not connected with production supply or distribution of goos or services yet it took the aforesaid view following the decision of this court in Bangalore Water Supply Sewerage Board Vs. A. Rajappa 1978 (2) SCC 213 as it further found that PRL is carrying on, in an organised and systematic manner, the activity of research in its laboratory by active co-operation between itself and its employees and the discoveries and invention made would be eligible for sale. in taking the view that PRL is an 'industry' it also followed the decision of the Gujarat High court in physical Research Laboratory Employees Union vs. A.N. Ram (special civil Application No. 1082 of 1979), a case under the Trade Unions Act, wherein it was observed that In view of the decision of the supreme Court in Bangalore Water Supply Sewerage Board v. A. Rajappa and others A.I.R. 1978 S.C. 548, it is not open to doubt that the employees working with the physical Research La ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of India's Department of space. Its object is to conduct and is, therefore, engaged in conducting advance research in (1) astronomy and Astrophysics, (2) planetary atmosphere and aeronomy , (3) earth science and solar system studies and (4) theoretical physics. It is the case of the appellant that the research work is done in the institute by eminent scientists who engage themselves in resolving problems of fundamental sciences on their own. It is not directly of indirectly carrying on any trade or business and its activities do not result into production or distribution of goods or services calculated to satisfy human wants and wishes. The knowledge acquired as a result of the research carried on by it is not sold but is utilised for the benefit of the government. it was, therefore, submitted by the learned Attorney General that PRL being a purely research institute of the central Government engaged in carrying on fundamental research regarding the origin and evolution of the Universe and the atmosphere of the earth is not an 'industry' as defined by section 2(j). He further submitted that the activity of research is carried on mainly by the scientists engaged for tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eds, cults or inner sense of incongruity or outer sense of motivation for or resultant of the economic operations. The ideology of the Act being industrial pease, regulation and workmen, the range of this statutory must inform the reach of the statutory definition. Nothing less, nothing more (a) The consequences are (i) professions, (ii) clubs, (iii) educational instituions, (vi) co- operative (v) research institutes, (vi) charitable projects and (vii) other kindred adventures, if they fulfil the triple tests listed in I(supra), cannot be exempted from the scope of section 2(j). (b) A restricted category of professions clubs, co-operative and even gurukulas and little research labs, may substantially and, going by the dominant nature criterion , substantively, no employees are entertained but in minimal matters. marginal employees are hired without destroying the non-employe character of the unit. (c) If in a pious or altruistic mission many employ themselves, free or for small honoraria or like return, drawn by sharing in the purpose or cause, such as lawyers volunteering to run a free legal services clinic or doctors serving in their spare hours in free medical centre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of its sovereign function. one more aspect to be kept in mind is that the aforesaid principles are not exhaustive either as regards what can be said to be sovereign function or as regards the other aspects dealt with by the court. In this context, it is useful to chief Conservator of Forests and another vs. Jagannath Maruthi Kondhare , 1969(2) SCC 293 wherein this court, while rejecting the contention that as sovereignty vests in the people the concept of sovereign functions would include all welfare activities on the ground that talking of such a view would erode the ratio in Bangalore water supply, case. Observed that the dichotomy of sovereign and non-sovereign function does not really exit - it would all depend on the nature or the power and manner of its exercise After referring to the three traditional sovereign function namely legislative power the administration of laws and the exercise of the judicial power and also the decision of the exercise of the judicial power and also the decision of the Gujarat High court in J.J. Shrimali vs. District Development Officer 1989(1) GLR 396, wherein famine and drought relier works undertaken by the state Government were held not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nations, such discoveries may be sold for a heavy price in the industrial of other markets. Technology has to be paid for any technological inventions and innovations may be patented and sold. In our scientific and technological age nothing has more case value, as intangible goods and invaluable services than discoveries . it has been said that his brain had the highest cash value in history for he made the word vibrate with the miraculous discovery of recorded sound. unlike most inventors he did not have he received it munificently on this gratified and grateful earth thanks to conversion of his inventions into money aplenty. Research benefits industry even though a research institute may be a separate entity disconnected from the many industries which funded the institute may be a separate entity disconnected from the many industries which funded the institute itself it can be regarded as an organisation propelled by systematic activity modelled on co- operation between employer and employee and inventions and useful solutions which benefit individual industries and the nation in terms of goods and services and wealth. It follows that research institutes, albeit run with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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