Holding

The Central Government is the appropriate Government for the reference, and the High Court’s quashing of the references was erroneous.

Summary

The Goa Sampling Employees' Association filed an industrial dispute against its employer, the General Superintendence Co. of India, concerning iron‑ore samplers employed at Mormugao Port in the Union Territory of Goa, Daman & Diu. The Central Government, invoking Section 10(1)(d) of the Industrial Disputes Act, 1947, referred the dispute to the Central Government Industrial Tribunal, claiming it was the ‘appropriate Government’. The employer challenged this, arguing that the Union Territory is administered by an Administrator under Article 239 and that the Administrator, not the Central Government, is the ‘State Government’ for purposes of the Act, and also contended that the workers were not dock workers connected with a major port. The High Court upheld the objection and quashed the references. The Supreme Court reversed this, holding that under the definitions in the General Clauses Act, 1897 the Central Government includes the Administrator of a Union Territory and therefore is the appropriate Government. The Court confirmed the Tribunal’s preliminary ruling and set aside the High Court’s decision, directing the Tribunal to dispose of the merits within six months.

Issues considered

Whether the Central Government is the ‘appropriate Government’ under Section 2(a)(i) of the Industrial Disputes Act, 1947 for an industrial dispute arising in a Union Territory.
Whether the Administrator of a Union Territory constitutes the ‘State Government’ for the purposes of the Act.
Whether the iron‑ore samplers are ‘dock workers’ engaged in work connected with a major port, thereby bringing the dispute within the ambit of Section 2(a)(i).
Interpretation of the definitions of ‘Central Government’, ‘State Government’ and ‘Union Territory’ in the General Clauses Act, 1897 in relation to the Industrial Disputes Act.

Legislation cited

Adaptation of Laws (No.1) Order, 1956
Constitution of Indias. Article 239, s. Article 239A, s. Article 240, s. Article 246(4)
Dock Workers (Regulation of Employment) Act, 1948
General Clauses Act, 1897s. 3(60), s. 3(62A), s. 3(8)
Government of Union Territories Act, 1963
Industrial Disputes Act, 1947s. 10(1)(d), s. 2(a)(i)

Subjects

Industrial disputeAppropriate GovernmentUnion TerritoryCentral GovernmentState GovernmentDock workersMajor portTribunal referenceSection 10Section 2(a)General Clauses Act

Judgment

313

A

GOA SAMPLING EMPLOYEES' ASSOCIATION

v.
GENERAL SUPERINTENDANCE CO. OF INDIA PVT. B
LTD. AND ORS.
December I1, 1984
,
[D.A. DBSAI AND AMARENDRA NATH SEN, JJ.]

Industrial Disputes A.ct I947, Sections 2 (a) (I) and JO (1) (d).
Industrial dispute in a Union Territory-Central Government whether ·'ttppro-
priate Government' to refer dispute to the Industrial Tribunal.
Constitution of India 1950, Article 239.
'Administration of Union Terrilory'-Administrator-Central Government
whether 'appropriate Government' to refer industrial dispute in a:~Union Territory
to the Industrial Tribunal under the Industrial Disputes Act 1947.
D
General Clauses A.ct 1897 Sections 3 (8), 3 (60), 31(62.4.).
'Central Governrrient'-'State Go~·ernment'-Union Territory'-;Admittis~
!ration of Union Territory'-' Distinction between.

Word & Phrases-Mean;ng of:
E
'appropriate Covernment'-Section 2 (a) (I) Industrial Dispute A.ct 1947
"In relation to the administration of a Union) Territory'-Section 3 (8) (b)
(iii) and 3 (60) (c) General Clauses A.ct. 1897.

The Central Government as an 'appropriate Government' referred the
Industrial disputes between the Appellant-emp1oy~s' Association and the
F
first Respondent-employerin each of the Appeals under Sec. 10 (I) (d) of the ·
Industrial Disputes Act, 1947 to the Central Government Industrial Tribunal.

A preliminary objection was raised that~the Central Government was not
the 'appropdate Government' in relation to the said industrial disputes and
consequently the Central Government had! no pawer under Sec. 10 (I) (d) of
the Act to make the five references and that the Tribunal would have no G
jurisdiction to entertain the same. The Appellant-Association"'repelled this
objection by contending that the workmen were 'dock workers' within the
meaning of the expression in the Dock Workers (Regulation of Employment)
Act, 1948 and as they were working at -Mormugao PGrt, a major port in the
Union Territory of Goa, Daman & Diu, the Central Government would be the
'appropriate Government' in relation to the industrial dispute and consequently
the references were valid and competent. H
374 stlPJ.llM!! COUlT REPORTS [1985] ~ S.C.ll·

A The Tribunal held that the workmen covered by the reference who were
iron-ore semplers were •dock workers' as defined in the Dock Workers
(Regulation of Employment) Act, 1948 and as they were warking In a major
port, in a Union Territory, the Central Government wuold be the 'appropriate
Government' for referring the industrial dispute. The Tribunal over-ruled the
preliminary objection and set down the references for final hearing.

B The first IC11pondent·employers filed applications under Article 227 in the
High Court which held that the workmen, who were iron ore samplers. were
neither comprehended in the expression 'dock workers' as defined in the Dock
Workers (Regulation of Employment) Act, 1948. nor involved in any work
connected with or related to a major port. and were not involved in an indus-
trial dispute concerning a major-port and therefore the Central Government
w811 not the 'appropriate Government' for referring the industrial dispute. '
It further held tbat the Central Government is not the State Government for
tho Union Territory of Goa, Daman and Diu under Section 2 (a) (i) of the
Industrial Disputes Act, 1947 but it is the Administrator appointed under
Article 239 and therefore the Central Government was not the 'appropriate
Government' and had no jurisdiction to make the refer~nces. The rule was
made absolute and the references quashed.

D Allowing the Appeals to this Court,

HELD: 1. The Central..Government as the jappropriate Governmenf
had made the references. The High Court was clearJy in error in quashing the
references. The judgment of the High Court is quashed and set aside and the
award of the Tribunal on the preliminary point about the competence of the
Central Government to rnake the reference under Section JO (I) of Industrial
E Disputes, Act 1947 is confirmed. The Tribunal will be at liberty to examine
the contention whether iron ore samplers are involved in any wprk connected
with or related to a major port or are dock workers and come to its own
decision .uninfiuenced by the view taken by the High Court. As tho dispute
(·
is an old one, the Tribunal is to give top priority anQ dispose of the matter
within a period of six months. [386G ; 387D·E, CJ •
F z (i) Indisputably the;lndustrial Disput~ Act, 1947 is a Central Act enac-
ted after the commencement of the General Clauses Act, 1897 and the relevant
definitions having been recast to meet the constitutional and statutory ·1'equire..
~ents the: expressions 'Central Government, jStat6 Government', and 'Union
Territ~ry' must rooeive the meaning assigocd to each in the General Clauses
Act 1897 unless there is anything repugoant in the subject or context in which
it i,' used. No. such repugnancy was brought to the notice of the Court. [384B·C]
•
G

(ii) on a conspectus of the ~elevant P,rovisi?ns of the Constitution-and
the Union .Territories Act 1963, 1t clearly transptres that the concept of State
Government is foreign to the administration of Union Territory and Article 239
provides that every Union Territory is to be admin!stered by .the Presid~n:. The
Presid~t may act through an Administrator appomted by him. AdmmIStrator
H, is thus the delegate of the President. His position is wholly different from that
EMPLOYEES' ASSOCN. v. G.S. CO. 315
of a Governor of a State. Administrator can differ with his Minister and he
must then obtain the orders of the President meaning thereby of the Cenlral A
Governritent. The Administrator of Union Territory does not therefore qualify
for the description of a State Government. The Central Government is therefore
the 'appropriate Government'. [384F~GJ

(iii) The High Court fell into an error in interpreting clause (c) of
Section 3 (60) of the General Clauses Act 1897 which upon its true construe·
,... )L
tion would show that in the Union Territory there is no concept of State
B
Government but wherever the expression 'State Government' is used in relation
to the Union Territory, the Central Government would be the State
Government. The very concept of State Government in relation to Union
Territory is obliterated by the definition. [38JD-H]

Satya Dev Bushahri v. Padam Dev & 0 ra., [1955] SCR 549 and The O·
State of Madhya Pradesh v. Shri Mou/a Bux & Ors. [1962] 2 SCR 794,
held inopplicable.

3. (i) The definition of three expn:alions 'Central Gover11ment' (Section 3
·~ .. (8)), 'State Government' (Section 3 (60)), and 'Ou1on Torritory' (Section l (62A))
in the General Clauses Act, 1897 would unmi,taJ<ably show that the framers of
the Constitution as also the Parliament in enacting tlleao definitions hav~ c1eatly D
retained the distinction between State Governmea1 and Administration of Union
Territory as provided by the Con'stitution. It is especially made Cdear in 1he
definition of expression 'Central Government' that in relation to the Administra·
tion of a Union Territory, the Administrator thereof acting within the scope of
the authority given to him under Article 239 of the Constitution. would be
comprehended in the e:r:pression 'Central Government'. When this inclusionary
part is put in juxtaposition with exclusionary part in the definition of the E
expression 'State Government' which provides that as respetts anything done or
to be done after the commencement of the Constitution (S~venth Ame11dment)
Act, 1956, it shall mean, i_n a State, theIGovernors and in a 'union Territory, the
Central GOvernment, the difference conceptually speaking between the exprcs·
sion• State Government' and the 'Administration of a Union Territory' clearly
emerges. There is no room for doubt that the expression, Administration of a
Union Territory', Administrator howscVer having been described, would not be F
comprehended in the expression 'State Government' as used in any enactment.
These definitions have been modified to bring them to their present form at by
the Adaptation of Laws (No.I) Order, 1956. [386E-G) ·

' (ii) The High Court clearly fell into an error wbeo it observed that the
inclusive definition of the expression 'State Government, does not necessarily
enlarge the scope.of the expression. but rnay occasionally point to the contrary.
G
[386C]

CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 4904-
4908 of 1984.
From the Judgment and Order dated 19.9.83 of the Bombay H
376 SUPREME COURT PEPORTS [1985] 2 S.C.R.

High Court in Special Civil Application Nos. 97B/80, 98B/80,
lOOB/80, 99B/80 and 67B/80.

V.A. Bobde, K.J. John and Ms. N. Srivastava for the appel-
!ant.
F.S. Nariman, Miss A. Subhashini, M.S. Usgaocar, S.K. Mehta,
B P.N. Puri and M.K. Dua for the respondents.

The Judgment of the Court was .delivered by

DESAI, J. Special leave granted.
0 Again the rigmarole of an utterly unsustainable preliminary
objection, and valuable time of a decade is wasted in this bizarre
exercise frustrating the search for socio-economic justice, making
it a distant dream, if not an optical illusion.

The Central Government as an appropriate Government
D referred the Industrial dispute between the appellant-Goa Sampling
Employees' Association ('Association' for short) and the first
respondent ('employer' for short) in each petition under Sec.
10 (1) (d) of the Industrial Disputes Act, 1947 ('Act' for short)
to the Central Government Industrial Tribunal No. 2, Bombay by
.different orders made in the year 1974 and 1975. Five separate
references were made because even though the Association repre-
'E senting employees is common in all references, employer is diffe-
rent but each raising a common question. When the references
came .. up before the Tribunal for hearing, it appears that the em-
ployer in each case raised a preliminary objection but what was •
the earliest preliminary objection eluded us. The Tribunal over-
ruled the preliminary objection whereupon the employer filed
F some apeal to an authority which is not made clear in the record.
It appears the matters were remitted to the Tribunal and there-
after all the five references stood transferred to the Central
Government Industrial Tribunal No. I ('Tribunal' for short).
G When the references again came up before the Tribunal for
hearin?, the history repeated. A preliminary objection was raised
that the Central Government was not the appropriate Govern-
ment in relation to the industrial dispute between the Association
and the employer and therefore, the Central Government had no
H power under Sec . JO (1) (d) of the Act to make the reference
EMPLOYEES' ASSOCN. v. G.S. co. (Desai, l,) 377

and accordingly the Tribunal will have no jurisdiction to entertain A
the same. The Association. attempted to repell this contention by
urging that the workmen were dock workers within the meaning
of the expression in Dock Workers (Regulation of Employment)
Act, 1948 and as they are working in a major port, the Central
Government will be the appropriat~ Government in relation to the
B
industrial dispute between the Association and the workmen and
therefore, the reference is valid and the Tribunal should deal
with the same on merits according to law. As a second string
to the bow, it was contended that in relation to a union territory
Central Government is the appropriate Government.

It appears that evidence was Jed before the Tribunal by
c
both the sides. The Tribunal after exhaustively examining the evi·
dence held that the workmen covered by the reference would be com·
prehended in the definition of expression 'Dock Workers' as de-
fined in the Dock Workers (Regulation of Employment) Act and
as they were working at Mormugao Port which is a major port, D
in respect of the industrial dispute raised by them the Central
Government would be the appropriate Government. The Tri-
bunal then proceeded to examine whether the reference would be
competent on the assumption that the employees are not covered
by the expression 'Dock Workers' and held that the work per-
formed by the employees is in a major port and the dispute arise E
out of the duty performed and work rendered in the major port
and therefore, the Central Government would be the appropriate
Government to make the necessary reference. The Tribunal then
proceeded to consider the alternative submission whether the
reference would be competent even if the State Government i$
F
the appropriate Government in view of the fact that Goa, Darnen
.A and Din constitute Union Territory as set out in the First
Schedule to the Constitution and its administration is carried
on by tbe Administrator appointed by the President under Art.
239 of the Constitution. Therefore, also the Central Government
is the appropriate Government. After discussing the rival con- G
tentions the Tribunal did not record a finding on this contention.
The Tribunal overruled the preliminary objection and set down
• the reference for final hearing by its order dated July 14,
1980.

The employer in each reference filed special civil application
under Art. 227 of the Constitution in the High Court of Judica- ff
378 SUPREME COURT REPORTS
[1985] 2 S.C.R.

A ture at Bombay. All the five special civil applications came up
before the Panaji Bench of the Bombay High Couri for final
hearing and they were disposed of by a common judgment. The
High Court held that the irou ore sample1s, the workmen repre-
sented by the appellant association are not involved in any work
connected with . or related ·to a major port. The High Court
B further held that .the industrial dispute ia which iron ore samplers
are involved .is not an industrial dispute concerning the major
port within the meaning of Sec. 2 (a) (i) of the Industrial Dis-
putes Act. 1947 nor are the workmen comprehended in the ex- , ·
pression 'Dock Workers' as defined in the Dock Workers (Regu-
lation of Employment) Act, 1948 and therefore, the Central
Government is not the appropriate Government for referring the
industrial dispute to the Tribunal. Dealing with the second limb
of the submission that the Central Government itself can be said
to be the State Government for the Union . Territory of Goa,
Daman and Diu, the High Court held that the Central Govern-
0 ment is not the State Government for the Union Territory of
. Goa, Daman and Diu under Sec. 2 (a) (ii) of the Act but it is the
administrator appointed under Art, 239 of the Constitution of India
. . who is the State Government for the Union Territory of Goa
)
. Daman and Diu and he 1s .
. the appropriate Government within'
)
the meaning of Sec. 2 (a) of the Act. The High Court felt that
E if the Central Government.is· also held to be. the State Govern-
ment for this purpose there would be two State Governments
for the Union Territory of Goa, Daman and Diu and this
would lead to utter confosion. The High Court accordingly
concluded that the Administrator is the appropriate Government.
' for the purpose of Sec. 2(a)(i) of the Act and therefore the
F·. Cent~al Government was not the appropriate Government and
had no jurisdiction to make the impugned references. In
accordance with this finding, the High Court made the rule
absolute quashing the references. Hence these appeals by .
. special leave.
G
. The question that must engage our attention is whether in
relation . to the industrial dl!pute between the employees repre-
sented by the Association and the employer which is the
appropriate Government which can exercise power under ·Sec. ·
IO cf the Act. · Sec. 10 provides that 'where the appropriate
H Government is of opinion that any industrial dispute exists or is
EMPLOYEES' ASSOCN. v. G.S. co. (Desai, J.) . 379

apprehended, it may at any time hy order in writing refer the
dispute etc. to a Tribunal for adjudication.' There are two A
provisos to the section which are not material for the present pur-
pose. Thus the power is conferred on the appropriate Govern-
ment to make the reference for adjudication of an industrial
dispute which either exists or is apprehended.

'Appropriate Government' is defined in Sec. 2 (a) of the ''B
Act to . mean '(i) in relation to any industrial dispute concerning
any industry carried on by or uoder the authority of the Central
Government (omitting the words not relevant. for the present
· purpose), a major port, the Central Government, and (ii) in rela-
tion to any other industrial dispute, the State Government.'
The employer contended that the employeeR represented
by the Association in each case are iron ore samplers and they
are not connected with the work of a major port or their duties
are not ancillary or incidental to the working of a major port and
therefore, Sec. 2 (a) (i) would not be attracted. As a corroleory,
D
it was submitted that the case would fall in the residuary ciause
(ii) and therefore, the State Government would be the appropriate

••
Government. The employees repelled the contention by sayi11g
that they are employees working in a major port and the_ indus-
t_rial dispute directly touches the functioning and administration
of a major port and therefore, the Central Government is. the E
appropriate Government. AlterMtively it was contended on
behalf of the Association/appellant herein that any rate in relation
to a, Union Territory, there is no State Government and the Central
Government, if it at all can be said to be one, is the only Govern-
ment and in the absence of a State Government the Central
Government will also have all the powers of the State Government F
and therefore, the Central Government would be the appropriate
Government for the purpose of making the reference. It is tip
'· second limb which we propose to examine in these appeals
because in onr opinion it goes to the root of the matter and the
appeals can be finally disposed of by answering this con·
tention. G

Before we deal with the contention on merits, it is necessary
to focus attention on constitutional and statutory provisions rele-
vant to the contention.
ff
380 SUPREME COURT llJ!POlllS (1985] 2 S.C.R.

Art. 239 (1) provides that 'save as otherwise provided by
Parliament by law, every Union Territory shall be administered
·by the President acting, to such extent as he thinks fit through an
· Administrator to be appointed by him with such designation as he
may specify.' Art. 239A which was inserted by the Constitution
(Fourteenth Amendment) Act. 1962 confers power on Parliament
.B by law to create local legislatures or Coun.cil of Ministers or both
for cettain Union Territories including Goa, Daman and Diu.
The law by which the local legislature and/or Council of Ministers
are created will also specify their constitution, powers and func-
tions in each case. By sub-art. (2) it was ensured that such law
· when enacted shall not be deemed to be an amendment of the
c Cqnstitution for the purpose of Art. 368. Art. 240 confers power
on the President. to make regulations for the peace, progress and
.good government of the Union Territories specified therein. Art.
246. (4) provides that 'Parliament has power to make laws with
respect to any matter for any part of the territory of India not in-
cluded in a State notwithstanding that such matter is a matter enu-
.D merated in the State Lis.t.' The expression 'Central Government' has
been defined in Sec. 3 (8) of the'General Clauses Act, 1897 (omitting
the words not relevant for the present purpose) as under :

"(8) "Central Government" shall-
E (a) ............................................................................

(b) in relation to anything done or to be done· after the
· commencement of the Constitution, mean the President ;
and shall include,

F (i) ............................. .

(ii)
(iii) in relation to the administration of a Union Territory,
the administrator thereof acting within the scope of
the authority given to him under Article 239 of the
G
Constitution."
The expression 'State Government' is defined in Sec. 3
(60) (omitting the words not necessary for the present purpose,)
as under:

R "(60) "State Government'.', -
. EMPLOYEES' ASSOCN. v. G.S. co. (Desai, J.) 381
(a) ........................................................... .

(b) ........................................................... .
A
(c) as respects anything done or to lfo done after the
commencement of the Constitution (Seventh Amend-
ment) Act, 1956, shall mean, in a State, the Gover-
nor, and in a Union Territory, the Central Govern·
'
ment ;" B
• The expression 'Union Territory' is defined in Sec. 3 (62A)
to mean "Union Territory specified in the First Schedule to the
Constitution and shall include any other territory comprised
ll. within the territory of India but not specified in that Schedule."
c
Parliament enacted the Government of Union Territories
Act, 1963 ('1963 Act' for short). Its long title reveals the object
underlying the enactment, namely to provide for Legislative
Assemblies and Council of Ministers for certain Union Terri-
tories and for certain other matters. Union Territory of Goa,
Daman and Diu is governed by the 1963 Act (See Sec. 2 h). The D
expression 'Administrator' has been defined in Sec. 2 (a) of the
1963 Act to mean 'the Administrator of a Union Territory appoin-
ted by the President under Art. 239.' Sec. 18 specifies the
extent of legislative power of the Legislative Assembly of a
Union Territory to encompass any of th.e matters enumerated E
in the State List or the Concurrent List in the Seventh Schedule.
Sec. 44 provides that there shall be a Council of Ministers in each
Union territory with the Chief Minister at the head to aid and
advise the Administrator in exercise of bis functions in relation
to matters with respect to which the Legislative Assembly of the
Union Territory has power to make laws except in so far as he is F
required by . or under the Act to act in his discretion or by or
under any law to exercise any judicial or quasi-judicial functions.
There is a proviso to Sec 44 (I) which sheds light on the position
of the Administrator and powers of the Council of Ministers.
According· to the proviso in the event of a difference of opinion
between the Administrator and the Ministers of any matter, the G
Administrator shall refer it to the President for decision given
therein by the President etc. Thus the executive power of the
Administrator extends to all subjects covered by the legislative
power. But in the event of a difference of opinion the President
382 SUPREME COURT REPORTS (1985} 2 s.c....

A decides the point. When President decides the point, it is the
Central Government that decides the point. And that is binding
on the Administrator and also the Ministers. Section 45 provides
that 'the Chief Minister of a Union Terr.itory shall be appointed
by the President.· Section 46 confers power on the President
to make rules for the conduct of business. Section 55 provides
B that 'all contracts in connection with the administration of a
Union Territory are contracts made in the exercise of the exe-
cutive power of the Union and all suits and procedinngs in
connection with the administration of a Union Territory shall be •
instituted by or against the Government of India.' In exercise of
the power conferred by Article 240, the President has inter alia
c enacted the Goa, Daman and Diu (Laws) Regulation, 1962. By
clause (3) of the regulation, the Acts enumerated in the Schedule
appended to the Act were extended to the Goa, Daman and Diu
subject to the modifications, if any, specified in the Schedule.
The Schedule includes Industrial Disputes Act, 1947 as a whole
D without any modification.

Section 10 (I) of the Act confers power on the appropriate
Government to refer an industrial dispute for adjudication to one
or the other of the various authorities enumerated in the section.
Thus the· power is the power of the appropriate Government to
E make the reference. The cotention which found favour with the
High Court is that in relation to the industrial dispute raised by
the workmen represented by the Association broadly described
as iron ore samplers, the appropriate Government is the State
Government and not the Central Government and that as the
reference in this case is made by the Central Government, the
F same being without jurisdiction, the Industrial Tribunal did not
acquire any jurisdiction to adjudicate upon the same.

Would it be constitutionally correct to describe Administration
of a Union Territory as State Government? Article I provides
G that 'India, that is Bharat, shall be a Union of States'. Sub-article
(2) provides that 'the .States and the territories thereof shall be
as specified in the First Schedule'. ~uh-article (3) introduced a
dichotomy between the State as understood in the Constitution and
the Union Territory when it provides that 'the territory of India
shall comprise-( a) the territories of the States; and (b) the Union
ff Territories specified in the First Schedule.' The provisions of Part
EMPLOYEES' ASSOCN. v. G.S. co. (Desai, J.) 383
VI of the Constitution do not apply to the Union Territories. Part
VI of the Constitution which deals with States clearly indicates that A
the Union Territory is not a State. Therefore, the Union Territory
constitutionally speaking is something other than a State. As far as
the States are concerned, there has to be a Governor for each State
though it would be permissible . to appoint the same person as
Governor of two.or more States. Part VIII provides for administra- B
tion of Union Territores. Article 239 conferred power on the president
for administration of Union Territories unless otherwise provided by
an act of Parliament. Therefore, apart from the definitions of the
expressions 'Central Government', 'State Government' and 'Union
Territory' as enacted in the General Clanses Act, 1897, the Constitu_.
tion itself· makes a distinction between State and its Government c
called the State Government and Union Territory and the Adminis-
. tration of the Union Territory. Unless otherwise clearly enacted,
the expression 'State will not comprehend Union Territory' and the
'State Government' wonld not comprehend Administration of Union
Territory. Now if we recall the definition of three expres-
sions 'Central Government' (Section 3 (8), 'State Government' D
(Section 3 (60)) and Union Territory' (Section 3 (62A)) in the General
Clauses Act, it would unmistakably show that the framers of the
Constitution as also the Parliament in enacting these definitions
have clearly retained. the distinction between State Government
and Administration of Union Territory as provided by the
E
Constitution. It is especially made clear in the definition of
expression 'Central Government' that in refatio·n to the Adminis-
tration of a Union Territory, the Administrator thereof acting within
the scope of the anthority given to him under Article 239 of the
Constitution, would be comprehended in the expression 'Central
Government'. When this inclusionary part is put in juxta-position F
with exclusionary part in the definition of the expression 'State
Government' which provides that as respects anything done or to'
f be done afte.r the commencement of the Constitution ·(Seventh
Amendment) Act, 1956, it shall n;iean, in a State, the Governor,
and in a Union Territory, the Central Government, the difference
conceptually speaking between the expression 'State Government'
and the 'Administration of a Union Territory' clearly emerges.
G
Therefore, there is no room for donbt that the expression
'Administration of a Union Territory', Administrator howsoever
having been described, would not be comprehended in the expression
silt' Government' as used in any enactment. These definitions
have been modified to bring them to their pres,nt form it by H
384 SUPREME COURf REPORTS (1985] 2 S.C.R.

A adaptation of laws (No. 1) Order 1956. Section 3 of the General
Clauses Act, 1897 provides that in all General Acts and Regulations
made after the commencement of the Act unless there is anything
repugnant in the subject or context, the words defined therein will
have the meaning assigned therein. Indisputably the Industrial
Disputes Act, 1947 is'a Central Act enacted after the commencement
B of the General Clauses Act and the relevent definitions having been
recast to meet the constitutional and statutory requirements, the
expressions 'Central Government, 'State .Government' and 'Union
Territory' must receive the meaning assigned to each in the Genpral
Clauses Act unless there is anything repugnant in the subject or
'
context in which it is used. No such repugnancy was brought to
c our notice. Therefore, these expressions must ~eceive the meaning
assigned to them.

The High Court after referring to the definitions of the
aforementioned three expressions as set out and discussed herein
D first observed that on a careful reading of the definition, it appears
'that in relation to the administration of a Union Territory, the
administrator thereof actingjwithin the scope of the authority given
to him under Article 239 of the Constitution is the Central
Government.' So far there is no dispute. The High Court then
observed that it must follow that the Administrator is the State
E Government in so far as the Union Territory is concerned, and it is
so provided in the definition of the State <Government in Section
3(60) of the General Clauses Act.' The High Court fell into an
error in interpreting clause (c) of Section 3 (60) which upon its true
construction would show that in the Union Territory, there is no
concept of State Government but wherever the expression 'State
F
Government' is used in relation to tbe Union Territory, the Central
Government would be the State Government.· The very concept
of !State Government in relation to Union Territory is obliterated
by the definition. Our attention was, however, drawn to the two
decisions of this Court in Satya Dev Bushahri v. Padam Dev & Ors.(')
G and the decision of this Court in The State of Madhya Pradesh v.
Shri Mou/a Bux & Or..(2) in which with reference to Part C States,
some obs~rvations have been made that the authority conferred
under Article 239, as it then stood, to administer Part C States has

(I) [19SS] S,C.R. 549.
H (2) (1962] 2 S.C.R. 794,
EMPLOYl!ES' ASSOCN. v. G.S. co. (Desai, J.) 385

not effect of converting those States into the~Central Government, A
and that under Article 239 the-President occupies in regard to Part
C States, a position analogous to that of a Governor in Part A
States and of a Rajpramukh in Part B States.' It was also observed
that 'though the Part C States are!centrally administered under the
provisions of Article 239, they do not cease to be States and become
merged with the Central Government.' It was then urged that by B
the amendment to Articles 239 and 240 by the Constitution (Seventh
Amendment) Act, 1956 and introduction of Article 239 A and 239 B
by the Constitution (Fourteenth Amendment) Act, 1962, only the
nomenclature of the Part C States has undergone a change, now
being described as Union Territory, but the position the Union
c
Territory is the same as it was as Part C States and therefore, the
. view taken in the aforementioned decisions that the administration
of Part· C States could appropriately be described as State
Government would mutati.• mutandis apply to the administration
of Union Territories. In other words, it was said that they can be
appropriately described as State Governments for various purposes. D
Both the decisions were rendered prior to the amendment of Part
VIII of the Constitution in 1956 and the insertion of the Articles
239 A and 239 B in 1962 and more specifically after the enactment
of the 1963 Act. The concept of Union Territory with or without a
Legislative Assembly and with or without a Council of Ministers
with specified legislative and execntive powers have been set out in E
the 1963 Act. Coupled with this, modifications were made in the
definitions of aforementioned three j. expressions. Therefore, the
two decisions are of no assistance in resolutation of the present
controversy.
F
It was then pointed out that the definition of the expression
'appropriate Government' in Section 2(a)(i) of the Act unless it is
} shown in relation to any industrial dispute concerning any industry
carried on by or under the authority of the Central Government or
the enumerated industries or a banking or an insurance company, a
mine, an oilfield, a Cantonment Board, or a major port, the appro- G
priate Government will be the Central Government and in any
other case a State Government. It was therefore, submitted that un-
less it is shown that in relation to the industtial dispute raised by the
Association, the appropriate Government would be the Central
Government, the case would fall under the residuary provision,
namely, that in relation to any other industrial dispute, the appro-
386 SUPREME COURT REPORTS (1985) 2 S.C.R.

A priate Government would be the State Government. The submission
does not commend to us because before one can say that the
appropriate Government is the State Government in relation to an
industrial dispute, there has to be some State Government in which
power must be located for making the reference .. If there is no
State Government but there is some other Government called the
B Administration of Union Territory, the question would arise whether
in such a situation the Administration of Union Territory should
be described as State Government for the purpose of Section 2(a)(i)
read with Section 10(1) ?

The High Court clearly fell into an error when it observed
c that the inclusive definition of the expression 'State Government'
does not necessarily enlarge the scope of the expression, but may
occasionally point to the contrary. Let as assume it to be so with- •
out deciding it. But where the High Court fell into the error was
when it held that the President representing the Central Govern-
ment and the Administrator, and appointee of the President and
D
subjecfto all orders of the President constitute two ·different govern-
ments for a Union Territory. The position, the power, the duties
and functions of the Administrator. in relation to the President have
been overlooked. On a conspectus of the relevant provisions of
the Constitution and the 1963 Act, it clearly transpires that the
E concept of State Government is foreign to the Administration of
Union Territory and Article 239 provides that every Union Territory
is to be administered by the President. The President may act
through an administrator appointed by him. Administrator is thus
the delegate of the President. His position is wholly different
from that of a Governor of a State. Administrator ca.n differ with
F his Minister and he must then pbtain the orders of the President
meaning thereby of the Central Government. Therefore, at any
rate the administrator of Union Territory does not qualify for the
>
description of a State Government, Therefore, the Central Govern-
ment is the 'appropriate Government'.
G If the Central Government as the appropriate Government has
made the reference, the High Court was clearly in error in quashing
t.he reference.

Learned counsel for the appellant-Association made an alter-
native submission that the workmen involved in the dispute are
H workmen working in a major port and are dock workers and there-
'

EMPLOYEES' AsSCCN. v. G.S. co. (Desai, J.) 387

fore, also the Central Government will be the appropriate Govern- A
ment for the purpose of making reference under Sec. 10(1). This con-
tention found favour with the Tribunal. The High Court reached a
contrary conclusion observing that the iron ore samplers are not
involved in any work connected with or rel.ated to a· major port nor
are they dock workers. We do not propose to examine this alter-.
native submission b,ecause if the reference is held to be competent, B
. it is not necessary to undertake elaborate examination of the second
contention to sustain the reference. It is, however, urged that this
• aspect is likely to figure again before the Tribunal while examining
the industrial dispute referred to it for adjudication on merits. In this
situation the proper thing ·is to keep the contention between the

, parties open. The Tribunal will be at liberty to examine this con-
tention whether iron ore samplers are involved in any work connect•
ed with or related to a major port or are dock workers. The Tribunal
may come to its own decision uninfluenced' by the view taken by
the High Court and if the question doe; require examination the
same will have to be examined over again.
D
Accordingly, all these five appeals are allowed and the judg-
. ment of the High Court is quashed and set aside and the award of ·
the Tribunal on the preliminary point especially about the compe-
tence of ,the Central Government to make the reference under
Section 10(1) of the Industrial Disputes Act, 1947, for the reasons
hereinmentioned is confirmed. The respondents shall pay the costs
of the appellant in.each case quantified at Rs. 1,000 in all Rs. 5,000
shall be paid by the respondents to the appellant as costs.

As the dispute is an old one, hanging resolution for years, the
Tribunal is directed to give top priority to it and dispose it of on F
merits within a period of six months from today,

N.V.K. Appeals allowed.
,