Holding

The corporation’s tree‑cutting and log‑making activities constitute a manufacturing process, making it a factory and thus an industrial establishment; therefore Section 25‑N applies and the retrenchment notices, which failed to meet its requirements, are illegal, entitling the workmen to reinstatement with back wages, and writ petitions filed without first using the statutory remedy and after undue delay are not maintainable.

Summary

The Uttaranchal Forest Development Corporation engaged daily‑wage workers for measuring wood and protecting timber. When work ceased, the workers were retrenched under Section 6‑N of the U.P. Industrial Disputes Act. The Labour Court held the retrenchment valid, saying the corporation was not an "industrial establishment" under Section 25‑L, so Section 25‑N did not apply. The High Court reversed, finding that cutting trees and converting them into logs is a manufacturing process under the Factories Act, making the corporation a factory and thus an industrial establishment; consequently, the retrenchment notices, which did not meet Section 25‑N requirements, were illegal. The High Court also entertained writ petitions filed after a ten‑year delay without the workers first using the statutory remedy. The Supreme Court held that the corporation’s activities do constitute a manufacturing process, so Section 25‑N applies and the retrenchment orders are void, entitling the workers to reinstatement with back wages. It further held that the writ petitions were not maintainable because the workers had not availed the alternative statutory remedy and had delayed unreasonably. The Court dismissed the corporation’s appeals and allowed the workers’ appeals.

Issues considered

Whether the Uttaranchal Forest Development Corporation is an industrial establishment within the meaning of Section 25‑L of the Industrial Disputes Act, 1947.
Whether the corporation’s activities of cutting trees and converting them into logs constitute a manufacturing process under Section 2(k) of the Factories Act, 1948.
Whether Section 25‑N of the Industrial Disputes Act is attracted to the retrenchment of the workmen.
Whether the retrenchment notices complied with the procedural requirements of Section 25‑N.
Whether writ petitions filed under Article 226 of the Constitution without first availing the statutory remedy and after a ten‑year delay are maintainable.

Legislation cited

Constitution of Indias. 226
Factories Act, 1948s. 2(k), s. 2(m)
U.P. Industrial Disputes Act, 1947s. 25-L, s. 25-N, s. 6-N

Subjects

industrial establishmentretrenchmentSection 25-NFactories Actmanufacturing processwrit petitionArticle 226lachesalternative remedyback wagesreinstatement

Judgment

A UTTARANCHAL FOREST DEVELOPMENT CORPN. AND ANR.
-
v.
JABAR SINGH AND ORS.

DECEMBER 12, 2006

B [DR. AR. LAKSHMANAN AND TARUN CHATTERJEE, JJ.]

Labour Laws:

UP. Industrial Disputes Act, 1947: Sections 25-L and 25-N.
c
Industrial establishment-Workmen-Retrenchment-Workmen were
engaged by Forest Corporation on daily-wage basis for the measurement of
wood, protection of timber at the logging site and depots of the Corporation-
As there was no work, the services of the said workmen were retrenched in
accordance with S. 6-N-The Labour Court held that the retrenchment order
D was legal and valid-It further held that the provisions of S. 25-N of the
Industrial Disputes Act were not attracted as the Forest Corporation was not
an industrial establishment as defined in S. 25-L of the Industrial Disputes
Act-However, the High Court set aside the Labour Court's award holding
that the Industrial Disputes (UP.) Rules made S. 25-N applicable to industrial •·
E establishments in the State-Correctness of-Held: The work of the Forest
Corporation consisted of "cutting of trees by axe and changing the shape of
the timber into logs by using hand-driven saw"-The process of cutting by
axe and changing the shape by saw is a manufacturing process-Thus, the
Corporation is an industrial establishment within the definition of Section
25-L-The .retrenchment notices, did not comply with either of the two
F requirements of Section 25-N-Hence, workmen are entitled to be reinstated
with full back-wages and continuity of service-Factories Act, 1948, S. 2(k)
and 2(m)-lndustrial Disputes (UP.) Rules, 1976-UP. Forest Corporation
Act, 1974, Ss. 14 and 15.

G Constitution of India, 1950:

Article 226-Writ petition-Maintainability of-Alternative remedy--
Availing of-Writ petition filed without availing of alternative remedy under
the Industrial Disputes Act-Writ petition also filed after a delay of I 0
years-However, High Court allowed the writ petition-Correctness of-
II 852
UTTARANCHAL FOREST DEVELOPMENT CORPN. v. JABAR SINGH 853
Held: High Court should have dismissed the writ petition on the grounds of A
/aches as well as non-availing of alternative remedy.

Words & Phrases:

"Manufacturing process"-Meaning of-In the context of Section 2(k)
of the Factories Act, 1948. B
"Factory"-Meaning of-In the context of Section 2(m) of the Factories
Act, 1948.

"Industrial establishment"-Meaning of-In the context of Section 25-
L of the Industrial Disputes Act, 1947. C
Civil Appeal No. 5728 of 2006

The predecessor-Corporation of the appellant had engaged the
respondents-workmen as daily-wage workers for the purpose of measurement
of wood, protection of timber at the logging site and depots of the Corporation. D
As there was no work, the services of the respondents were retrenched in
accordance with Section 6-N of the U.P. Industrial Disputes Act, 1947.

An industrial dispute was raised before the Labour Court by the

--
respondents alleging non-compliance with Section 25-N of the Act. The
... Labour Court held that the retrenchment order was legal and valid. It further E
held that the provisions of Section 25-N of the Industrial Disputes Act, 1947
were not attracted as the predecessor-Corporation of the appellant was not an
industrial establishment as defined in Section 25-L of the Industrial Disputes
Act, 1947.

The High Court allowed the writ petition filed by the respondents F
holding that the Industrial Disputes (U.P.) Rules, 1976 have made Section
25-N applicable in relation to industrial establishment in the State. Hence
the appeal.

Civil Appeal No. 5729 of 2006
G
Some of the retrenched respondents-workmen, in similar
circumstances, filed writ petitions, after a delay of 10 years, directly before
the High Court without first approaching the Labour Court but the High Court
also allowed these writ petitions following its earlier decision. Hence the
appeal. H
A
854 SUPREME COURT REPORTS (2006) SUPP. 10 S.C.R.

On behalf of the appellant, it was contended that the appellant-
-
Corporation was neither a factory within the meaning of Section 2(m) of the
Factories Act, 1948 nor did it carry on manufacturing process with or: without
the aid of power as defined in Section 2(k) of the Factories Act, 1948; and
that the writ petitions filed directly in the High Court by some of the
retrenched employees without availing of the alternative remedy were not
B maintainable.

The following questions arose before the Court:-

1. Whether the provisions of Section 25-N of the Industrial Disputes
Act, 1947 are attracted or not?
c
2. Whether for non-compliance of the conditions contained in Section
25-N, retrenchment order as well as award are illegal and non est?

3. Whether the Forest Corporation is an industrial establishment within
the definition of Section 25-L of the Industrial Disputes Act, 1947 or not?
D
Civil Appeal No. 5728 of 2006

Dismissing the appeal, the Court

HELD: 1.1. Admittedly, the work of the respondents consisted of "cutting
E of trees by axe and changing the shape of the timber into logs by using hand-
driven saw". The process of cutting by axe and changing the shape by saw
squarely fall within the definition of the first part of the manufacturing process
defined in Section 2(k) of the Factories Act, 1948 as cutting would be included
in the processes of "making" and "breaking up" included in the said
F definition. Further, the changing of shape by saw would be included in the
processes of "altering" and "adapting" of trees. Admittedly, trees and logs
both fall within the meaning of "any article or substance", the second part of
.the definition. Lastly, the conversion of trees into logs is admittedly for the
purpose of sale, disposal and use and, last but not the least, for transport, all
of which fall within the third part of the definition. (877-G; 878-A-B)
G
1.2. Thus, the appellant-Corporation is an industrial establishment
within the definition of Section 25-L of the Industrial Disputes Act, 1947 and,
therefore, Section 25-N of the Industrial Disputes Act, 1947 would be
applicable to the establishment of the appellant-Corporation. (878-E, F) ·

H Lal Mohammadv. Jndian Railway Construction Co. Ltd, (1999) l SCC
UTTARANCHAL FOREST DEVELOPMENT CORPN. >. JABAR SINGH 855
596, relied on. A
Tega India Ltd v. CCE, [20041 2 SCC 727, S.G. Chemicals and Dyes
Trading Employees' Union v. S.G. Chemicals and Dyes Trading Ltd, [198612
SCC 624, Kores India Ltd. v. CCE, [2005) 1 SCC 385, Nagpur Electric Light
and Power Co. Ltd v. Regional Director, Employees' State Insurance
Corporation, [1967) 3 SCR 92, Workmen of Delhi Electric Supply B
Undertaking v. The Management of Delhi Electric Supply Undertaking, AIR
(1973) SC 365, Nathi Devi v. Radha Devi Gupta, [2005] 2 SCC 271, Indian
Handicrafts Emporium v. Union ofIndia, [2003) 7 SCC 589, Bharat Singh v.
Management of New Delhi Tuberculosis Centre, New Delhi, [1986] 2 SCC
614, Col. Sardar C.S. Angre v. State AIR (1965) Raj 65, Re: A.m. Chinniah C
AIR (1957) Mad 755, Ardeshir H. Bhiwandiwala v. State of Bombay, (1961),
Employees State Insurance Corporation v. Mis Triplex Dry Cleaners, (1982)
PLR Vol. LXXXIV 1982 and Sh. Bhag Singh v. ESIC, (1983) LIC 412, referred
to.

Black's Law Dictionary 6th Edn. p. 77, referred to. D
2. The appellant-Corporation, while issuing the retrenchment notices,
did not comply with either of the two requirements of Section 25-N of the
Industrial Disputes Act, 1947. Thus, the retrenchment notices mentioned above
being illegal, the workmen, being entitled to all the benefits, in the present
case, all the concerned workmen are entitled to be reinstated with full back- E
wages and continuity of service. [878-G; 879-C)

3. Section 25-N was brought into for the purpose of giving protection to
workmen against retrenchment by making prior scrutiny by the Government
as a condition precedent. [880-B)
F
Workmen of Meenakshi Mills Ltd. v. Meenakshi Mills Ltd., [1992) 3 SCC
336, followed,

4. 'Premises' can consist of open area and need not be confined in its
meaning to buildings alone. [880-EI
G
Ardeshir H. Bhiwandiwala v. State of Bombay, (1961) 3 SCR 592,
followed.

Civil Appeal No. 5729 of 2006

Allowing the appeal, the Court H
856 SUPREME COURT REPORTS [2006] SUPP. 10 S.C.R.

A HELD: 1. It is not in dispute that the effective alternative remedy was
not availed of by many of the workmen. The writ petitions challenging the
order of termination were filed, admittedly, after a delay of 10 years. The High
Court was not justified in entertaining the writ petition, on the ground that
the petition has been filed after a delay of 10 years and that the writ petitions
should have been dismissed by the High Court on the ground of laches.
B
UP. State Spinning Corporation Co. Ltd. v. R.S. Pandey, (2005] 8 SCC
254 and Haryana State Coop. Land Development Bank v. Nee/am, (2005] 5
sec 91, relied on.
2. In the instant case, the workmen have not made out any exceptional
C circumstances to knock the door of the High Court straightaway without
availing of the effective alternative remedy available under the Industrial
Disputes Act. But the dispute relates to enforcement of a right or obligation
under the statute and a specific remedy is, therefore, provided under the
statute and the High Court should not deviate from the general view and
D interfere under Article 226 of the Constitution except when a very strong
case is made out for making a departure. The respondents have not made out
any strong case for making a departure. The High Court was not justified in
entertaining the writ petition. (883-E, F, G)

3. The writ petitioners (respondents herein) who have not invoked the
E jurisdiction of the Tribunal are not entitled to any relief in the writ petitions.
They are not entitled for any benefits of reinstatement, back-wages and
continuity of service. (883-H; 884-A)

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5728 of2006.

F From the Judgment and Order dated 21.8.2003 of the High Court of
Uttaranchal at Nainital in W.P. No. 1376 (M/S) of2001.

WITH

C.A. Nos. 5729-5752/2006 and 5754-5761/2006.
G
L.N. Rao, Santosh Kumar, Devesh Singh, Shiva Kumar Sinha, Atishi
Dipankar and Dr. Kailash Chand for the Appellants.

Rachana Srivastava, A.A.G., Dhruv Mehta, Harshvardhan Jha, Yashraj
Deora, Mannoj Mehta, Shobha, Rachana Joshi Issar, Bharat Sangal, Kusum
H Singh, B.S. Gupta, Dr. 1.8. Gaur, Vijayshree Pattnaik, Satyajit A. Desai, Anagha,
UTTARANCHAL FOREST DEVELOPMENT CORPN. 1•. !ABAR SINGH [LAKSHMANAN, J.] 857

S. Desai, Venkateswara Rao, Anumolu, Abhishek Atrey, Ashwani Bhardwaj, A
Rohan Thawani, Prashant Kumar, Pooja Dhar, Sanjeev Bhatnagar, Debasis
Misra, Vidya Dhar Gaur, Rameshwar Prasad Goyal, Dinesh Kumar Garg and
Shree Pal Singh for the Respondents.

The Judgment of the Court was delivered by
B
DR. AR. LAKSHMANAN, J. Leave granted.

A bunch of 38 appeals were filed by the State of Uttaranchal Forest
Development Corporation against the judgment and order dated 21.08.2003 by
the High Court ofUttaranchal in Writ Petition No. 1376 of2001. The said writ
petition was filed by the respondent-workmen against the award dated C
24.12.1997 of the Labour Court, Dehradun in litigation case No. 117 of 2006
(with 29 other cases).

DATES AND EVENTS:

The U.P. Forest Corporation had engaged daily wages workers for the D
purpose of measurement of wood, protection of timber at the logging site and
depots of the Corporation. The said engagement of workers was as per
requirement. The U.P. Forest Corporation was the predecessor of the appellant
Corporation.

12.07.1994 A writ petition No. 21 of 1993 (Van Nigam Karmachari E
Kalyan Sangh vs. State of U.P and others) was decided by the
High Court of judicature at Allahabad vide judgment and order
dated 12th July, 1994 wherein the High Court, inter alia, held as
under:-

" ... (iii) In case ofreduction of work or short fall in the work the F
Authorities of the Forest Corporation would make an endeavour
to adjust them in alternative work available in the particular
region in which they are working or in any other region where
work is available before giving them seasonal leave tenninating
their services.
G
(iv) If that particular region or any other region such alternative
work is not available on account of reduction in work or shortfall
in work, the authorities of the Corporation may retrench the
services of field staff but only in accordance with the provisions
of Sec. 6-N of the U.P. Industrial Disputes Act."
H
858 SUPREME COURT REPORTS [2006] SUPP. 10 S.C.R.

A The predecessor Corporation of the appellant made its best endeavor
to accommodate the surplus daily rate workers but the alternative work was
not available since the work of the Corporation had tapered down as felling
of the trees had been banned in the Forest under the Policy of the Govt. and
in these circumstances the predecessor of appellant was compelled to reduce
the work force of daily wage workers. As there was no work the service of
B the respondent workers were retrenched along with several others by the U.P.
Forest Corporation in accordance with the provisions ofU.P. Industrial Disputes
Act, 1947.

The services of the respondent were retrenched by order dated 30.05.1995
C and 31.05.1995 after giving one month's wage in lieu of notice and
retrenchment compensation in compliance of Section 6-N of the Industrial
Act, 1947 and also such payments were received by the respondents without
any protest.

An industrial dispute was raised by the respondents and the Labour
D Court, Dehradun in the Award held that the retrenchment order was legal and
valid as the provisions of Section 6-N of the U.P. Industrial Disputes Act were
fully complied with. Further, it held that the provisions of Section 25N of the
Industrial Disputes Act are not attracted as the Forest Corporation is not an
industrial establishment as defined in Section 25L of Chapter-VB of the
Industrial Disputes Act.·
E
Aggrieved by the Award dated 24.12.1997, Jabar Singh and Others filed
Writ Petition No. 8351of1999. The Writ Petition No. 1376 of200l along with
other writ petitions was allowed by the High Court on 21.08.2003 with the
direction that writ petitioners shall be put back on duty and shall be paid
F salary/wages.

The question which fell for determination was whether the provisions
of Section 25N of the Industrial Disputes Act, 1947 are attracted or not and
whether for non-compliance of the conditions contained in section 25N,
retrenchment order as well as award are illegal and non est.
G The High Court observed that the appropriate Government by framing
the Rules known as the Industrial Disputes (Uttar Pradesh) Rules, 1976 have
made Section 25N applicable in relation to Industrial establishment in the
State ofU.P.

In view of the above the question which was raised was whether the
H
UTTARANCHAL FOREST DEVELOPMENT CORPN. v. JABAR SINGH [LAKSHMANAN, J.] 859

Forest Corporation is an Industrial establishment within the definition of A
Section 25L or not.

FINDINGS:

The High Court held that the Forest Corporation carries the activity of
cutting, removal, disposal and sale of trees over the area allotted to the B
Corporation and, therefore, the area of the land over which such activities are
carried on is "premises". Thus, the first requirement of the definition of
factory is satisfied.

The High Court held that cutting of trees by axe and shaping the cut
trees into logs is a manufacturing process under the definition of Section 2(k) C
of the Factories Act and therefore it is an industrial establishment within the
meaning of Section 25-L of the Industrial Disputes Act.

The High Court held that since the retrenchment was made without
complying with the provisions of Section 25N of the Industrial Disputes Act,
the retrenchment order was void and accordingly the said order of retrenchment D
was quashed. The High Court further directed that the writ petitioner shall be
put back on duty and shall be paid salary/wages.

We heard Mr. L. Nageshwar Rao, learned senior counsel for the appellant
and Mr. Dhruv Mehta for the respondents in SLP (C) Nos. 3553 of2004, 7548 E
of2004 and 15498 of2004 and Mr. Bharat Sangal for respondent Nos. 1-12
in SLP (C) Nos. 24584 of2003.

Mr. L. Nageshwar Rao made the following submissions at the time of
hearing on behalf of the appellant-Corporation. He submitted ·that:

(I) the provisions of Factory Act do not apply to the appellant- F
Corporation inasmuch as it does not fall within the definition of
factory as no manufacturing process is being carried on with or
without the said power. At this stage, it is necessary to reproduce
the definition of 'factory' and 'manufacturing process' as given
in the Act: G
Section 2(m) of the Act defines 'Factory' as under:-

"factory" means any premises including the precincts thereof-

(~

(ii) whereon twenty or more workers are working, or were working H
860 SUPREME COURT REPORTS [2006] SUPP. 10 S.C.R.

A on any day of the preceding twelve months, and any part of
which a manufacturing process is being carried on without the
aid of power, or is ordinarily so carried on.

Manufacturing process is defined under Section 2(k) of the Factories
Act which reads as under:-
B
(i) making, altering, repairing, ornamenting, finishing, packing,
oiling, washing, cleaning, breaking up, demolishing or otherwise
treating or adapting any article or substance with a view to its
use, sale, transport, delivery or disposal, or ...
(ii)... .
c
(iii)... .
(iv)... .
(v).... .

D (vi) .... "
(2) to constitute a manufacture, there must be a transformation. The
mere labour bestowed on an article even if the labour is applied
through machinery will not make it a manufacture, unless it has
progressed so far that a transformation ensues, and the article
E becomes commercially known as another and different article
from that as it had began its existence.
(3) the Corporation carries on activity of cutting of trees and
converting into logs with respect to the area allotted to it by the
State Government and that the cutting of. trees is not a
manufacturing process because the log made by cutting of trees
F
is still a raw material.
(4) that the entire activity of appellant of cutting trees and converting
into logs does not make any change so far as article is concerned.
The article is neither treated nor adapted but on the contrary, the
article is sold to customers in the same form in which it was
G
received in the depots of the Corporation. The expression
adapting means something to be done to the article so as to
make it different from what it was before. Therefore, the words
making, altering, packing, oiling etc, in the definition of
manufacturing process should be read jointly with 'otherwise
H treating or adapting any article or substance with a view to its
UTTARANCHAL FOREST DEVELOPMENT CORPN. 1•. JABAR SINGH [LAKSHMANAN, l.] 861
use, sale, transport, delivery or disposal. A
For the above-said proposition, Mr. Rao sought indulgence of this
Court to rely upon the following judgments:

I. Col. Sardar C.S. Angre v. The State and Anr., AIR (1965) Rajasthan
65. B
The question involved was as to whether the grading of the potatoes
for storing in the cold storage or the process of drying of the potatoes
amount to a manufacturing process or not. The said question was considered
in the light of the expression "otherwise treating or adapting any article or
substance with a view to its use, sale, transport, delivery or disposal" as C
contained in the definition of manufacturing process given in the Act. It was
held as under:-

"If the gradation or the sorting is with a view to bring into existence
standardized goods of a particular category or variety saleable as
such, I do not see any difficulty in treating grading or sorting as a D
manufacturing process. If, on the other hand, grading is only casual
and is not done with a view to achieve the object indicated earlier,
grading will not be a manufacturing process."

Similarly, for the process of drying, it was held as under:-
E
"The process of drying has also to be considered in relation to the
adaptability of the article for sale or use. In the present case, the
process of drying is adopted only to remove the moisture collected
during the process of refrigeration and not with a view to adapt the
potatoes for sale. In other words, it cannot be said that the process F
is necessary for making the potatoes saleable as such. The process
of drying also in this view of the matter cannot be considered a
manufacturing process.

Then, it was held as under:-

"The essential question to be considered is whether the cold storage G
is used primarily for the purposes of storage or is used for bringing
into existence commodities which may be treated as commercially
different from what they were at the time they entered the premises.
In the present case, the cold storage appears to be used only for
storage purposes and there is nothing in the complaint to suggest H
862 SUPREME COURT REPORTS [2006) SUPP. 10 S.C.R.

A that the refrigeration was with a view to the adaption of the potatoes
to their sale."

Some observations made in Re: A.M Chinniah, AIR (1957) Madras 755 were
brought to the notice of the learned single Judge of the Rajasthan High Court.
The observation made by the Madras High Court is detailed below:-
B
"To sum up, to constitute a manufacture there must be a transformation.
Mere labour bestowed on an article even if the labour is applied
through machinery, will not make it a manufacture, unless it has
progressed so far that a transformation ensues and the articles become
commercially known as an other and distinct article from that as which
C it begins its existence."

2. Ardeshir H. Bhiwandiwala v. The State ofBombay, [ 1961] 3 SCR 592.

The main question for determination in this appeal is whether the Salt Works
come within the definition of the word "factory" under clause (m) of Section
D 2 of the Act. The Salt Works extend over an area of about 250 acres. The
only buildings on this land consist of temporary shelters constructed for the
resident labour and for an office. At a few places, pucca platforms exist for
fixing the water pump when required to pump water from the sea. The entire
area of the Salt Works is open. On the seaside, it has bunds in order to
E prevent sea water flooding the salt pans. It was contended before this Court
that the expression "premises" in the definition of the word "factory" means
"buildings" and that "mere open land" is not covered by the word "premises"
and as there are no buildings except temporary sheds on the Salt Works, the
Salt Works cannot be said to be a "factory". This Court held:

F "That the salt works was a factory within the definition given in the
Act and that the appellant was rightly convicted for working it without
a license. The word "premises" is a generic term meaning open land
or land with buildings or buildings alone; the salt works came within
the expression "premises" in the definition of the word "factory". The
extraction of salt from seawater was not due to merely to natural
G forces but was due to human efforts aided by natural forces. The
process of conversion of sea water into salt was a "manufacturing
process" as defined in cl. (k) ofS.2, inasmuch as salt was manufactured
from seawater by a process of treatment and adaptation. By this
process seawater, a non-commercial article, was converted into a
H different thing salt, a commercial article."
UTT ARANCHAL FOREST DEVELOPMENT CORPN. v. JABAR SINGH [LAKSHMANAN, J ) 863

3. Another authority being relied upon by the Corporation is Employees State A
Insurance Corporation v. Mis Triplex Dry Cleaners, ( 1982) PLR Vol.LXXXIV
1982.

In this case, the question arose as to whether the activity of washing
and cleaning in a dry-cleaners business is a 'manufacturing process' or not.
Relying upon the judgments of Madras High court and Rajasthan High Court B
in re: A.M Chinniah, AIR (I 957) Mad.775: (1957) Crl.L.J.1418) and in Col.
Sardar C.S. Angre v. State, AIR (1965) Raj 65: (1965) I Crl.L.J.333, the test for
'manufacturing process' was applied that there must be a transformation. In
other words, some new article or substance should come into being with a
view that the same can be used, sold, transported, delivered or disposed off C
in order to call the process as 'manufacturing process'. It was held as under:-

"The scheme of the Act seems to be that if washing and cleaning is
one of the processes in a manufacturing concern, then the part of the
premises where washing and cleaning is being done would be deemed
to be 'manufacturing process'. Similarly, where only washing and D
cleaning process is run with power in such a way for example that
coarse cloth is turned into fine cloth with the result that a superior
marketable commodity, article or substance is produced, which is
independently known in the market that the commodity, article or
substance as it was before the same was washed or cleaned, then the
process of washing and cleaning would be termed 'manufacturing E
process'. Therefore, in either of the aforesaid two situations, the
process of washing and cleaning would come within the definition of
'manufacturing process'. The dry-cleaning business does not fall in
any of the two".

4. In Sh. Bhag Singh v. ESJC, (1983) LIC 412, it was held as under: F
"A reading of the definition of manufacturing process contained in
S.2(k) of that Act would show that pumping of oil is one of the
manufacturing process. Whether selling of petrol or diesel at a petrol
pump can be called a process of pumping of oil would again be a
question to be looked into. A perusal of the definition shows that the G
process of pumping oil, water, sewage or any other substance has
also been defined to be a manufacturing process but to my mind this
would not include dealership of petrol or diesel. It is true that some
pumping process is involved because petrol and diesel is stored by
the petrol dealers in huge tanks but the underlying object of the H
864 SUPREME COURT REPORTS [2006) SUPP. 10 S.C.R.

A definition seems to be the pumping of oil from refineries or water from
underground the earth and so on. Essentially, the business carried on
by a petrol pump dealer is to sell petrol or diesel as the case may be
and not pumping the oil. I am, therefore, of the firm view that selling
of petrol or diesel by a petrol dealer will not be a 'manufacturing
process'."
B
It is submitted that the Corporation is not a factory within the definition
of Factories Act as the forest corporation does not work in any premises or
place surrounded by a boundary and that the Corporation undertakes the
work of cutting of trees earmarked at different places in the forest, which
C cannot be said to be factory.

5. Tega India Ltd v. Commissioner, Central Excise, Calcutta II, [2004]
2sec121

The appellants Tega India limited carried on the business of fixing rubber
D linings of pipes, tanks and other such articles supplied by their customers.
After fixing the lining, they returned the articles. They were issued a show-
cause notice claiming that they were manufacturing dutiable goods and that
they were not declaring the correct value. Accepting their reply, the notice
was dropped but the Collector (Appeals) allowed the Revenue's Appeal and
CEGA T upheld that decision. The appellants then filed the appeal before this
E Court.

This Court held as under:

"Case-law shows that circulars issued by the Central Board of Excise
and Customs are binding. The law also is that if a tariff item makes
F no difference between coated and uncoated goods then the mere
process of coating would not amount to manufacture of some new
commodity. Merely because some extra process is carried on the
product would not by itself mean that a new item has come into
existence."

G 6. S.G. Chemicals and Dyes Trading Employees' Union v. S.G. Chemicals
and Dyes Trading limited and Anr., (1986] 2 SCC 624. This Court held:

12. The first thing to notice about Clause (m) of Section 2 of the
Factories Act is that it defines a "Factory" as meaning "any premises
including the precincts thereof' and it does not define it as meaning
H "any one premises including the precincts thereof'. Under this
UTT ARANCHAL FOREST DEVELOPMENT CORPN. v. JABAR SINGH [LAKSHMANAN, J. ] 865

definition, therefore, it is not required that the industrial establishment A
must be situate in any one premises only. The second thing to notice
about Clause (m) is that the premises must be such as in any part
thereof a manufacturing process is being carried on. The expression
"manufacturing process" is defined in Clause (k) of Section 2 of the
Factories Act. The said Clause (k) is as follows :
B
(k) 'manufacturing process' means any process for-

(i) making, altering, repairing, ornamenting, finishing, packing,
oiling, washing, cleaning, breaking up, demolishing, or otherewise
treating or adapting any article or substance with a view to its
use, sale, transport, delivery or disposal, or C
(ii) pumping oil, water, sewage or any other substance, or ;

(iii) generating, transforming or transmitting power, or
(iv) composing types for printing, printing by letter press,
lithography, photogravure or other similar process or book D
binding; or
(v) constructing, reconstructing, repairing, refitting, finishing or
breaking up ships or vessels ; or
(vi) preserving or storing any article in cold storage.
E
Thus, the different processes set out in Sub-clause (i) of Clause (k)
of Section 2 must be with a view to the use, sale, transport, delivery
or disposal of the article or substances manufactured."

7. Kores India Ltd., Chennai v. Commissioner of Cen·tral Excise,
Chennai, [2005] l sec 385 F
This Court held in para 12 as under:

12. 'Manufacture' is a transformation of an article, which is commercially
different from the one, which is converted. The essence of manufacture
is the change of one object to another for the purpose of making it G
marketable. The essential point thus is that in manufacture something
is brought into existence, which is different from that, which originally
existed in the sense that the thing produced is by itself a commercially
different commodity whereas in the case of processing it is not
necessary to produce a commercially different article.
H
..
866 SUPREME COURT REPORTS [2006] SUPP. 10 S.C.R.

A 8. In Nagpur Electric Light and Power Co. Ltd. v. The Regional
Director, Employees' State Insurance Corporation, [1967] 3 SCR 92 AIR
(1967) SC 1364

This Court, in the above case, had to consider whether certain employees
of the Nagpur Electric Light and Power Company were employees within the
B meaning of Section 2(g) of the ESI Act, 1948. Bachawat J. delivering the
judgment of the Court observed:-

" ...The premises constituting a factory may be a building or open land
or both. (see Ardeshir H. Bhiwandiwala v. State of Bombay, AIR 1962
SC 29). Inside the same compound wall there may be two or more
c premises, the premises used in connection with manufacturing
processes may constitute ;i factory and the other premises within the
same compound wall may be used for purposes unconnected with any
manufacturing process and may form no part of the factory."

D Dealing with the reasoning of the High Court that the whole area over which
the process of transmission was carried on including the sub"station where
electricity was stored and supplied to the consumers by further transmission
lines would be a factory, it was said:-

"We ·cannot accept this line of reasoning. It seems to us a startling
proposition that every inch of the wide area over which the
transmission lines are spread is a factory within the meaning of Section
2(12). A factory must occupy a fixed site..... "

9. In Workmen of Delhi Electric Supply Undertaking v. The Management
of Delhi Electric Supply Undertaking, AIR ( 1973) SC 365, this Court held:
F "18. Section 2(12) referre<tto in the above quotation is of the Employees
State Insurance Act. It is clear from this decision that the factory must
occupy a fixed site or premises. The evidence on record clearly shows
that several· substations and zonal stations are left unattended. This
will not be the case if a manufacturing process takes place in those
G premises. A perusal of the nature of the work that the concerned
workmen have to do even as enumerated in their statement of claim
before the Tribunal clearly shows that they have no part in any
manufacturing process. Their functions appear to be to maintain the
existing lines of generation, transmission and transformation of power
in their respective areas, to attend to installation and other incidental
H
UITARANCHAL FOREST DEVELOPMENT CORPN. v. JABAR SINGH [LAKSHMANAN, J.] 867

matters when a new connection has been given to a consumer. They A
have to attend to daily complaints from 'the consumers, keep regular
reports and attend to the defects in the consumers' premises. They
have to go out for field work and they have to sit in office for
maintenance and preparation of the relevant records. It cannot be said
that any manufacturing process either takes place in the sub-stations
or in the zonal stations and they do not satisfy the definition of B
"factory" under Section 2(m) of the Factories Act. If these places are
not factories. Clause (a) of Regulation No. 17 will not apply to the
concerned workmen who are employed therein."

10. Lal Mohammad and Ors. v. Indian Railway Construction Co. Ltd C
and Ors., [1999] I SCC 596

The respondent, in this case, Indian Railway Construction Company
Limited was carrying on various construction projects. It was, at the relevant
time, executing a construction of a project of construction of railway line of
54 kms. It served retrenchment notices on the appellant-workers. The notices D
stated that since most of the work in the project was over and no other work
was available, they were rendered surplus and, therefore, retrenchment benefits
under Section 25-F(b) of the Industrial Disputes Act were being offered to
them. A learned Judge of the Allahabad High Court held the said notices to
be null and void and for non-compliance with Section 25-N of the Industrial
Disputes Act. A Division Bench of the High Court, however, reversed that E
decision. Before this Court denying the applicability of Section 25-N to the
case, the respondent-Company contended that it was not an "industrial
establishment" as defined by Section 25-L of the ID Act read with Section
2(m) of the Factories Act. It added that a "factory" must have a fixed site
and the entire project spread over 54 kms could not be a "factory". Another F
aspect which needed examination at this stage was whether any manufacturing
process was being carried on so as to render the respondent-Company, a
factory. Reversing the decision of the Division Bench on this point also, this
Court held:

"15. That takes us to the consideration of the second reason which G
weighed with the High Court for dispensing with the applicability of
Section 25-N in the present case. As noted earlier, Sub-section (I) of
Section 25-N lays down the procedure as conditions precedent to
retrenchment of workmen employed in an 'industrial establishment' to
which Chapter V-B applies. Section 25-N is in Chapter V-B. We have,
therefore, to tum to Section 25-L which lays down the requirements · H
868 SUPREME COURT REPORTS [2006) SUPP. 10 S.C.R.

A of' industrial establishment governed by Chapter V-B. It is a definition
section which lays down that for the purpose of Chapter V-B an
industrial establishment amongst others would mean "(i) a factory as
defined in clause(m) of Section 2 of the Factories Act, 1948 (63 of
1948)". This is not an inclusive definition. Therefore, all its requirements
have to be met by an establishment so as to fall in Chapter V-B.
B
16. We are not concerned with other parts of the said definition. It,
therefore, becomes necessary to find out as to whether Rihand Nagar
project of the Respondent company was an 'industrial establishment'
meaning thereby whether it was a 'factory' as defined in Clause (m)
of Section 2 of the Factories Act., 1948. It is obvious that if it was not
c such a 'factory', it would not be an 'industrial establishment' governed
by Chapter V-B. Consequently, the workmen employed therein would
not be covered by Section 25-N Sub-section (1).

Xx xx xxxx xxx

D In the light of the aforesaid definition, in order that the project in
question can be treated to be a 'factory', the following requirements
of the definition have to be fulfilled:

(i) In the premises, including the precincts thereof, ten or more workmen
must be working where manufacturing process is carried out with the
E aid of power, or

(ii) where twenty or more workmen must be working at the relevant
time and in any part of such premises manufacturing process is being
carried on without the aid of power; or

F (iii) In any case manufacturing process must be carried on in any part
of the premises;

So far as the first and the second requirements are concerned, it
cannot be disputed that :it the relevant time when the impugned
notices of 1993 were served on the appellants more than hundred
G workmen were working in the premises. Consequently, the question
whether the construction of railway line was being done with the aid
of power or without the aid of power pales into insignificance.
Therefore, the remaining requirement (iii) for applicability of the
definition of the term 'factory' which becomes relevant is whether any
'manufacturing process' was being carried on in the premises or any
H

·'
UTTARANCHAL FOREST DEVELOPMENT CORPN. v. !ABAR SINGH [LAKSHMANAN. J.] 869

part thereof. Consideration of this aspect will require fulfilment of twin A
conditions, namely, i) whether the project was having any 'premises'
where the work was being carried on by these workmen; ii) whether
the work which was carried on by them amounted to a 'manufacturing
process'. The term "premises" is not defined by the Act, but the term
'manufacturing process' is defined in Section 2(k) of the Factories Act
B
Xxxx xxxx

We shall first deal with the question whether Rihand Nagar Project of
the Respondent was having any 'premises'. Mr. Dave, learned senior
counsel for the Respondent placed strong reliance on a decision of
this Court in Workmen of Delhi Electric Supply Undertaking v. The C
Management of Delhi Electric Supply Undertaking, [1974] 3 SCC 108,
for submitting that the definition of the term 'factory' in Section 2(m)
of the Factories Act, 1948 requires fixed site. In para 18 of the Report,
it is observed that "the factory must occupy a fixed site or premises".
In that case, the question was whether the sub-stations and zonal D
stations of Delhi Electric Supply Undertaking where no manufacturing
process was being carried out could be considered to be a 'factory'.
Answering it in the negative it was held that "after the electricity is
generated when the current passes through the transmission lines and
reaches the sub-stations no further 'manufacturing process' of
electricity takes place". While answering the said question, reliance E
was placed on the observations of Halsbury's Laws of England, 3rd
Edition, Volume 70 to the effect that a 'factory' must occupy a fixed
site. Relfance was also placed on the observations of this Court in an
earlier judgment in Nagpur Electric Light & Power Co. Ltd. v.
Regional Director, Employees State Insurance Corporation Etc., [1967] F
3 SCR 92, for supporting the same proposition on the same lines. Mr.
Dave, invited our attention to an earlier Constitution Bench Judgment
of this Court in Ardeshir H Bhiwandiwala v. The State of Bombay,
[1961] 3 SCR 592, wherein at page 595, interpreting the very same
definition, it was observed that "premises" has gradually acquired the
popular sense of land or buildings and ordinarily the word "premises" G
is a generic term meaning "open land or land with buildings or buildings
alone". Relying on the aforesaid judgments, it was contended by Shri
Dave, learned senior counsel for the Respondent that on the facts of
the present case, Rihand Nagar Project which was concerned with
construction and laying down of railway lines spread over 54 K.Ms, H
870 SUPREME COURT REPORTS [2006) SUPP. 10 S.C.R.

A can not be said to constitute a 'factory' as it had no fixed site.

17. It is true that the word "premises" occurring in the definition of
"factory" in Section 2(m) of the Factories Act, 1948, implies a fixed site
but that word not only covers building out even open land can also
be a part of the premises. For laying down a railway line, a number
B of workmen, supervisors and other clerical staff will have to attend the
site where the railway line is to be laid. That site on which the railway
line is to be laid will necessarily have space for storage of loose rails,
sleepers, bolts etc. All these articles will have to be laid and fixed on
a given site before any part of the railway track becomes ready.
Consequently, construction of a railway line would necessarily imply
c fixed sites on which such construction activity gets carried on in a
phased manner. Thus, even though the railway line is to be laid over
54 kms of land, every part of the said land would consist of a "factory"
at a given point of time as from time to time in a phased manner, the
entire railway line will have to be laid. Once the entire work is finished,
D then a stage would be reached when the construction activity would
come to an end and the premises thereof may cease to be a "factory"
but so long as construction activity takes place would form a part and
parcel of the "premises" as such.

18. As regards the question whether any "manufacturing activity"
E was being carried on in Rihand Nagar Project, the definition of the
said term as contained in Section 2(k) (i) of the Factories Act is
relevant. Definitely raw materials like railway sleepers, bolts and loose
railway rails when bought by the respondent-Company from the open
market and brought on the site were articles visible to the eyes and
were moveable articles. These articles were adapted for their use.
F Their use was for ultimately laying down a railway line. In that process,
sleepers, bolts and rails would get used up. If that happens, the
definition of"manufacturing process" dealing with adaptation of these
articles for use would squarely get attracted. The definition of
"manufacturing process" in Section 2(k) of the Factories Act has
G nothing to do with ttiat contained in Central Excises and Salt Act,
1944 where the end product must be a moveable commodity. Therefore,
all the appellant-workers would squarely attract the definition of the
term 'workmen' as found in Section 2(1) of the Factories Act as they
were working for remuneration in a manufacturing process carried out
by the project in question. It must, therefore, to be held that all the
H
UTT ARANCHAL FOREST DEVELOPMENT CORPN. v. JABAR SINGH [LAKSHMANAN. J. ] 87}

requirements of the term "factory" as defined by Section 2(m) of the A
Factories Act are satisfied on the facts of the present case.
Consequently, Section 25-N applies to the facts of the present case."

In view of the above, Mr. Rao submitted that the appellant-Corporation
is neither a factory within the meaning of Section 2(m) of the Factories Act
nor did it carry manufacturing process as defined in Section 2(k) of the B
Factories Act. Thus, the appellant-Corporation cannot be treated as an
industrial establishment within the meaning of Section 25-L of the Industrial
Disputes Act.

NON-MAINTAINABILITY OF WRIT PETITION:
c
Mr. Rao submitted the writ petitions filed by the retrenched employees directly
in the High Court was not maintainable in view of the settled position in law
that alternative remedy under the Industrial Disputes Act must be initially
availed. In this batch of 38 cases, 22 cases have not gone to Tribunal and
they approached directly to the High Court by filing the writ petitions. The D
termination order was passed in the year 1995. The writ petitions were filed
in the year 2005 and the High Court mechanically decided all these cases in
the light of Jabar Singh's case. The details of cases which have not gone
before the Tribunal and were decided in the writ petitions filed by the
respondents-herein in the light of the Jabar Singh's case are as follows:-
E
S.No. W.P. Nos. Particulars

I. 1730/2001 SLP(C) No. 3399/2004

2. 1529/2001 SLP(C) No. 8552/2004

3. 1729/2001 SLP(C) No. 8553/2004 ·
F

4. 141/2004 SLP(C) No. 10712/2004

5. 150/2004 SLP(C) No.13425/2004

6. 450/2004 SLP(C}No. 13446/2004 G

7. 14212004 SLP(C) No. 13813/2004

8. 15112004 SLP(C) No. 14327/2004

9. 6926/2004 SLP(C) No. 15498/2004 H
A
872
10. 449/2003
SUPREME COURT REPORTS [2006] SUPP. IO S.C.R.

SLP(C) No. 21790/2004
-
11. 448/2003 SLP(C) No. 21791/2004

12. 551/2003 SLP(C) No. 5297/2005

13. 1064/2004 SLP(C) No. 24706/2005
B
14. 4160/2005 SLP(C) No. 25258/2005

15. 158/2005 SLP(C) No.25001/2005

16. 1281/2005 SLP(C) No. 25075/2005
c
17. 1059/2004 SLP(C) No. 26042/2005

18. 1280/2005 SLP(C) No. 25203/2005

19. 160/2005 SLP(C) No.25258/2005
D
20. 1281/2005 SLP(C) No. 25075/2005

21. 105912005 SLP(C) No. 26042/2005

In support of the above contention, Mr. Rao placed strong reliance on
E the recent pronouncement of this Court in U.P. State Spinning Co. Ltd. v. R.S.
Pandey and Anr., [2005] 8 SCC 264 at 273. Hon'ble Arijit Pasayat J. speaking
for the Bench observed:

"20. In a catena of decisions it has been held that writ petition under
Article 226 of the Constitution should not be entertained when the
F statutory remedy is available under the Act,_ unless exceptional
circumstances are made out.

21. In U.P. State Bridge Corporation Ltd. and Ors. v. U.P. Rajya Setu
Nigam S. Karamchari Sangh, it was held that when the dispute
relates to enforcement of a right or obligation under the statute and
G specific remedy is, therefore, provided under the statute, the High
Court should not deviate from the general view and interfere under
Article 226 except when a very strong case is made out for making a
departure. The person who insists upon such remedy can avail of the
process as provided under the statute. To same effect are the decisions
H in Premier Automobiles Ltd. v. Kamlekar Shantarum Wadke, Rajasthan
UTT ARANCHAL FOREST DEVELOPMENT CORPN v. JABAR SINGH [LAKSHMANAN,J ] 873

SRTC v. Krishna Kant, , Chandrakant Tukaram Nikam v. Muncipal A
Corporation of Ahmedabad, and in Scooters India and Ors. v. Vijai
EV. Eldred,.

22. In Rajasthan SRTC v. Krishna Kant (supra), it was observed as
follows:
B
"A speedy, inexpensive and effective forum for resolution of disputes
arising between workmen and their employers. The idea has been to
ensure that the workmen do not get caught in the labyrinth of civil
courts with their layers upon layers of appeals and revisions and the
elaborate procedural laws, which the workmen can ill afford. The
procedure followed by civil courts, it was thought, would not facilitate C
a prompt and effective disposal of these disputes. As against this, the
courts and tribunals created by the Industrial Disputes Act are not
shackled by these procedural laws nor is their award subject to any
appeals or revisions. Because of their informality, the workmen and
their representatives can themselves prosecute or defend their cases. D
·These forums are empowered to grant such relief as they think just
and appropriate. They can even substitute the punishment in many
cases. They can make and re-make the contracts, settlement, wage
structures and what not. Their awards are no doubt amenable to
jurisdiction of the High Court under Article 226 as also to the
jurisdiction of this Court under Article 32, but they are extraordinary E
remedies subject to several self-imposed constraints. It is, therefore,
always in the interest of the workmen that disputes concerning them
are adjudicated in the forums created by the Act and not in a civil
court. That is the entire policy underlying the vast a~ray of enactments
concerning workmen. This legislative policy and intendment should F
necessarily weigh with the courts in interpreting these enactments
and the disputes arising under them".

23. In Basant Kumar Sarkar and Ors. v. Eagle Rolling Mills Ltd, and
Ors., the Constitution Bench of this Court observed as follows:

"It is true that the powers conferred on the High Courts under Article G
226 are very wide, but it is not suggested by Mr. Chatterjee that even
these powers can take in within their sweep industrial disputes of the
kind which this contention seeks to raise. Therefore, without expressing
any opinion on the merits of the contention, we would confinn the
finding of the High Court that the proper remedy which is available H
874 SUPREME COURT REPORTS (2006) SUPP. 10 S.C.R.

A to the appellants to ventilate their grievances in respect of the said
notices and circulars is to take recourse to s. l 0 of the Industrial
Disputes Act, or seek relief, if possible, under Sections 74 and 75 of
the Act."

The above position was recently highlighted in Hindustan Steel Works
B Construction Ltd and Anr. v. Hindustan Steel Works Construction
Ltd Employees Union.

24. Accordingly the conclusion is inevitable that the High Court was
not justified in entertaining the writ petition. Usually when writ petition
is entertained notwithstanding availability of alternative remedy and
C issues are decided on merits, this Court is slow to interfere merely on
the ground of availability of alternative remedy. But the facts of the
present case have special features, which warrant· interference."

WRIT PETITION BARRED BY LACHES:

D Mr. L. Nageshwar Rao submitted that the High Court was not
justified in entertaining the writ petition on the ground that the petition has
been filed after a period of 8-10 years and that the petition should have been
dismissed by the High Court on the ground of !aches. Reliance was placed
on Haryana State Coop. Land Development Bank 'v.'Neelam, [2005] 5 SCC
E 91. Speaking for the Bench, Hon'ble S.B.sinha,J. observed:

"18. It is trite that the courts and tribunals having plenary jurisdiction
have discretionary power to grant an appropriate relief to the parties.
The aim and object of the Industrial Disputes Act may be to impart
social justice to the workman but the same by itself would not mean
that irrespective of his conduct a workman would automatically be
F
entitled to relief. The procedural laws like estoppel, waiver and
acquiescence are equally applicable to the industrial proceedings. A
person in certain situation may even be held to be bound by the
doctrine of Acceptance Sub silentio. The Respondent herein did not
raise any industrial dispute questioning the termination of her services
G within a reasonable time. She even accepted an alternative employment
and has been continuing therein from 10.8. I 988.

20. It is true that the Respondent had filed a writ petition within a
period of three years but indisputably the same was filed only after
the other workmen obtained same relief from the Labour Court in a
H reference made in that behalf by the State. Evidently in the writ
UTT ARANCHAL FOREST DEVELOPMENT CORPN. v. JABAR SINGH [LAKSHMANAN, J. ) 875

petition she was not in a position to establish her legal right so as A
to obtain a writ of or in the nature of mandamus directing the Appellant
herein to reinstate her in service. She was advised to withdraw the
. writ petition presumably because she would not have obtained any
relief in the said proceeding. Even the High Court could have dismissed
the writ petition on the ground of delay or could have otherwise B
refused to exercise its discretionary jurisdiction. The conduct of the
Respondent in approaching the Labour Court after more than seven
years had, therefore, been considered to be a relevant factor by the
Labour Court for refusing to grant any relief to her. Such a
consideration on the part of the Labour Court cannot be said to be
an irrelevant one. The Labour Court in the aforementioned situation C
cannot be said to have exercised its discretionary jurisdiction
injudiciously, arbitrarily and capriciously warranting interference at
the hands of the High Court in exercise of its discretionary jurisdiction
ur.der Article 226 of the Constitution."

Mr. Dhruv Mehta, learned counsel appearing for some of the respondents D
made elaborate submissions on the statement of objects and reasons of
Section 25-N and also cited Workmen of Meenakshi Mills Limited v.
Meenakshi Mills Limited and Anr., [ 1992] 3 SCC 336. He referred to Section
25-L (a) of the Industrial Disputes Act and made submissions on that. Our
attention was also drawn to the definition of 'manufacturing process' under E
Section 2(k) of the Factories Act, 1948. He submitted that the definition of
'manufacturing process' is in very wide terms and that since words of wide
amplitude have been mentioned in the definition, a construction which will
sub-serve the object of the legislation should be preferred. He cited the
following two decisions:
F
I. Nathi Devi v. Radha Devi Gupta, [2005] 2 SCC 271,

2. Indian Handicrafts Emporium and Ors. v. Union of India and Ors.,
[20031 1 sec 589

and submitted that this Court has applied the principle of purposive G
construction in several decisions in construing statutory provisions.
It is further submitted that the legislation is for the welfare of the
workers and construction which would achieve the object of the
beneficial legislation should be preferred. In support of this
submission, reliance was placed on the following decisions:
H
876 SUPREME COURT REPORTS [2006] SUPP. 10 S.C.R.

A 1. Ardeshi Bhiwandiwala v. State of Bombay, [ 196 l] 3 SCR 592 and ·
2. Bharat Singh v. Management of New Delhi Tuberculosis Centre,
New Delhi, (1986) 2 SCC 614.

With regard to non-compliance of Section 25-N, Mr. Mehta submitted
that since the Corporation is an 'Industrial Establishment' as defined under
B Section 25-L (a), the provisions of Section 25-N are attracted. According to
him, Section 25-N has not been complied with in this case. Sub-section 7 of
Section 25-N provides for the consequence of non-compliance of Section 25-
N and by statutory fiction the retrenchment order is deemed to be invalid and
the workman is entitled to all the benefits under the Jaw. He cited the decision
C reported in Lal Mohammed's case (supra) which held that the retrenchment
order without following the condition precedent under Section 25-N is to be
treated as void and of no legal effect.

Insofar as the filing of writ petitions directly in the High Court and by
way of reply to the argument of Mr. Rao, Mr. Mehta submitted that availability
...
D of alternative remedy is only a Rule of prudence and in a case like the present
one where there were no disputed questions of fact and the High Court had
already decided the matter in Jabar Singh's case, the High Court, was justified
in entertaining the writ petition.

Mr. Bharat Sangal, learned counsel appearing for the respondent Nos.
E l-12 in SLP (C) No. 24584 of2003 submitted as under:-

That the Award of the Labour Court which held that the retrenchment
orders were in full compliance of the provisions of Section 6-N of the U.P. Act
and there was sufficient reason for the Corporation to retain the juniors in
F service. However, on the question of compliance with requirements of Section
25-N of the Industrial Disputes Act, the Labour Court took the view that
firstly the present case is covered by the provisions of the U.P. Act and not
by the provisions of the Industrial Disputes Act and there being no provision
in the U.P. Act equivalent to Section 25-N of the Industrial Disputes Act, the
said Section 25-N will not apply to the present case.
G
The Labour Court further held that Section 25-N is contained in Chapter
V-B of the Industrial Disputes Act and the said Chapter, as per Section 25-
K only applies to those industrial establishments which employ 100 or more
workmen. Further Section 25-L defines an industrial establishment to mean
a factory as defined in Clause 2(m) of the Factories Act, 1948. However,
H Section 2(m) of the Factories Act defines a factory to be a premise~ including
UTTARANCHAL FOREST DEVELOPMENT CORPN. v. !ABAR SINGH [LAKSHMANAN. J.] 877

the precincts thereof where manufacturing process is carried out. The Labour A
Court held that neither the area where the trees are cut by the respondents
would constitute a premises nor would cutting of trees amou-nt to manufacturing
process. The respondent-workmen filed Writ Petition No. 1376 of2001 before
the High Court which by its impugned judgment quashed the Award on the
ground that the working of the appellant-Corporation fully fell within the B
definition of factory under Section 2(m) of the Factories Act, 1948 and,
therefore, Section 25-N was applicable to the Corporation especially as the
State Government of U.P. in exercise of its powers under Section 38 of the
Industrial Disputes Act framed Industrial Disputes (U.P.) Rules, 1976 by
which Section 25-N of the Industrial Disputes Act was made applicable to the
State of U.P. Consequently, the High Court quashed the retrenchment orders C
as not being in compliance with the provisions of Section25-N.

Before proceeding to consider the rival submissions made by the learned
counsel appearing on either side, we would like to refer to the argument of
Mr. Rao, senior counsel who has very fairly conceded that Section 25-N is
applicable to the State ofU.P. as per the 1976 Rules mentioned hereinabove. D
He also conceded that in view of the judgment of the Constitution Bench of
this Court in A.M. Bhiwandiwala v. State of Bombay, [1961) 3 SCR 592 at
pages 594-598, Mr. Rao did not want to press the question of premises and
confined his arguments to the issue that cutting of trees does not amount to
manufacturing process. Therefore, the arguments were confined to the E
question of manufacturing process alone.

Mr. Bharat Sangal, learned counsel submitted that manufacturing process
as defined in the Factories Act in Section 2(k) can be divided into three parts,
namely:
p·
(i) The process - "making, altering, repairing, ornamenting, finishing,
packing, oiling, washing, cleaning, breaking up, demolishing, or
otherwise treating or adapting"

(ii) The object - "any article or substance"

(iii) The purpose - "with a view to its use, sale, transport, delivery or G
disposal."

In the present case, it is admitted on both sides that the work of the
respondents consisted of "cutting of trees by axe and changing the shape
of the timber into logs by using hand driven saw". In our view, the process
H
878 SUPREME COURT REPORTS [2006] SUPP. 10 S.C.R.

A of cutting by axe and changing the shape by saw both squarely fall within
the definition of the first part of the manufacturing process as cutting would
be included in the processes of "making" and "breaking up" included in the
said definition. Further, the changing of shape by saw would be included in
the processes of "altering" and "adapting" of the trees. Admittedly, trees
and logs both fall within the meaning of "any article or substance", the
B second part of the definition. Lastly, the conversion of trees into logs is
admittedly for the purpose of sale, disposal, use and last but not the least
for transport all of which fall within the third part of the definition.

It is noteworthy that this Court in the judgment reported in Ardeshi
C Bhiwandiwala's case (supra) has specifically held that salt prepared by
evaporation of brine in salt packs spread over an area of 254 acres would also
constitute a manufacturing process so as to include the salt works in the
definition of factory. This Court in Lal Mohammad and Ors. case (supra) has
held that construction of a railway line over a length of 54 miles would also
constitute a manufacturing process and all the patches of land on which
D actual work is taking place from time to time to build rail line would be a
factory for the purpose of Section 2(m). This Court also gave the example
of construction of electricity transmission lines which would be a manufacturing
process though the process of actual transmission of electricity may not be
so.

E Mr. Bharat Sangal, therefore, submitted that the work of cutting of trees
and converting them into logs constitute manufacturing process for the purpose
of Section 2(k) of the Factories Act and the various areas of the forest where
the said work is being conducted would form part of the factory for the
purposes of Section 2(m) of I
the said Act. Thus, the establishment of the
p appellant-Corporation would, in our opinion, fall within the definition of
Industrial Establishment as contained in Section 25-L and, therefore, Section
25-N would be applicable to the establishment of the appellant-Corporation.
It is also submitted that though Uttaranchal Forest Corporation is covered by
the provisions of the U.P. Act, however, in terms of the 1976 Rules Section
25-N of the Industrial Disputes Act is applicable to the State of Uttaranchal
G and, therefore, to the establishment of the appellant-Corporation.

The appellant-Corporation, while issuing the retrenchment notices dated
31.05.1995 as well as othernotices issued between 31.03.1995 to 31.05.1995,
did not comply with either of the two requirements of Section 25-N, namely,
H giving 3 months notice to the workman in writing or paying them 3 months
UTT ARANCHAL FOREST DEVELOPMENT CORPN. v. JAB AR SINGH [LAKSHMANAN, J. ) 879

wages in lieu thereof and taking of prior permission from the appropriate A
Government, the retrenchment of the respondent-workmen by the Corporation
was done contrary to the provisions of clause (1) of Section 25-N and is
illegal.

Clause 7 of Section 25-N statutorily provides that "where no application
for permission under sub-section {l) is made or where the permission for any B
retrenchment has been refused, such retrenchment shall be deemed to be
illegal from the date on which the notice of retrenchment was given to the
workman and the workman shall be entitled to all the benefits under any law
for the time being in force as if no notice had been given to him". The
submission made in this behalf by learned counsel for the respondents merit C
acceptance. Thus, the retrenchment notices mentioned above being illegal
from the date of the said notices and the workmen being entitled to all the
benefits, in the present case, all the concerned workmen are entitled to be
reinstated with full back-wages and continuity of service.

Mr. Dhruv Mehta also submitted that the retrenchment orders passed D
by the Corporation are invalid in law for non-compliance with the statutory
provisions of Section 25-N of the Industrial Disputes Act, 1947. Section 25-
N which falls in Chapter-V-B was inserted by ActNo.32of1976 w.e.f. 05.03.1976
and as the heading suggest deals with special provisions relating to layoff,
retrenchment and closure in certain establishments. The objects and reasons
and the circumstances which led to the enactment of this Chapter which E
includes Section 25-N have been discussed by this Court in a Constitution
Bench judgment rendered in the case of Workmen of Meenakshi Mills Lim.ited
and Ors. v. Meenakshi Mills Limited and Anr., [ 1992] 3 SCC 336. The relevant
portion of para 22 is set out herein below:

"By requiring prior scrutiny of the reasons for the proposed F
retrenchment in industrial establishments employing not less than 300
workers, Section 25-N seeks to prevent the hardship that may be
caused to the affected workmen as a result of retrenchment because,
at the commencement of his employment, a workman naturally expects
and looks forward to security of service spread over a long period and G
retrenchment destroy his hopes and expectations. The retrenched
workman is, suddenly and without his fault, thrown on the street and
has to face the grim problem of unemployment. See: The Indian Hume
Pipe Co. Ltd. v. The Workmen, [1960] 2 SCR 32, at pp.36-.>7. Often the
workman is retrenched when he is advanced in age and his energies
H
\.
880 SUPREME COURT REPORTS [2006] SUPP. 10 S.C.R.

A are declining and it becomes difficult for him to compete in the
employment market with younger people in securing employment.
Retrenchment compensation payable under Section 25-F may be of
some assistance but it cannot go far to help him tide over the hardship
especially when the proceedings before the Industrial Tribunal/Labour
Court get prolonged. The plight of the retrenched workman hllfo totl)e
B considered in the light of the prevailing conditions of unempl~yment
and under employment in the country."

It is thus clear that Section 25-N was brought in for the purpose of
giving protection to workmen against retrenchment by making prior scrutiny
C by the Government as a condition precedent.

J\:fr. Mehta further submitted that the Corporation falls within the
definition of 'Industrial Establishment' as defined in Section 25-L (a) of the
Industrial Disputes Act, 1947. It is submitted that 'Industrial Establishment'
...
for the purpose of Chapter V-B means a factory as defined in Clause (m) of
D Section 2 of the Factories Act, 1948. It is submitted that the petitioner
Corporation fully satisfies the requirement of the definition of the 'factory' as
defined under section 2(m) inasmuch as the area over which the respondent
workmen carry on their activity would fall within the term 'premises' as
understood and explained by a Constitution Bench of this Court in the
decision reported in the case of Ardeshir H. Bhiwandiwala v. State ofBombay,
E (1961] 3 SCR 592.

The Constitution Bench clearly held in the aforementioned decision that
'premises' can consist of open area and need not be confined in its meaning
to buildings alone.

F Mr. Mehta also made submission on the definition of 'manufacturing
process' under Section 2(k) of the Factories Act, 1948. The appellant has
urged that in order to satisfy the definition of 'factory' under Section 2(m)
of the Factories Act, there must be a 'manufacturing process' and the activity
which was carried on by the workmen does not fall within the definition of
G 'manufacturing process' as defined in Section 2(k) of the Factories Act, 1948.
The above submission, in our opinion, is untenable in law and cannot be
sustained for more than one reason. However, before dealing with the definition
of 'manufacturing process' as defined in section 2(k), it is necessary to briefly
refer to the functions and powers of the corporation as mentioned in Sections
14 and 15 of the U.P. Forest Corporation Act, 1974. It is submitted that the
H functions and powers of the Corporations is inter alia to undertake removal
UTTARANCHAL FOREST DEVELOPMENT CORPN. 1·. !ABAR SINGH [LAKSHMANAN. l.] 88}

and disposal of trees and exploitation of forests and resources. (Sectionl4 (1) A
(b)). The Corporation has also the power to set up workshop or factories for
processing raw materials. (Section 15 (2) (a)). The High Court after referring
to the aforementioned statutory provisions in the impugned judgment observed
as under: -

"... From the perusal of the functions and power including the power B
to undertake projects at the instance of others shows that the
Corporation is totally a commercial corporation, which undertakes
removal and disposal of the trees and exploitation offorest resources
entrusted to it by the State Government... The corporation has power
to setup workshop or a factory for processing forest raw material... " C

That in so far as the question of manufacturing process is concerned, it is
submitted that the activity in quesHon fully satisfies the ingredients of the
·-- definition of 'manufacturing process' as defined in Section 2(k) of the Factories
Act, 1948. The relevant discussion of the High Court in so far as the activity
in question is concerned is set out in the impugned judgment and for ready D
reference the same is given hereinbelow.

"... The trees which are allotted to the forest corporation in the area
of the region are rooted in the earth being things attached to the
earth are removable property by the definition of immovable property
given in General Clauses Act, while timber/logs are waod cut up and E
sawn as held by the apex court in State of Orissa v. Titaghur Paper
Mills Company Ltd reported in 1985 1uppl. SCC 280 in para 90 ... "

"Cutting of trees by axe and shaping the cut trees into logs which
is sold by the Forest Corporation is a manufacturing process as
process of making, altering or shaping of an article is carried on F
inasmuch as the trees after being cut are converted and altered into
logs for sale as timber. Cutting of trees and converting them into
logs by employing the implements through the mechanical process
with aid of workmen without aid of power is manufacturing process
in which the logs and timber are a producrproduced after cutting
of the trees which are immovable property by axe and shaping them G
into logs by use of saws by workmen into logs, which become articles
or moveable substance and is sold by Forest Corporation. .. "

1t was submitted that the aforesaid activity would fully comply with definition
of 'manufacturing process' as defined under section 2(k) of the Factories Act, H
882 SUPREME COURT REPORTS [2006] SUPP. 10 S.C.R.

A 1948.
It was submitted that the activity in question in the present case could
easily be said to be making or altering an Article with a view to its use, sale,
transport, delivery or disposal. The word 'alter' in Black's law dictionary (6th
Edition at pg. 77) is defined as under:-
B
"Alter. To make a change in; to modify; to vary in some degree; to
change some of tile elements or ingredients or details without
substituting an entirely n.ew thing or destroying the identity of the
thing affected. To change partially. To change in one or more respects,
but without destruction of existence or identity of the thing changed;
c to increase or diminish. See Alteration; Amend; Change."

It was submitted that the test laid dow~ by this Court in Ardeshir's case is
whether what is made shall be a different thing from that out of which it is
made. In this connection it is necessary to set out the relevant paras from the
Constitution Bench decision as under:-
D
"The observation in Grove v. Lloyds British Testing Company ltd.
(1931) A.C.466 at 467), support the view that the conservation of sea
water into salt amounts to adapting it for sale. It is stated there:-

"I think 'adapting for sale' points clearly to something being done to
E the article in question which in some way, makes it in itself a little
different from what it was before."

xx xx xx
.. .In the present case, we are considering the definition of the expression
F "manufacturing process" and no dictionary meaning of the word
"manufacture" for the purpose of other Acts can be of any guide. It
may, however, be noted that even according to the meaning given to
the word "manufacture", the conversion of brine into salt would
amount to manufacture of salt as "the essence of making or of
manufacturing is what is made shall be different thing from that out
G of which it is made" vide McNicol and Anr. v. Pinch (1906) 2 K.B.352
at 361)"

With regard to the non-maintainability of the writ pet1t1on and the
contention that the writ petition by respondents were barred by !aches,
H Mr.Mehta submitted that the availability of alternative remedy is only a rule
UTTARANCHAL FOREST DEVELOPMENT CORPN. v. JABAR SINGH {LAKSHMANAN. J. J 883

of prudence and in a case like the present one where there were no disputed A
questions of fact, he submitted the High Court was justified in entertaining
the writ petition. Mr. Bharat Sangal also made his submissions that this Court
under Article 136 of the Constitution of India is entitled to mould the relief
to be given to the workmen in the present case in view of the fact that Section
25N 7 statutorily provides all benefits to the workmen in case of illegal B
retrenchment, the workmen concerned in the present cases would be entitled
to the said benefit without any modification or mould the relief by this Court.
He, therefore, submitted that the civil appeals filed by the Corporation deserves
to be dismissed in favour of the respondent-workmen.

We are unable to countenance the above submission of Mr. Mehta and C
Mr. Sangal insofar as it relates to the non-maintainability of the writ_ petition
and the delay and laches. It is not in dispute that the effective alternative
remedy was not availed by many of the workmen as detailed in paragraphs
supra. The tennination order was made in the year 1995 and the writ petitions
were admittedly filed in the year 2005 after a delay of 10 years. The High
Court, in our opinion, was not justified in entertaining the writ petition on the D
ground that the petition has been filed after a delay of IO years and that the
writ petitions should have been dismissed by the High Court on the ground
oflaches. We have already referred to the decision of this Court in V.P. State
Spinning Co. Ltd. v. R.S. Pandey and Anr, (supra). This Court speaking
through Arijit Pasyat, J. has held in categorical tenns that writ petition under E
Article 226 of the Constitution should not be entertained when the statutory
remedy is available under the Act unless exceptional circumstances are made
out.

In the instant case, the workmen have not made out any exceptional
circumstances to knock .the door of the High Court straightaway without F
availing the effective alternative remedy available under the Industrial Disputes
Act. But the dispute relates to enforcement of a right or obligation under the
statute and a specific remedy is, therefore, provided under the statute the
High Court should not deviate from the general view and interfere under
Article 226 of the Constitution except when a very strong case is made out
for making a departure. There are several decisions to the same effect. The G
respondents have not· made out any strong case for maki~g a departure.
Accordingly, the conclusion is inevitable that the High Court was not justified
in entertaining the writ petition.

We are, therefore, of the opinion that the writ petitioners (respondents H
884 SUPREME COURT REPORTS [2006] SUPP. JO S.C.R.

A herein) who have not invoked the jurisdiction of the Tribunal are not entitled
to any relief in the writ petitions. They are not entitled for any benefits of
reinstatement, back-wages and continuity of service.

On the other hand, the respondents in civil appeals arising out of
special leave petitions as detailed infra who approached the Tribunal and the
B High Court are entitled for the relief ofreinstatement, back-wages and continuity
of service in view of our finding that the appellant-Corporation is an Industrial
Establishment and that provisions of Section 25N of the Industrial Disputes
Act are attracted.

C Learned counsel appearing for the respondents in the other civil appeals
have adopted the arguments of Mr. Dhruv Mehta and Mr. Bharat Sangal.

For the foregoing reasons, we hold that the provisions of Section 25-
N of the Industrial Disputes Act, 1947 are attracted_ and non-compliance of
the said section makes retrenchment order illegal and non est.
D
We also hold that the appellant-Corporation is an industrial establishment
within the definition of Section 25L of Chapter V-B of the Industrial Disputes
Act.

We, therefore, allow the civil appeal Nos. 5730, 5740, 5741, 5742, 5744,
E: 5745,5746,5749,5750,5752,5754,5755,5756,5758,5759,5760,5761,57570f
2006 arising out ofSLP (C) Nos. 3399/2004, 8552/2004, 855312004, 10712/2004,
13425/2004, 13446/2004, 13813/2004, 14327/2004, 15498/2004, 21790/2004, 21791/
2004, 5297/2005, 24706/2005, 25258/2005, 25001/2005, 25075/2005, 26042/2005,
25203/2005, and dismiss the civil appeal Nos. 5728, 5729, 5731, 5732, 5733,
5734, 5735, 5736, 5737, 5738, 5739, 5747, 5748, 5751 of 2006 filed by the
F appellant Corporation arising out of Special Leave Petition (Civil) Nos. 24584/
2003, 3189/2003, 3553/2004, 3738/2004, 3740/2004, 3793/2004, 3795/2004, 4361/.
2004, 4386/2004, 4391/2004, 7548/2004, 15433/2004, 15434/2004 and 21789/2004.
No costs.

V.S.S. Appeals disposed of.