{"id":232719,"date":"1995-10-30T00:00:00","date_gmt":"1995-10-29T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/housing-board-of-havana-vs-havana-housing-board-employees-on-30-october-1995"},"modified":"2015-09-15T01:29:17","modified_gmt":"2015-09-14T19:59:17","slug":"housing-board-of-havana-vs-havana-housing-board-employees-on-30-october-1995","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/housing-board-of-havana-vs-havana-housing-board-employees-on-30-october-1995","title":{"rendered":"Housing Board Of Havana vs Havana Housing Board Employees … on 30 October, 1995"},"content":{"rendered":"
Supreme Court of India<\/div>\n
Housing Board Of Havana vs Havana Housing Board Employees … on 30 October, 1995<\/div>\n
Equivalent citations: 1996 AIR 434, \t\t 1996 SCC (1)\t 95<\/div>\n
Author: A S S.<\/div>\n
Bench: Ahmad Saghir (J)<\/div>\n
           PETITIONER:\nHOUSING BOARD OF HAVANA\n\n\tVs.\n\nRESPONDENT:\nHAVANA HOUSING BOARD EMPLOYEES UNION AND ORS.\n\nDATE OF JUDGMENT30\/10\/1995\n\nBENCH:\nAHMAD SAGHIR S. (J)\nBENCH:\nAHMAD SAGHIR S. (J)\nKULDIP SINGH (J)\n\nCITATION:\n 1996 AIR  434\t\t  1996 SCC  (1)\t 95\n JT 1995 (8)\t37\t  1995 SCALE  (6)139\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n
\t\t      J U D G M E N T
\nS. SAGHIR AHMAD, J.\n<\/p>\n
     Whether  the   Haryana  Housing   Board  is   a  “Local
\nAuthority” within  the meaning\tof  Section  32(iv)  of\t the
\nPayment of  Bonus Act, 1965 is the question to be decided in
\nthese appeals. If it is held that it is a “Local Authority”,
\nthis Act,  namely, the Payment of Bonus Act, would not apply
\nto its\temployees, as  it is provided in Section 32(iv) that
\nit  would   not\t apply\tto  those  categories  of  employees
\n(including  the\t  employees  of\t  the\t“Local\t Authority”)
\nenumerated, specified and categorised therein.\n<\/p>\n
     “Local Authority”\thas not\t been defined in the Payment
\nBonus Act,  1965 but it has been defined in Section 3(31) of
\nthe General Clauses Act, 1897 as under
\n     ”\t‘Local\t authority’  shall   mean   a
\n     municipal committee, district board body
\n     of port commissioners or other authority
\n     legally entitled to, or entrusted by the
\n     Government\t of   a\t municipal  or\tlocal
\n     fund.”\n<\/p>\n
     Incidentally, “Local  authority” has  also been defined
\nin Section  2(J) of  the Haryana  Housing Board Act, 1971 as
\nunder:\n<\/p>\n
     “(J)   ‘Local    authority’   means    a
\n     municipality   constituted\t  under\t  the
\n     Punjab Municipal Act, 1911 (Punjab Act 3
\n     of\t  1911),    or\t a   Gram   Panchayat
\n     constituted  under\t  the\tPunjab\t Gram
\n     Panchayat Act,  1952 (Punjab  Act\t4  of
\n     1953), or\ta Panchayat Samity or a Zilla
\n     Parishad constituted  under  the  Punjab
\n     Panchayat Samities\t and  Zilla  Parishad
\n     Act, 1961\t(Punjab Act 3 of 1961), or an
\n     Improvement Trust\tImprovement under the
\n     Punjab Act 4 of 1922).”\n<\/p>\n
     Both the  definitions are conclusive in nature and only
\nthose  bodies  including  the  Municipal  Board\t or  a\tGram
\nPanchayat etc.\tWill be\t treated as “Local authority” as are
\nmentioned therein.  But there is a significant difference in
\nas much\t as the\t words “Authority  legally  entitled  to  or
\nentrusted by  the Government with, the control or management
\nof a  Municipal or  Local  Fund”  which\t are  found  in\t the
\ndefinition contained  in the  General Clauses  Act  are\t not
\nfound in  the definition of “Local Authority” in the Haryana
\nHousing Board Act, 1971.\n<\/p>\n
     Concept of “Local Authority” is also found contained in
\nEntry 5, List II of the Seventh Schedule of the Constitution
\nwhich provided as under:\n<\/p>\n
     “5.   Local  Government, that is to say,
\n     the constitution and powers of municipal
\n     corporations,    improvement     trusts,
\n     district\tboards,\t  mining   settlement
\n     authorities and  other local authorities
\n     for the purpose of local self-government
\n     or village administration.”<\/p><\/blockquote>\n
     The Entry\tempowers the  State Legislature\t to make law
\nwith respect  to any  subject relating\tto Local  Government
\nincluding the constitution of “Local Authorities”. The State
\nLegislature  can  also\tconfer\tsuch  powers  as  it  itself
\npossesses upon\ta “Local  Authority”, including the power of
\ntaxation (within  the limits of List II) for the purposes of
\nLocal Self  Government. The  “Local Authority”, undoubtedly,
\nis   a\t representative\t  body\t but   notwithstanding\t its
\nrepresentative\tcharacter,   it\t  remains   a\tsub-ordinate
\nAuthority created  by a\t statute and,  therefore, it  cannot
\nclaim the  power of  taxation  which  belong  to  the  State
\nLegislature except  to the extent it is conferred upon it by
\nthe statute which creates it.\n<\/p>\n
     The Municipal  Committees, the  District  Boards,\tGram
\nPanchayats and Panchayat Samitis etc. represent the units of
\nLocal Self  Government where  people of\t a local area govern
\nthemselves through  their elected representatives in respect
\nof a  large number  of\tmatters\t including  construction  of
\nbuildings, roads,  parks,  lighting  of\t streets,  sewerage,
\nconservancy  and   water  works\t  etc.\tThese\tLocal\tSelf
\nGovernments, namely,  the Municipal  Boards and the District
\nBoard etc.  are constituted under statutory provisions which
\nelaborately provide who, on being elected, become members of
\nthe Municipal Boards or the District Board. These Boards are
\nbasically independents bodies with very little or minimal of
\nGovernment control  and that  too in the limited field. They
\nformulate their\t own policies  and implement  those policies
\nthrough the machinery provided under law. They have power to
\nlevy Panchayat, municipal or other local taxes and have also
\nthe power to realise those taxes through coercive processes,
\nif they\t are not  paid immediately on demand. They have also
\nthe right to raise, built up and manage their “local funds”.\n<\/p>\n
     Under the\tbasic principle of statutory interpretation,
\nthe words  “Other Authority”,  having  been  placed  in\t the
\ncompany of “Municipal Council” and “District Boards” etc. in
\nthe definition\tof “Local  Authority” in the General Clauses
\nAct  can   be  interpreted  to\tmean  a\t “Body”\t having\t and
\npossessing, practically\t all the  attributes of\t a Municipal
\nBoard or  the District\tBoard so  far as  their\t independent
\nexistence is concerened.\n<\/p>\n
     Similarly, in  the definition  of “Local  Authority” in
\nthe Haryana  Housing Board  Act, 1971,\tit has been provided
\nthat  it  shall\t mean  the  Municipality,  Gram\t Panchayats,
\nPanchayat Samitis, Zila Parishads and Improvement Trusts.
\nIt hardly requires to be mentioned that the Municipal Board,
\nthe  Gram  Panchayat  or  a  Panchayat\tSamiti\tor  a  Zilla
\nParishad, or for that matter, Improvement Trust, referred to
\nin this\t definition are, at least, partially, if not wholly,
\nelected bodies.\n<\/p>\n
     In Municipal  Corporation\tof  Delhi  v.  Birla  Cotton
\nSpinning  and  Weaving\tMills,\tDelhi  and  Anr.<\/a>  (1968\t (3)
\nS.C.R.251), Hidayatullah,J.  (as he  then was  ) observed as
\nunder:\n<\/p>\n
     “Local bodies  are subordinate  branches
\n     of\t governmental\tactivity.  They\t  are
\n     democratic institutions  managed by  the
\n     representatives  of   the\tpeople.\t They
\n     function for  public purposes  and\t take
\n     away a part of the government affairs in
\n     local areas.  They\t are  political\t sub-
\n     divisions and  agencies which exercise a
\n     part of  state functions.\tAs  they  are
\n     intended  to   carry  on\tlocal\tself-
\n     government the  power of  taxation is  a
\n     necessary adjunct to their other powers.
\n     They function  under the  supervision of
\n     the government.”<\/p><\/blockquote>\n
     In Valjibhai  Muljibhai Soney  and Anr. v. The State of
\nBombay (New  Gujarat) and  Ors.<\/a> (1964  (3) S.C.R.  686)\t the
\nState Trading  Corporation  was\t held  not  to\tbe  a  local
\nauthority within the meaning of Section 3(31) of the General
\nClauses Act.\n<\/p>\n
     The aforesaid  two cases  came to be considered by this
\nCourt in  Union of  India and  Ors. v.\tR.C. Jain  and\tOrs.<\/a>
\n(1981) (2)  S.C.R. 854)\t in which  the question\t whether the
\nDevelopment Authority  created under  the Delhi\t Development
\nAct, 1957  was a  “local authority”  within the\t meaning  of
\nSection 32(iv)\tof the\tPayment of  Bonus Act  or  not,\t was
\ninvolved and on a consideration of all the attributes of the
\nDelhi Development  Authority, it  was held  to be  a  “local
\nauthority”. This  Court speaking through O. Chinnappa Reddy,
\nJ. observed as under:\n<\/p>\n
     “What   then    are   the\t  distinctive
\n     attributes and  characteristics, all  or
\n     many of  which a Municipal Commissioners
\n     shares with  any other  local authority?\n<\/p>\n
     First,   the   authorities\t  must\t have
\n     separate legal  existence\tas  corporate
\n     bodies.   They    must   not   be\t mere
\n     governmental  agencies   but   must   be
\n     legally independant entities. Next, they
\n     must  ordinarily,\t wholly\t or   partly,
\n     directly or  indirectly, be  elected  by
\n     the inhabitants  of the area. Next, they
\n     must enjoy a certain degree of autonomy,
\n     with freedom  to decide  for  themselves
\n     questions of  policy affecting  the area
\n     administered by  them. The degree of the
\n     dependents may vary considerably but, an
\n     appreciable measure  of  autonomy\tthere
\n     must be. Next, they must be entrusted by
\n     statute with such governmental functions
\n     and duties\t as are\t usually entrusted by
\n     statute with such governmental functions
\n     and duties\t as are\t usually entrusted to
\n     municipal\t bodies,    such   as\tthose
\n     connected with  providing\tamenities  to
\n     the inhabitants  of the  locality,\t like
\n     health and education services, water and
\n     sewerage, town planning and development,
\n     roads, markets,  transportation,  social
\n     welfare services  etc.etc.\t Broadly,  we
\n     may say  that they may be entrusted with
\n     the  performance  of  civic  duties  and
\n     functions\twhich\twould  otherwise   be
\n     governmental   duties   and   functions.\n<\/p>\n
     Finally, they  must have  the  power  to
\n     raise funds for the furtherance of their
\n     activites and  the fulfilment  of\ttheir
\n     projects  by   levying   taxes,   rates,
\n     charges,  or   fees.  This\t  may  be  in
\n     addition\tto    monies   provided\t   by
\n     government or  obtained by\t borrowing or
\n     otherwise. What  is  essential  is\t that
\n     control or\t management of\tthe fund must
\n     vest in the authority.”\n<\/p>\n
     Since  this   decision  will   equally  apply   to\t the
\ndefinition of  “Local Authority”  set  out  in\tthe  Haryana
\nHousing Board  Act, 1971 as that definition is substantially
\nsimilar to  the\t definition  of\t “Local\t Authority”  in\t the
\nGeneral Clauses\t Act, it  is  in  the  light  of  the  above
\nprincipals that\t it has\t to  be\t seen  whether\tthe  Haryana
\nHousing Board  answers the  attributes specified above so as
\nto be  treated a  “local authority”  within the\t meaning  of
\nSection 32(iv) of the Payment of Bonus Act.\n<\/p>\n
     The Haryana  Housing Board\t Act, 1971  in its  preamble
\nstates that  it is  “an Act  to provide\t for measures  to be
\ntaken  to   deal  with\tand  satisfy  the  need\t of  housing
\naccommodation.”\n<\/p>\n
     The Statement  of “Objects\t and Reasons” set out at the
\ntime of introduction of the Bill in the Legislative Assembly
\nindicate, inter alia, as under:\n<\/p>\n
     “Next to  food and\t clothing housing  is
\n     the  basic\t necessity  of\tmankind.  The
\n     housing problem  has become  serious  on
\n     account of\t the phenomenal\t increase  in
\n     population. Repid\tindustrialisation has
\n     led to  the congestions  in urban areas.\n<\/p><\/blockquote>\n
     The   concentration    of\t almost\t  all
\n     industries\t in   urban  areas   and  the
\n     comparative  high\t wages\tpaid  to  the
\n     factory workers coupled with the lack of
\n     sufficient opportunities  in  the\trural
\n     areas have\t resulted in  a\t large\tscale
\n     shift\tof\t population\t from
\n     villages……….<\/p><\/blockquote>\n
\t  With\ta   view   to\tachieve\t  the
\n     aforesaid\t object\t   the\t matter\t  was
\n     considered\t  in\tthe   conference   of
\n     Ministers for Housing, Urban Development
\n     and Town  Planning held  at a  Bangalore
\n     from  19th\t  to  20th  June,  1969.  The
\n     consensus\tof   opinion  was   that  the
\n     statutory State  Housing Boards  are the
\n     best agencies  for tentative  and speedy
\n     implementation    of     the     housing
\n     programmes. Accordingly,  it is proposed
\n     to constitute  a Haryana  State  Housing
\n     Board. Hence  the Haryana\tHousing Board
\n     Bill, 1971.”<\/p><\/blockquote>\n
     The Haryana  Housing Board\t (for Short, ‘the Board’ has
\nbeen established  and constituted under Section 3 of the Act
\nwhich, inter  alia, provides  that the Board shall be a body
\ncorporate having  perpetual succession and a common seal and
\nshall have  the\t power\tto  acquire,  hold,  administer\t and
\ntransfer property,  movable or\timmovable, and to enter into
\ncontracts.\n<\/p>\n
     Sub-section (4)  of Section  3 provided  that the Board
\nshall consist  of a Chairman, a Chief Administrator and such
\nother Members,\tnot more that 12 and not less that 6, as the
\nState Government  may, from  time to  time, by\tNotification
\nappoint. Unider\t Section 5  of the Act, the State Government
\nhas the\t power to  grant such  leave to the Chairman and the
\nChief Administrator  as may  be admissible to them under the
\nRules made under the Act.\n<\/p>\n
     Section 7 provides that every Member of the Board shall
\nhold office for a period of three years from the date of his
\nappointment and\t shall be paid such salary and allowances as
\nmay be\tprescribed. Conditions\tof service are also required
\nto be  prescribed by  Rules made  under the  Act. It is also
\nprovided in this Section that on the expiry of the term of 3
\nyears,\ta  Member  shall  be  eligible\tfor  re-appointment.
\nSection 7-A indicates that the Chairman, Chief Administrator
\nand other Members of the Boards shall hold office during the
\npleasure of the State Government.\n<\/p>\n
     Section 14\t provides for the appointment of one or more
\ncommittees for\tany particular\tlocal area  for\t purpose  of
\ndischarging such  duties or performing such functions of the
\nBoard as  may be  delegated to\tthem with  due regard to the
\ncircumstances and requirements of that area.\n<\/p>\n
     Chapter III of the Act deals with the Housing Schemes.
\nSection 20 provides as under:\n<\/p>\n
     “20.  Duty of Board to undertake housing
\n     schemes.– Subject\t to the provisions of
\n     this Act  and subject  to the control of
\n     the  State\t Government,  the  Board  may
\n     incur expenditure and undertake works in
\n     any area  for the\tframing and execution
\n     of\t such\thousing\t schemes  as  it  may
\n     consider necessary\t from time to time or
\n     as may  be entrusted  to it by the State
\n     Government.”<\/p><\/blockquote>\n
     The exercise  of power  by the  Board  in\tframing\t and
\nexecuting  Housing  Schemes  is\t not  only  subject  to\t the
\nprovisions of the Act but also subject to the control of the
\nState Government.\n<\/p>\n
     The matters  which may  be provided  for in  a  Housing
\nScheme are  indicated in  Section 21 which include laying or
\nre-laying of  the land,\t construction and re-construction of
\nbuildings, construction\t and alteration\t of streets and back
\nlanes, drainage,  water supply\tand  lighting  of  the\tarea
\nincluded in  the Scheme,  Parks,  playing  fields’  sanitary
\narrangements etc.
\n     The accounts  of the  Board are  to be  audited by such
\npersons as  are deputed\t by the\t Government (See sub-section
\n(2) of\tSection 61)  and the Board does not seem to have any
\nchoice in  the matter  except to submit its accounts to that
\nperson. The Board has also to comply with such directions as
\nmay be\tissued to it by the State Government after a perusal
\nof the\tauditor’s report.  Special audit may also be made of
\nthe Board’s  accounts under  the  directions  of  the  State
\nGovernment.\n<\/p>\n
     Other statutory  provisions indicating  control of\t the
\nState Government over the Board are contained in Sections 71
\nand 72 of the Act relevant portions of which are re-produced
\nbelow:\n<\/p>\n
     “71.   Power   of\tgovernment   to\t give
\n     direction\t to    Board.–\t  The\tState
\n     Government\t may   give  the  Board\t such
\n     directions\t as   in  its\topinion\t  are
\n     necessary to  expedient for carrying out
\n     the purposes  of this  Act, after giving
\n     an opportunity to the Board to state its
\n     objections, if  any, to  such directions
\n     and   after    considering\t  the\t said
\n     objections and  it shall  be the duty of
\n     the   Board    to\t comply\t  with\t such
\n     directions.\n<\/p><\/blockquote>\n
     72.   Control  of State  Government over
\n     Board. (1)\t The State  Government\tshall
\n     due  regard  to  the  circumstances  and
\n     requirements of that area.\n<\/p><\/blockquote>\n
     Chapter III of the Act deals with the Housing Schemes.
\n     Section 20 provides as under:
\n     “20.  Duty of Board to undertake housing
\n     schemes.– Subject\t to the provisions of
\n     this State\t Government,  the  Board  may
\n     incur expenditure and undertake works in
\n     any area  for the\tframing and execution
\n     of\t such\thousing\t schemes  as  it  may
\n     consider necessary\t from time to time or
\n     as may  be entrusted  to it by the State
\n     Government.”<\/p><\/blockquote>\n
     The matters  which may  be provided  for in  a  Housing
\nScheme are  indicated in  Section 21 which include laying or
\nre-laying of  the land,\t construction and re-construction of
\nbuildings, construction\t and alteration\t of streets and back
\nlanes, drainage,  water supply\tand  lighting  of  the\tarea
\nincluded in  the Scheme,  Parks,  playing  fields,  sanitary
\narrangements etc.
\n     The accounts  of the  Board are  to be  audited by such
\npersons as  are deputed\t by the\t Government (See sub-section
\n(2) of\tSection 61)  and the Board does not seem to have any
\nchoice in  the matter  except to submit its accounts to that
\nperson. The Board has also to comply with such directions as
\nmy be  issued to  it by the State Government after a perusal
\nof the\tauditor’s report.  Special audit may also be made of
\nthe Board’s  accounts under  the  directions  of  the  State
\nGovernment.\n<\/p>\n
     Other statutory  provisions indicating  control of\t the
\nState Government over the Board are contained in Sections 71
\nand 72 of the Act relevant portions of which are re-produced
\nbelow:\n<\/p>\n
     “71.   Power   of\tgovernment   to\t give
\n     direction\t to    Board.–\t  The\tState
\n     Government\t may   give  the  Board\t such
\n     directions\t as   in  its\topinion\t  are
\n     necessary to  expedient for carrying out
\n     the purposes  of this  Act, after giving
\n     an opportunity to the Board to state its
\n     objections, if  any to  such  directions
\n     and   after    considering\t  the\t said
\n     objections and  it shall  be the duty of
\n     the   Board    to\t comply\t  with\t such
\n     directions.\n<\/p><\/blockquote>\n
     72.   Control  of State  Government over
\n     Board. (1)\t The State  Government\tshall
\n     exercise  superintendence\t and  control
\n     over the  Board and its officers and may
\n     cail for such information as it may deem
\n     necessary and, in the event of its being
\n     satisfied\tthat   they  Board   is\t  not
\n     functioning properly  and is abusing its
\n     powers and\t is guilty  of corruption  of
\n     mismanagement, it\tmay, by notification,
\n     suspend the Board:\n<\/p><\/blockquote>\n
\t  Provided that\t the Board  shall  be
\n     reconstituted, within  a period  of  one
\n     year from the date of its suspension, in
\n     the prescribed manner.\n<\/p><\/blockquote>\n
     (2)   When\t the Board is suspended under
\n     sub-section    (1),     the    following
\n     consequences shall ensue, namely:-\n<\/p><\/blockquote>\n
     (a) ………………….\n<\/p><\/blockquote>\n
     (b) ………………….<\/p><\/blockquote>\n
     Chapter IV\t deals with  the acquisition and disposal of
\nland. Chapter  VII deals  with the Board’s finance, accounts
\nand audit.  Section 56\tprovides that the Board shall have a
\nfund called  the Housing  Board Fund  which shall consist of
\nall moneys  received by\t or behalf  of the Board as also all
\nproceeds of  land or  any other kind of property sold by the
\nBoard, including  all rents,  interest,\t profits  and  other
\nmoneys accruing\t to the Board which has also been authorised
\nby sub-section\t(2) to\taccept grants,\tdonations and  gifts
\nfrom the  Central Government  or the  State Government\tor a
\nlocal  authority   or  any   individual\t or   body,  whether
\nincorporated or\t not, for all or any of the purposes of this
\nAct.\n<\/p>\n
     Section 72A  provides for appeals against orders passed
\nby the\tofficers of  the Board\tor the Chairman. Section 72B
\nwhich provides\tfor a  revision to the State Government lays
\ndow as under:\n<\/p>\n
     “72B.     Revision.– The Government may
\n     either suo\t motu or on an application of
\n     a party, call for and examine the record
\n     of any  proceedings or decision or order
\n     passed by\tthe  Board,  Chairman,\tChief
\n     Administrator or  competent authority or
\n     Deputy Commissioner or any other officer
\n     appointed by  the State  Government  for
\n     the purpose  of satisfying\t itself as to
\n     the legality  or properiety  of any case
\n     it shall  appear to  the government that
\n     any such decision or order passed and if
\n     in any  case  it  shall  appear  to  the
\n     government that  any  such\t decision  or
\n     order should  be modified,\t annulled  or
\n     revised,  the   Government\t may,\tafter
\n     giving the\t persons affected  thereby an
\n     opportunity of  being heard,  pass\t such
\n     order thereon as it may deem fit.”<\/p><\/blockquote>\n
     The above\tprovisions clearly  spell out that the Board
\nwhich is  basically and essentially a creation of the Act of
\nState Legislature consists of persons appointed by the State
\nGovernment on  salary basis.  The Board’s  personnel are not
\nelected by  the people\tand there  is no element of people’s
\nchoice being  represented in  any manner in the constitution
\nof  the\t Board.\t The  Board  functions\tstrictly  under\t the
\nsupervision and control of the State Government and does not
\nhold or possess a “local fund”. What constitutes the fund of
\nthe Board has already been specified above.\n<\/p>\n
     These functions  as are  indicated in  a Housing Scheme
\nare essentially\t performed by  Municipal Boards or Municipal
\nCouncil which,\tundoubtedly, are  “Local Authorities” but on
\nthat analogy  the Haryana Housing Board cannot be treated to
\nbe a “local authority” as the extent of control of the State
\nGovernment under  which the  Board has\tto  function  is  so
\nprominently pervasive  that it\tis almost destructive of its
\nindependence which  will also be apparent from the fact that
\nin the matter of settlement of its Annual Programmes, Budget
\nand Establishment  schedule, the  Board has  to\t obtain\t the
\nsanction of  the State\tGovernment under  Section 24  of the
\nAct. The  supplementary budget\tand programme,\tif any,\t has
\nalso to be sanctioned by the State Government.\n<\/p>\n
     We need not refer to other provisions as the provisions
\nalready referred  to above  are sufficient to bring home the
\npoint that  Haryana Housing  Board does\t not have  even\t the
\nsemblance of  independence which  are normally\tpossessed by
\nlocal self  Governments, like  Municipal Boards\t or District
\nBoards etc.  The Board\talso does not even partially consist
\nof elected representatives of the people.\n<\/p>\n
     The Board,\t no doubt, has the power to levy and realise
\nBetterment Charges (See Section 40 to Section 43 of the Act)
\nand various  amount of\tmoney due from presons in possession
\nof the\tproperties of  the Boards  by way  of rent  etc. are
\nrecoverable as arrears of land revenue but that by itself is
\nnot sufficient\tto clothe  the Board  with the\tstatus of  a
\n“local authority”.\n<\/p>\n
     It\t is   contended\t by  the  learned  counsel  for\t the
\nappellant that\tsince it  has already  been provided in sub-
\nsection (3)  of Section\t 3 of the Haryana Housing Board Act,
\n1971 that  for purposes\t of this  Act, namely,\tthe  Haryana
\nHousing Board  shall be deemed to be a “Local Authority”, it
\ncannot but  be treated\tto be  a “Local\t Authority” with the
\nconsequence that  it is\t not liable  to\t pay  bonus  to\t its
\nemployees as  it would\tsquarely fall  within the exceptions
\nset out in Section 32(iv) of the Payment of Bonus Act. We do
\nnot agree.\n<\/p>\n
     Sub-section (3) of Section 3 provides as under:
\n     “(3)  For\tthe purposes  of this Act and
\n     the  Land\tAcquisition  Act,  1894,  the
\n     Board shall  be deemed  to\t be  a\tlocal
\n     authority.\n<\/p>\n
     Explanation- The  purpose\tof  this  Act
\n     referred to  in sub-section  (3) include
\n     the management and use of lands
\n     and building  belonging to or vesting in
\n     the Board\tunder or  for the purposes of
\n     this Act  ant the exercise of its rights
\n     over and  with respect to such lands and
\n     buildings for the purposes of this Act.”
\n     It will  be seen  that the Legislature itself has given
\nthe Board  limited status  of “Local  Authority only for the
\npurpose of  Land Acquisition  Act as  also the\tparent\tAct,
\nnamely, the Haryana Housing Board Act, 1971, under which the
\nBoard has  been constituted and established. The Legislature
\nhas given  this status\tonly fictionally  as the  Board,  in
\nreality, is  not a “Local Authority” and that too only for a
\nlimited purposes. The Legislature could well have given this
\nstatus to the Board for purpose of other Acts also including
\nthe  Payment  of  Bonus\t Act  but  this\t has  not  done\t and
\nconsequently the Board cannot, specially in view of what has
\nbeen stated  above, be\ttreated as  “local authority”, under
\nthe Payment of Bonus Act.\n<\/p>\n
     There does\t not, therefore,  appear to be any reason to
\ndiffer from  the view  expressed by the learned Single Judge
\nor by  the Division  Bench (in\tappeal )  of the  Punjab and
\nHaryana High Court that the Board is not a “local authority”
\nas it  does not\t possess the  attributes indicated  by\tthis
\ncourt in the case of R.C. Jain (supra).\n<\/p>\n
     Learned counsel  for  the\tappellant  referred  to\t the
\ndecision of  this court in Surya Kant Roy v. Imamul Hak Khan<\/a>
\n(1975 (1) S.C.C. 531) wherein it was found that :\n<\/p>\n
     “Mines Board of Health constituted under
\n     the Bihar\tand Orissa  Mining Settlement
\n     Act, 1920\tis a  body  corporate  having
\n     perpetual succession  and a  common seal
\n     with power to hold and acquire property.
\n     It consists  of not  less than seven and
\n     not more than eleven members of whom not
\n     less than two and not more than four are
\n     elected by\t owners of  mines within  the
\n     Mining Settlement,\t three\tnon-officials
\n     selected by the State Government and two
\n     or more  members but  not exceeding four
\n     nominated of  the State  Government. The
\n     Chairman of the Board is to be appointed
\n     by the  State Government  from among the
\n     members of the Board. A fund called ‘The
\n     Mining Settlment  Funds’ is  formed  for
\n     every mining  settlement  and  the\t fund
\n     vests in the Board. The fund consists of
\n     sums charged  by the Board under the Act
\n     from  land-owners,\t etc.  as  also\t sums
\n     allotted to  the Board  from  the\tState
\n     Revenuse; sums  borrowed  by  the\tBoard
\n     under the\tLocal Authorities  Loans Act;
\n     Grants received  from local authorities,
\n     associations and  private persons,\t etc.
\n     The Board\tappoints Health\t officers  as
\n     well as  Sanitary Inspectors.  The Board
\n     can impose\t taxes like Latrine taxes and
\n     also make\tyearly assessment.  There are
\n     certain powers  conferred on  the\tState
\n     Government under the Act but they are no
\n     more that\tthe power  conferred on State
\n     Government’s in respect of various local
\n     bodies. The  respondent was appointed by
\n     the Government  as the  Chairman of  the
\n     Jharia Mines  Board of  Health. We agree
\n     with the learned Judge of the High Court
\n     that  it  is  difficult  to  accept  the
\n     argument that  the Board is wholly under
\n     the control  of the  State Government in
\n     all  its  functions.  The\tBoard  levies
\n     taxes and\tother assessments and has got
\n     its  own\tfunds.\tThe   fact  that  the
\n     Government and  other local  authorities
\n     might make\t grants to the Board does are
\n     Government\t   funds     or\t   Government
\n     properties. The  provisions we  have set
\n     out above\tare enough  to establish that
\n     the Board\tis a ‘local authority’ within
\n     the  meaning   of\tthat   expression  as
\n     defined in\t clause (31)  of Section 3 of
\n     General Clauses Act, 1897.”<\/p><\/blockquote>\n
     It\t will\tbe  relevant   to  point   out\tthe  further
\nobservations of the Supereme Court as under:\n<\/p>\n
     “Indeed, this  position does not seem to
\n     have been\tdisputed  by  the  petitioner
\n     before the\t High Court  in the course of
\n     his arguments.  We\t do  not,  therefore,
\n     think  that   the\tmere  fact  that  the
\n     respondent was  appointed as Chairman of
\n     the Board\tby the\tgovernment would make
\n     him a person holding an office under the
\n     State Government.”<\/p><\/blockquote>\n
     Thus, the\tdecision that  the Mines  Board was  a local
\nauthority was  not disputed. In any case, this Court, on the
\nbasis of  relevant statutory  provisions specially  that the
\nBoard has  power to levy taxes and other assessments and has
\ngot its\t own fund,  found it to be a local authority. It may
\nbe pointed  out\t that  the  decision  was  rendered  not  in
\nconnection with\t the provision\tof Payment  of Bonus Act but
\nunder provisions of the Representation of people Act to find
\nout whether  an office\tof profit under the State Government
\nwas held by the respondent.\n<\/p>\n
     Learned counsel  for the  appellant then cited Kendriya
\nNagrik Samiti, Kanpur and other vs. Jal Sansthan, Kanpur and
\nothers (AIR  1982 Allahabad  406) in  which it was held that
\nJal Sansthan  constituted by  the State Government under the
\nU.P. Water  Supply and Sewerage Act, 43 of 1975 was a “Local
\nAuthority”, although,  the Court  had also found it to be an
\ninstrumentality of  the State  Government.  The\t High  Court
\nnoticed that  Jal Sansthan as defined in Section 2(9) of the
\nAct meant  “a  Local  Authority\t constituted  by  the  State
\nGovernment under  Section 18  to perform its functions under
\nthe Act\t in one\t or more local areas” and on account of this
\ndefinition,  the   High\t Court,\t  after\t referring   to\t the
\ndefinition of  the “Local Authority” in Section 4(25) of the
\nU.P. General  Clauses Act,  held that  Jal  Sansthan  was  a
\n“Local Authority”  which was  to  be  treated  at  par\twith
\nMunicipal Corporation  etc. for\t the purposes of Local Self-
\nGovernment. It\tmay be\tpointed out that under Section 18 of
\nthe Act,  Jal Sansthan\tconsists of,  amongst others,  three
\nSabhasads of  the Nagar\t Mahapalika nominated  by the  State
\nGovernment.  Sabhasads,\t under\tthe  U.P.  Nagar  Mahapalika
\nAbhihiyam, Municipal Corporation.\n<\/p>\n
     Learned counsel  for the appellant also relied upon the
\ndecision of  Mahavir and others vs. State of u.p. and others
\nAIR 1979 Allahabad 3 in which Mandi Samiti constituted under
\nthe U.P.  Krishi Utpadan  Mandi Adhiniyam  was held  to be a
\nLocal Authority for purposes of Land Acquisition Act.\n<\/p>\n
     Significantly, Section  12(2) of the Adhiniyam contains
\na deeming  provision that  “the Committee  shall Acquisition
\nAct, 1894  and any  other law  for the time being in force”.
\n(Emphasis  supplied).\tThis  case  is,\t therefore,  clearly
\ndistinguishable.\n<\/p>\n
     Our attention  was next  drawn to\tthe decision  of the
\nMysore High  Court in  Workmen of  Mangalore Port  Trust vs.
\nManagement of  the Mangalore  Port and\tOrs.<\/a> (1973 Lab. I.C.
\n1536) in  which Board  of Trustees  of the Port of Mangalore
\nwas held  to be\t a “Local  Authority” within  the meaning of
\nSection 32(iv)\tof the\tPayment of  Bonus Act. The Judges of
\nthe Mysore  High Court\trelied upon the definition of “Local
\nAuthority” contained  in Section 3(31) of the General Clause
\nAct in\twhich the  Municipal Committee, District Board and a
\nBody  of  Port\tCommissioners  are  indicated  to  be  Local
\nAuthorities  and  then\tthey  observed\tthat  there  was  no
\ndifference between  the Body  of Port  Commissioners and the
\nBoard of  Trustees of  the Port of Mangalore and, therefore,
\nthe letter  has also to be treated as the “Local Authority”.
\nThey also  relied upon the decision of the Madras High Court
\nin Official  Assignee of  Madras vs. Trustees of the Port of
\nTrust, Madras (AIR 1936 Madras 789) in which the Trustees of
\nthe Port  Trust, Madras,  on account  of the  definition  of
\n“Local Authority”.  A decision of the Calcutta High Court in
\nManoranjan Das\tvs. Commissioner  Presidency  Division\t(AIR
\n1970 Calcutta  179) which  was cited  before us\t also by the
\nlearned counsel\t for the  appellant, was  considered by\t the
\nMysore High  Court and\tit was\tnoticed\t by  them  that\t the
\nCalcutta High Court held that since the Calcutta Dock Labour
\nBoard had to control and manage its fund which a local fund,
\nit was a “Local Authority” within the meaning of the General
\nClauses Act.  This decision is, therefore, of no help to the
\nappellant as  the concept regarding control and management a
\n“Local Fund”  is outside  the scope  of\t the  definition  of
\n“Local Authority” in the Haryana Housing Board Act, 1971.\n<\/p>\n
     A decision\t of the\t Andhra Pradesh\t High Court in Budha
\nVeerinaidu vs.\tState of  Andhra Pradesh  and Anr.  (143 ITR
\n1021) has  been cited  to indicate  that Agricultural Market
\nCommittee functioning  under the (Andra Pradesh Agricultural
\nProduce and  Live Stock)  Markets Act,1966  was held to be a
\n“Local Authority”  as it was found that the Market Committee
\nwas  entrusted\tby  the\t Government  with  the\tcontrol\t and
\nmanagement  of\t “Local\t Fund”.\t  This\tdecision   is\talso
\ndistinguishable on  the\t ground\t that  definition  of  Local
\nAuthority in  the Haryana  Housing Board  Act, 1971 does not
\nrefer to entrustment, control or management of “Local Fund”.\n<\/p>\n
     In\t 12,   I.C.  Bose   Road  Tenants’  Association\t vs.
\nCollector of  Howrah and  Ors. (AIR<\/a> 1977 Calcutta 437) which
\nwas next  cited before us, it was not disputed that Calcutta
\nMetropolitan Development  Authority was\t a “Local Authority”
\nwithin the  meaning of\tSection 3(3)  of the General Clauses
\nAct.\n<\/p>\n
     All the  aforesaid decisions  of  Various\tHigh  Court,
\ntherefore, do  not help\t counsel for the appellant as all of
\nthem are  clearly distinguishable. Moreover, the decision of
\nthis Court in Union of India and Ors. vs. R.C. Jain and Anr.<\/a>
\n(1981 (2)  SCR 854) which has already been referred to above
\nby us was not referred to in any of these decisions as those
\ndecisions were\trendered prior to the decision of this Court
\nexcept the  Allahabad decision\tin Kandriya   Nagrik Samiti,
\nKanpur (supra) in which also this decision was not noticed.\n<\/p>\n
     R.C. Jain’s  case (supra)\twas, however, noticed by the
\nBombay High  Court in Krishi Utpanna Bazar Samiti vs. Income
\nTax Officer  and Others\t (158 ITR  742) in which the Hon’ble
\nJudges after  considering  the\tscheme\tof  the\t Maharashtra
\nAgricultural Produce  Marketing (Regulation)  Act, 1963\t and
\nafter scrutinizing the tests laid down by this Court in R.C.
\nJain’s case observed as under:\n<\/p>\n
     “The Market  Committee clearly satisfies
\n     all these\ttests. It is a body corporate
\n     having  separate\tlegal  existence  and
\n     autonomous. It  is\t independent  of  the
\n     Government and  operates  in  a  defined
\n     area. Its office-bearers are elected and
\n     are  free\t to  take  their  own  policy
\n     decision.\t It   performs\t governmental
\n     functions\tsuch   as   running   market,
\n     providing\tcivil\tamenities  and\tdoing
\n     civil duties. It also performs judicial,
\n     legislative,   executive\t and   fiscal
\n     functions.”<\/p><\/blockquote>\n
     Learned counsel for the appellant lastly contended that
\nthe Haryana  Housing Board  being an instrumentality  of the
\nGovernment or,\tin any\tcase, being  a statutory  body is an
\n“Authority”  within   the  meaning  of\tArticle\t 12  of\t the
\nConstitution and  since Local  Authorities  have  also\tbeen
\nreferred to  in article 12, the Board Should also be treated
\nas a Local Authority. The argument is fallacious.\n<\/p>\n
     Article 12 provides as under:\n<\/p>\n
     “12.   Definition.\t  —  In  this\tpart,
\n     unless the\t context otherwise  requires,
\n     ‘the State’  includes the Government and
\n     State’  included\tthe  Government\t  and
\n     Parliament of  India and  the Government
\n     and  the  Legislature  of\teach  of  the
\n     States   and    all   local   or\tother
\n     authorities  within   the\tterritory  of
\n     India  or\t under\tthe  control  of  the
\n     Government of India.”\n<\/p>\n
     This Article  contains the\t definition of “State” which
\nis an  inclusive  definition  and  includes  Government\t and
\nParliament of  India, Government and the Legislature of each
\nof the State as also all local or other Authorities. Article
\n12 does\t not define  “Local Authority”\tbut defines “State”.
\nThe attempt  of the  learned counsel for the appellant in to
\ninvoke\tthe   rule  of\t ejusdem  generis  which  cannot  be
\npermitted.\n<\/p>\n
     When particular  words pertaining\tto a  class of genus
\nare followed  by general  words,  the  latter,\tnamely,\t the
\ngeneral words are construed as limited to things of the same
\nkind as\t those\tspecified    (See:  Kavalappara\t Kottarathil
\nKochuni vs.  State of  Madras,\tAIR<\/a>  1960  SC  1080;  Thakur
\nAmarasinghji vs.  State of Rajasthan, AIR 1955 SC 504). This
\nis known  as the  rule\tof  ejusdem  generis  reflecting  an
\nattempt to  reconcile incompatibility  between the  specific
\nand general  words (Tribhuwan  Parkash Nayyar  vs. Union  of
\nIndia, AIR<\/a> 1970 SC 540).\n<\/p>\n
     This Court\t in Amar  Chandra vs.  Collector of  Excise,
\nTripura, AIR<\/a>  1972 SC  1863 laid  down that the rule applies
\nwhen “(1)  the statute\tcontains an  enumeration of specific
\nwords; (2) the subjects of enumeration constitute a class or
\ncategory; (3) that class or category is not exhausted by the
\nenumeration; (4)  the general  terms follow the enumeration;
\nand (5)\t there is  no indication  of a different legislative
\nintent”.\n<\/p>\n
     Thus, it  is essential  for application  of the ejusdem
\ngeneris rule that enumerated things before the general words
\nmust constitute\t a category  or a  genus. It was, therefore,
\npointed out  by Lord  Simonds in  Russel vs.  Scott (1948  2
\nAII.E.R. 1  (HL)) that\t“indeed if  a collection of items is
\nheterogeneous, it  almost seems\t a conflict  in words to say
\nthat they belong to the same genus”.\n<\/p>\n
     While interpreting the definitions of “Local Authority”
\ncontained in  the aforesaid  two Acts,\tnamely, the  General
\nClauses Act  and the  Haryana Housing  Board Act,  1971,  we
\ninvoked the  rule of ejusdem generis but this rule cannot be
\napplied to  article 12\tas the definition of “State” in this
\nArticle includes  several bodies  which are heterogeneous in
\ncharacter and, there is no genus in the definition.\n<\/p>\n
     For the reasons stated above, we find no merit in these
\nappeals which  are hereby dismissed but without any order as
\nto costs.<\/p>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India Housing Board Of Havana vs Havana Housing Board Employees … on 30 October, 1995 Equivalent citations: 1996 AIR 434, 1996 SCC (1) 95 Author: A S S. Bench: Ahmad Saghir (J) PETITIONER: HOUSING BOARD OF HAVANA Vs. RESPONDENT: HAVANA HOUSING BOARD EMPLOYEES UNION AND ORS. DATE OF JUDGMENT30\/10\/1995 BENCH: AHMAD SAGHIR […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-232719","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nHousing Board Of Havana vs Havana Housing Board Employees ... on 30 October, 1995 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/housing-board-of-havana-vs-havana-housing-board-employees-on-30-october-1995\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Housing Board Of Havana vs Havana Housing Board Employees ... on 30 October, 1995 - 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