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16.The primary thrust of submissions for either side is, one attempting to bring the functions of the Petitioner within realm of sovereign functions and the other trying to drive it out of it. The Hon‟ble Apex Court in various judgements has touched upon the dichotomy between „sovereign‟ and „non-sovereign‟ functions.

"163. I would also like to make a few observations about the so- called "sovereign" functions which have been placed outside the field of industry. I do not feel happy about the use of the term "sovereign" here. I think that the term „sovereign‟ should be reserved, technically and more correctly, for the sphere of ultimate decisions. Sovereignty operates on a sovereign plane of its own as I suggested in Keshavananda Bharati case [(1973) 4 SCC 225] supported by a quotation from Ernest Barker‟s Social and Political Theory. Again, the term "Regal", from which the term "sovereign" functions appears to be derived, seems to be a misfit in a Republic where the citizen shares the political sovereignty in which he has even a legal share, however small, inasmuch as he exercises the right to vote. What is meant by the use of the term "sovereign", in relation to the activities of the State, is more accurately brought out by using the term "governmental" functions although there are difficulties here also inasmuch as the Government has entered largely new fields of industry. Therefore, only those services which are governed by separate rules and constitutional provisions, such as Articles 310 and 311 should, strictly speaking, be excluded from the sphere of industry by necessary implication."

(ii) Chief Conservator of Forests v. Jagannath Maruti Kondhare, (1996) 2 SCC 293 "13. The aforesaid shows that if we were to extend the concept of sovereign function to include all welfare activities as contended on behalf of the appellants, the ratio in Bangalore Water-Supply case would get eroded, and substantially. We NEUTRAL CITATION NO: 2022/DHC/005746 would demur to do so on the face what was stated in the aforesaid case according to which except the strictly understood sovereign function, welfare activities of the State would come within the purview of the definition of industry; and, not only this, even within the wider circle of sovereign function, there may be an inner circle encompassing some units which could be considered as' industry if substantially severable.

17.It is implied from reading of the abovementioned judgments that sovereign functions in the latest trend may have wide ramifications. The sovereign functions must be interpreted in a restricted manner and efforts must be made to realize objectives of the legislation i.e. maintenance of industrial peace and labour welfare. It is a settled proposition of law that the test to determine whether an establishment is performing „sovereign functions‟ so to be exempted from definition of an industry is to ascertain whether the same functions can be carried out by a private person/agency or not. However, it is cogent that sovereign functions must only include those activities which are inalienable functions that can be undertaken only by the State, and not by a private enterprise. The functions that can be performed by a private agency cannot be categorised as a „sovereign‟ function.