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...Having regard to the definitions found in our Act, the aim or objective that the Legislature had in view, and the nature, variety and range of disputes that occur between employers and employees, we are forced to the conclusion that the definitions in our Act include also disputes that might arise between municipalities and their employees in branches of work that can be said to be analogous to the carrying out of a trade or business.

(Emphasis added) In the case of the State of Bombay v. Hospital Mazdoor Sabha 1960-I L.L.J. 251, the same question was considered in connection with a hospital and it was pointed out that as a working principle it may be stated that (at p.258) ...an activity systematically or habitually undertaken for the production or distribution of goods or for the rendering of material services to the community at large or a part of such community with the help of employees in an undertaking.... It must be organised or arranged in a manner in which trade or business is generally organised or arranged. It must not be casual nor must it be for oneself nor for pleasure.

It was also made clear that absence of profit motive or gainful objective are irrelevant; the true focus should be on the nature of the activity with special emphasis on the employer-employee relation. It was also pointed out that there may be undertakings in which there is systematic activity, organised by co-operation between employer and employee but not for production and distribution of goods but for services calculated to satisfy human wants. In respect of such undertakings it was observed as follows:

38. However, even in departments discharging sovereign functions there may be a unit severable which can be said to be "industry" within the meaning of the Act. The department of police, discharging sovereign functions may run a gun and ammunition factory. Can that unit be excluded from the definition of industry'? Legislative Department may run a Press. That unit has to be included within the ambit of 'industry'. As such, in my view, whenever a question arises as to whether a particular department of Government is an 'industry', the functions of the whole department should be examined in the light of the guidelines laid down by the courts for answering the question as to whether the whole department or any unit thereof can be held to be an 'industry' within the meaning of the Act. In many cases, the dominant nature test pointed out by the Supreme Court in the Bangalore Water Supply case (supra) may prove to be the useful test in view of the complex nature of the activity of a department. First on the material produced before the court it should be examined as to whether the department concerned or any unit thereof has the triple elements mentioned above. If it is found that there is systematic activity, organized by cooperation between employer and employee, for the production and/or distribution of goods, then there should not be any difficulty in holding that the department concerned or unit thereof shall be deemed to be an 'industry'. If, however, there is systematic activity, organised co-operation between employer and employee, for services to satisfy the human wants, then whether the services are in the nature of trade or business has to be examined. If services are analogous to the trade and business, then the department or unit thereof shall be deemed to be an 'industry'. In cases, where a part of the department is exercising administrative function or soverign function and the other part is engaged in activity analogous to trade or business, then the dominant nature of the department has to be ascertained. If on materials it is held that primary object of the department is to carry on activity which are in the nature of trade and business, then whole department can be held to be an 'industry'. On the other hand if primary activity of the department is administrative in nature and incidentally some activities are analogous to trade or business then the whole department cannot be held to be 'industry'. Even in such cases if a severable unit is primarily concerned with trade or business or engaged in activities analogous to trade and business then that unit can be held to be 'industry'.

40. Now I shall examine the activities and 15 functions of different departments with which we are concerned to find out as to whether they are industry 'within the meaning of the Act'.

Re: Department of Forest.

41. On behalf of the petitioners in C.W.J.C. Nos. 2354 and 2867 of 1980 it has been asserted that the Department of Forest shall be deemed to be an 'industry' because the systematic activity organised by co-operation between the Department and its employees for production and 1 distribution of forest products is carried out. On behalf of the respondent-State it was stated that the primary activity of the Forest Department is not related to the production of forest products or sale thereof, but the conservation of the forest: and afforestation This is enjoined on the department by Article 48A the Constitution and several directives have been issued by the Government of India in that respect. It was submitted that mere sale of leaves or trees by the Department are incidental and subsidiary functions. In the supplementary counter-affidavit filed on behalf of the respondents it has been stated that the main activity of the Division in which the petitioners were employed is plantation which is undertaken by the Government to improve environment. Learned Additional Advocate General also made reference to different publications of reputed authors about the role of Forest in the life of the Nation. On the materials produced it is difficult to hold that the primary activity of the Department is analogous to trade or business. As such, the whole Department cannot be held to be an industry. However, I may hasten to add that even in such a Department if any unit is severable and satisfies the test I mentioned above then that unit certainly should I be held to be an industry. For example, a Lac Manufacturing Factory run by the Department of Forest can certainly be held to be an industry taking it as a separate unit.