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"The fact that the authorized controller is appointed by the Central Government and that he has to work subject to the directions of the Central Government does not render the industrial undertaking an agent of the Central Government and therefore, could not be said to be an establishment engaged in an industry carried on by or under the authority of the Central Government."

26. The Judgment in Rashtriya Mill Mazdoor Sangh (supra) was followed by the Judgment in Food Corporation of India Workers Union vs. Food Corporation of India reported in (1985) 2 SCC 294. Therein, the Court was concerned with the Writ Petition filed by the employees seeking the regularization of their services under the Contract Labour (Regulation and Abolition) Act 1970 (for short the CLRA Act). In that matter, inspite of the fact that FCI is a specified industry under Section 2(a) (i) of the Industrial Disputes Act 1947, this Court referred to the definition of `appropriate government' under the CLRA Act 1970. It referred to judgments in Heavy Engineering Mazdoor Union and Rashtriya Mill Mazdoor Sangh (supra) with approval, and held that for the regional offices and warehouses which were situated in various states, the State Governments were the `appropriate Governments' and not the Central Government.

27. The scheme of the CLRA Act 1970 came up for consideration before a bench of three Judges in Air India Statutory Corporation vs. United Labour Union (1997) 9 SCC 377. The Court was concerned with the question as to whether the Central Government was the competent appropriate government for the purposes of the notification which it had issued under that Act to abolish the Contract Labour system in the establishment of the appellant. The court held that the Central Government was the appropriate government. The definition of `appropriate government' under Section 2 (1) (a) of that Act was examined by this Court and which reads as follows:

30. In para 38, this Court thereafter held as follows:

" 38. From the above discussion, it follows that the fact of being an instrumentality of a Central/State Government or being "State" within the meaning of Article 12 of the Constitution cannot be determinative of the question as to whether an industry carried on by a company/corporation or an instrumentality of the Government is by or under the authority of the Central Government for the purpose of or within the meaning of the definition of "appropriate Government" in the CLRA Act. ................................................. Further, the definition of "establishment" in the CLRA Act takes in its fold purely private undertakings which cannot be brought within the meaning of Article 12 of the Constitution. In such a case, how is "appropriate Government" determined for the purposes of the CLRA Act or the Industrial Disputes Act? In our view, the test which is determinative is:

49. In Food Corporation of India (supra), inspite of the fact that FCI is a specified industry under Section 2 (i) (a) of the ID Act 1947, this Court considered the definition of `appropriate government' in CLRA Act 1970, and the State Governments were held to be the `appropriate governments' for the regional offices and the warehouses situated in various states wherein the demand for regularization of the services under the CLRA Act had arisen.

50. The propositions in Steel Authority are to be seen on this background viz. that merely because the government companies / corporations and societies are discharging public functions and duties that does not by itself make them agents of the Central or the State Government. The industry or undertaking has to be carried under the authority of the Central Government or the State Government. That authority may be conferred either by a statute or by virtue of a relationship of principle and agent, or delegation of power. When it comes to conferring power by statute, there is not much difficulty. However, where it is not so, and whether the undertaking is functioning under authority it is a question of fact. It is to be decided on the facts and circumstances of each case.