In Brief
Nashik Workers Union filed complaints under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 against Hindustan Aeronautics Limited for unfair labour practices in terminating contract trainees. The Labour Court awarded reinstatement with back wages. The High Court reversed this, holding that the Central Government was the 'appropriate Government' under the Industrial Disputes Act, 1947, making the state law inapplicable. The Supreme Court allowed the appeal, holding that the State Government is the 'appropriate Government'. Although the Central Government owns HAL and appoints its directors, this does not make HAL an agent of the Central Government. A company carrying on commercial functions is ordinarily presumed not to be a state agent absent specific statutory conferment of such status. The matter was remitted to the High Court for adjudication on merits."
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