Government control over a company does not by itself make the Central Government the appropriate Government for industrial disputes.

A company incorporated under the Companies Act remains a separate juristic person for determining the appropriate Government under the Industrial Disputes Act, 1947. Government shareholding and pervasive administrative control do not by themselves make the enterprise one carried on by or under the authority of the Central Government, unless the governing statute or legal framework expressly treats it as a Government agent. On that basis, the Central Government was not the appropriate Government; the State Government was. The Labour Court therefore had jurisdiction to entertain the industrial dispute references.

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Issues: Whether the appellant-corporation carried on its business under the authority of the Central Government so as to make the Central Government the appropriate Government for reference of the industrial dispute under the Industrial Disputes Act, 1947.

Analysis: The statutory definition of appropriate Government under the Industrial Disputes Act, 1947 turns on whether the industry is carried on by or under the authority of the Central Government. The corporation was a company incorporated under the Companies Act, 1956 and, despite the Central Government's substantial shareholding and pervasive control through its articles and administration, it remained a distinct juristic person. The legal principles governing incorporated companies show that ownership or control by Government does not by itself convert the company into a department, agent, or servant of the Government. The earlier and later Supreme Court authorities relied on by the parties were reconciled by holding that the case law treating statutory bodies or agencies performing governmental functions differently did not apply to a company functioning in its own right under the Companies Act.

Conclusion: The Central Government was not the appropriate Government; the appropriate Government was the State Government, and the Labour Court had jurisdiction to entertain the references.

Ratio Decidendi: A company incorporated under the Companies Act remains a separate legal entity and is not carried on under the authority of the Central Government merely because the Government holds the shares or exercises deep and pervasive control, unless the statute or legal framework expressly makes it an agent of the Government.

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