Government control over a statutory corporation excludes the holiday-wages exemption where pervasive supervisory powers exist.

A statutory corporation was treated as being under the control of the State Government where the enabling law gave the Government pervasive powers of appointment, removal, supervision, direction on service conditions and wages, inspection, and takeover or supersession. The Court stated that this level of control satisfied the meaning of "under the control of the Government" both in Article 12 of the Constitution and in Section 11(1)(c) of the Andhra Pradesh Factories and Establishments (National Festival and other Holidays) Act, 1974. It also noted that the later reliance on Section 68-A of the Motor Vehicles Act, 1988 did not negate that control, and the corporation therefore fell outside the holiday-wages exemption.

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Issues: Whether the appellant corporation was an establishment under the control of the State Government so as to attract the exemption under Section 11(1)(c) of the Andhra Pradesh Factories and Establishments (National Festival and other Holidays) Act, 1974.

Analysis: The statutory scheme of the Road Transport Corporation Act, 1950 showed that the State Government created the corporation to perform public transport functions, appointed and removed its directors, issued binding general instructions on service conditions and wages, could call for returns and information, and could even authorise takeover or supersession. The Court held that these features established absolute governmental control. It further held that the expression "under the control of the Government" in Article 12 of the Constitution of India and in Section 11(1)(c) of the 1974 Act conveyed the same legal idea. The Court also found that the High Court erred in refusing to follow the earlier binding decision and in relying on Section 68-A of the Motor Vehicles Act, 1988, which did not negate governmental control over the corporation.

Conclusion: The appellant corporation was under the control of the State Government and therefore fell outside the operation of Section 11(1)(c) of the 1974 Act.

Final Conclusion: The challenge succeeded, the impugned High Court judgment was set aside, and the appellants obtained relief on the legal issue of applicability of the holiday-wages statute.

Ratio Decidendi: A statutory corporation is under governmental control where the enabling enactment confers pervasive powers of appointment, supervision, direction, and takeover on the Government, and that control is sufficient to exclude the establishment from a statutory regime limited to establishments under governmental control.

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