Air India Statutory Corpn. v.

United Labour Union, (1997) 9 SCC 377 : 1997 SCC

(L&S) 1344 at page 410

27. It must be based on some rational and relevant principles. It must not be guided by
irrational or irrelevant considerations and all their actions should satisfy the basic law
requirements of Article 14. The public law interpretation is the basic tool of interpretation in
that behalf relegating common law principles to purely private law field.

28. From this perspective and on deeper consideration, we are of the considered view that the
two-Judge Bench in Heavy Engineering case [(1969) 1 SCC 765 : (1969) 3 SCR 995]
narrowly interpreted the words appropriate Government on the common law principles
which no longer bear any relevance when it is tested on the anvil of Article 14. It is true that
in Hindustan Machine Tool [(1975) 4 SCC 679 : 1975 SCC (L&S) 377] , R.D. Shetty [(1979)
3 SCC 489 : (1979) 3 SCR 1014] and Food Corpn. of India [(1985) 2 SCC 294 : 1985 SCC
(L&S) 456] cases the ratio of Heavy Engineering case [(1969) 1 SCC 765 : (1969) 3 SCR
995] formed the foundation. In Hindustan Machine Tool case [(1975) 4 SCC 679 : 1975 SCC
(L&S) 377] there was no independent consideration except repetition and approval of the
ratio in Heavy Engineering case [(1969) 1 SCC 765 : (1969) 3 SCR 995] . It is to reiterate
that Heavy Engineering case [(1969) 1 SCC 765 : (1969) 3 SCR 995] is based on concession.
In R.D. Shetty case [(1979) 3 SCC 489 : (1979) 3 SCR 1014] , the need to dwell in depth into
this aspect did not arise but reference was made to the premise of private law interpretation
which was relegated to and had given place to constitutional perspectives of Article 14 which
is consistent with the view we have stated above. In Food Corpn. of India case [(1985) 2
SCC 294 : 1985 SCC (L&S) 456] the Bench proceeded primarily on the premise that
warehouses of the Corporation are situated within the jurisdiction of different State
Governments which led it to conclude that the appropriate Government would be the State
Government.

29. In the light of the above principles and discussions, we have no hesitation to hold that the
appropriate Government is the Central Government from the inception of the Act. The
notification published under Section 10 on 9-12-1976, therefore, was in exercise of its power
as appropriate Government. So it is valid in law.