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TMI Blog1999 (4) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... ere managing agents of Bokaro Steel Plant belonging to the Steel Authority of India Ltd. Hence they were disqualified under section 10 of the Representation of the People Act, 1951. At the election, the appellant was elected from the Bokaro Assembly Constituency. The two respondents filed separate election petitions challenging the election of the appellant on the ground that their nomination papers were improperly rejected. They have succeeded in the election petitions before the High Court. The High Court has set aside the election of the appellant on the ground that the nomination papers of the two respondents were wrongly rejected. The appellant has filed the present appeals from the decision of the High Court in the two election petitions. The respondent-Rajendra Mahto (in Civil Appeal No. 7538 of 1997) was working as a Khalashi in the Bokaro Steel Plant of the Steel Authority of India Ltd. at the material time. This is a Level-Ill post in the said plant. The respondent-Ashok Kumar Srivastava (in Civil Appeal No. 7644 of 1997) was working as a meter reader in the Bokaro Steel Plant of the Steel Authority of India Ltd. This is Level-VII post. The Steel Authority of India Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rences to any individual, firm, or body corporate who, or which, was, at any time before the 3rd day of April, 1970, the managing agent of any company ; Explanation II.-For the removal of doubts, it is hereby declared that notwithstanding anything contained in section 6 of the Companies (Amendment) Act, 1969, this clause shall remain, and shall be deemed always to have remained, in force." Quite clearly, neither of the respondents is in charge of the affairs of Bokaro Steel Plant and cannot be considered as managing agent of the Bokaro Steel Plant. The rejection of the nomination papers of the two respondents was, therefore, wholly erroneous. The appellant, however, contended in the election petition that even if section 10 of the Representation of the People Act, 1951, may not be attracted, the provisions of article 191 of the Constitution are applicable to the two respondents and hence their nomination papers were rightly rejected. Under article 191(1)(a) it is provided as follows : "191. (1) A person shall be disqualified for being chosen as, and for being, a member of the Legislative Assembly or Legislative Council of a State- (a) if he holds any office of profit under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ship of master and servant. However, in that case the chartered accountant was appointed as an auditor of the two companies by the Central Government ; he was removable by the Central Government ; the Comptroller and Auditor-General of India exercised full control over him and his remuneration was fixed by the Central Government although it was paid by the companies concerned. In this situation the court said that he was holding an office of profit under the Government. The same test was reiterated by this court in the case of D.R. Gurushantappa v. Abdul Khuddus Anwar, AIR 1969 SC 744. The tests spelt out in Guru Gobinda Basu v. Sankari Prasad Ghosal [1964] 4 SCR 311 ; AIR 1964 SC 254 were relied upon in this case. This court further said that an indirect control by the Government of the company in which the office of profit was held was not contemplated under article 191. In the case of D.R. Gurushantappa v. Abdul Khuddus Anwar, AIR 1969 SC 744, a Government undertaking was transferred to a company registered under the Companies Act. The shares of the company were held by the Government. The candidate was working as a superintendent in the company. The power to appoint and dismis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es or committees over it and their composition, the degree of its dependence on Government for its financial needs and its functional aspect, namely; whether the body is discharging any important governmental function or just some function which is merely optional for the Government. In Biharilal Dobray v. Roshan Lal Dobray [1984] 1 SCC 551 ; AIR 1984 SC 385, a teacher who was employed by the Board of Basic Education under the U.P. Basic Education Act, 1972 was considered as holding an office of profit under the State on the ground that the U. P. Basic Education Act discharged an important responsibility of the Government to provide primary education in the State. The Act enabled the State Government to take over all basic schools which were being run by the local bodies in the State and to manage them as provided under the Act ; as also to administer all matters pertaining to the entire basic education in the State through the Board. The teachers and other employees were to be appointed in accordance with rules by officers who were themselves appointed by the Government. The disciplinary proceedings in respect of the employees were subject to the final decision of the State Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. This is a company incorporated under the Companies Act. Undoubtedly, its shares are owned by the Central Government. The chairman and the board of directors are appointed by the President of India. However, the appointment and removal of workers in Bokaro Steel Plant is under the control of the Steel Authority of India Ltd. Their remuneration is also determined by the Steel Authority of India Ltd. The functions discharged by the Steel Authority of India Ltd. or by the Bokaro Steel Plant cannot be considered as essential functions of the Government. Amongst the objects of the Steel Authority of India Ltd. set out in the memorandum of association are to carry on in India or elsewhere the trade or business of manufacturing, prospecting, raising, operating, buying, selling, importing, exporting, purchasing or otherwise dealing in iron and steel of all qualities, grades and types. These objects also include rendering consultancy services to promote and organise an integrated and efficient development of iron and steel industry and to act as an agent of the Government/public sector financial institutions in the manner set out in the objects clause. In this context a worker holding the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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